The B.C. government’s elimination of the aviation fuel tax for international flights, starting April 1, has been warmly received at Vancouver International Airport (YVR).
Larry Berg, president and CEO of YVR, said, “This commitment on the part of the provincial government will encourage new air services and increased frequencies, which in turn, offer more travel options for British Columbians.”
The B.C. government said in a press release Thursday that reducing costs for airlines, creating jobs and giving travellers more choice were key factors in the decision, announced by Finance Minister Kevin Falcon on February 21.
The elimination of the aviation fuel tax means increased competition and more flights, which translates to more seats, more choice and ultimately more competitive pricing for consumers.
Every new daily international flight creates between 150 and 200 jobs at YVR. About 400 additional indirect jobs are created in the community at businesses such as hotels, restaurants, travel agents and tour operators, among others.
The government said that the change will increase B.C.’s competitiveness and bring the province in line with the neighbouring jurisdictions of Alberta, Washington and California, which do not have a comparable fuel tax.
Additionally, the elimination of this tax will save airlines approximately $12 million in 2012-13, according to the release.
Minister of Transportation and Infrastructure Blair Lekstrom said, “We made a commitment to the aviation industry that we would eliminate the aviation fuel tax on international flights and I am pleased that the budget 2012 has delivered on that promise.
“This initiative will have a significant impact not only on YVR and the Lower Mainland, but on airports and communities across the province.”
