Air Canada's chief says US becoming more competitive

US President Donald Trump’s plans to cut taxes and regulations look more favorable to business than Canadian policies, according to Air Canada’s CEO. “This industry isn’t from a taxation perspective adequately competitive, we know the US is about to become even more competitive,” Calin Rovinescu said. Canadian airlines will be hurt by plans to introduce a carbon tax and may suffer if the government’s intention of privatizing airports raises costs, he said. Airport rents and landing fees in the country already rank among the highest in the world, according to a 2016 study by the Montreal Economic Institute think tank. Canada’s biggest airline has focused its growth plans on carrying international passengers through hubs such as Toronto and Vancouver, a strategy that relies partly on smooth traffic from the U.S. While Trump has said he wants to rework the North American Free Trade Agreement and limit travel from some countries, such changes won’t hurt Montreal-based Air Canada, Rovinescu said in an interview Tuesday. “We will be able to do a lot of business” with the US, he said. “My sense of the border dynamics between Canada and the U.S. is that it won’t become more complicated, indeed it may well become more transparent from a commercial perspective.” Some of Canadian Prime Minister Justin Trudeau’s policies could benefit airlines that are hurting from taxes and fees that often account for 60% of a plane ticket’s price, Rovinescu said. Canada is studying increased passenger rail service around Montreal and Toronto, which could move travelers to larger hub airports, although competition for passengers might increase, he said.<br/>