While funding announcements from the federal government have been numerous over the past few weeks, thereSA国际影视传媒檚 at least one more that Arviat North-Whale Cove MLA John Main would like to see.
NNSL file photo
Main says itSA国际影视传媒檚 time for the Government of Canada to establish a subsidy for Northern air travel, similar to the longstanding Essential Air Service (EAS) program in the U.S.
The EAS has provides a minimal level of scheduled air service, including to 60 communities in Alaska.
SA国际影视传媒�This is generally accomplished by subsidizing two round trips a day with 30- to 50-seat aircraft, or additional frequencies with aircraft with nine-seats or fewer, usually to a large- or medium-hub airport,SA国际影视传媒� according to the U.S. Department of Transportation.
Nunavummiut could benefit from a similar program because SA国际影视传媒渇lying isnSA国际影视传媒檛 an option for us up here,SA国际影视传媒� Main says.
SA国际影视传媒淚 believe that a direct federal subsidy for our Northern airlines has the potential to be a game changer, if done properly,SA国际影视传媒� he says.
His comments come as a merger is in progress between First Air and Canadian North, and a Government of Nunavut airline procurement strategy attracted only one bid from an airline SA国际影视传媒� in Thunder Bay, Ont. SA国际影视传媒� that isnSA国际影视传媒檛 already active in Nunavut, and that bid was rejected. But Main isnSA国际影视传媒檛 convinced the level of airline competition is a key factor.
SA国际影视传媒淚SA国际影视传媒檓 no expert on the airline marketplace, but I think the issues are pretty fundamental. You have relatively low volume, high operating costs, and barriers to entry such as lack of infrastructure at our airports,SA国际影视传媒� Main says. SA国际影视传媒淚 think if we see new airlines enter the Nunavut market, theySA国际影视传媒檒l be picking at the profitable routes which the existing companies use to cross-subsidize their non-profitable ones. So you could end up with cheaper travel from say, Rankin to Winnipeg, good SA国际影视传媒� but then costs to travel to other communities increase out of necessity SA国际影视传媒� bad. So more competition isnSA国际影视传媒檛 necessarily the answer.SA国际影视传媒�
