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Oct.-Nov. 2007

A Canadian Presence at Air Cargo Americas

Thirteen Canadian airports cooperating in a joint marketing program will be participating in the upcoming Air Cargo Americas Conference in Miami Nov. 8th -- in the form of a "Canada Day" reception sponsorship and booth.

Cargo Canada is a brand launched earlier this year for the informational campaign from 13 participating cargo airports of the CAC. Cargo Canada's mandate is to increase awareness of Canada as a fast, reliable and cost-effective conduit for air cargo between North America and the rest of the world.

Participation at ACA is the culmination of several months of efforts developing new Cargo Canada materials, including the new brand itself. Also developed in 2007 were a new Cargo Canada Web site, a new brochure and presentation folder, Cargo Canada-branded pens, and a video in English and Spanish.
The latter will be playing at ACA.

Planning currently is underway for 2008. The group is considering a small presence at The International Air Cargo Association Air Cargo Forum in Kuala Lumpur and the FIATA 2008 Congress in Vancouver (freight forwarders). There may also be translation of some of the materials developed in 2007 into additional foreign languages, most notably Mandarin/simplified Chinese.

For CAC members only, electronic copies of the Cargo Canada materials are available in the Cargo section of The Airport Link.

Piense rápido. Piense Canada. Piense Cargo Canada.
Think Fast. Think Canada. Think Cargo Canada.

Toronto Lowers Landing Fees

The Greater Toronto Airports Authority (GTAA) this week announced a reduction in fees charged to airlines for all services as of January 1, 2008. Landing fees will be reduced by 3.1% and terminal charges will be reduced by 4.7%.

"This is fantastic news for our airline partners," said Lloyd McCoomb, president and CEO of the GTAA. "By pricing Toronto Pearson more competitively we are able to decrease the cost of
doing business, which is good for airlines, good for passengers and good for the region."

Air Canada was quick to commend the move.

"Anything that reduces the cost of operating at an airport will translate into increased service for the community. Airports are catalysts for economic growth," said Air Canada President and CEO Montie Brewer in a statement.

Mr. Brewer also called on the federal government to match the move through a reduction in rent.

"Air Canada now asks the Federal Government to follow the GTAA's example by reducing the rents it charges airports each year. Ottawa collects more than $2 billion in rent annually from the country's airports but it diverts this money into general revenue instead of spending it to encourage the expansion of air services. Ultimately, this is a regressive tax that stifles economic growth," said Mr. Brewer.

Mr. McCoomb gave high praise to employees of the GTAA for their ideas to increase revenue and efficiencies.

"The people that keep this airport running have stepped up and shown initiative in suggesting ways to make Toronto Pearson more competitive. We are proud of all of their work, and are pleased to pass the savings on to the airlines."

The GTAA says it will continue to work to make Toronto Pearson competitive through cost containment, revenue generation and by working with air carrier partners.

Continued Traffic Growth through 2025: ICAO

Total world airline scheduled passenger traffic in terms of
passenger-kilometres is expected to grow at an average annual rate of 4.6% up to the year 2025, half a percentage point lower than the growth rate achieved over the period 1985-2005, according to forecasts prepared by the International Civil Aviation Organization (ICAO).

Total freight traffic growth over the same period is forecast to be stronger, at 6.6% a year in terms of freight tonne-kilometres.

International traffic is expected to continue to grow faster than total traffic, at 5.3% a year for passenger-kilometres and 6.9% a year for freight tonne-kilometres.

The total number of departures and distance flown on domestic and international services of scheduled airlines are expected to more than double over the 2005-2025 period.

The airlines of the Middle East and Asia/Pacific regions are expected to show the highest growth in both passenger and freight traffic. All international route groups are anticipated to grow at average rates ranging from 3.5%-6.6% a year over the forecast period.

The fastest growing route groups are those to, from and within the Asia/Pacific region.

ICAO Air Traffic Forecasts
Scheduled Services	1985	2005	Forecast 2025	Average Annual Growth Rate
Scheduled Services	1985	2005	Forecast 2025	1985-2005	2005-2025
Total
Passenger Kilometres (billions)	1,366	3,720	9,180	5.1%	4.6%
Freight Tonne Kilometres (millions)	39,813	142,579	510,000	6.6%	6.6%
Passengers Carried (millions)	896	2,022	4,500	4.2%	4.1%
Freight Tonnes Carried (thousands)	13,742	37,660	110,000	5.2%	5.5%
International
Passenger Kilometres (billions)	589	2,197	6,225	6.8	5.3
Freight Tonne Kilometres (millions)	29,384	118,482	452,120	7.2	6.9
Passengers Carried (millions)	194	704	1,950	6.7	5.2
Freight Tonnes Carried (thousands)	5,884	22,630	80,000	7.0	6.5

First Half Airport Duty Free Sales Down

Airport duty free sales continue to be hammered by the after effects of last year's August 10th incidents -- with sales for the first half of the year down nearly 7% or $5.6 million.

The numbers reinforce the position of the CAC that the introduction of arrivals duty free in Canada would be a timely way to repatriate foreign duty free sales and make up for the lost sales suffered due to the ban on liquids, gels and aerosols.

Driving the decrease was a nearly $4.6 million decrease in alcoholic products. That is a drop of 20%. Revenue was down $344,000 for another big LAG item and the best-selling airport duty free category -- perfume, cosmetics and skin care.

Sale of clothing was up more than $2.4 million. Jewellry sales were up 36.3% (nearly $657,000) and food sales were up nearly 50% ($1.9 million). Tobacco sales were down $641,000.

MONTHLY NUMBERS

Jim Cherry, Reg Milley Elected to ACI Boards

CAC Chairman Jim Cherry (Aéroports de Montréal) has been elected to a three-year term on the board of ACI-World and CAC Immediate Past Chair Reg Milley (Edmonton Airports) has been re-elected to the ACI-NA board of directors for another three-year term.

ACI-NA also welcomed a new chair, Randy H. Walker, director of Aviation for Clark County's Department of Aviation in Nevada (Las Vegas McCarran International Airport).

CANADIAN AIRPORTS
Kelowna Airport Investing $36 Million in Airport Expansion

The Kelowna International Airport is investing $36 million to expand facilities to meet the growing demand as passenger numbers are forecast to grow to 1.6 million passengers in 2015.

"Passenger volumes continue to rise and we are already nearing our million passenger mark for the year - which is one month earlier than last year and three months earlier than the year before," says Kelowna Airport General Manager Roger Sellick, who is seeing traffic rise by almost 14 per cent. "Over the last three years our passenger traffic has continued to rise by double digits."

The center piece of the Kelowna International Airport 2010 Development Program is a new international arrivals concourse capable of handling 250 passengers per hour. Improved ground access and expanded vehicle parking, a new car rental facility and two new aircraft loading bridges are also included in the program.

In addition to the program approval, Kelowna City Council authorized airport administration to retain services of a multi-disciplined consulting company to design, supervise and commission the individual program elements.

As part of the 2025 Master Plan a runway extension to 8,900 feet was previously awarded to EBA Engineering and is expected to begin later this fall.

Comox Valley Airport: An Important Contributor to the Local Economy

British Columbia's Comox Valley Airport this month released the results of an economic impact study showing the airport is a significant contributor to the local economy.

The recently released 77 page economic impact study, carried out by InterVISTAS, says that on-going operations at YQQ businesses and the regional tourism industry generate $237 million in wages and result in 11,300 direct jobs representing 9,100 person years of employment.

"Vancouver Island is the draw for tourism, but the economic impact goes far beyond just tourism. Increasing market awareness and introducing those markets with new airline services to Vancouver Island is the focus of the airport and this has produced dramatic results," said Mr. Fast. "Good air transportation positively influences economic activity throughout the region. The up turn in the real estate market is another good example of the positive effect of the airport."

According to the report, the airport also is responsible for the $119 million contributed to government tax revenues: $36.5 million went to the province and $82.6 million to the federal government. On a local level through property taxes there was a contribution of $80,000 from the Comox Valley Airport Commission and airport tenants.

More in-depth details on the InterVISTAS report can be viewed on the airport web site at www.comoxairport.com.

Abbotsford Airport Receives ACAP Funding

The federal government has announced it is investing nearly $1 million in Airports Capital Assistance Program (ACAP) to expand Abbotsford Airport's administration building to house two new fire trucks.

In April, Abbotsford Airport received $2,082,925 from ACAP to cover the purchase of the new airport fire-fighting vehicles. The new $957,961 addition to the airport's Administration building will provide two additional vehicle bays to house the airport's new fire-fighting vehicles, a dayroom, storage and locker space.

The Abbotsford Airport was Canada's sixth busiest airport in aircraft movements in 2006. The airport also had a record-breaking year in passenger traffic in 2006 as over 500,000 passengers used the airport.

Since 1995, the Abbotsford Airport has received over $8.5 million in ACAP funding for runway and apron repaving, lighting upgrades, storm drainage improvements, heavy-duty airside mobile equipment, and fire-fighting vehicles.

ACAP provides funding toward capital projects related to safety, asset protection and operating cost reduction. The CAC contends, however, that ACAP is underfunded and oversubscribed.

New Prince George Fire Rescue Truck has Ties to Sept. 11

fire rescue truck The Prince George Airport Authority has recently purchased a new (refurbished) crash-rescue truck, which served for the Port Authority Police Department of New York and New Jersey (PANYNJ) on Sept. 11th, 2001 at Kennedy Airport.

On Sept. 28th this truck was dedicated to the 37 police officers who gave their lives in the line of duty during the 9/11 attacks, as well as their K-9 Explosive Team member, 'Sirius'. In attendance were two members of the New York / New Jersey Port Authority Department - Police Sergeant Steven Skific and Police Officer Mark Legiec.

In addressing the ceremony Sgt. Skific held back tears as spoke of the fallen officers " On behalf of the Port Authority Police Department, I want to thank you all for not forgetting the heroism and sacrifice which was made by our fellow officers on that horrible day, September 11, 2001." He continued "It would be easy to just move on and forget what happened but its people like you here in Prince George that keeps the memories alive of our 37 heroes. This is very personal for me and officer Legiec - Thank you".

Stieg Hoeg, Prince George Airport General Manager says "the Prince George Airport is proud to have this new addition to our fleet. The work that Crash Rescue Emergency Services have done in rebuilding this truck and their efforts in assisting us with this dedication should be commended."

The truck dedication included a commemorative plaque with the names of the 37 officers and Sirius engraved on it. This plaque was mounted on the inside of the vehicle and a ceremonial patch that was designed by a Prince George Airport Authority employee, was also affixed to the truck.

INTERNATIONAL NEWS
Arrivals Duty Free Expands in Australia

Trend News reports that the Australian Ministry for Small Business and Tourism has confirmed that the country's Customs Act has been amended to allow inbound tourists and residents a duty free allowance of A$900 to spend on gifts, electronics and fashion items.

The new change reportedly does not affect duty free liquor and tobacco allowances, but it is expected to provide a welcome boost for operators at the country's duty free arrivals shops, particularly the Nuance Group which operates these shops at Australia's main international airports.

The change in the regulations comes after solid lobbying by the country's duty free industry and the airports' community. At the same time, the Australian Government's Minister for Small Business and Tourism, Fran Bailey told local press that the move was also designed to help boost the tourism retail sector by keeping more tourist spending in Australia.

Chinese and Korean visitors are currently the biggest tourist spenders and key targets according to Tourism Australia, while a new A$8m tourism campaign designed to boost the declining numbers of Japanese tourists to Australia has also been launched.

There reportedly were 650,900 visitors from Japan in 2006, a 12-month decrease of 5% following two earlier years of decline.
Meanwhile, Korea is Australia's sixth largest tourism source market in terms of total expenditure. In 2006, 260,767 (+4%) Koreans visited Australia. By contrast, China reportedly is Australia's fifth largest source market in terms of total expenditure. In 2006, Australia received 308,452 Chinese visitors (+8%).

ICAO Sets Agressive Targets on Emissions

The International Civil Aviation Organization agreed last month to create a new Group on International Aviation and Climate Change composed of senior government officials. The Group's mandate will be to recommend an aggressive ICAO Programme of Action on International Aviation and Climate Change.

The program will formulate an "implementation framework" consisting of strategies and measures that contracting states of ICAO can use to achieve emissions reductions. It will identify fuel efficiency goals and means of measuring progress.

Options to be considered include voluntary measures, technological advances in both aircraft and ground-based equipment, more efficient operational measures, improvements in air traffic management, positive economic incentives and market-based measures.

After receiving the Programme of Action, ICAO will unveil it at a high-level meeting.

The assembly agreed that market-based options are valuable tools for addressing aircraft emissions. A majority of the delegations felt, however, that states should not apply emissions trading systems to the airlines of other states except pursuant to mutual agreement.

The ICAO move is partially in response to the unilateral moves by the EU to impose an emissions trading plan on foreign carriers serving Europe.

IATA Engaging Airports on Bar Code Boarding Passes

The International Air Transport Association (IATA) reports its Simplifying the Business group has engaged more than 300 airports to find out their capability, equipment and plans regarding bar code boarding passes (BCBP). This is consistent with IATA's board mandate, which calls for 100% BCBP usage by 2010.

IATA says the information collected is crucial for airlines planning to implement BCBP as well as for those already BCBP capable wishing to extend the benefits of BCBP to more destinations. Read the full report for more information regarding: