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Ottawa, October 7, 2003
2003-050

Department of Finance Releases Third-Party Study for the Air Travellers Security Charge Review

• Independent Review of the Finance Canada Revenue Model for the Air Travellers Security Charge.

The Department of Finance released today a third-party study undertaken as part of the Government’s review of the Air Travellers Security Charge (ATSC).

The Government reduced the charge, as of March 1, 2003, to $7 from $12 for one-way travel and to $14 from $24 for return flights in Canada—a reduction of more than 40 per cent.

The study, by Dr. Geoffrey D. Gosling, provides an independent review of the Department of Finance Revenue Forecasting Model for the ATSC, as well as the Transport Canada Air Passenger Traffic Forecasting Model.

Dr. Gosling found that the Revenue Forecasting Model makes use of the best available information to assess the impact of future air traffic levels on ATSC revenues. In addition, he found that the aggregate forecasts from Transport Canada for domestic, transborder and other international air passengers provide a reasonable basis for estimating total revenue from the charge.

The study, including an executive summary, is available in both official languages on the Department of Finance Web site at www.fin.gc.ca. It is entitled Independent Review of the Finance Canada Revenue Model for the Air Travellers Security Charge.

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