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Holidays Double Issue
Nov-Dec 2007

Happy Holidays from the staff of the Canadian Airports Council!

By Jim Cherry,
Chairman

As 2007 draws to a close, we mark the end of an important year for the Canadian Airports Council -- a year that marked significant change for the association and progress on key policy initiatives for Canada's airports.

Framed by the theme of "Doing our Part" the CAC continued its work to promote the important role Canada's airports play in this country. Progress was made during the year on Open Skies with agreements signed with Iceland, Ireland and New Zealand.

Although progressive and still holding promise for airports, other improved air service agreements announced this year fell short of Open Skies. Nevertheless, the CAC's importance and the added value that airports bring to the table were recognised through the participation of two CAC representatives for only the second time as Canada opened negotiations with the European Union. Canada's airports are seeking Open Skies with Europe through an Open Aviation Agreement similar to that concluded between the EU and the U.S.

On the policy front, the CAC also participated in an active role with a coalition of industry groups opposing flawed replacement worker ban legislation. An initial private members bill was defeated but a replacement was introduced (Bill C-415) and the work to defeat this potentially devastating legislation continues.

Meanwhile, the CAC provided valuable input to the Canada Border Services Agency (CBSA) core service review. Input to the five-year review of the Canadian Air Transport Security Authority (CATSA) in 2006 was largely reflected in the Minister of Transport, Infrastructure and Communities' newly announced plans for the future of the crown corporation.

Within the association, the CAC once again held its national conference with a new spring date and venue in Ottawa-Gatineau. Re-branded "Airports Canada," our biennial conference attracted 250 people -- more than double the attendance of our 2004 event -- and 20 generous sponsors. Our 2009 Airports Canada Conference and Exhibition will be held the week of April 24, 2009, once again in Gatineau.

Looking Ahead

Work remains to be done in several policy areas, however. The crippling financial burden of airport rent remains in place. Work throughout 2007 for a better solution to duty free for passengers to the U.S. from pre-clearance airports, as well as for the introduction of Arrivals Duty Free, have yet to bear fruit.

Environmental issues in aviation received more attention than perhaps at any other time in recent months; this is not expected to change in 2008. At its October meeting in Regina, the board of directors and members in attendance were briefed by the CAC Environment Committee on 10 things a CEO needs to know. Staying ahead of the curve will be paramount for the aviation industry.

You can expect the CAC to continue to work on facilitation issues of both passengers and cargo. Access to data and cargo security will be at the forefront of CAC activities in the cargo area while the movement of passengers through security and border services remain key areas that shape a passenger's experience. Whether it's changes to the Customs Act or other regulations, the CAC will continue to speak with one voice for members.

These and other issues will form the basis for the CAC's workplan for 2008, a year in which the association also will be taking a fresh look at its role in the industry for several years to come through a new strategic plan. For 2007, we can say "We did our part. But the work continues."

Thanks are due to the CAC committee chairs and committee participants for all their months of hard work!

On behalf of the CAC board of directors, I wish you and your loved ones happy holidays and best wishes for 2008!

As reported last month, the CAC Cargo Sub-Committee members participating in the PEMD promotion program earlier this month unveiled the new "Cargo Canada" brand in Miami during Air Cargo Americas.

Six of the 13 airports participating in the program in 2007 attended the show, with the Cargo Canada booth serving as a home base for their individual sales and networking activities. Cargo Canada brochures, an informational Powerpoint, individual airport brochures and a silver Cargo Canada pen were distributed at the booth as well. CAC President and CEO Jim Facette also appeared on a panel with leading international cargo operators.

The Cargo Canada promotional video played at the booth at all times. It also was played in the conference reception hall on Thursday, Nov. 8th -- for which Cargo Canada was sponsor of "Canada Day." The highlight of that day was the presence of a Royal Canadian Mounted Police Officer in her full Red Serge uniform, Canadian flags hung throughout the exhibit hall and an evening Cargo Canada-sponsored reception.

ACA

Feedback on participation at ACA was largely positive and within the next month committee members will weigh in on participating at the 2008 Air Cargo Forum in Kuala Lumpur and/or the FIATA freight forwarders conference in Vancouver.

For more information about the Cargo Canada campaign, please visit www.cargocanada.ca or contact daniel.gooch@cacairports.ca.

Airports Represented at EU Talks

Two CAC representatives are representing airport interests during talks between Canada and the EU, which got underway this week.

Representing airports at the talks on behalf of the CAC are John Korenic of Vancouver and Steve Shaw of Toronto. Both have extensive experience in the industry and are expected to play a valuable consultative role on the position of Canada's airports on the areas under consideration by the two negotiating teams.

While the CAC has repeatedly requested airport representation at air talks -- as the air carriers enjoy -- participation in Europe is only the second time this has been granted. CAC participation at the Canada-U.S. talks in 2005 was positively received by the government at the time. These talks resulted in the landmark Canada-U.S. Open Skies agreement.

CAC Testifies Before Air-India Inquiry

The CAC testified before the Air-India Commission of Inquiry on Oct. 24th, as the commission entered its phase studying aviation security in Canada today.

CAC Vice President of Operations and Legal Affairs Fred Jones testified on behalf of the CAC in a panel that also included Jim Bertam of the Greater Toronto Airports Authority.

Areas discussed included airport cooperation with the Canadian Air Transport Security Authority (CATSA), the Restricted Area Identification Card (RAIC) and funding for aviation security.

In particular, the CAC reiterated its long-standing position that aviation security is a matter of national security and should be paid for through general tax revenues. Failing a shift in government position on this, the CAC urged the government to adopt a more transparent manner of funding for CATSA in a way that does not increase the financial burden on airports or passengers.

You can listen to the testimony via the CPAC Web site (if the video does not start right away, try refreshing the page). First up was the RCMP, but you can skip through the morning by clicking the "Next" button on your media player (The single triangle facing right) about four times.

MONTHLY NUMBERS

YOUR COUNCIL:
The CAC Highlights RESA Concerns

On Nov. 4, the CAC met with the Air Transport Association of Canada Flight Operations Committee in Halifax and discussed the real prospect of Runway End Safety Area (RESA) requirements for some airports.

While there has been no formal proposal made, it is a possibility that a RESA may be required at both ends of the runway. Conceivably the new rule could impose a requirement for 150- or 300-meter RESAs, which could mean that some declared distances could be reduced if an airport authority is unwilling or unable to extend the existing 60-meter graded area to accommodate the new requirement.

Naturally the carriers were concerned that any reduction in the take-off runway available could translate into reduced payloads, or in some cases the availability of the runway to certain aircraft types.

The CAC advised ATAC's committee members that the CAC is in the process of surveying its member-operators to determine if they could accommodate a RESA requirement -- and if they could, at what cost. There was agreement that ATAC and the CAC will have to work closely to ensure that Transport Canada is presented with the best available information on this subject should a RESA proposal appear.

CAC Improving Ops/Safety Links with North American, World Partners

Fred Jones of the CAC and Operations, Safety and Technical Affairs Committee Chair Normand Boivin recently met with Richard Marchi of Airports Council International (NA) and Thomas Romig of ACI-World with a view to facilitating the flow of operations-related information between the three organizations.

Under discussion are a broad variety of issues set out below, aimed at capitalizing on CAC synergies with its Washington- and Geneva-based airport sector partners, including:

Better Web links from the CAC with minutes of ACI-NA and ACI-World committees on operations and safety.
Representation from the CAC on the ACI-NA Steering committee - (where its priorities are established ).
Participation from ACI-World and ACI-NA at least once-a-year by teleconference at OSTA meetings.
Standing items on OSTA agenda to review ACI-NA and ACI-World activity (to consider draft documents in-production and if CAC should become engaged in specific projects).
Regular up-dates provided by ACI-NA and ACI-World on OSTA activities.
ACI-World and ACI-NA OSTA committee chairs to be added to CAC OSTA distribution links.
Better coordination by CAC with the World OSSC.
Better coordination on common developing regulatory issues - i.e. Safety Management Systems (SMS).

Some of the issues that ACI-World is currently dealing with include safety audit best practices, emergency preparedness (early stages in development), runway excursions/incursions/ confusion, Safety targets and indicators, SMS auditing standards, and apron marking, signage & lighting.

Review of Runway Surface Condition Reporting Practices/Training Underway

In response to concerns raised by air carriers, through the CAC's Operations, Safety and Technical Affairs (OSTA) committee, the CAC has recently undertaken a review of runway surface condition reporting practices and training in Canada.

The review will include an examination of the current CAC National Minimum Training Guidelines for Aircraft Movement Surface Condition Evaluation and Reporting, the current ACI standards, and a review of the proposed new Winter Maintenance and Planning regulation and associated standards with a view to updating current CAC standards to reflect the latest procedures and best practices.

Regulatory Stewardship Study Terms Presented

On Nov. 1, the CAC presented draft terms of reference for a joint study on regulatory stewardship to the Transport Canada National Civil Aviation Management Committee (NCAMX).

The study, if the proposal is accepted by the department will examine opportunities for further delegation of authority to the certified airport community in Canada.

The draft terms of reference, fashioned roughly after a similar project carried out by Transport Canada and the Canadian Business Aviation Association (CBAA) about five years ago, will examine a broad range of issues including the scope of further delegation, effect on safety, liability, governance, involvement of other stakeholders, to name only a few. The draft terms of reference for the study are available to CAC members on The Airport Link.

CAC Participates in LAHSO Risk Assessment

Earlier this fall, the CAC through Michael O'Gorman of Winnipeg Airports Authority participated with other stakeholders on a Land and Hold Short (LAHSO) Risk Assessment commissioned by Transport Canada.

While the demand for LAHSO operations has been reduced significantly by the use of NAV Canada's Converging Runway Display Aid (CRDA), which uses a 'ghosting' technology, LAHSO operations still present some efficiency opportunities at some sites. Safety concerns also have been raised from the pilot community, most notably the Airline Pilots Association International (ALPA).

While the CAC has yet to receive a final version of the risk assessment report from Transport Canada, it is expected there will be some regulatory activity from Transport Canada on this issue in the near term.

CANADIAN NEWS
Aeronautics Act Amendments Reinstated

The federal government has reintroduced the Aeronautics Act amendments that died with the prorogation of parliament have been reintroduced in the House of Commons.

According to a statement from Transport Canada, the former Bill C-6 (Act to amend the Aeronautics Act) is being introduced in the same form as it was in the previous session.

According to a recent motion supported by all parties, if the Speaker of the House is satisfied that these bills are in the same form as at prorogation, they shall be reinstated at all stages completed at the time of prorogation of the previous session. Consequently, the former Bill C-6 has been reinstated at third reading as the new "C-7."

"These proposed amendments represent the culmination of extensive consultations and reflect the substantial contributions made by stakeholders from across the country," said Transport Minister Lawrence Cannon in the statement. "I made a commitment that these important pieces of legislation would be reintroduced and I am pleased to be honouring that commitment today."

The former Bill C-6 was initially introduced on April 27, 2006. The proposed amendments to the Aeronautics Act, largely supported by the CAC "reflect new strategies being implemented to regulate aviation safety, including an increase in penalties that may be imposed under the act. Key amendments would also allow individuals and operators to confidentially report, on a voluntary basis, less safety-critical regulatory violations."

NEXUS Fee to be Lowered

The Deparment of Public Safety last month announced that the Government of Canada will reduce the $80 application fees for the NEXUS and the Free and Secure Trade (FAST) programs to $50 effective Dec. 1. The new rate will coincide with the current cost of these application fees in the United States at USD $50.

"This new application fee is a result of the strong Canadian economy," said Minister Day in a statement. "Canadians work hard to support themselves and their families. When they purchase goods, they deserve to pay a price that reflects the strength of the Canadian dollar."

NEXUS is a joint Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) program that is designed to simplify border crossings for pre-approved travellers. It is currently available at eight major Canadian airports and 11 land border crossings.

The NEXUS and FAST cards are also accepted alternative documents to the passport under the U.S. Western Hemisphere Travel Initiative (WHTI), a U.S. law that will eventually require all Canadians and Americans who are entering the United States to have a valid passport or other approved WHTI-compliant document.

Auditor General Scrutinizes CBSA

The Auditor's General's report came out last month, and one of the agencies subject to criticism is the Canada Border Services Agency, which the AG said has not yet fully completed the integration of its three ancestor agencies and does not yet have a proper risk-based model for evaluating border security.

"It would be impossible for the agency to examine every person and shipment entering the country and still maintain an open border," said Ms. Fraser in the report. "This underlines the need for effective targeting methods so that low-risk people can enter while appropriate action is taken for those who are high-risk."

The AG says CBSA has made significant investments in automated systems to identify high-risk travellers and shipments before they enter Canada, but that these tools are still in the early stages of development and implementation. Because border services officers perceive weaknesses in the systems, they continue to rely more on their own analysis and judgment to select shipments for examination.

The audit also found that the agency's programs have reduced waiting times for low-risk people and goods at the border. However, the AG says there is no indication that resources the programs were intended to save have been shifted to higher-risk areas.

Additional findings include:

The threat and risk assessments that the agency has put in place are not satisfactorily supporting its efforts to achieve a border management approach that is based on risk. It is still developing a risk management framework to guide its activities and does not have a suitable model for assigning the necessary resources to manage risk levels among ports of entry and modes of travel.
In recent years, the agency has received considerably more advance information on goods and people arriving by air and marine travel. The agency needs to do more to determine the extent to which this has resulted in better targeting and interception of high-risk goods and people for examination.
The agency does not record the results of all secondary examinations, information it could use to determine whether its targeting activities are identifying the right people for further examination. Nor does it have an effective system to randomly select goods and people for further examination and use the results to validate or improve its targeting and examination strategies.
Since its creation in 2003, the agency has faced considerable challenges in integrating the operations of the former three agencies. It has recently established a new classification standard and integrated training for its border services officers. While the agency has many new initiatives under way to manage an open and secure border, it has yet to put them together into a coherent risk management framework.

CBSA responded to the AG report, saying the agency agrees with each of the AG's recommendations and is proposing actions to address the concerns.

The full test of the Auditor Generals report on CBSA can be found on the AG Web site.

Sue Stiene Wins ACI-NA Concession Award

Airports Council International-North America (ACI-NA) has recognized Susan Stiene, director, retail & passenger services for Vancouver Airport Authority, as the first winner ofits "Person of the Year" award in the ACI-NA 2007 Concessions Contest.

Judges recognized Ms. Stiene for her many significant achievements at Vancouver International Airport's (YVR) 160-unit concession program.

Since joining YVR, sales of food, beverage, retail and services have increased 21 percent, thanks to her key initiatives of growing non-aeronautical revenues, improving the customer experience and reengineering airport processes.

Now in her eighth year at YVR, Ms. Stiene furthered partnerships with tenants through "field trips" to learn best practices at other airports, developed a no-cost training program for tenants, and proactively addressed labor shortages through a retail career preparation course for local high-school students.

She also demonstrated her leadership through process-reengineering programs for passengers and through her efforts to restore the sales of liquids, gels and aerosols at Canadian airports following August 2006 regulation changes.

The awards were announced during the ACI-NA Airport Concessions Conference in Chicago.

Canada's Airports:
Working Together, Moving Forward

The Canadian Airports Council (CAC) is the voice for Canada's airports. Formed in 1991, as the devolution of airports to local control was beginning, the CAC has established itself as the reliable and credible federal representative for airports on a wide range of significant issues and concerns.

Canada's airports are engines for economic development in the communities they serve and one of their most important elements of local infrastructure: Our communities' vital links to intra-provincial, national and international trade and commerce. Our 43 members represent 150 Canadian airports, including all of the National Airports System (NAS) airports and most passenger service airports in every province and territory.

Together, CAC members handle virtually all of the nation's air cargo and international passenger traffic and 95% of domestic passenger traffic. The economic impact of CAC member airports is staggering. They create well in excess of $30 billion in economic activity in the communities they serve. And more than 150,000 jobs are directly associated with CAC member airports, generating a payroll of more than $8 billion annually.