Inside Logistics

Montreal airports up landing fees

Cargo flights see an increase April 1


February 5, 2021
by

ADM is increasing landing fees for cargo flights. (ADM video screenshot(

Montreal’s airport authority, ADM Aeroports de Montreal, is increasing fees in an attempt to stay financially afloat during the pandemic.

ADM Aeroports de Montreal is the airport authority for the Greater Montreal area responsible for the management, operation and development of YUL Montreal-Trudeau International Airport, and YMX International Aerocity of Mirabel.

For  2020, the not-for-profit ADM estimates it will have a shortfall of $300 million. It says new restrictions, the emergence of variants of Covid-19, and the extended border closure will continue to put significant pressure on its financial performance in 2021.

Fee increases

Effective April 1, 2021, the airport is increasing landing fees for all-cargo flights. An airport improvement fee (AIF) equivalent fee of $10 per seat will also be charged for all non-terminal flights and general aviation at YUL, effective on the same date.

ADM has introduced an increase in airport improvement fees (AIF) charged to departing passengers from YUL, similar to other Canadian airport authorities. The AIF, used exclusively to fund infrastructure projects essential to maintaining safe operations at YUL, was increased from $30 to $35 on February 1.

Landing and terminal fees were also increased by 2.5 percent each on January 1.

At a crossroads

“The airline industry has been hit hard by the drop in the number of flights since March 2020,” said Philippe Rainville, president and CEO of ADM Aéroports de Montréal.

“Although a major budget rationalization exercise has reduced ADM’s operating expenses and capital budget for the coming years to a strict minimum, it is clear that stronger measures were needed to provide us with the flexibility to continue operating our airport sites. ADM is at a crossroads, although we still believe in the resilience of our industry. While these rate increases will help us, they are far from sufficient. When the time comes, we will have to train the hundreds of employees we had to let go at the beginning of the crisis to ensure adequate service when the recovery comes.”

Rainville continued by asking for government assistance.