Thursday, February 23, 2012
In a move that runs contrary to current trends in public aviation policy, the province of British Columbia, Canada today announced the elimination of the aviation fuel tax on international flights. See Press Release, British Columbia News Room, B.C. Delivers on Commitment to Eliminate Jet Fuel Tax, Feb. 23, 2012 (available here). With environmental, security and passenger rights concerns contributing to the proliferation of taxes and regulatory costs on airlines in many States over the past decade this is an uncommon development and one that carriers such as Air Canada are certain to welcome. While it is unlikely that we'll see a broad shift in government policies anytime soon, the uncertain economic outlook for many airlines may prompt at least a few more States to reconsider the burden government policies impose on the industry.