RCAC Urges Federal Government to Rethink Aviation Funding Model

Regional Community Airports of Canada (RCAC) has called on the federal government to rethink how it funds its aviation system. In an open letter to Prime Minister Mark Carney, RCAC supports efforts to restructure the current user-pay model that has been in place for over 30 years.

The current model has generated tens of billions of dollars in revenue for the government, but RCAC Chair James Lindsey argues that it stifles growth and connectivity, particularly among regional airports serving rural, northern, and remote communities.

RCAC notes that aviation is not just a convenience, but essential infrastructure connecting Canadians and enabling the economy. In 2025, the federal government collected $556 million in airport ground rents, $143 million in aviation fuel taxes, and $100 million in aviation security fee surpluses.

Despite these revenues, regional airports face significant operating and capital pressures, with 30 Canadian communities losing scheduled passenger air service since the pandemic. RCAC calls for a national approach that addresses operating and capital costs, strengthens regional connectivity, reduces air transportation costs, and recognizes aviation as essential infrastructure.