|By PR Newswire||
|March 27, 2014 01:00 AM EDT||
MONTREAL, March 27, 2014 /CNW Telbec/ - With 75 per cent of Canada's population living only 90 minutes from the U.S. border, many Canadian airports are competing for passengers with their northern American counterparts. This geographic proximity has made prices one of the biggest competitive advantages of airports in their quest to attract more passengers. According to a Viewpoint on Canada's High Airfares and Passenger Leakage published today by the Montreal Economic Institute, taxes and surcharges are to blame for the cost difference between Canada and the U.S.
The MEI illustrates this phenomenon by comparing two typical flights for a passenger leaving from Montreal with one leaving from just across the border. When breaking down the prices of flights from Montreal to Fort Lauderdale or New York City and their equivalents from nearby U.S. airports, it's impressive to observe that Canadian base fares are actually lower or of equal value, even if Montreal is farther away from both destinations. In opposition, Canadian taxes and fees are more than twice as high as U.S. taxes and fees for equivalent flights from Plattsburgh and Burlington. These additional charges account for roughly a quarter of the Canadian airfares.
"On the same day, a passenger flying from Montreal to Fort Lauderdale will pay 36% more than if he had left from Plattsburgh. Similarly, the flight to New York City is 10% more expensive from Montreal than from Burlington," says Michel Kelly-Gagnon, President and CEO of the MEI and author of the study.
Estimates show that Canada's airline industry is losing approximately five million travellers annually who choose to cross the border into the United States to begin their journeys from an American airport largely due to the high prices of airline tickets at their local Canadian airport. The trend is more present than ever and is costing Canada nearly 9,000 jobs and $2.4 billion a year in economic output.
Many studies have demonstrated that the higher costs in Canada's aviation supply chain are mainly the result of government policies, through the form of taxes, fees and other charges. Eliminating airport Improvement fees is one of the changes that should be made to help reduce passenger leakage. "An alternative solution could be to eliminate airport rent to increase passenger traffic. Even if such a measure would deprive Ottawa of the $280 million it collects each year from rents, this would be mitigated by an extra $50 million in revenue from increased passenger traffic. To recover these losses in revenue and much more, the federal government could sell airports off to private investors," concludes Michel Kelly-Gagnon.
The Viewpoint titled "Canada's High Airfares and Passenger Leakage" is written by Michel Kelly-Gagnon, President and CEO of the Montreal Economic Institute. This publication is available on our website.
* * *
The Montreal Economic Institute is an independent, non-partisan, not-for-profit research and educational organization. Through its studies and its conferences, the MEI stimulates debate on public policies in Quebec and across Canada by proposing wealth-creating reforms based on market mechanisms.
SOURCE Montreal Economic Institute
Image with caption: "Airline ticket price differences between Montreal-Trudeau Airport and its regional American competitors for two typical North American destinations (CNW Group/Montreal Economic Institute)". Image available at: http://photos.newswire.ca/images/download/20140327_C7340_PHOTO_EN_38387.jpg
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Dec. 4, 2016 09:00 AM EST Reads: 543
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 08:45 AM EST Reads: 786
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU's GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes. In...
Dec. 4, 2016 08:30 AM EST Reads: 974
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 08:30 AM EST Reads: 761
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Dec. 4, 2016 08:15 AM EST Reads: 750
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
Dec. 4, 2016 08:15 AM EST Reads: 705
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
Dec. 4, 2016 08:00 AM EST Reads: 804
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 4, 2016 08:00 AM EST Reads: 689
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
Dec. 4, 2016 06:45 AM EST Reads: 1,228
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Dec. 4, 2016 06:15 AM EST Reads: 6,971
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 4, 2016 05:30 AM EST Reads: 1,753
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes how...
Dec. 4, 2016 04:45 AM EST Reads: 4,968
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Dec. 4, 2016 04:30 AM EST Reads: 876
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 4, 2016 04:30 AM EST Reads: 1,554
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Dec. 4, 2016 04:00 AM EST Reads: 6,226