OTTAWA - The National Airlines Council of Canada ("NACC"), welcomes the federal government's decision outlined in Canada's Federal Budget to increase funding to the Canadian Air Transport Security Authority (CATSA). Aviation security is an essential service in Canada and the announcement that the Government of Canada will assume new security costs directly, rather than through new costs for air travellers, demonstrates the federal government's recognition of its responsibility in this matter. While the government's funding commitment is limited to 2009-10, the NACC advocates for a permanent federal fund dedicated to aviation security.

"CATSA plays a vital role in ensuring secure air travel and we applaud the federal government for moving towards an air security funding model more in line with those of other countries where security costs are considered a public good", said George Petsikas, NACC President.

Unlike in other transportation sectors, airline passengers see the costs of security reflected directly in their ticket prices through the Air Travellers Security Charge (ATSC). Air travellers pay $400 million per year in ATSC and a total of $2.3 billion has been paid since the introduction of the charge. NACC believes that the ATSC should be funded through resources available in the consolidated revenue fund - consistent with other countries' approach.

The government's decision to finance an increase in CATSA funding without passing costs through to commuters reinforces the need to ensure that CATSA is serving the security interests of Canadians in the most effective way possible. The NACC is prepared to begin working with the Government of Canada to undertake a review of CATSA, including an analysis of comparable safety authorities in Canada's trading partners.

The federal budget also includes a significant funding increase to the tourism sector, an initiative that is commended by the NACC. "Tourism represents an important economic activity in Canada with close ties to the aviation industry," stated Mr. Petsikas. "All regions of Canada stand to gain from the development of tourism and the establishment of Canada as a hub for international tourism."