B.C. delivers on commitment to eliminate jet fuel tax

Economy, Transportation Thursday, February 23, 2012 7:00 AM

VICTORIA - British Columbia has delivered on its promise to eliminate the aviation fuel tax for international flights, reducing costs for airlines, creating jobs, giving travellers more choice and supporting the 'Canada Starts Here - The BC Jobs Plan' goal of expanding markets. The change is effective April 1.

Each new daily international flight creates between 150 and 200 new jobs at Vancouver International Airport (YVR). About 400 additional indirect jobs are created in the community at businesses such as hotels, restaurants, travel agents and tour operators, among others.

The elimination of the aviation fuel tax means increased competition and more flights, which translates to more seats, more choice and ultimately more competitive pricing for consumers. This change increases B.C.'s competitiveness and brings the province in line with the neighbouring jurisdictions of Alberta, Washington and California, which do not have a comparable fuel tax.

B.C.'s proximity to the Asia-Pacific region makes the province ideally situated to take advantage of a growing demand for Canadian products such as coal, forest products, seafood, liquefied natural gas and potash. More flights will give B.C. businesses greater access to foreign markets, including the growing economies of China, India, Korea and Japan.

The change provides greater financial certainty for airlines, allowing them to invest in expansion with more confidence. The elimination of this tax will save airlines approximately $12 million in 2012-13.

YVR is an important economic generator for B.C. Since the government announced plans to eliminate the aviation fuel tax and support YVR's growth plans in September 2010, the airport has signed agreements with 22 airlines to encourage the expansion of flights to YVR and create new jobs for British Columbians.

The Province has invested $65.5 million to improve 36 airports throughout the province in the past decade. Completed improvements include projects in Prince George, Kamloops, Cranbrook, Campbell River, Comox, Castlegar, Kelowna and Abbotsford.


President and CEO, Vancouver Airport Authority Larry Berg -

"On behalf of Vancouver Airport Authority, I congratulate the B.C. government for delivering on its promise to eliminate the aviation fuel tax for international commercial flights operating out of B.C.'s airports. This commitment on the part of the provincial government will encourage new air services and increased frequencies, which in turn, offer more travel options for British Columbians."

"Expanded air service to and from YVR contributes substantially to British Columbia's economy, with every new daily international flight creating between 150 and 200 jobs at the airport."

Claire Newell, travel expert, author and owner of Travel Best Bets -

"This is great news for consumers. Air travel provides both a personal experience and a way to connect communities. When taxes are lifted, costs drop, giving people more opportunities to explore the world."

Quick Facts:

  • B.C. enjoys a significant competitive advantage as the ideal gateway connecting the Asia-Pacific region and North America.
  • YVR is Canada's second-busiest airport and welcomed 17 million passengers in 2011, facilitated more than 296,000 aircraft takeoffs and landings and handled 224,000 tonnes of cargo.
  • YVR recently announced plans for $1.8 billion in improvements over the next 10 years. The airport anticipates serving more than 23 million passengers and moving 392,000 tonnes of air cargo annually by 2020.
  • 23,600 people work at YVR, equivalent to the size of a small city such as Courtenay, B.C.
  • 400 businesses operate at YVR.
  • YVR annually contributes $1.9 billion in GDP to the Canadian economy.

Learn more:

Canada Starts Here - The BC Jobs Plan: http://www.bcjobsplan.ca/


Kate Trotter
Government Communications and Public Engagement
Ministry of Transportation and Infrastructure
250 356-8241

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