Air Canada: Difficult to stimulate ULCC demand with high fixed base tax structure

Air Canada VP of global sales and alliances John Macleod stated it is "an issue" for the carrier to "compete against airlines that are subsidised either by their state or some other body" (Routes Online, 30-Jan-2019). Mr Macleod added it is difficult when there are "cities subsidising airlines to fly over to North America now". He said the tax structure in Canada is an "entry barrier for ultra low cost carriers (ULCCs)," adding, "it's difficult to stimulate the demand that ULCCs need when you've got such a high fixed base tax structure".