Report flags ‘shameful’ gaps in rural and northern air connectivity
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A new report by the House of Commons Transport, Infrastructure and Communities committee highlights significant concerns about limited air connectivity in rural, northern, and remote regions of Canada.
“The present cost, convenience and service in the north and to some rural and remote parts of Canada are somewhat shameful. That is holding back industry and people's social and economic life,” John Lawford, Public Interest Advocacy Centre executive director, told the committee. “We need to do more, because there are not a lot of other choices, such as rail or driving 16 hours to get to where you need to go.”
The report notes that targeted public support may be necessary. “Direct taxpayer support of the airline industry is appropriate,” Lawford said.
He argued such support would benefit all Canadians. “Whether you travel on a plane or not, it doesn't matter. Your doctor probably does, and your food probably comes in that way. There are all sorts of other benefits economically to having air connection across the country.”
The committee examined Quebec’s regional fare-discount program, which allowed airlines “to fix ticket prices at $500” through provincial incentives. While the program aimed to keep fares affordable, several witnesses questioned its long-term effectiveness.
During the committee’s study in the last parliament, former NDP MP Taylor Bachrach questioned whether competition would help in rural markets.
“The government has moved away from that interventionist approach towards this idea that competition is going to save us all,” Bachrach said. “It seems like the big loser here in both cases is rural Canada, because rural Canada's small markets aren't as profitable, and when there are decisions to be made — and we saw this during the pandemic — theirs are the first routes to get cut.”
He asked how the government could intervene on behalf of people in rural Canada to make sure they have affordable basic transportation. “Right now, people have worse passenger transportation in northern B.C. than they have had in 70 years.”
In response, Craig Hutton, Transport Canada’s associate assistant deputy minister of policy, said small markets are difficult from a profit perspective. “That cost base is much smaller. Demand has not returned to the levels that we saw prepandemic. Labour has become more of a challenge, not only for the air industry but for many sectors of the economy,” he said. “All these dynamics are playing out and are featured in the way that the member is referring to.”
John Gradek, faculty lecturer and program coordinator, aviation leadership, School of Continuing Studies, McGill University, argued that subsidy efforts should prioritize northern communities that rely on air travel for essential access. He suggested provincial governments, which understand regional needs and oversee infrastructure, should offer the first level of support, while the federal government should provide “a corresponding backstop.”
The committee made eight recommendations, including that government:
Remove barriers that limit smaller airports from competing with major hubs
Consider ways to reduce the burdens and costs on northern airports in particular