Air Canada today commented on the proposed Ontario budget to increase aviation excise fuel taxes as well as the decision by Ontario Opposition parties to defeat the government's proposed budget. "As one of the largest private sector employers in the province of Ontario , I can say that the proposed increase to aviation fuel taxes is bad for our industry, bad for our employees, bad for our customers and ultimately bad for the economy of Ontario ," said Calin Rovinescu, President and Chief Executive Officer. " Ontario will continue to lose business to U.S. border airports and other provinces with more progressive perspectives on economic development. The approach on aviation rates, charges and taxes must go in the other direction.
"Air Canada welcomes the decision of the opposition parties to defeat the Ontario budget and its punitive increases in aviation fuel excise taxes. The proposed budget would have increased costs to Canada's aviation industry by as much as $100 million a year. Even before the budget, Ontario had the highest excise tax on aviation fuel in North America . The proposed increases to almost triple the excise fuel tax would have been passed on to air travellers and shippers, resulting in higher fares for travellers to and from Ontario , and negative economic consequences in Ontario and Canada including direct and indirect job losses.