If I were to book a flight from here to Ottawa in about two weeks time, staying south for a month, airfare would cost me between $3642.00 and $5298.00 plus additional taxes and fees. In practical terms this means that for the four of us to go visit my family in Manitoba it would cost us roughly between $14,000.00 and $20,000 (plus) just to get to Ottawa! By comparison, a quick look online found me an airfare from Toronto to Sydney Australia for $1466 (plus) and that is without searching more than one site.
Airfare and transportation costs are finally getting some attention up here. I've heard that industry and government are having informal meetings on the topic this week. As well they should, for airfares impact absolutely every aspect of our lives up here. I wish I could tell you that I'm optimistic that change is in the wind, but I'm not. Personally as much as I believe that the Nunavut government has good intentions, I just don't believe that the political will or innovative thinking needed at the Federal Government, the government responsible for transportation issues. It should.
High airfares (and they are certainly the highest in Canada and if you know of higher comparable fares in the world I'd like to hear about them) impact every aspect of our life up here. Absolutely every aspect. Every Territorial Government program has less money too deliver their programs available because of the amount they spend on transportation. Every Federal Government program delivered up here has less money available from their budget because of the unreasonable amount of money they need to spend on transportation AND isolated post allowances, which are based on full fare airfares. If I was to still work for the RCMP, judging by what I saw on line for local airfares I would receive in the neighbourhood of $22,000.00 twice a year for isolated post travel.
I would dearly love to know what both governments spend annually on air travel. Just think of the program delivery that could happen, programs that are need if that travel was even halved. And it is not just government, but NGOs, Beneficiary organizations, and businesses. Personally I'm surprised there isn't more outrage up here.
If a store needs to bring up a repair person, that gets added in to the cost of my groceries (and before anyone jumps on me to say that those costs are spread out over the entire organization, say the Northwest Company, I know. But still, lower those costs all over Nunavut and the average goes down. So, in theory, should my grocery bills. Housing, or lack of it, is a major major issue up here. Yet still a lot of the carpenters, trades people or trainers come from down south. How many more housing units could be built once the travel budgets halved?
Medical Services? Discounting the costs of travel for Nurses, relief nurses, doctors, technicians, equipment specialists etc, Just think of the cost in patient travel. Then think of the medical service we could have if those costs were halved.
I understand that it is more expensive to operate up here (but a large part of that come from the transportation costs). The economics of scale enter into it. Places like Arctic Bay are staffed by the airlines for one or two flights a day, as opposed to many flights in southern cities. But I don't care what anyone says, it doesn't cost $1000 more per person to fly an ATR the 900 kilometres from Iqaluit to Arctic Bay (Nanisivik is the airport) than a 747 to Sydney Australia from Toronto.
So what to do?
First of all, we can't rely on the airline's good graces to rectify the problem. They've clearly demonstrated that they are going to act in the best interests of themselves. Fares are much cheaper where there are competing airlines (and roads), when competing airlines moved into some communities in the Baffin fares immediately dropped. I guess they must be losing money now. Large bonuses to airline executives, which they justify by pointing to the large profits they've made, clearly show that they aren't in this for the betterment of Nunavut. (and I know they aren't supposed to be).
I have heard talk that fares at 60% are now being offered to government employees and their families. Although any downward movement of fares for a large segment should be applauded, the cynic that is deeply entrenched within me notes that it is just to government workers at a time when the Territorial Government is paying greater interest to the industry. Of course they wouldn't be possibly thinking about currying favour or creating greater sympathies for the industry amongst the very people who might be going to do something about it.
So that leaves us, and Government. Now in a true free market (such as I understand it) we have power as consumers. We could choose alternate carriers, or alternate modes of transportation. Don't like the cost, fine don't use them. But that doesn't exist here. Air travel is essential in Nunavut. Communities are isolated, there is no road system, and the ocean over much of it is frozen for nine months of the year. In order for government to deliver their services and business to deliver their goods it must travel (mostly) by air. And where I live, there is no alternative. Here, the carrier is First Air, or a charter company. And that leaves us with a monopoly on an essential service. As a consumer I can choose not to travel, and I have. Well not really, the price has chosen for me. And it irks me, more than irks me really. My father turns 80 this year, and my mother, er I'd rather not say. But you get the point. I want to, and cannot, visit my family.
So Government. A lot of people have a problem with government "interference" in business. I don't. Personally I see government's biggest role as seeing that all of the country's citizens have access to the same standard of living. Not exactly, but my god it should be closer than it is. And we've already established that air travel is essential, and depriving Governments and everyone else of money to deliver their programs or live their lives. Far in excess of everyone else.
How should they go about it? The most common solution that you hear bandied about these days is subsidies. No. Let me reiterate that No. No No No No No. Subsidies are not going to solve the problem, and will only exasperate it. Government will spend more money, and programs will have less money for delivery. An individual like myself will benefit, I could travel to see relatives for less money. But I'll also lose, because there might be less money for my children's education and the like. And it will certainly not encourage the carrier from reducing fares. If they get their money regardless, they might even be encouraged to raise prices, forcing the Government to pump more money into subsidies. Of course with larger profits an air carrier can pump more money into the economy. At least in the economies where the company directors and executives live and vacation.
So that leaves a second option. Regulation of air fares. Air fares in this country used to be regulated but that was done away with years ago. But oh no, I can hear someone say, "deregulation helps free market economies. Governments need to stay out of the system for it to work". Yeah deregulation really helped in the financial industry south of the border. Now we're in a global economic meltdown. Yay for deregulation.
Tell them how much to charge per route. They'll fuss, and fight it. But at the end of the day, with the right political will in Ottawa (with plenty of encouragement and prodding from the GON) everyone will come out ahead. Tax dollars will go farther, sovereignty will be strengthened (because it's built on people's lives and encouraging peoples lives up here will strengthen Canada's claim to the Arctic), and eventually the economy up here will be more robust. Exploration and mining companies dollars will go farther also (I realize of course that much of their travel is by charter, but the general reduced costs of day to day life up here will benefit them as well).
The last option (and one to counter any threats of "Regulate us and we'll close down shop up there.") is for the Federal Government to operate their own carrier. Do it at a loss, and they'll still come out a head. Their Isolated Post Allowances will be sharply reduced, more social programs will be delivered, giving them more bang for their buck and perhaps less of a need to increase budgets for the delivery of their programs, and this part of the country might get a chance to return more to the rest of Canada instead of taking more. I know, the government operating a business, horrors. Look at it this way, its a relatively small business, and it would go a long way to making our lives up here, as valued as those in the south.
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Here’s a roughly comparable fare. Return London to Ascension Island booked less than 28 days before travel is £2001.00 (CAD 3663.58)
http://www.ascension-flights.com/
p.s. The only flights to Ascension Island are operated by the government (Royal Air Force).
A very interesting post Clare. Interestingly, I was looking up airline prices yesterday. I was curious about the cost of flying to Nuuk. Since I know you can longer fly there from Iqaluit I looked up Air Greenland I believe it was and found one-way flight from Copenhagen to Nuuk for about CAD 1206. Flight time is comparable to flying Ottawa-Nanisivik. Compared to what I’m used to seeing, this is an absolute steal of a bargain.
I could go on about how every time I Iook up the Scandinavian world online or see it on tv, I’m always struck by the differences in services and quality of life between Canada’s North and Scandinavia. For a supposed first world nation, this is really sad. Clearly, this country has a long loooooong way to go.
Yeah… traveling @ 60% … I know teachers get a discount through First Air (as we bargained for it)… and although it claims to be 40% off (HAAHAA!) it’s 40% off the highest possible airfare .. which equals the normal Yclass airfare after all adjustments have been made.
So are we getting a discount? Hell no … well, of course you are! you are getting a 40% discount of off a first class ticket on an 18 seater ATR (uh …. and where exactly is this first class seating?)
I think most people are fed up with the airlines up here. I do get subsidized going south, but that limits me to only twice a year (and I know that’s nothing to complain about compared to people up here, but the to rest of the world it’s ridiculous) and if family ever wants to come up, forget it!
The worst part is how nameless airlines act like the Northern mafia, dictating what can come in and out of the north. I also can’t stand how they jerk you around when your flying to a smaller community, canceling flights due to mystical non-existent weather, when in reality they probably just couldn’t fill all the seats in the plane.
And the frills they add on as to not make it feels as though your getting robbed! If they could reduce the cost of a ticket and save me the bonbon at the end of the flight, it might be worth it.
Oh and I forgot to mention, awesome post! I enjoyed reading it! Thank you for sharing your thoughts!
Thank you very much for that info bnsr.
Thanks for those figures Darcy, check out Johanna’s comment in the next post, for a cheaper way to get to Nuuk.
Thanks Kennie, I’ll have to look into it further. I thought Leah had mentioned a price which did sound like 60% off the lower fares. She had mentioned someone who had taken advantage of it. Time for me to do more digging.
Hi Jen, Interestingly most of the flights up here are quite full. I knew a girl who waited a couple of weeks or more at the airport in Iqaluit trying to get back here on standby. I’ve also not even broached the topic of freight rates (partially in fear of an aneurysm. One of the excuses that is bandied about is the amount of “make up” planes for planes that miss here. Missed planes are a frequent occurance, and in the past when there was a jet service planes did try again the next day. Now that it is almost a daily plane it is a rare occurance (unless freight really backs up). Even worse is how people who missed planes keep getting knocked to the back of the line, compounding weather delays even further.
great post..and then there are airlines that refuse to upgrade..its annoying, we still cant fly on aeroplan miles with Calm Air cause freaking airline wont upgrade their ticketing system..its annoying!
Thanks Aida. The problem with this topic is that I could write about it constantly. But if I did I’d probably explode at the desk. At least its getting some attention, which if nothing else seems to be making some people squirm.