Transport committee  I'm going to drive right by that one. I think that's a question for the minister when he's here. What I can tell you is that in communities—

Transport committee  In communities across the country, the response to what we're doing is very positive, Mr. Strahl. This is what the experts have said. Canada has a high tax and regulatory burden, and reorienting and modernizing those policies is going to help competition. The motion before the committee is in light of Lynx Air's failure.

Transport committee  Well, I wouldn't comment on the before or after of the sequencing. I would just observe that there is a high.... This comes from our conversations with provinces and premiers. If you look at Newfoundland and Labrador, just as an example, the citizens of Newfoundland and Labrador pay for all of their infrastructure and all of their security, and they overpay for those services while we have outdated transportation policies that subsidize rail.

Transport committee  Airport rents is the most obvious one. It has been talked about for decades, even at this committee, and you were part of the group that made recommendations to make sure that rent goes back into the industry. The excise tax on jet fuel is a tax that is not reinvested into the industry.

Transport committee  Yes, thank you. I think, first and foremost, I would submit that we have to stop going in the other direction on fees before we start talking about subsidies. This is partially what happened in Europe. Europe created this massive industry around EU261, whereby billions and billions of dollars went into that program.

Transport committee  Thank you very much, Mr. Strahl. The figure we've used is about that, publicly. We say that, for a domestic return flight, it's about $160 before the WestJet group's base fare is applied. We think that's high. Lynx thought that was high. Most importantly for this discussion, it stifles competition.

Transport committee  I think that's the record, honestly. The government does overcollect for services it provides to the Canadian traveller. I think it's about the traveller and the consumer. One quick example is CATSA. I have nothing against CATSA's leadership—they're doing their best job for the people of Canada—but that fee was raised by 29.5%, and we have questions as to whether that money....

Transport committee  I don't think there's any doubt about it. This is what the witnesses said on Tuesday. On top of that, we've fallen victim in this country to the “it's just”. “It's just $3. It's just $4. It's just $5.” We've had a cumulative impact of these fees, and the most measurable impact, Mr.

Transport committee  I have one more quick comment. Our guests are paying these fees, and they're overpaying. This isn't a tax cut or something to be conferred upon a Canadian company that you may or may not think acts in the public interest. This is about the traveller and what they're paying.

Transport committee  No one is saying that.

Transport committee  With respect to Italy specifically, we have a very successful direct flight from Calgary to Rome, which is in its second season. It's very heavily subscribed, so that's bringing a western component to Canada's connectivity to Europe. I think the reality in a market economy is that the European market was red-hot last year.

Transport committee  There is not a carbon tax for interprovincial travel. There is a carbon tax for intraprovincial travel. I believe it exists from Toronto to Ottawa. For intraprovincial flights in our industry, it does apply as part of the backstop.

Transport committee  We don't sit around and calculate benefit when an airline fails. As I said in my remarks, we are the company that succeeded. So many others have not. It's not a day of joy around our office when an airline fails. Actually, competition makes us stronger. I'd submit to this committee that we've made Air Canada stronger.

Transport committee  What's of value here, Mr. Williams, is what the American carriers have to say about why they avoid Canada. Their testimony, whether it's the president of Southwest or JetBlue or what have you.... These are some of the most successful low-cost carriers in the world. Their public comments about why they avoid the Canadian market and how they serve from American airports is the most critical testimony you could find.

Transport committee  Thank you, Mr. Chair and members of the committee. Thank you very much for having me here today. My name is Andy Gibbon. I am the vice-president of external affairs for the WestJet group. We are pleased to be here to express our views on the state of airline competition in Canada.