FEDERAL RELIEF FOR AIRPORTS WELCOMED

An airport financial relief package announced today by Federal Transportation Minister David Collenette is a welcome start, but doesn't go far enough to address Saskatchewan's concerns.

The short-term financial relief package includes deferred rent payments for large airports and deferment of outstanding payments to the federal government for other national airports, including Regina and Saskatoon.

"I'm encouraged to see the federal government moving forward to provide some relief to Canada's airline industry," Highways and Transportation Minister Mark Wartman said. "However, we are still concerned about the high cost of air security fees that have had a negative impact on Saskatchewan's airport authorities."

Saskatchewan and other western provinces have been pushing the federal government for more substantial reductions in the Air Travelers Security Charge, introduced on April 1st, 2002.

"Although the federal government implemented a reduction in the air security charge in this year's federal budget, it is still a significant cost and has discouraged air travel in our province."

The federal government's flat-rate security charge is the highest in the world at $7 for a one-way ticket and $12 for a return ticket regardless of the distance a passenger travels.

This has hurt Saskatchewan's economy, which is highly-dependant on short-haul domestic travel between centres like Regina, Saskatoon, Winnipeg, Calgary and Edmonton. The additional costs to businesses and individuals will likely continue to reduce the number of trips between those centres.

"The province will continue to work with our airport authorities and other affected groups to press the federal government to move farther on this issue," Wartman said.

-30-

For More Information, Contact:

Pamela Bishop Highways and Transportation Regina Phone: (306)787-4804