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26 February 2025

Air Access Program Boosts Discounts But Raises Costs For Businesses

Chamber of Commerce highlights concerns over rising airline fares threatening regional economic growth.

Businesses operating in Quebec's Côte-Nord region are facing challenges with air travel accessibility, leading to concerns about economic growth. A recent iteration of the Air Access Program (PAAR), launched just four weeks ago, has left some local stakeholders disheartened due to rising airfare costs for certain routes.

The PAAR was initially presented with encouraging changes, offering discounts ranging from 50% to 85% on interregional and intraregional flights. Yet, these discounts come with significant caveats. For many flights, especially those not eligible for the program, prices are reportedly soaring. Ana Paola Ortega, responsible for communications at the Sept-Îles Uashat mak Mani-utenam Chamber of Commerce, voiced her concerns stating, "Des billets aller-retour non admissibles au PAAR s'affichent à des coûts plus élevés depuis l’entrée en vigueur du nouveau programme." This realization has prompted local businesses to re-evaluate the situation, as some round-trip fares are seen climbing to as high as $700, $800, and even $1,000.

Although the PAAR was expected to facilitate access and connectivity among regions, Ortega pointed out, “Ça permet aux compagnies aériennes de mettre le prix aussi haut que possible,” indicating the potential for unchecked price increases due to the cap on fixed pricing. The chamber fears these rising costs will decrease commercial opportunities and attractivity to the region, weighing heavily on the local economy.

Montigny, who serves as the deputy for René-Lévesque and holds the chair position on the permanent committee for regional air transport, has acknowledged these concerns, albeit through a different lens. While he hasn’t indicated whether airlines took advantage of the newfound pricing freedoms to inflate costs, he did note changes linked to the program itself. “C'est sûr qu'il peut y avoir des billets plus chers, entre autres des billets qui ont par exemple une possibilité d'annuler,” he said, shedding light on the necessity for consumers to explore and choose based on their needs.

Marred by conflicting information, Montigny mentioned the difficulty local airlines like Air Liaison have had with scheduling their service spots effectively. This situation has created confusion, with some discounted tickets not appearing available for purchase. He emphasized the importance of asking for availability to secure travel arrangements, stating, “Ces billets-là, il s'agit de les demander.”

The sentiment is clear among the Côte-Nord chambers of commerce: there is consensus around the idea of restoring fixed-rate tickets at $500, particularly for businesses. Ortega expressed hopes for reverting to the previous scheme applied to entrepreneurs, underscoring the need for solutions conducive to both growth and accessibility.

While the PAAR’s intention was to provide more flexibility and options, local business leaders are urging for refocused efforts to mitigate the current challenges presented by rising airfares. The future of economic expansion relies on the efficacy of air access programs, making their redesign pivotal for smooth operational outcomes.