Border battles

The federal and provincial governments aren’t making things easier for Canadian airports, says Scott McFadden, president and CEO of the Thunder Bay International Airport Authority.

With the federal government upping security fees earlier this year and the province adding eight per cent to flight costs with the adoption of the harmonized sales tax, combined with the loss of direct service to Minneapolis, it’s no wonder more travellers are flocking to Duluth or Minneapolis to fly.

"In excess of 20,000 people drive from Thunder Bay to Duluth or Minneapolis or other place in the United States to fly from those airlines," McFadden said Monday, following a Globe and Mail report that showed about 2.3 million Canadians – or one in six people heading to a U.S. destination – fly to or from a U.S. airport.

"This year it’s particularly worrisome because we did lose our trans-border service from Delta. So we view that as a step backward for our community."

In February the Conservative government tabled legislation that added new security fees ranging from $2.58 to $8.91 each way per passenger. Travellers were already paying up to $17 each way in security fees.

A quick comparison of airline rates show a marked difference in flight rates to the same destination flying out of Thunder Bay, Duluth and Minneapolis.

For example, a return ticket to Las Vegas, flying out of Thunder Bay on Feb. 4, 2011 and returning a week later, costs $579.59 when booked through Air Canada’s website. On West Jet it costs $621.61. Flying out of Duluth, booked via Expedia.ca, it costs $428, while a Minneapolis departure on U.S. Airways costs $297.

All funds are quoted in Canadian figures. Most American airlines have added fees for baggage, a practice Canadian airlines have also begun to adopt.

Orlando, another popular destination for winter-bound tourists, shows similar results. Disney-happy passengers can get there for $414.24 flying from Thunder Bay on Air Canada, $443.53 on West Jet, but just $377 from Duluth and $248 from Minneapolis.

This makes a huge difference for travellers on a budget, McFadden said. Plenty of Minneapolis hotels offer park-and-fly rates, so even adding in the gas and hotel costs, families can still save a lot of money going the U.S. route.

"If you’re family of four or five making that drive, your costs are now stable. There are hotels in Minneapolis that offer free parking, and you can visit your favourite shopping centre while you’re there. For a family on leisure travel, it’s fairly easy to come to the conclusion that the savings are worthwhile," McFadden said, adding that he’s noticing plenty of business travel, particularly when heading westward, starting to choose the American option.

However, a local travel consultant said a quick check with her colleagues suggests little or no change recently.

"No more than normal," said Marlin Travel’s Wendy Steppler. "Maybe out of Toronto they’ve got a couple of other options with Detroit and Buffalo being close, but it’s not that better a deal for people out of here. And the risk of driving in the wintertime is always high too."

McFadden estimated overall passenger traffic at the Thunder Bay International Airport is up between six and seven per cent this year, though he couldn’t provide a breakdown as to the ultimate destination of people flying out of the city.

Still, the numbers could be better, he added.

"I think if governments in Canada recognized there is a limit to how much prices can go up before people start to find alternatives, there’s an opportunity for them to increase tax revenues by decreasing specific taxes on the aviation sector.

"If all of those people who are currently flying out of the United States flew out of Canadian airports with Canadian airlines, the net impact on an economic basis is very large, and that includes the impact on the taxes that are paid on these transactions."

Following is a list of comparative flight quotes for trips to Orlando and Las Vegas:*

Thunder Bay to Orlando
West Jet: $443.53
Air Canada: $414.24
Duluth to Orlando
Expedia.ca: $377
Minneapolis to Orlando
Expedia.ca: $248
Thunder Bay to Las Vegas
West Jet: $621.61
Air Canada: $579.69
Duluth to Las Vegas
Expedia.ca: $428
Minneapolis to Las Vegas
Expedia.ca: $297

* All flights based on return airfare, taxes and charges in, booked in Canadian dollars and scheduled for a Feb. 4, 2011 departure and Feb. 11, 2011 return.