The initiative is aimed at driving better performance and passenger experience at Toronto – Lester B Pearson International Airport, Canada's largest airport.
Airlines representing approximately 90% of seats at Toronto Pearson are eligible to earn rebates by achieving certain passenger volume thresholds and meeting targets related to operational performance, including on-time departures and timely baggage delivery.
These agreements are expected to help the GTAA achieve financial sustainability in two ways, by incentivising passenger growth and reducing the expected rebates the GTAA pays to carriers compared to previous long-term agreements ending December 31, 2023.
Pearson's aeronautical fees combined with the rebate programme are competitive with those of other large airports across North America, the airport said.
Each agreement lasts for three years, starting January 1, 2024, with a GTAA option to extend for up to two years.
