Friday, July 25, 2014

Cost of obtaining pilot's license will increase -Canada

Taking to the skies and enjoying the wild, blue yonder just got a bit more expensive.
 
The Liberal government announced that it will raise the tax on aviation fuel from 2.7 cents a litre to 6.7 cents in 2017.

For those recreational fliers renting or owning a small plane, or those contemplating obtaining their pilot's license, the tax hike means they will have to dig a bit deeper into their pockets when it comes time for take-off.

“The percentage, in terms of actually increasing the cost of a litre of gas, is not a huge amount but it is something that we will have to pass on to customers ... I mean, we don't have a choice,” said Ian Fyfe, operations manager at the St. Thomas Flight Center.

According to Fyfe, the flight center rents a two-seater for $128 an hour plus HST, and taking a four-seat plane out for a spin costs $152 an hour plus HST. Factor in the $14,000 needed to obtain a pilot's license and, well, costs are soaring.

“Flying is very expensive anyway,” said Fyfe. “We took a major hit in 2010 when the HST was introduced, but everything is cumulative. Any one change may not seem like much, but cumulatively, the cost is considerable when owning an aircraft, flying, or learning to fly. Does it help our business? No, it doesn't.”

However, according to Dale Arndt, Airport Superintendent for the City of St. Thomas, the tax hike could actually result in some good news for smaller airports. Although, he cautioned that any increase to the cost of gasoline will deter some aircraft from purchasing fuel in Ontario, having access to the transportation funding will benefit operations.

“Now it looks like we are eligible for that tax money to use for infrastructure, which would be a positive thing,” said Arndt. “Airports on the list can tap into some of that tax money and improve or repair runways. In St. Thomas we are in pretty good shape but a few more years down the road we will have to spend money to repair our runways.”

Fyfe said that the tax hike will be an added cost to doing business at the busy flight center, and those who are taking courses needed to obtain a commercial pilot's license will have to compare it to an increase in university or college tuition. Or, he said, just the price of getting an education.

“But the gas tax may cause recreational fliers to fly a bit less,” said Fyfe.

Approximately 12 people obtain their pilot's license each year at the St. Thomas Flight Center, and another 30 individuals annually upgrade their license ratings. “We have a real mix of commercial and recreational pilots," he said.


Original Source:   http://www.chathamdailynews.ca

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