Aviation Day on the Hill

Business aviation is a key productivity asset which drives Canadian economic growth and competitiveness. It enables investment, connects communities, supports supply chains, and helps businesses to operate efficiently across a country defined by distance, geography, and regional diversity.   

As the Government of Canada works to strengthen growth, improve internal trade, and attract productive private investment, business aviation offers a practical and high-impact policy lever. It works for Canadians and drives our economy. 
 
The Business Aviation industry is vital to Canadian sovereignty, producing advanced military technology and supporting jobs. This is a moment for the federal government to modernize policy in a way that supports growth, strengthens internal trade, and improves service delivery. 

Priorities 
  1. Adopt accelerated depreciation for aircraft to encourage capital investment, fleet renewal, and productivity growth.  
  2. Modernize business aviation regulation and expand delegated partnerships for efficiency to reduce administrative burden and improve service delivery.  
  3. Reduce aviation-related costs and improve access to Canada’s airports to strengthen interprovincial trade and regional connectivity. 
Issue & Solution:  

1. Adopt accelerated depreciation for aircraft  

Issue: Canada lacks a tax policy comparable to the U.S. 100% bonus depreciation regime for aircraft, helicopters, and simulators. Slower capital cost recovery weakens competitiveness, delays fleet modernization, and encourages aviation investment to shift to jurisdictions with more favourable tax treatment. 

Proposed Solutions

  • Introduce 100% first-year depreciation for qualifying aviation assets, including aircraft, helicopters, and simulators. 

  • Apply to both new and used assets. 

  • Establish clear business-use eligibility criteria and clawback provisions for early resale. 

2. Modernize business aviation regulation and expand delegated partnerships 

Issue: Business aviation is often regulated under frameworks designed for large airlines, creating unnecessary cost and delay for smaller operators. At the same time, Transport Canada’s limited resources are increasingly consumed by low-risk administrative functions rather than higher-risk safety oversight. 

Proposed solutions 
Establish a renewed Transport Canada–industry working group to advance risk-based CARs amendments and delegate low-risk administrative functions to qualified industry bodies under government oversight, while maintaining federal standard-setting and approval authority. This approach aligns with the framework established under Bill C-15.

3. Reduce aviation-related costs and improve access to Canada’s airports 

Issue: Canada’s air transportation system remains burdened by high user fees and cost-recovery charges that reduce affordability and limit connectivity, particularly for Atlantic Canada, northern, and remote communities. Despite recent fee reductions elsewhere, air travel remains one of Canada’s most expensive transportation options. 

Proposed Solutions 

  • Conduct a federal review of aviation fees and charges to improve competitiveness and affordability. 

  • Work with airports, agencies, and industry to ensure fees are transparent and proportionate. 

  • Prioritize access and affordability for regional and interprovincial connectivity. 

 
These recommendations advance Canada's priorities around productivity, investment, internal trade, regional connectivity, and regulatory efficiency. Together, they would help strengthen the national economy, improve service delivery, reinforce the aerospace supply chain, and support communities that depend on aviation for access and opportunity.

Click here to read the full submission.