Want to see how Canadian airports have changed?
CANADA'S AIRPORTS MOVE THE GOODS
Want to see how Canadian airports have changed? Take a look at Deer Lake in western Newfoundland. At the beginning of this decade it was a small-town operation, says Jamie Schwartz, airport manager for the Deer Lake Regional Airport Authority.
Today, it is the fourth busiest airport in Atlantic Canada. About 278,500 passengers passed through its newly expanded terminal last year – a 112 per cent gain in traffic from 2000, he says with justifiable pride.
“Because of the increased traffic, we have witnessed a boom in tourism, and we have even seen twice a week commuter flights carrying Newfoundlanders to work in the oil sands of northern Alberta,” he says. “Estimates are that this airport is generating $50 million a year in economic activity to the region.”
Deer Lake is not alone in its success, says Barry Rempel, chair of the Canadian Airports Council (CAC) and president and CEO of the Winnipeg Airports Authority.
“Well-run airports have emerged as powerful economic drivers right across Canada,” he says. “They have become the inviting face of a nation for foreign travellers and a vital link for developing international and domestic business, and I think they have just begun to make their impact felt.”
The genesis for this dramatic rebirth was a decision by the federal government to hand over control of major airports to local airport authorities. The governing structure blends the best of private business and community accountability.
The airport authorities are non-share capital corporations, governed by locally appointed boards of directors with representation from all three levels of government, organized labour, business, tourism and the public. Airports no longer rely on tax dollars or government subsidies.
Instead, they raise their own funds and plow profits back into the corporation to fund ongoing improvements.
All told, Canada’s airports have spent almost $10 billion in improvements since the new system took effect. Last year, the airports generated $45 billion in direct and indirect contributions to the Canadian economy. “That is a pretty impressive return on investment,” says Mr. Rempel.
Having last year completed its multibillion-dollar expansion and renovations Toronto Pearson International, by far Canada’s busiest airport – handling about 31 million passengers a year – is shooting to become a major connecting point of choice for people flying to the U.S., Latin America, Asia and Europe.
“We are working aggressively with other Greater Toronto Area organizations (GTA) to market the GTA to the worldwide business community,”says Greater Toronto Airports Authority (GTAA) vice president Steve Shaw. “We work with local community groups helping attract airlines to serve them. A recent success was Jet Airways, which is now providing service to India. We also work with our partner airlines, including Air Canada, to explore expanding opportunities built on their hub activity at Toronto Pearson.
“At the same time, we are talking with Asian, Latin American and European carriers, showing them the advantages of using Toronto Pearson for both direct flights and as a gateway for service to other destinations.”
For its efforts, the GTAA generated $14 billion in economic activity in the community, region and province last year, Mr. Shaw says. It isn’t just Canada’s large airports that are fuelling economies.
Saskatoon Airport Authority president William Restall says Saskatoon Airport handled about 1,035,000 passengers last year, a 12 per cent increase from 2006.
In particular, foreign traffic, including that of the U.S., was up about 15 per cent. The reason is the current western economic boom, Mr. Restall says. Saskatoon Airport has become a gateway to the resources and agribusiness riches of central and northern Saskatchewan.
“We have seven carriers flying into Saskatoon now, and last winter had 14 sun vacation charter flights,” he says noting that general aviation is in fact among the biggest areas of growth. Traffic from private jets and regional charter service has grown by almost 35 per cent over the past three years. The airport is now building two new aprons to handle the traffic.
“We have the equivalent of a Dash 8 making 30 flights a week to mines in the north,” he says. “Uranium, potash, agribusiness are all in enormous demand globally, and we are responsible for providing a gateway to Canadian and foreign business.”
The CAC’s Mr. Rempel can see major Canadian airports replacing their U.S. counterparts as hubs of choice for both passenger and cargo traffic. “We have modern, efficient airports now in the very heart of north-south and east-west routes as well. The next challenge is telling our story.”
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