Thorunn Howatt
Northern News Services

Yellowknife (June 12/02) - Reducing flying costs is on Northerners' minds these days.

The majority of communities in the North rely on air transport, said NWT deputy minister of Resources, Wildlife and Economic Development Bob McLeod, and aviation is also a key link to Northern tourism.

At a meeting Monday about the aviation industry's future, McLeod pointed to a $20 million loss in the NWT tourism industry after Sept. 11.

"Additional surcharges and taxes just add to the costs."

The Yellowknife Japanese aurora tourism market depends on connecting flights as well as reasonable fares. But things are not looking good.

"So far, it is adjusting downward," said McLeod. He added that last year tourism dollars were down $20 million from the previous year's $30 million.

"Air Canada can extend its power and influence without putting a cent into that market," said federal transportation independent transition observer Debra Ward.

She criticized air giants like Air Canada and pointed the finger at governments that shielded them from competition.

"It's an insanely complicated and baroque industry. It's an international cartel ... They are quite cosy with one another. The big guys don't compete -- they collude."

Yellowknife was one of the last stops for Ward, who has been touring the country talking with people about the airline industry. She is preparing a report for federal Transport Minister David Collenette about airline restructuring and competition in the industry.

Northern aviators weren't as concerned about Air Canada's presence as Ward was. Yellowknifers were worried about the costs involved with flying the Northern skies and working in a less-populated market.

Airport expansion, tourism and the cost of operating insurance were also hot topics.

"People think Air Canada is the country's flagship carrier," said Air Tindi's Peter Arychuk. But he warned, "We have a very small population. We have to be careful that we don't confuse ourselves with a population base like down south."

Competing for long distance travel in a small market is a concern for aviation business people.

"Air travel in the North is not an option. You can't take a vehicle," said the NWT deputy minister of transportation, Peter Vician.

The government should stay out of the air regulation game and let competition take care of itself.

Northerners welcome government input on air security and safety but have concerns about market restrictions.