CBAA Pushes for Improved Policies To Support Bizav

Noting that the Canadian business aviation fleet sustains $17.9 billion in annual economic impact, the Canadian Business Aviation Association (CBAA) has asked the government to foster further development of the sector via tax, regulatory, and/or policy changes.

CBAA praised the Canadian government’s move last year to remove a luxury tax on the sale of business aircraft but said the budget this year “should build on that progress.” In its consultation submission for Canada’s 2026 budget, the association offered three recommendations to achieve that goal: adopting 100% accelerated depreciation for aircraft to encourage capital investments; modernizing business aviation regulation; and reducing aviation-related costs to improve access to the nation’s airports.

“Canada is losing mobile capital investment in aviation to jurisdictions with faster cost recovery and lower regulatory friction,” CBAA warned. “Without targeted action in Budget 2026, this gap will widen, reducing productivity, investment, and aerospace competitiveness.”

CBAA underscored the importance of the business aviation sector, noting that the fleet spans 1,500 aircraft and supports 53,600 high-skilled jobs, averaging salaries of about $105,000. Further, business aviation contributes to an aerospace manufacturing cluster whose exports exceeded $13 billion in 2024, the association maintained.

“This industry is vital to Canadian sovereignty, producing advanced military technology, and supporting jobs,” CBAA added. “This is a moment for the federal government to modernize policy in a way that supports growth, strengthens internal trade, and improves service delivery.”

As for its recommendations, CBAA pointed out that the U.S. has 100% first-year depreciation for qualifying business aircraft and urged Canada to adopt the same policy. The government should ensure that such a tax policy is extended to other qualifying equipment, such as flight simulators, and applied to both new and used aircraft. CBAA also suggested that the government establish clear eligibility criteria.

In the second recommendation, the organization said that too often, business aviation is regulated through frameworks established for scheduled airline operations. This creates unnecessary costs and delays for small operators, it added. Transport Canada, meanwhile, is facing increasing demands and pressure on resources. “This creates a mismatch between risk and regulation.”

Instead, CBAA is pushing for a more collaborative model that delegates low-risk, high-volume administrative functions to qualified industry bodies under government oversight. Among its recommendations in this area were for Canada to establish a formal working group to streamline special authorizations; assign administration of certain low-risk, high-volume functions, such as MEL-related and variance-related processes, to CBAA; support CBAA-led training on SMS and compliance; create a voluntary operator reporting mechanism on safety and compliance, managed by CBAA and shared with Transport Canada; and establish a panel to provide real-time support to Transport Canada on regulatory changes and other issues.

In the third recommendation, the association noted that high user costs, such as airport fees and security charges, limit access and dampen demand. This particularly harms areas heavily reliant on air service. CBAA asked that the government work with airport authorities and other agencies to ensure fees are transparent and proportionate; prioritize affordability and access on routes critical to regional and interprovincial connectivity; and review how federal policy can support more competitive airport access.