Here’s why your plane ticket is so expensive

While the strike by WestJet mechanics lasted only a few days, many Canadian air travellers faced long delays and cancelled flights. More broadly, according to the Canadian Transportation Agency, customer complaints have hit an all-time high.

Yet many dissatisfied travellers likely don’t realize that Ottawa heavily contributes to their frustrations. Let’s look at the various ways federal policies and laws make air travel worse in Canada.

First, federal laws insulate Canada’s airlines from competition. Foreign airlines are subject to highly restrictive “cabotage” laws which, for example, dictate that foreign airlines cannot operate routes between Canadian cities. At the same time, foreign investors are forbidden from owning more than 49 per cent of Canadian airlines. By restricting international participation in the Canadian air travel market, these laws both deprive Canadian consumers of choice and insulate incumbent airlines from competition. When consumers have more choice, incumbents have a greater incentive to improve performance to keep pace with their competitors.

Second, a wide array of taxes and fees heavily influence the cost of airline tickets in Canada. Airport improvement fees, for example, average $32.20 per departing passenger at airports in Canada’s 10 largest markets. In contrast, airport improvement fees in the United States cannot exceed $4.50. And last year the Trudeau government increased the “air travellers security charge” by 32.85 per cent—this fee, which now ranges from $9.94 to $34.82 per flight, is higher in Canada than the U.S. across all flight categories. On the tax front, in addition to fuel taxes including the federal carbon tax, the federal excise tax on unleaded aviation gasoline in Canada is 10 cents per litre compared to 6.9 cents per litre in the U.S. And the U.S., unlike Canada, does not apply sales taxes to aviation fuel.

Third, air travel is a heavily regulated sector. Federal legislation generates thousands of provisions airlines must follow to operate legally in Canada. Of course, some regulation is necessary to ensure passenger safety, but each regulation adds administrative and compliance costs, which ultimately affect ticket prices. To lower the cost of air travel, the federal government should reduce the regulatory burden while maintaining safety standards.

Lastly, the ownership model of Canada’s airports results in a yearly transfer of rent to the federal government. The federal government used to own Canada’s national system of airports until they were transferred to private not-for-profit corporations in the early 1990s. However, these airports must still pay rent to the federal government—nearly half a billion dollars annually, according to the Canada Airports Council. As with the other examples listed above, these costs are ultimately passed on to consumers in the form of higher ticket prices.

While a precise estimate is difficult to obtain, various government policies, taxes and fees comprise a large share of the cost of each airline ticket sold in Canada. With complaints from travellers at all-time highs, the federal government should reduce the regulatory burden, increase competition, and lower fees and taxes. Policy reform for air travel in Canada is long overdue.

Authors:

Alex Whalen

Director, Atlantic Canada Prosperity, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Up Next

Federal government’s emission-reduction plan will cost Canadian workers $6,700 annually by 2030—while failing to meet government’s emission-reduction target

Don't Miss

Federal government could balance budget and reduce tax rates with 2.3% spending reduction over two years

Todayville

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Website exposes personal information of Tesla owners, has Molotov cocktail as cursor

COVID-19 / 19 mins ago

Mark Carney was an early supporter of government crackdown against Freedom Convoy

Business / 1 hour ago

Nestlé boycott begins as activists target DEI rollbacks

Business

Website exposes personal information of Tesla owners, has Molotov cocktail as cursor

Published on March 20, 2025

Todayville

MxM News

Quick Hit:

A website called “Dogequest” has reportedly published the personal details of Tesla owners nationwide, exposing names, addresses, and phone numbers on an interactive map. The site, which appears to be targeting Tesla drivers due to CEO Elon Musk’s ties with the Trump administration, also features a Molotov cocktail as a cursor. The operators claim they will only remove personal information if the individual provides proof they have sold their Tesla.

Key Details:

The website “Dogequest” reportedly doxes Tesla owners and employees of Musk’s Department of Government Efficiency (DOGE), listing personal information and Tesla dealership locations.
The site encourages vandalism of Tesla vehicles, stating it supports “creative expressions of protest.”
Recent incidents include vandalism at Tesla dealerships, gunfire attacks in Oregon, and harassment of Cybertruck owners.

Diving Deeper:

The emergence of “Dogequest” comes amid rising hostility toward Tesla owners and dealerships, a trend that has escalated following Elon Musk’s high-profile role in the Trump administration. According to a report, the website exposes the names, addresses, and phone numbers of Tesla drivers across the United States while using a Molotov cocktail cursor—a clear symbol of violent intent.

Beyond targeting individual Tesla owners, the site also reveals locations of Tesla dealerships and supercharger stations. One section of the website appears to endorse vandalism, stating that those looking to attack a Tesla “don’t need a map” to do so. This rhetoric coincides with increasing reports of Tesla-related attacks, including a woman arrested for throwing an incendiary device at a dealership in Loveland, Colorado, and multiple Tesla locations in Oregon being targeted by gunfire.

Musk’s leadership in the Department of Government Efficiency (DOGE) appears to be a driving factor behind this anti-Tesla movement. 404 Media confirmed that some individuals listed on the site are verified Tesla owners or vocal supporters of Musk, though not all entries have been authenticated. The website also reportedly doxes DOGE employees, though the legitimacy of those claims is unclear.

Legal experts suggest that while doxing itself does not violate a specific federal law, it can lead to criminal charges under harassment, stalking, or invasion of privacy statutes. The Justice Department has not issued a formal statement on the matter, but given the escalating violence against Tesla owners and dealerships, federal authorities may be forced to take action.

Meanwhile, Tesla’s stock continues to struggle, dipping another 6% in early trading on Tuesday. Shares have now fallen more than 50% from their post-election high, raising concerns about the company’s stability amid this wave of anti-Tesla sentiment.

Business

Nestlé boycott begins as activists target DEI rollbacks

Published on March 19, 2025

Todayville

MxM News

Quick Hit:

The latest corporate boycott targeting companies rolling back their diversity, equity, and inclusion (DEI) initiatives is set to begin this week, with Nestlé in the crosshairs. Unlike previous boycotts of Amazon and Target, which focused on avoiding specific retailers, this campaign urges consumers to boycott hundreds of household products from March 21 to March 28. Other major companies, including Walmart, McDonald’s, and General Mills, are also slated for boycotts in the coming months.

Key Details:

The Nestlé boycott runs from March 21 to March 28 and encourages avoiding products like Cheerios, KitKat, Purina pet food, and DiGiorno frozen pizza.
The movement follows the rollback of DEI policies by several major corporations after President Donald Trump’s call to eliminate DEI at the federal level.
Additional boycotts are planned for Walmart, McDonald’s, and Amazon, with an “economic blackout” scheduled for April 18.

Diving Deeper:

The push for boycotts against Nestlé and other corporations stems from a broader activist response to changes in corporate policies following President Donald Trump’s directive to rescind DEI initiatives at the federal level. Many companies, including Amazon, Target, and Walmart, have scaled back or eliminated their DEI programs, prompting backlash from activist groups.

While past boycotts targeted specific retailers—such as avoiding Amazon purchases or skipping Target shopping trips—the Nestlé boycott is structured differently. Consumers are being asked to avoid a wide range of products, from Coffee-Mate creamers to Stouffer’s frozen meals and Perrier sparkling water. This more expansive approach seeks to impact Nestlé’s bottom line across multiple product categories, rather than just limiting consumer spending at a particular store.

This campaign is part of a broader wave of organized economic boycotts. A 40-day boycott of Target was launched last week, intentionally aligning with Lent, a religious period of fasting leading up to Easter. Additionally, Amazon is facing another boycott in May following one that concluded recently.

Nestlé is far from the last target. Activists have mapped out additional boycotts for General Mills (April 21-28), McDonald’s (June 24-30), and an Independence Day boycott on July 4. These efforts appear to be designed for maximum financial pressure, with coordinated economic “blackouts” meant to disrupt revenue streams at key moments throughout the year.

As these corporate boycotts continue, companies may be forced to decide between maintaining DEI initiatives to appease activists or rolling them back to avoid alienating a different segment of their customer base. With President Trump advocating against DEI policies, businesses that comply with his agenda may find themselves the target of an increasingly organized opposition.