Toronto Pearson International Airport (Image: Tobin Grimshaw/AP)

The Canadian Government has said it will look into alleviating the high cost of flying in an attempt to stem the flow of Canadian travelers flocking to US airports in search of more affordable air travel.

Although no details have been given as to what exactly the government is hoping to accomplish, Canadian Finance Minister Jim Flaherty said Ottawa was “concerned” by the exodus of passengers traveling stateside for flights, the Toronto Star reported.

According to the newspaper, the aviation industry has been for years pleading with governments to lessen the burden high taxes and fees have placed upon Canadian airlines and airports.

However, with the country now facing large budget deficits, many believe the administration will struggle to pass on any significant reductions in ground rent and tax breaks to the nation’s carriers and major hubs.    

In its recent report ‘Driven Away: Why More Canadians Are Choosing Cross Border Airports’, The Conference Board of Canada (CBoC) estimates some five million Canadians cross the border annually to fly from US airports. 

Joining the ranks of airlines and airport operators worried about the current state of Canadian travel, the CBoC recommends in its report reducing taxes and fees, re-examining the trans-border Air Travellers Security Charge, aligning Canadian aviation policy more closely with that of the US, and modifying airline pricing strategies.

By adjusting Canadian airline policies, the report estimates authorities could retain around two million of the travelers currently seeking better deals south of the border.

“Cross-border air-fare shopping is being driven by a perfect storm of factors that also includes differences in wages, aircraft prices, and industry productivity as well as U.S. aviation policies,” study author, Vijay Gill, told the Star, saying governments in Canada could no longer ignore the price disparity.   

“For air carriers flying from American airports, these add up to a 30 per cent cost advantage.

“There is a growing recognition within the policy circles that this is actually real and apparent and people do react to prices.”