STREET. JOHN’S, NL –
As officials look for ways to reduce the rising costs of flights for people in Labrador, one airport executive hopes a massive new energy deal with Quebec will help.
The northern region is served by PAL Airlines and its partner, Air Borealis, and Goose Bay Airport Corporation’s Rex Goudie says a greater need for more rotational workers could attract a competing airline.
Quebec and Newfoundland and Labrador signed a tentative agreement earlier this month to build new hydroelectric facilities along the Churchill River that promise thousands of jobs and billions of dollars in revenue.
Goudie says he and his team are studying the market opportunities available to interested airlines, while ensuring the region’s existing relationship with PAL is preserved.
Meanwhile, Labrador Affairs Minister Lisa Dempster says she met with Canada’s business watchdog, the Competition Bureau, in October to discuss flight costs in the region.
An October report commissioned by Goose Bay Airport Corporation found that flight costs in Labrador increased 33 per cent since 2019, compared to just nine per cent across Canada.
A return flight from Nain, in northern Labrador, to the provincial capital of St. John’s costs almost $2,500.
“I don’t think there is a single solution,” Goudie said in an interview.
“We believe the government has a role,” he added. “Particularly for northern regions, like here in Labrador, which is so remote, air travel is not a luxury, it’s an essential service. And so you would think that programs or policies would be put in place that would reflect that.”
The Competition Bureau said in May it was launching a market study on the state of competition in Canada’s airline industry; A final report is expected by June 30, 2025. Dempster and Goudie also made submissions to the federal standing committee on transportation, infrastructure and communities about air travel in Labrador.
This report by The Canadian Press was first published Dec. 31, 2024.
