Toronto's Pearson Airport, Canada's biggest, will cut its airline fees, which are among the highest in the world and not competitive.

Scott Armstrong, media relations manager at the Greater Toronto Airports Authority, said the company need to do things to remain competitive and to be more competitive, and cost is an issue.

As of January 1, 2008, landing fees for all aircraft types will drop by 3.1 percent and terminal charges by 4.7 percent.

Landing fees for an Airbus 320, the most common type of aircraft to arrive at Pearson, will be reduced to about US$2,250 from $2,352. Fees at Pearson are based on an aircraft's weight.

The Air Transport Association of Canada estimates that landing fees for a Boeing 747-400 at Pearson are second only to Tokyo's Narita in terms of expense, which it blames on the Canadian government's punitive rent policy.

Armstrong said the GTAA is working on rental issues, but added that fees were not directly comparable as airports all calculate them differently.