Canadian government announces annual air security revenue, expenses

Published 30 August 2006

Deficits projected as security costs, number of travellers, mount; government plans to hold dwindling program surplus as check against future costs

Air travel security expenses have exceeded revenue from the Air Travellers Security Charge (ATSC) for the first time in recent Canadian history, the Auditor General of Canada announced earlier this week. Fiscal years 2005-6 and 2006-7 are projected to show security cost deficits of sixty and fifty million Canadian dollars respectively.

The government pointed to expensive security improvements costing $110 million over the next two years, as well as an increase in the number of passengers, as reasons. Early on in the ATSC program, the government built up a $435 million surplus, eventually cutting the fees from $24 to $10 for a domestic flight. With the surplus dwindled down to $165 million, the government wants a cushion should more security costs pop up over the coming years.

-read more in James Gordon’s CanWest wire report; see more information about the financial aspects of Canadian air travel security in this Canadian government background paper