By Jim Facette
President and CEO

You probably won't find a House of Commons Standing Committee report on too many summer reading lists, but I think there is one that many should read.  This past May the committee presented a report calling for Canada to approach its international trade policy differently: with a clear and focused international business strategy.

The committee said Canada needs and international business strategy that "recognizes the importance of trade and investment to prosperity in Canada, including its relationship to productivity and domestic competitiveness."  In a news release that same day, the CAC agreed.

The CAC continues to lead the charge toward more liberalized air service agreements, highlighting their link to trade and tourism benefits.  It would appear that the committee heard our message:  It recommended that Canada should expand its network of air service agreements around the world. 

The economic benefits to the community and the country are real:

• Calgary International Airport is responsible for 25,000 direct jobs
• Each time a foreign carrier lands in Vancouver with a local crew, it generates 790 hours of employment
• Toronto's cargo traffic fuels 16,000 jobs
• Just one new daily transborder flight into Regina translates into more than 140 jobs

The committee heard from the business community that establishing direct flights between Canada and the markets of trade and tourism importance lowers the cost of doing business.  It also sends a signal that Canada is serious about establishing its own international linkages.

Minister Cannon's Blue Sky policy and the indication that European Union talks will begin this fall suggest that airport lobbying efforts on this front may be bearing some fruit.  Passenger and cargo traffic have now well surpassed pre-9/11 levels.  It is easy then to come to a conclusion that Canadian airports have what they need to compete globally.  Not quite.

Airports remain frustrated by slow progress on air service talks and the indication that not all are onboard with the new direction.  Furthermore, in addition to air service agreements the standing committee also contends that in today's world of international commerce it is essential that Canada get its "own house in order" so as to help companies compete better internationally.

As an airport community we believe that we have our "house in order." Attention has been paid to the demand for lower costs and we are constantly looking at ways to respond to the demands of an ever-changing aviation industry.  But we need help.  We need a change in domestic policy - change that recognizes the importance of Canada's airports and their need to be competitive globally.  For airports, that starts with airport rent.

Rent impedes the ability of Canada's airports to compete on the global stage against airports in the United States - where airports pay no rent and receive subsidies for their infrastructure investments. Just last month, for example, we learned that Buffalo Niagara International Airport in New York, which says a third of its passengers are Canadian, announced an expansion plan to keep pace with its growth!

The standing committee contends that in order for Canada to be given a chance to compete on a level playing field, it must "modernize and strengthen its infrastructure, tax, regulatory, human resources, innovation, and other domestic policies to ensure that Canadian companies are as well positioned as they possibly can be to compete in the global economy."

The impact of government policy on airports cannot be understated.  Amsterdam, Dubai, Singapore all serve as positive examples of cities in which the government views airports as economic engines of the economy.  As a result of this approach, which translates into a lower cost burden for airlines, these cities are among the biggest aviation hubs in the world.

Last month, the International Air Transport Association (IATA) published an aviation economics benefit study in cooperation with InterVistas that looks at the link between connectivity/productivity and competitiveness, known as "catalytic impacts."  The findings contend that improved connectivity of air transport increases the overall productivity and competitiveness of the nation.

Like any other business in Canada, airports look to the federal government as an enabler, a partner that can help them realize their full potential and compete with other airports on a global scale.  Airports will continue to do their part for the international competitiveness of Canada.  We need a sound international business strategy supported by good domestic policy to help.

The Canadian Tourism Commission reports first  quarter 2007 travel statistics indicating that the U.S. and Australia are outpacing Canada in international tourists -- with a  4% loss for Canada while the U.S. actually posted a 7% gain and Australia a 2% gain.

In key tourist source markets, only from the UK did Canada post a greater gain in tourists compared to the U.S. and Australia.  Canada also posted a greater gain in tourists from Mexico than the U.S. (stats to Australia not posted).

Tourists from Japan declined across all three markets but the decline was twice as big in percent than the decline to the U.S.

International Travel (Jan-Mar, 2007)
	Trips to:
Trips From	Canada		U.S.		Australia
	#	%	#	%	#	%
Australia	31	8	132	12
Canada			3698	5	37	-1
China	23	13	116	21	115	28
France	61	8	180	22	19	9
Germany	38	9	304	10	45	3
Japan	57	-13	874	-6	166	-12
Mexico	37	34	1281	29
South Korea	36	10	190	10	75	9
UK	142	9	916	3	232	3
U.S.	1786	-7			125	1
Total International	2461	-3	9872	9	1497	5

 
Source: Canadian Tourism Commission's Tourism Snapshot

A change to federal regulations regarding smoking in the workplace are proceeding through the government, and if enacted as drafted, also will ban the ability of airports to offer smoking rooms to their passengers.  While most members no longer have smoking rooms, the CAC has sought an exemption.

The focus of the amendments is to eliminate smoking rooms for employees in federally-regulated workplaces. The proposed amendments also will remove the current exemption found in section 14 of the regulations that permits designated smoking areas within the public areas of an airport terminal.

The CAC has issued a letter to Human Resources Development Canada to seek an exemption to the changes, which will impact Canada's airports in a unique way.  Typically airport smoking rooms are provided where access to the exterior of the terminal is difficult and would involve inconvenience to the travelling public, such post-security. 

In the case of international in-transit lounges at Canadian airports, in-transit passengers are required to remain within the in-transit facility and cannot go outside for security reasons. The CAC contends that a prohibition on smoking rooms for these passengers would seriously impact passengers arriving from long international flights if they are forced to clear customs to access the exterior of the terminal in order to smoke. 

As well, differing cultural norms regarding smoking will typically be found among international passengers and the absence of designated smoking areas may leave in-transit passengers confused and anxious just before they board their connecting flight.

The proposed amendments to the Non-Smokers' Health Regulations were published in Gazette I on June 16th with just a month for public consultation. The CAC is requesting that the currently proposed total prohibition of smoking rooms be reconsidered, with an exemption for airports for air-side facilities.

Edmonton Airports has announced the appointment of Paul Garbiar as the new vice president, infrastructure and technology. 

"Paul brings more than 15 years of comprehensive experience in engineering facilities, team and project management to Edmonton Airports," says Reg Milley, Edmonton Airports President and CEO. "He has established many industry relationships and has built a solid reputation for his leadership and results-oriented management style."

Prior to joining Edmonton Airports, Garbiar held management positions with Bantrel Co. and Canadian Fertilizers Limited. His experience in the high-paced oil and gas industry includes work at two world-class oilsands upgraders. Garbiar was selected after an extensive nation-wide search.

"In the current high-growth economy, it's critical to ensure all our facilities have the right infrastructure and technology to meet anticipated growth levels and all of our customers have access to the services they need," says Milley. "Paul will help us do that."

Garbiar, who joined Edmonton Airports on July 3, is responsible for all expansion and sustaining capital programs, technology and the ongoing facilities management program.

The campaign advocates for the airline position on ATC costs paid for by commercial carriers versus private aircraft operators.  The U.S. airlines contend that private operators are not paying their share.  To drum up support they have launched the "Smart Skies" campaign starring "Edna -- who likes wearing big wigs, not subsidizing them."

In addition to a Web site at www.smartskies.org, the consumer-targeted campaign includes a video on YouTube and has advertisements around Washington, D.C.

Neither the CAC nor its partner in the U.S., Airports Council International-NA, have not taken positions on the issue of U.S. user fees.