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 Paul Laserich, owner of Adlair Aviation stands beside one of his King Air aircraft. The plane was named after Louie Ameralik from Gjoa Haven whose was an employee of Pacific Western Airlines and Northwest Aviation. - Stephan Burnett/NNSL photo |
"Our insurance rates went up 750 per cent over the past five years," said Jamie Tait with Summit Air Charters and Diamond Aviation.
What aviation companies used to pay on hull and liability insurance now only covers the cost of liability.
"Everyone blames 9/11, but I think it's a money grab from the insurance world. There's only so many players in the insurance world and you have to go with only those that can sell in Canada," said Tait.
In some cases, aviation companies can only spend a certain amount on liability.
Overly-stringent Transport Canada regulations are also hurting small aviation operators, such as training sessions for technicians to teach them how to put in new seats.
Costs hurt
Insurance rates aren't just affecting Summit Air Charters and Diamond Aviation.
"On our Beaver float plane we pay $27,000 on insurance," said Paul Laserich, general manager with Adlair Aviation.
"The smaller operation is getting to be a thing of the past," said Laserich.
Some of the companies that have gone by the wayside over the years include: Gateway, McAvoy Aviation, Latham Island Airways and Ward Air.
"Because the insurance in some cases is up 50 per cent, the smaller operations can't afford to operate," said Laserich.
