Thorunn Howatt
Northern News Services

Yellowknife (July 01/02) - There is a price war in the Northern air.

But the spirits of those coming up with seat sales and fare promotions are being dampened by added fees and taxes.

Air travel fees and surcharges Nav Canada-fuel surcharge: $28 one-way Security tax: $22.43 (plus GST) Airport security charge (Edmonton only): $15 GST: Seven per cent Travel agency fees: they can run anywhere from $35 to $100

Both First Air and Canadian North are offering low ticket prices. First Air is promoting a seat sale from Iqaluit to Ottawa for $620 along with other great deals.

But by the time a customer pays a Nav Canada fee, security tax, fuel surcharge, GST and a travel agent processing fee, the extra fees are more than $100 on top.

"In the past, all these fees were part of the price," said Don Yamkowy of Yellowknife travel agency Nishi Khon Key West Travel. "All of a sudden Canada went on this user-fee system."

User fees

Nav Canada started charging a user fee for its services about two years ago after the previously government-run entity decided to privatize. A security tax was imposed by the federal government after Sept. 11. That fee isn't charged for flights north of Iqaluit or Yellowknife. Airlines tacked on a fuel surcharge.

Some airports, like Edmonton and Vancouver, also charge an airport improvement fee.

Since many airlines have reduced travel agents' commissions, some agencies are charging booking fees.

Late last month, WestJet airline drew attention to taxes by offering flights between Ottawa and Hamilton, and Calgary and Edmonton, for $3. The flight actually cost flyers about $90 once the security tax, airport improvement fees and other mandatory fees and taxes were added on.

"Clients are confused," said Yamkowy, adding that travel agents often have to explain the higher ticket costs to annoyed clients. "We're the face that sees the customer."

Even though fees have been sneaking up for about two years now, they were less obvious until the seat sales and lower base ticket prices.

"It's looking like a bigger percentage of the total," said First Air's Mike Olson, who explained that airlines pay even more fees that are still hidden from customers --landing fees, insurances and the high cost of doing business in the North.

Federal Finance Minister John Manley says he wants to cut the cost of the airport security tax, but will wait until autumn. That tax was added to bolster airport security in reaction to the Sept. 11 terrorist attacks.