Thank you.

Good afternoon, Mr. Chair and members of the committee.

Thank you for this invitation.

This year, Air Transat celebrated 37 years in business. Founded and based in Montreal, our company carries over 5 million passengers every year to nearly 60 international destinations in 28 countries, mainly in Europe, North Africa, Latin America and the Caribbean. We are guided by strong corporate values. Our customers and employees are at the heart of our concerns and all our decisions.

Air Transat's presence ensures healthy competition in the Canadian airline industry and competitive pricing in the markets we serve. We are committed to working with government and parliamentarians to preserve competition and ensure choice for Canadian travellers.

This committee has already been made aware that Air Transat, previously debt-free, is now facing financial challenges related to the impact of the pandemic, due to two years of suspended or limited operations as a result of travel restrictions. We face a high level of debt, which limits our ability to compete and grow.

We note the announcement made last week by Air Canada. We can now state that, since this announcement, all our Canadian competitors now apply some form of cabin baggage restriction or charge for certain passengers in certain markets.

The use of ancillary fees for optional services such as baggage and seat selection is common practice in Canada and for many international airlines. However, we feel it appropriate to use this forum to highlight the excessive and ever-increasing fees, taxes and regulatory burden that place the entire Canadian air transport ecosystem at a competitive disadvantage compared to other countries.

In recent years, we have witnessed a considerable increase in external fees and charges as part of Canada's so-called user-pay model, as mentioned by Mr. von Hoensbroech. For example, the air travellers security charge recently increased by 33%. In addition, charges for air navigation services have increased by almost 30% in 2023, and are set to rise again in 2025. In addition, Canada's major airports currently pay around 12% of their gross revenues in rent for Crown land, plus other payments in lieu of property taxes. At the same time, airports are making significant investments in infrastructure, and passengers are paying increasingly high airport improvement fees, which are nearly six times higher than what the American consumer has to pay.

The regulatory burden also represents a significant burden for travellers. The new requirements of the air passenger protection regulations, adopted in 2019 and amended in 2022, have also added to the bill for the air transport system. Other regulatory proposals from the Canadian Transportation Agency are currently under review, and would again result in considerable additional costs for the system.

Canada's air transportation system is essential. Canadian consumers and travellers are telling us they can no longer afford the constant cost increases we have to add to the price of an airline ticket. An airline like Air Transat, which does not dominate the market, is certainly no longer in a position to pass on these increases to its customers.

At a time when the pressure is on and airlines are withdrawing from certain markets, Air Transat's presence enables Canadians to benefit from a broader offer and make choices according to their needs and budget.

This is the approach we are taking to continually strengthen our network. We have a joint venture agreement with Porter Airlines under which we offer Canadians simple, transparent and affordable domestic and international travel options. We combine Porter's domestic and North American network with Air Transat's expanding international network. This commercial agreement is excellent news for travellers and for competition among Canada's air carriers, as it enables us to offer additional services from a growing number of cities.

To conclude, I would like to reiterate our commitment to playing a competitive and innovative role, as well as our willingness to continue working with the government and Parliament to advance the interests of the travelling public and our 5,000-plus employees.

Thank you.

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