Recently, Ottawa lost its last ultra-low-cost airline as Flair shut down operations at the Ottawa International Airport. Flair had been saying they were going to leave YOW for several months due to insufficient demand to meet the airport’s high fees. In a statement, airport authorities said “YOW prides itself on keeping its aeronautical fees as low as possible, as paid by all airlines.” However, not all airlines have the same ticket prices. The essence of an ultra-low-cost airline is that it charges much lower fees than other airlines, but what is the point of a low ticket price when the airport fees make the ticket essentially the same price as a regular-priced airline?
This is a loss to Ottawa consumers as less choice means less competition, and that means higher ticket prices. An ultra-low-cost, no-frills airline might allow a family to travel and unwind when they might not be otherwise financially able to do so, particularly at a time where the cost of living is becoming more onerous. There are several other airlines operating out of Ottawa, so Ottawans will not be stranded, but taking a low-cost option away means less people might be able to fly, and if they do, they will be flying less often.
Airline fees are enacted in order to help the airport continue operations and development of its facilities. However, in 2021, Canada’s Minister of Transport gave the Ottawa Airport $12 million to help them recover from COVID-19, some of which were to go towards the construction of the airport’s light rail transit (LRT) station, a station that still hasn’t been used thanks to the Ottawa LRT debacle (which was supposed to be completed in August 2022). In 2022, the Minister added another $4 million in funding, followed by another $11 million in 2023. And yet, the onus remains on consumers to help the airport out.
The fault lies with the government continuously handing out money to airports across Canada, while the airports stretch their hands out for more money from those who wish to fly. This is costing cities like Ottawa the ability to have an ultra-low-cost airport, and might start irritating other airlines that are scrambling for ways to get consumers on their flights. There is hope now as a new CEO takes over at YOW, and Flair is already stating that they would like to speak with her and see about finding a way to come back.
The growing costs to consumers does not stop there. As David Clement pointed out during the pandemic, the federal government continues to over-regulate the domestic airline industry. Airlines that fly domestic routes in Canada have to be majority-owned by Canadian citizens, which crowds out foreign investors. As it stands, airlines must go begging to the government for handouts rather than trying to secure foreign investment, or charge more for their flights. That also means existing international carriers can’t fly domestic routes, which forces less competition, thereby allowing airlines to charge exorbitant prices for a flight from Toronto to Saskatoon.
All of these fees and taxes and regulations mean less convenient travel for people across Canada, not just in Ottawa. The departure of Flair from the Ottawa International Airport serves as a microcosm of an overregulated, expensive, and out of date air transport system that is bursting to expand after a long and stifling pandemic. It is time airports, airlines, and the government realize that punishing consumers for simply wanting to travel can no longer be the answer. A reduction of fees and regulations need to be on the table to keep people flying and bring more options to Ottawa and cities across the country.
