Expect the losses incurred as the result of COVID-19 to be reflected on the cost of airline tickets as travel slowly resumes.
President and CEO of the Gander International Airport Authority, Reg Wright, says airlines and airports will have to make up for lost revenue, lower travel volumes, and increased costs moving forward.
He calls that one of the “unhappy byproducts” of the COVID-19 pandemic. He says airports made their money from airplanes and passengers, and need to find a way to increase revenue to meet the bills.
Wright says aviation service provider, NAV Canada just announced a “significant” increase in its fees to continue to operate, all of which is handed off to the consumer.
Air Canada this week announced the suspension of a number of regional domestic routes including some in this province affecting routes between Gander, Deer Lake, St. John’s, Wabush and Goose Bay.
Tax Breaks and Incentives Needed to Boost Travel Within Canada: Hospitality NL
The Chair of Hospitality NL says incentives will be needed to help boost the tourism industry and restore confidence in safe and affordable airline travel.
Steve Denty says Canadians will need to be enticed into exploring the nation once again and provide economic relief for businesses.
He says government needs to get creative, and instead of paying people to stay unemployed, provide tax incentives and credits to get people to travel within Canada.