Airport Improvement Fee Increase
Airport Improvement Fee increase
Fee to increase on January 1, 2012
July 26, 2011 (Edmonton, Alta.) — The Airport Improvement Fee (AIF) for all departing passengers from Edmonton International Airport (EIA) will increase by $5, bringing the AIF to $25. The new AIF will apply to travel beginning on or after January 1, 2012 for tickets sold on or after October 1, 2011.
EIA and other Canadian airports do not receive government funding for airport expansion or improvements. The AIF is the primary means of funding these capital projects. The AIF is applied to the price of every airline ticket purchased by departing passengers. So, revenue generated by the AIF is directly related to passenger traffic.
Although EIA’s passenger numbers are rebounding from the recession, they have not yet reached the levels originally forecast when the expansion was planned. Lower than predicted passenger traffic means lower total AIF revenue. The increase in the AIF is being implemented now to address this shortfall.
“The revenue from the AIF will give the community an exceptional, world class airport to support the region’s strong economic growth. Having said that, we know no one likes having to pay more for services,” says Reg Milley, President and CEO of Edmonton Airports.
Though lower passenger traffic has reduced AIF revenue, EIA will partially mitigate the effects of the revenue shortfall by bringing the Expansion 2012 terminal development program at least 25 per cent under budget.
Expansion 2012 will add more than a dozen new gates, allowing the airport to accommodate more aircraft, particularly at peak times. This infrastructure enhancement is a critical factor in attracting more air service to the region. Expansion 2012 will demonstrate to airlines that EIA has the capacity and infrastructure to handle more aircraft and, consequently, more air service.
“It’s important to us that the entire community see value for that money generated by the AIF,” says Milley. “When the new terminal opens in 2012, it will also open a new chapter in regional air service and be something the community can truly take pride in.”
Background information: Calgary, Toronto and Montreal airports have all previously raised their AIFs to $25. Fort McMurray Airport’s AIF is $30.