Transwest Air Pleased With Fuel Tax Break

Tuesday, May 10, 2005 at 14:46



A northern air carrier is welcoming a tax break on fuel from the provincial government, but says it’s still waiting for some help from the feds.


The province announced yesterday that it’s dropping the tax on fuel for airlines from 3.5 cents a litre to 1.5 cents a litre.


Transwest Air managing partner Jim Glass says it will help his company to hold the line on prices for charter flights during the busy summer season.


Glass says what would really help his industry is a drop in fuel prices, as well as the elimination of the security tax and airport rents airlines pay the federal government.


A report this week indicated that Ottawa is planning to reduce airport rents by 95 per cent, but the decrease would only come into effect by 2010 — a plan that Glass calls “a complete joke”.