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Charlotte Bailey

The Canadian Business Aviation Association (CBAA) has submitted five recommendations to the federal government ahead of an upcoming budget discussion, intended to safeguard what CBAA recognizes as “a critical driver of Canada’s economy and a strategic asset for national growth.” These measures, it believes, will maximize economic benefits afforded by business aviation and “align with federal objectives on innovation and competitiveness.”
Totaling some 1,500 aircraft, Canada’s business aviation fleet generates an annual $17.9 billion in total economic impact. To support this significant driver of the country’s economy, CBAA’s proposals include removing the luxury tax on aircraft (enacted in 2022) and encouraging fleet renewal, underpinned by heightened awareness of the sector’s economic significance.
By mirroring U.S. policy allowing 100% first-year depreciation for qualifying business aircraft, Canadian operators and manufacturers would no longer suffer “a competitive disadvantage,” suggested CBAA.
With Canadian aerospace manufacturing exports worth more than $13 billion in 2024, this “world-class aerospace manufacturing cluster” must be supported “even as protectionist headwinds rise,” CBAA added. The group also recognized domestic production as “indispensable to U.S. and global OEM supply chains.”
Other suggestions include the formation of a new Transport Canada working group to support evolving business aviation regulations and improve safety reporting. The reduction of airport fees for business aircraft would also boost interprovincial trade expansion, aligning with the Canadian government’s goals.

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