Pearson airport boosts passenger fee 25%, trims costs
A passenger fee is going up 25 per cent at Toronto Pearson International Airport as Canada’s largest air transport hub reacts to a reduction in the number of travellers.
The Greater Toronto Airports Authority, or GTAA, Pearson’s not-for-profit manager, said yesterday its airport improvement fee will increase on June 1 to $25 per departing passenger from $20.
The authority also announced an immediate hiring freeze on its 1,200-person workforce. There also is a freeze on management salaries, and some facilities such as lightly used gates at Terminal 3 will be closed. All but critical capital projects have been postponed.
The moves are being made "in light of the current economic climate which has resulted in projections for a downturn in passenger traffic," the GTAA stated.
"Transport Canada’s passenger volume forecasts are now anticipating a 5.8 per cent reduction, which translates to roughly 1.8 million fewer trips through Toronto Pearson this year payday loan lender."
In an effort to attract traffic, Pearson is offering airlines landing-fee rebates of up to 50 per cent for new flights into and out of the airport.
The authority noted its room for cost-cutting is restricted as two-thirds of its expenses are fixed, including rent paid to the federal government, debt servicing costs and payments in lieu of taxes.
"Despite this challenge, many cost reductions have been highlighted for 2009 and more must be done."
Deferred projects include a Terminal 1 parking expansion, Terminal 2 garage demolition and planning for a new Pier G gate complex.
The fee hike is needed "to increase revenue to compensate for the downturn in passenger traffic," GTAA spokesperson Scott Armstrong said
The Canadian Press