Air Canada Chairman: International Airlines May Boycott Airports With Excessive Fees

MONTREAL (CP) - Airlines are considering a boycott of large airports that they feel charge excessive fees to airlines.

Robert Milton, the pugnacious chairman of Air Canada, said Friday it may be the only way for airlines to drive down rising fees charged by monopoly airports.

Milton said the option was discussed Friday by the board of the International Air Transport Association, of which he is chairman.

''Airlines have to start to act and speak in unison,'' said Milton, speaking at a conference of airline executives of the Star Alliance network.

''It might lead to things like airlines deciding as a group they will no longer fly to a particular destination,'' Milton continued. ''There is the possibility of fairly draconian action being taken by airlines to try to stem this tide because it is not sustainable from an industry standpoint.''

Airlines frequently complain of high fees like landing rights and rents at airports, but this may be the first time there has been a suggestion of a combined action to punish airports.

Jaan Albrecht, chief executive of Star Alliance Services GMbH, did not comment on the boycott idea.

Milton admitted it may be too late or impossible to boycott some airports, like Toronto's Pearson Airport, Air Canada's hub, described by Milton as ''the most expensive airport on the planet.''

But he said emerging airports or those with alternatives could feel the pinch, and he pointed to the airport at Caracas, Venezuela, as a potential target.

He accused the government there of levying a variety of fees while giving preferential treatment to government-owned airline users.

''If we are going to fly to Venezuela it will have to be on a cost-efficient basis,'' Milton warned.

''Some (governments) just find us an easy, lazy target. You generally find, in terms of fiscal performance, the laziest, sloppiest governments in the world are the ones that come up with these silly charges.''

Star Alliance members fly to 853 airports.

Albrecht said Star Alliance, of which Air Canada is a founding member, will welcome its 17th member, South African Airways, in the first quarter of 2006.

Albrecht said the network is focusing on adopting a common reservation system, and urging airports to concentrate Star Alliance members at one location to ease check ins, baggage handling and flight transfers.

Milton said Air Canada's maintenance division, Air Canada Technical Services, should be ready for its initial public offering by the end of 2006.

So far ACE Aviation Inc. (TSX:ACE.B), owner of Air Canada, has spun off part of its Aeroplan loyalty program and an issue is pending for the Jazz regional airline.

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