Opinion

No Way, YVR!

Vancouver airport's improvement fee hike, set by unelected officials with BC Lib ties, should be grounded.

By Bill Tieleman, 31 Jan 2012, TheTyee.ca

YVR airport

Higher fees for B.C. folks? YVR has its head in the clouds. Photo by Zanzibargirl in Your BC: The Tyee's Photo Pool.

"I'm leavin' on a jet plane/I don't know when I'll be back again." -- John Denver, "Leaving On A Jet Plane," 1966.

If you're leaving on a jet plane out of Vancouver International Airport starting in May, you'll be leaving 33 per cent more money behind for YVR's Airport Improvement Fee.

That's because an unelected, unaccountable YVR board of directors led by a chief executive officer making $500,000 a year wants to raise $1.8 billion, primarily to handle baggage faster for international passengers transiting through YVR to and from Asia.

And they want to take that $1.8 billion straight from your pocket, by increasing the Airport Improvement Fee by $5 to $20 for 10 years on every passenger flying out of British Columbia.

I have a reaction of two words that start with the letters B and S -- Bellingham and Seattle airports!

Take off elsewhere

Thousands of British Columbians are already saving hundreds to thousands of dollars by flying out of those two U.S. airports, fed up with a variety of taxes, fees, charges and fuel surcharges on tickets.

And that will increasingly cost Vancouver airport jobs and governments revenue.

It's estimated that one in five Canadian leisure travellers already drive to the U.S. to avoid domestic taxes and another 11 per cent are considering it, according to a survey by the Hotel Association of Canada.

So it's no surprise Bellingham airport has a $30-million expansion of its own underway to accommodate Canadian passengers.

And it's not shocking that Seattle's airport set a new record for passengers in 2011, with 32.8 million travellers, while Vancouver had just over 17 million last year.

Vancouver's Airport Improvement Fee was imposed as an allegedly temporary measure in 1993 and a former YVR CEO predicted in 1996 that it would be gone by 2002.

But why give a sucker a break?

And don't expect a big public hearing or consultation on the Airport Improvement Fee -- the YVR board of directors can do whatever it wants to the travelling public.

That's because YVR's structure is among the most undemocratic and unaccountable you can imagine for an organization responsible for Canada's second-busiest airport.

In 1992, it was transferred from federal government control to become a strange not-for-profit that does not answer to either the federal nor provincial government.

Here's who gets to appoint the board of directors under YVR's rules:

• The Association of Professional Engineers and Geoscientists of B.C.

• The Institute of Chartered Accountants of British Columbia

• The Law Society of British Columbia

• The Vancouver Board of Trade

• City of Richmond

• City of Vancouver

• Metro Vancouver

• Government of Canada -- two directors.

Those members appointed by the above then choose four members from "the community at large," but any review of the current 14 directors could only conclude that membership is restricted to B.C's elite. YVR CEO and president Larry Berg is also a director.

Board's BC Liberal ties

A review of Elections BC records finds that at least six directors have made contributions over $250 to the BC Liberal Party since 2005, including over $109,000 from "director at large" Rusty Goepel, either personally or through companies he had leadership roles in.

A man listed as "Lawrence Berg" has given over $21,000, and a "Larry Berg" separately gave $2,000. Elections BC will not give further information about donors to confirm identity.

When asked whether YVR CEO Larry Berg had made contributions to the BC Liberals, the airport authority's director of communications Rebecca Catley responded: "We don't have access to information about the private and personal contributions of Larry Berg over the past seven years."

Canadian government appointee George Cadman has donated over $8,000 personally or through his company. Other BC Liberal donors on the board include chair Mary Jordan, Carol Kerfoot and Brian Bentz, while director Gerri Sinclair publicly endorsed ex-premier Gordon Campbell in the 2009 election.

Of course, it's easy to make political contributions when YVR's chair is paid $115,000 a year, committee chairs $26,000 and other directors $20,000, plus $1,000 for every board and committee meeting attended and $500 for other meetings.

And it's easy to think raising the Airport Improvement Fee is no big deal when the CEO makes in the salary range of $368,000 to $552,000, when the senior vice-president range is $196,000 to $294,000 and vice-presidents from $160,000 to $240,000 -- with benefits and retirement packages as well.

Loser, not user, pays

The reality is, as Berg has admitted in the media, that rapidly expanding air travel to China is what's driving this expansion.

In an opinion piece published by the Vancouver Sun on Thursday, Berg writes that: "China's demand for air travel is growing by seven per cent annually, one of the fastest growing markets in the world. We want YVR to secure its fair share of that market..."

"Today it takes an average of 90 minutes to connect from an international flight to a domestic flight. In order to be the gateway of choice, connection times are the key... We want to get connections times consistently under 60 minutes," he says.

So British Columbians are going to pay more so passengers flying to and from China and other Asian destinations save 30 minutes. That may be good marketing for YVR, but it isn't user pay -- it's loser pay for those of us who don't need connecting flights when we arrive in Vancouver -- we're home.

YVR actually makes the outlandish claim that it is a "community-driven organization" by pointing out it holds a "public meeting" every year and stating that "we welcome your feedback."

Well here's my feedback -- if you want to raise $1.8 billion for better service to travellers who are only passing through Vancouver, then charge them the Airport Expansion Fee -- but not the rest of us who actually live here!

I'm sick and tired of paying the existing Airport Expansion Fee for 20 years and no, I don't want to pay an extra 33 per cent more per flight as of May.

If you agree, join my new Facebook protest page -- No Way YVR -- and send the airport a strong message -- that if they ignore us, we can take off elsewhere.  [Tyee]

12  Comments:

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  • Granville

    3 weeks ago

    Another $1.8 billion? You must be joking!

    I heard this on TV the other day. Vancouver Airport want to spend $1.8 billion to reduce connection times to less than one hour? Someone is on drugs!

    What a criminal waste of money! There are a dozen things that stimulate the economy more, and another dozen of dire needs that come first.

    If this goes through, it is time for the revolution. The one where all the top bureacrats are force-marched to he rice fields, to die working in the mud.

    User Pay. User Pay. User Pay.

  • bfearn

    3 weeks ago

    More of the same.

    I objected to the 2nd parallel runway in Vancouver years ago because the ATC system was blatantly inefficient. The YVR authorities did not want to correct those inefficiencies and delay this needless expenditure because spending $200 million is always good for any bureaucracy.

    Few people seem to look at airports and wonder why they are all so different when they do the same job on the same flat land. This reinventing of the airport design wheel is essential to the inefficient operation of Canadian airports. In many cases this has resulted in the tax on your ticket being higher that the cost of your flight.

    All these associated screw ups will never change as long as Canadians continue to willingly accept the mismanagement that plagues the design and operation of major Canadian airports.

  • Fii

    3 weeks ago

    "In order to be the gateway

    "In order to be the gateway of choice"... interesting choice of words. Not the only 'gateway' being pushed through without the consultation of Cdns in order to wrangle better ties with China...

  • alive

    3 weeks ago

    this is not for our benefit

    The "Authorities" declared that no second runway would ever happen, and because of that statement the area in that potential flightpath was developed for residential family housing!

    Exactly like the Terra Nova area that supposedly was a greenbelt for all eternity!

    What gives with officials that come and go at the call of an election, and the promises that are broken?

    The airport itself apparantly has the right to decide what is good for us, so how about arranging for some actual people in the terminals? Attendants in uniform that one can ask a simple question? like perhaps a man bevildered at the international arrival terminal and eventually dead from Tazer wounds?

  • David C

    3 weeks ago

    YVRAS conflict of interest

    YVR seems to have a conflict of interest. According to Centre for Aviation, its subsidiary YVR Airport Services (jointly owned with Citi Infrastructure Investors) apparently YVRAS operates 18 small and medium-size airports in the Americas with combined passenger traffic approaching 30 million a year. Over the past two years YVRAS was a consortium bidder for the lease of Chicago Midway Airport and the sale of London Gatwick Airport.

    Which master is YVRAS serving?

    http://www.centreforaviation.com/analysis/yvrass-ambitious-plans-for-the-peel-airports-a-liverpool-v-manchester-contest-31629

  • Granville

    3 weeks ago

    Air travel; the new Golden Fleece

    Tourism is down, world-wide I think, excpet for China. Is there a market for the increased capacity, or are we competing for a stagnant market. There are at least three conference centres on the coast; Vancouver, Victoria and Nanaimo. There are four cruise ships ports including the above and Campbell River. They not only compete with each other, but with Seattle and points south.

    When people in Vancvouver drive to the U.S. to take flights from there to save money, we need to look at our cost structure rather than build out.

    Why does it have to be Vancouver? What would this do to e.g. Abbottsford? Canada's second-busiest airport is Buttonville. Pearson is not the only airport in the Toronto area. Maybe we need a backup to YVR, not a bigger YVR.

  • edward01ca

    3 weeks ago

    Maybe the Airport Should Look at BC Ferries

    and see that as the prices increased, ridership went down because it was too expensive. Bellingham and Seattle seem to be the place to go. YVR really has to think this through.

  • Granville

    3 weeks ago

    According to the latest figures, the only tourism that is

    increasing in BC is from Alberta. That is up 41% from 2006 to 2009. YVR is chasing rainbows. And taxpayer's dollars. Frack 'em.

  • Rhea

    3 weeks ago

    vote with your feet...go south!

    I haven't flown through YVR for a very long time. I refuse to pay an extortionate price for "improvements" that don't actually improve anything. I routinely save at least $300-$400 by flying out of Washington State, which more than covers my cost of getting down there. And that doesn't include the duty-free shopping or exemption that I get on the way back, PLUS less hassle with security at the airport. If you don't want to drive, you can take the train from Vancouver. Simple, easy and cheaper, and a lot more people are doing it.

    YVR may find that when China's bubble pops, they've screwed themselves out of the domestic market.

  • Chris Keam

    2 weeks ago

    sounds like a firstworldproblem to me

    I cannot muster sympathy for air travellers. If you care about the environment and wish to 'walk the walk' the airport taxes shouldn't even be on your radar, because you'd voluntarily reduce the amount of air travel you do. For many of us, airports are just a giant symbol of disconnect and disregard for the the vast majority of the planet's inhabitants, who don't need airports and have no desire to fund these portals to playgrounds for those with disposable income.

  • Cdn Overseas

    2 weeks ago

    Lots of bluster, not much thought

    Really? You're complaining about $5 per flight? And you want to spend money and time traveling south of the border just so you can save $5? Yeah, that makes lots of financial sense.

    Oh, and the flight from Seattle will probably cost you more. From Vancouver to Toronto, round trip is about $625. From Seattle to Toronto: direct is about 700, cheapest is $663 (based on Apr. 1 to 8 travel, travelocity prices).

    Do you still think Seattle is such a bargain?

    And the idea that the fee is just to benefit Chinese tourists is wrong. Most of the money will be spent on the domestic terminal, airfield improvements, roads, bridges and dikes. About a third of the money will be used for the international terminal (which is, of course, used by main Canadians).

    Sorry dude, your analysis is weak and your outrage is unjustified.

  • TYRONE

    2 weeks ago

    Pirates - the lot of them and logic does not count . . .

    Cdn Overseas, you can't see the forest for the trees!

    Your 'milk maid' mentality is the reason the pirates get away with what they do. The only thing I can see that would change anything, are baseball bats!

    Pure and simple!