But let me give you a snapshot of Air Canada's airport and navigation fees for 1999. Nav Canada fees grew 82 per cent. This year, there has been the added impact of rising fuel prices and therefore fuel taxes. That's in addition to all the other taxes and fees. Air transportation is extremely susceptible to increases in costs and taxation definitely plays a big part in that equation.
Airlines are also capital intensive businesses.
That fact has to be recognized in the rules and regulations affecting investment and the attraction of investment capital to fund the expansion and fleet acquisition of Canada's airlines. Foreign investment in the airline industry was the subject of some debate during the industry restructuring last fall. However, the key here is fair and equal treatment for all carriers and reciprocity so that, for example, if American Airlines wants to start a regional carrier in Quebec, Air Canada can start a regional carrier in Texas. This just makes good economic sense and safeguards Canada's ability to maintain economic benefits for Canada and Canadians. But the move to Open Skies- style agreements is an important step towards capitalizing on Canada's potential in the air services sector.