By COPA Flight 60 Captain, Paul MacLellan
In the summer of 2002, COPA Flight 60 was advised that Halifax International
Airport Authority (HIAA) would institute landing fees for all aircraft effective
Oct. 1, 2002.
This meant a $25 fee for every landing and there would even be a similar fee for
touch and goes as well as practice approaches.
A committee representing COPA Flight 60 contacted HIAA and requested a meeting
to discuss the implications of this fee and to try to have it rescinded. On
September 10, the committee met with Joyce Carter, VP Finance and Jerry Staples,
Manager Marketing and Business Development.
Our objective was to have HIAA eliminate the landing fee or at least postpone it
until they have time to consider the issues we presented them. We asked them to
consider the following points:
a) The classification of aircraft for the fee structure may be too broad, and
they agreed to look into this and consider an under 3,000 kg category.
b) The revenue to HIAA for this category of aircraft may not be as great as they
anticipated.
c) They recognized that the fees may well result in loss of revenue for other
airport operations (taxi, car rentals, hotels, meals, fuel, aviation shop,
maintenance, etc.).
d) Rather than discouraging small aircraft from coming to HIAA, we asked that
management consider a change in strategy and encourage small aircraft to visit
by dropping the fee and adopting a policy of being friendly to small aircraft.
e) If a general policy of eliminating the landing fees for small aircraft cannot
be achieved, we asked that it at least be reduced in line with other comparable
airports across Canada. Further, we asked that special consideration be given to
local aircraft.
f) Another idea HIAA was asked to consider was to add, say, 1¢ per litre of fuel
purchased by itinerant aircraft. Not surprisingly, they had already considered
this and felt inappropriate.
HIAA emphasized their requirement to be cost effective and self-financing, as
well as fair to all of the users of the facility, including on-site businesses.
That meeting was very positive and resulted in HIAA requesting additional
information from COPA to support some of the arguments made.
On October 18, a follow up letter was sent to HIAA from COPA Flight 60 outlining
the premise of our arguments and incorporating related statistics. The main
points we emphasized were:
a) The landing fee would negatively affect traffic at the airport at a time when
traffic is already slipping behind other comparable Canadian airports.
b) The reduced traffic negatively affects local business at the airport (car
rentals, hotel, restaurant, maintenance, fuel, etc.).
c) The fee of $25 is unreasonably high for small private aircraft. We suggested
that we would be satisfied if the exemption were reduced to include only
aircraft under 2,000 kg, as this seems to be in line with the Nav Canada
breakdown of traffic.
COPA Flight 60 suggested that additional traffic at HIAA is attainable and
desirable. A small increase would offset the landing fee income projected for
the under 2,000 kg traffic. As traffic dropped significantly at Halifax
International Airport over the last five years, surely an increase in traffic
would be preferable.
To discourage a segment of general aviation from using the airport, through an
unusually high landing fee, is counter to what we would see as an improvement in
the long-term health of the airport.
While the number of aircraft under 2,000 kg suggested significant revenue for
HIAA, we were able to convince them that the cost of obtaining that revenue was
very high. Further, we were able to show that the loss of revenue to airport
businesses, based on studies done by COPA National, was far in excess of the net
revenue generated by HIAA.
We also suggested that eliminating the fee, and the resultant good will, would
actually result in an increase in traffic and revenue for airport businesses.
To be fair, while the above scenarios speculate on increasing general aviation
traffic, we recognized there are many more variables to consider. Traffic may
not increase significantly, even if HIAA promoted general aviation.
The increased gross revenue to airport operators, even if traffic levels did
increase, would not necessarily translate into direct income for HIAA (although
the indirect benefits would be hard to measure and could be even more
substantial).
The traffic mix would have to be managed so that the prime users of the airport,
the commercial operators, would not be disadvantaged through delays.
However, notwithstanding these factors, we felt HIAA would be progressive to
adopt this alternate strategy in their requirement to be efficient and cost
effective.
In our response, we pointed out that general aviation pilots do not object to
paying their fair share of costs, and recognize that we do consume services at
airports. We pay a fee to Nav Canada, and pay a premium for fuel and parts and
services, all of which helps pay for airport services and infrastructure, either
directly or indirectly. Our general tax dollars have initially constructed the
airports throughout the country.
Over the next several months, the issues were discussed internally at HIAA, and
with our COPA Flight 60 member, Arthur Van Maurik, who spearheaded negotiations
for COPA Flight 60.
On Jan. 30, 2003, Halifax International Airport Authority advised COPA Flight 60
Captain Paul MacLellan that they would grant an exemption for the landing fees
for aircraft under 2,000 kg. In lieu of the $25 landing fee, COPA Flight 60
would pay a fee of $750. This arrangement would be renewable annually at the
request of COPA Flight 60.
Needless to say, this met with the enthusiastic acceptance of the COPA members
and other flyers locally. In fact, as a show of acceptance and our appreciation,
Van Maurik has volunteered to pay the fee each year.
COPA Flight 60 will institute a fund raising process that will reimburse Van
Maurik, and in the process, generate a wider community of aviation activity.
COPA Flight 60 wishes to extend our appreciation to HIAA and particularly Joyce
Carter, for having a broader vision and helping to promote General Aviation. In
these very trying times, such cooperation bodes well for the future of aviation.
COPA Flight 60 also wishes to acknowledge the assistance and encouragement shown
by COPA National. This again demonstrates the value of a strong central aviation
voice.
Finally, we wish to thank Arthur Van Maurik for his tenacity and negotiating
skills used to bring about a fair deal for HIAA and the aviation community.