Yellowknife (Dec 24/04) - A Northern air carrier says it may have to pass the expense on to passengers if the territorial government charges additional landing fees to pay for renovations at the Yellowknife airport.

Gary Reid, vice-president of customer service for Canadian North Airlines, said they haven't figured out all the math yet, but some preliminary estimates show landing fees may increase by as much as 100 per cent come April 2006.

If that's the case, the company may not have any choice but to raise ticket prices, said Reid.

"(Fare hikes) are always possible," said Reid.

"We'd hate to do that. I'm not proud of having everything passed on to the customer."

Until recently, the territorial government was contemplating billing passengers directly to cover costs for the GNWT's $6.6 million share of renovations at the airport.

Last week, the Department of Transportation announced it has decided to bill the airlines instead.

Bob Kelly, communications manager for the department, said costs will be recouped through increases to both landing and general terminal fees over a 10-year period.

Landing fees are based on the weight of the aircraft, while terminal fees factor in the size of the plane. They are charged every time a plane lands and docks at the airport.

Currently, the minimum landing fee for a Boeing 737 with an average weight of 45,000 kg. is $1.71 per 1,000 kg. After April 2006, Kelly said that would go up to $2.27 per 1,000 kg. For terminal fees, a 737 carrying 61 to 89 passengers would go from $110 to $220 in 2006.

Regardless of increases, Kelly said the Yellowknife airport will still be charging some of the lowest fees in the country. He said terminal fees for a similar-sized plane in Charlottetown, P.E.I., costs airlines $350.

"After even these increases go into effect we're still a reasonable rate," said Kelly.

He added the airlines here will be getting a good bang for their buck because the newly-improved airport will feature greater docking space and a more comfortable departure lounge for passengers.

However, Reid remains unimpressed so far.

"Maybe they should've been charging more over the years instead of trying to recover it all in one shot," said Reid.