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2012-10-05 at 10:19

Airports need competitve edge: McFadden

By Jeff Labine, tbnewswatch.com
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THUNDER BAY -- The president of the city's airport says business might be better if they had the same competitive edge as their U.S. counterparts.

A recently released reported by Conference Board of Canada shows that more Canadians -- about 5 million every year -- are driving across the border into the U.S. to catch cheaper flights.

Thunder Bay Internatinoal Airport president Scott McFadden said that puts pressure on the local airport to find ways to influence ticket prices. Eliminating the airport improvement fee and having a low aeronautical fee were two ways the airport did that.

But that doesn't appear to be enough.

One of the biggest advantages American airlines have over their Canadian competition is federal funding. The American airlines receive it, while Canada's airlines do not.

“This is an issue of Canadian competitiveness,” McFadden said. “We know that we have a significant amount of people driving to Duluth and Minneapolis. The question then becomes how much better could the airport be doing if we weren’t competing with an airport that is currently getting about $65 million in state and federal funding."

He added that the Canadian rail receives billions in federal dollars, while the air transportation sector has been used by both the federal and provincial governments as a source for short-term cash. 

“It’s not just the federal government but provincial government as well. It’s unfortunate because the air sector has a very significant impact in terms of job creation.”

McFadden said one daily flight with a 19-seat aircraft can create 33 full-time jobs, but unfortunately those jobs are in Duluth and in Minneapolis instead of Thunder Bay.

Despite the competitive advantage, McFadden said the airport is doing well. The airport is experiencing strong growth when compared to other Canadian airports. By the end of the year he said he expects they will have a record amount of passengers come through at more than 170,000.

United Airlines announced it would offer flights from Thunder Bay to its hub in Chicago starting next year.

Having those flights is believed to be more convenient for travelers who are opting to drive into the U.S. But keeping United will mean that the community has to support it.

 

 

 

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Comments

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tiredofit says:
Humm.. let's see, round trip from Thunder Bay to Vegas - $900.00. Round trip from Duluth - Vegas (on sale) $120.00.

Pretty straight forward if you ask me. Sure, it takes 4-5 hours to drive, maybe $75-$100 round trip for gas, but it's still at least $600-$700 cheaper, and that could cover the entire cost of you hotel and meals!
10/5/2012 10:33:52 AM
outside looking in says:
Its not all about the money. Last time I flew to Florida from Thunder Bay I had to run around in Toronto to collect my luggage, run to clear customs then go to check in again to return luggage for flight to Tampa then go through security again and hope to make my connecting flight. What a hassle and never again. Next time I will cross the border first then fly. Much simpler and easier.
10/5/2012 10:44:19 AM
keiths31 says:
This is one area that the Canadian dollar being at high levels hasn't helped with dropping prices. I was planning on going to LA next year with my family, and to fly from Thunder Bay to LA (with a stopover in Toronto) was going to cost $4100 round trip. I heard that flying through the USA was cheaper, so I went on an American airline website to get a price. Out of Minneapolis, for the five of us, was going to cost $2200 round trip. Even with driving down and staying over night on the way there and on the way back, it was far cheaper. I am all for "buying Canadian" but saving almost half was too much to pass.
10/5/2012 10:44:47 AM
CM Punk says:
We live in Thunder Bay and screwed geographically in the sense that we gotta go to Toronto and then start an international flight.

Its cheaper for me to fly to Minneapolis, park my vehicle there and pick any flight non stop almost to almost any destination.
Hard to beat that.
TBay airport will never "international" in that sense.
10/5/2012 10:49:59 AM
sandwiches1123 says:
This is great. The president of the local airport authority is commenting on an issue that focuses on national statisitcs. It is not as if our local airport is losing $5 million travelers a year. Outside looking in has a good point as well. The US has so many direct flights between major centres (and there are more major hubs) that it ends up being more convenient. We are 6.5 hours or so away from a major Northwestern Hub, but think about Southern Ontario for example. Windsor is across the river from Detroit, Hamilton is relatively close to Buffalo. With airport fees, the fact that we have fewer natural hubs that fly internationally, and the competition in the US resulting in lower air fare, I can see why people choose to drive to the US and fly from there.

If the Federal government is going to subsidize air travel in Canada then they should have the authority to intervene in labour talks without getting lambasted. "Taxpayers can pay for it but can't get invovled" - Bad mentality.
10/5/2012 11:27:48 AM
dynamiter says:
With all of the regional carriers and specialty carriers ( Canada 1 etc) having gone broke we are kind of screwed especially in TBay. Even if you can get a good flight you have to bounce around different airports. Try to get from TBay to Phoenix, LA, San Fran, Dallas - you have to bounce around or get up an ungodly hour to get a flight out of TO ( so sometimes you go backwards). Even if you get a good outgoing flight with a Canadian airline you may have to overnite on the way home in Calgary or TO. There is no integration and no wonder TBay folks go to Duluth and Minnie. Simply reorganizing some flight schedules might keep people from making the drive even with the higher costs up north.
10/5/2012 11:28:11 AM
Bailey says:
I'm surprised that they didn't mention a difference in wages paid to pilots etc. in the US. I believe they are paid much less in the states.
10/5/2012 11:45:22 AM
CM Punk says:
We live in Thunder Bay and screwed geographically in the sense that we gotta go to Toronto and then start an international flight.

Its cheaper for me to fly to Minneapolis, park my vehicle there and pick any flight non stop almost to almost any destination.
Hard to beat that.
TBay airport will never "international" in that sense.
10/5/2012 11:57:05 AM
ngb says:
It's not just flights to the US that are difficult from Thunder Bay. Try flying to Saskatoon from here. I think there is one flight that is direct (except for waiting on the tarmac in Wpg for a while), but it's at a horrible time of morning. The rest go through either Toronto or Calgary or both. Having said that however, I'd still rather live here with clean air, water, etc. and put up with slightly inconvenient air travel from time to time.
10/5/2012 1:06:46 PM
dynamiter says:
NGB - you are absolutely bang on. We are just a small cog - one that gets treated that way and overlooked a lot by Air Canada and Westjet. If they really want our service the boys at the TB airport need to complain more to AC and Westjet. Flights to TO now leave at 5:50 am when you are connecting elsewhere in North America. Try to get to Calgary or Edmonton using Aeroplan or Airmiles or the discount price - the one good flight ( ie without long stopovers or going through TO ) is alway sold out. Seems to me that there is enough traffic to encourage these airlines to look at these routes - both outgoing and incoming routes. I have friends that fly out of Duluth to Phoenix because they cant get a return flight that does not overnight in Calgary. All because the return flight leaves Phoenix 1 hour too late for the connection to be made to Thunder Bay. They would pay the extra flight costs not to have to drive to Duluth but there is no choice. Wait until United starts flying to Chicago.
10/5/2012 2:14:33 PM
jimmyboy says:
Okay I have to ask...what portion of the 5 million who drive into the USA fore cheaper flights does McFadden believe he is missing as his customer base.???

SO much once again for our airport to be truly classed as an International One...if it weren't for winter time charters...there would be no flights our of Canada from Thunder Bay.
10/5/2012 2:15:57 PM
humnchuck says:
Try visiting Duluth Airport (or even just drive the parking lot) over Christmas or March Break, Jimmy. There's a lot of Canadians flying out of there.

Your second paragraph makes no sense at all, but I think you might be asking if we are still classed as an international airport. There are the regularly scheduled sun destintation charters via Westjet and Sunwing and whomever else is running them. Beyond that, United Express starts daily service to Chicago O'Hare in mid February 2013. So...yes we are still an international airport.
10/5/2012 4:10:50 PM
The Wolf says:
This is the part that kills me every time I read about a company or business that claims to lose money because of my actions.

EX- I want to take my family to San Diego for a trip. To fly out of T-Bay with Gougeyou Air will cost me $5000 just to fly. I can not afford that so the trip is off and we decide to drive to Winnipeg to do some shopping and see a CFL game and take in some local entertainment. Wait I see a seat sale out of Duluth, the same time and destination for $2400 on Fly&save Air after exchange, Well I can afford that and book my San Diego.

So with the given example above please someone explain to me how Gougeyou Air lost money because of my choice to fly with Fly&save Air? The reality of the fact is I could not afford to use their services, the business that actually can claim they lost my money are the ones in Winnipeg that will not be getting it because I didnt go there.


10/5/2012 3:51:02 PM
GT says:
I think that everyone is aware of the real issue. Our airlines charge a great deal more for flights than the US carriers, plain and simple. Why would I even consider flying from Thunder Bay for double or sometimes triple the cost? It is not realistic for anyone when you can park your vehicle in Duluth and get a van ride to Minneapolis if needed for next to nothing.

Case in point, the last time I wanted to fly to Turkey via Air Canada I had to go through two Air Alliance affiliates at a cost of $3500+ just leaving Toronto then stopovers twice, or just $1300 return with Turkish Air out of Toronto direct. Flying out of Thunder Bay through Toronto to Columbus, OH was going to be $2200 return, from Duluth $600. That equates to $1600 dollars for 10 hours of driving less meals & gas. I don't make $160/hr; do you?
10/5/2012 11:09:53 PM
inmyhumbleopinion says:
We fly to Las Vegas twice a year and ALWAYS fly from Duluth. They since changed the time of that flight and we got home last time we flew so we decided we would fly from home this time. WELL its twice the price and in order to get any of the discounted flights we have to leave really early and sometimes overnight somewhere on the return flight. Its totally ridiculous! I would rather fly from Duluth everytime than give away my hard earned money to an airline that overcharges. Even with all extra costs (gas, parking etc) its still much more affordable...therefore allowing us to go twice a year! If we had to fly from Thunder Bay we would go once every 10 years!
10/6/2012 10:08:01 AM
ranma says:
What would really help is if we had our own oil refineries in Canada. Doing that would allow us to actually have a substantial discount on gas. We are the only oil producing nation in the world that does not refine their own oil. We sell our oil to the USA, and buy it back as gasoline. It's like giving a store your water, and them selling it back to you as pop or juice, because of how CHEAP the oil is being sold to the USA.
10/6/2012 1:22:48 PM
SomeGuy says:
We do have our own oil refineries in Canada so what ever your are talking about is false.
10/7/2012 12:06:01 PM
wrenchman says:
I have flown from minn. to Hawaii and it took only twelve hs. For more money from T.B it would have taken 24 hrs. and would have to stop at every major airport across Canada to get there.. So I guess it would cost more as you go the wrong way first (toronto) then go west, change how many diff. planes and wait time..at all these air ports. If you are going to spend the money you want all the time at your Destination not on a plane. That takes 2 days of your trip there and back....
10/8/2012 3:24:09 PM
CJ says:
Getting an edge should be easy. Stop gouging people.
10/9/2012 9:01:42 AM
Conker2012 says:
I wonder if those CF-18s that refuel here usualy 1-2 times a days are paying the aeronautical fees that the commercial air lines do? Maybe they should pay a fee for every practice landing they make. If the citizens have to deal with the noise of these fighter jets we should get a discount at the airline ticket desk as a result.

Living on the south side of town having to deal with the flight path noise is something we have to accept, but their is no reason these jets need to be reving up their engines to practice aborted landings. It is excessive and I HOPE the airport is charging the airforce a great deal of cash for having those stupid jets land here.
10/9/2012 9:40:45 AM
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