Thank you, Mr. Chair and members of the committee.

We thank you for the invitation to appear before you today to discuss the Competition Act and air travel in northern, rural and remote communities in Canada. It is a huge issue in my part of the world.

My name is George Andrews. I'm the mayor of a beautiful community in northern and remote rural Canada, and that's the community of Happy Valley-Goose Bay. It's located in central Labrador. We're a community of approximately 8,000 people, and nearly 50% of our residents identify as indigenous.

Our town grew around the establishment of 5 Wing Goose Bay and its airfields; both during World War II and today, it is a diverse, vibrant and welcoming community. While we boast many amenities that are the envy of towns of a comparable size, it is, unfortunately, our remoteness that requires these facilities and services to entice workers and workforces to live in a remote area.

For my residents, air travel is an essential service, not only to access things like health care and educational opportunities but also to build business connections and economic development. The extreme cost of airfare, limited route option availability and the unreliability of one carrier servicing Happy Valley-Goose Bay are deterrents for people who call this place home and want to work and live in this beautiful town.

Seniors and others who have limited incomes often cannot afford the travel costs to attend specialist appointments that are only 1,600 kilometres away in St. John's. We also suffer delays and cancellations of flights that cause travellers to miss medical appointments, business meetings or time with family when an urgent situation arises. Business and leisure travel incur additional costs for meals, accommodations and limited flight options, and delays to destinations outside the province result in poor connections to the rest of the world.

Our local airport authority, the Goose Bay Airport Corporation, which you'll hear from in a bit, reported that from May 1, 2024, to August 11, 2024, a period of just 103 days, 54% of the 110 flights were delayed by 30 minutes or more. This places tremendous financial stress and strain on travellers. As a municipality, we encourage business opportunities and economic development in our region. More choices of destinations, flight times and affordable fares are vital to investment in and expansion of the commerce and opportunities and current business opportunities within our community, within Labrador and within our region.

My town council recently met with the Goose Bay Airport Corporation to hear what it's been doing to address the concerns raised by residents and visitors regarding the affordability and reliability of air travel to our community of Happy Valley-Goose Bay. The Goose Bay Airport Corporation shared that they have been advocating to have these issues addressed by communicating with provincial government officials; our single provider of service, Provincial Airlines, or PAL; and Air Canada, operated by PAL. They engaged an independent aviation consultant to conduct a market assessment, and we are working with the local chamber of commerce, as well as a group of our friends in Labrador West who are also concerned with the same issues of affordable and reliable air transportation, to make air service development the number one priority.

Additionally, GBAC, our airport corporation, has submitted a brief to the Standing Committee on Transport, Infrastructure and Communities regarding the Competition Act and air travel in northern, rural and remote communities, and it is also appearing as a witness at this honourable committee today. The fare analysis conducted by InterVISTAS and shared with the town in a report showed the airfares at Happy Valley-Goose Bay's airport have increased an average of 33.1% in 2024 over 2019 fares, whereas the national average increase is only 9.2%.

We're left wondering why. Is it because of our development with fly-in, fly-out operations? We don't know. In Wabush, our neighbours in western Labrador have seen an average 47.3% increase, which, again, is over the national average of 9.2%. We believe the lack of competition accounts for a substantial increase impacting our residents. Labradorians have long had a local saying, “a little more in Labrador”, in reference to the cost of goods and services in Labrador, but sometimes, lately, it's a lot more.

I'll give you an example. Today I priced an Air Canada flight from Goose Bay to St. John's, Newfoundland, and the total cost was $1,553 at the flex rate, which is your seat and your bag. On Provincial Airlines, that same flight to St. John's is $1,281. I'm going to Costa Rica at the end of October, and I'm paying less than it costs within my own province. There are severe issues.

Our hope is that this standing committee will recognize travel as an essential service for residents of Labrador and northern communities and make recommendations to develop or reframe programs and strategies that will reduce the cost for our residents.

Again, thank you for allowing me the opportunity to speak, and I'm pleased to answer any questions.