Study on Aviation Charges, Fees and Taxes

The Government of Canada is seeking a contractor to conduct a comprehensive, evidence-based study on the structure, determination, and impact of air passenger charges, fees, and taxes within Canada’s aviation system. This study aims to establish a clear, up-to-date understanding of how these costs are set—including government-imposed charges like security screening fees and taxes such as GST and aviation fuel tax—as well as the commercially driven fees set by private entities like NAV CANADA and National Airports System airport authorities, over which the government has no direct control. The study will also compare Canada’s model to international benchmarks to assess the appropriateness of its heavy reliance on the user-pay framework for air transportation, and to inform potential policy adjustments. The work will support government decision-making and facilitate broader public and policy discussions on whether the current cost allocation system remains equitable and sustainable given Canada’s unique geographic, demographic, and operational realities. The contract, identified under solicitation number T8080-260120, is open to competitive bidding with no incumbent contractor and no security clearance requirements. Proposals are due by July 29, 2026, and the initial contract period is set for six months from the date of award. The Department of Transport, through its Contracting Authority Natasha Blackstein, is leading the process and expects the study to provide actionable insights to evaluate the structure of aviation financing in Canada, with an emphasis on transparency, comparative analysis, and policy alignment. The findings are intended to help the government determine whether the current model adequately balances revenue generation with accessibility, competition, and public interest in a nationwide transportation network shaped by vast distances and variable conditions.