EnviroTO
Senior Member
Don't underestimate the importance in competition between airports! This is one of the reason's why it is cheaper to fly out of Buffalo than Toronto! Lower landing fees was one of the reason's why Porter was able to compete on price.
The difference in price is mostly due to the federal ground lease at Pearson. When you divide the ground lease of $31M by the number of inbound passengers and multiply by 70 there is a $400 contribution to the federal government per aircraft visit. Pearson has a $7.06 terminal improvement fee charged to the airline compared to a $10 terminal improvement fee at Toronto Island. Definitely Pearson charges more than double (not triple) the landing fees per weight but that is probably due to that ground lease. I'm not sure how Porter FBO's charges to Sky Regional compare to Pearson as those are hidden. Does the TPA need to pay a ground lease to the Federal Government? I'm pretty sure they aren't forced to have a municipal property assessment to pay the municipal taxes matching the land valuation, so one would think that a similar ground lease should be paid so that the airport is being treated equally.