Based on the CBC news released on July 26 2011, Edmonton international Airport asked passengers to pay $5 more while fly out of the airport for the new facility construction improvement fee. Interestingly, it has increased to $30 per passenger this year that is more than one third in VAA (Vancouver’s Airport Authority), which will also lead to a considerable effect especially in the peak season.
The Law of demand states that when other factors remain the same, the price of a product going up, the demand of the market will relatively going down and vice versa. Therefore, from my own estimation, although EIA provides a higher quality of service, the passengers level will still be lower than previous data and the additional revenue from improvement fee cannot offset the infrastructure cost of the airport.
In conclusion, it is quite risky for Edmonton International Airport to hiking a passenger fee up to $ 30 per person. Doing a feedback research from customers could help the company to adjust the policy and make more profit.
“Edmonton International Airport to Hike Passenger Fees.” CBCnews. CBC/Radio Canada, 13 Nov. 2013. Web. 13 Nov. 2013. <http://www.cbc.ca/news/canada/edmonton/edmonton-international-airport-to-hike-passenger-fees-1.2426047>.
“Edmonton Air Passengers to Pay $5 More.” CBCnews. CBC/Radio Canada, 26 July 2013. Web. 13 Nov. 2013. <http://www.cbc.ca/news/canada/edmonton/edmonton-air-passengers-to-pay-5-more-1.1116231>.
Pictures from Google.