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GTAA and Air Canada ink agreement to build global hub

The agreement, which takes effect on January 1, is for an initial five-year term and includes annual fixed aeronautical fees for Air Canada


October 23, 2013
by Travel Management Canada Staff

TORONTO—The Greater Toronto Airports Authority (GTAA) and Air Canada have announced an enhanced commercial relationship to further develop Toronto Pearson as a global hub. The new commercial agreement is designed to improve customer service, offer greater flight frequencies to existing markets and open access to global destinations.

“As Canada’s largest airport, it is important to work with our air carriers to further develop Toronto Pearson as North America’s premier gateway,” said Howard Eng, president and CEO of the GTAA. “This agreement with Air Canada will allow us to continue to support our local and national economy, improve service levels for all of our passengers, and help Canada to compete globally.”

The agreement, which takes effect on January 1, 2014, is for an initial five-year term and includes annual fixed aeronautical fees for Air Canada, representing its share of aeronautical costs in relation to landing fees, general terminal charges and apron fees. The fixed annual fees may be adjusted in certain circumstances, including instances when fees for all other carriers operating at Toronto Pearson are adjusted. The first five-year term will be extended for a further five years, if agreed passenger volumes are met.

The agreement commits Air Canada and the GTAA to continued passenger service improvements, including baggage delivery and aircraft de-icing wait times.

 The GTAA continues to maintain rate setting autonomy for all air carriers and business partners operating at Toronto Pearson, including its aeronautical charges, the Airport Improvement Fee and other commercial fees for airport tenants and air carriers.

The non-exclusive agreement, which provides Air Canada the opportunity to earn rebates based on substantial incremental passenger volumes in excess of certain growth targets, maintains the GTAA’s ability to enter into similar commercial agreements with other air carriers, as well as to continue to enhance the travel experience for Toronto Pearson passengers.