Newsletter Graphic

Sept.-Oct. 2007
Connectivity is Key
Jim Facette

By Jim Facette, president and CEO

The article below appears in the fall issue of ACI-NA's Centerlines Magazine

 

In Canada this year, the Canadian Airports Council has done a great deal of thinking about just how Canada's airports are doing our part for a strong Canada.  Because of the industry we are in, our role in international commerce is one of the biggest ways in which we are doing our part.

At first blush, the role of airports in international commerce is rather obvious.  We are the gateways to our communities, regions and indeed the nation for international trade and tourism.  But the International Air Transport Association (IATA) recently examined how our impact on productivity and economic growth may be far greater than many believe.

In a June aviation economics briefing, IATA and InterVISTAS examined the importance of what it characterizes as "connectivity."  As we have long known anecdotally, they concluded that "Greater connections to the global air transport network can boost the productivity and growth of economies by providing better access to markets, enhancing links within and between businesses and providing greater access to resources and international capital markets."

Just how much of a boost?  The study takes a look at Vancouver International Airport and the five-year, CAD $1.8 billion investment in infrastructure and services that took place between 1995 and 2000.  This included the $506 million the expansion in airport capacity paid for largely by airport users, the resulting increase in air service by air carriers, and a $19 million air traffic control investment by the federal government.

The investment in Vancouver resulted in a 25% increase in connectivity for Vancouver and a 5.4% increase for Canada as a whole.  But more importantly, it also contributed to an increase in productivity responsible for a long-term boost to Canadian GDP of CAD $348 million a year - an annual economic rate of return of 19.3%.

Canada's place in international commerce is one currently being examined in depth by our federal government with its Strategic Gateway and Trade Corridor initiatives.  Most of the Gateway programs announced so far have been land and sea-based, but Canada's airports are interested in doing our part as well.

We agree with the government that success of the Gateway initiative "will depend on how well the key players - public and private - coalesce around a coherent vision."  

What that means in the aviation sector is a government/aviation sector partnership framed by domestic policies consistent with our shared vision of a competitive Canadian economy on the rapidly changing playing field of global commerce.

Greater access to international markets through liberalized air agreements helps Canadian communities that advantage of the increasing global opportunities for trade and tourism, such as growing markets in Asia.

Increased resources for the Canada Border Services Agency helps enhance border efficiency for goods and facilitates continued growth in international tourism. 

A less arduous financial environment, including reforms to airport rent, makes Canada more cost competitive with other countries as a hub for cargo and passengers.

These factors currently serve as yokes on Canada's connectivity, and accordingly have a negative impact on our productivity and global competitiveness.

The theme 'doing our part' is meant to demonstrate how airports contribute to a greater good.  When the industry takes a point of view it does so with the knowledge of how our actions fit in to a larger picture. 

As the voice of Canada's airports we will continue to be proactive in presenting not just how airports are doing their part, but also explaining the role of Canada's airports in the overall benefit of the country and its reputation around the world. 

YOUR COUNCIL
CAC Efforts on Screening of Connecting Bags Yield Results

According to a joint statement from Prime Minister Harper, U.S. President Bush and Mexican President Calderón after this summer's North American Leaders' Summit in Montebello, Que., baggage re-screening was a top commitment coming out of the leaders' talks on "Smart and Secure Borders."  This is an issue on which the CAC has been lobbying for quite some time.

"We ask ministers to continue to pursue measures to facilitate the safe and secure movement of trade and travellers across our borders and, in particular, to: expedite air  transportation through the development of comparable protocols and procedures to eliminate duplicate screening for baggage placed on a connecting flight in North America, and for inbound and outbound air cargo shipments," said the leaders in the statement.

The CAC, in conjunction with ACI-NA, has been working to eliminate the duplicate screening of Canada-originating bags on U.S. connecting flights.  In early July, the CAC raised the volume on the issue through a public statement urging the leaders' to address the issue when they met in August.

According to the leaders' statement, they also commited to "work with stakeholders to identify ways to further enhance benefits of trusted traveller programs (NEXUS, FAST and SENTRI), including through expanding and streamlining application processing, further program integration and coordinated infrastructure investments."

Progress on the commitments are to be reported in a year, when the leaders meet again in Mexico.  The CAC will continue its lobbying, to ensure the group is able to report next year that the issue has been resolved.

The full text of the joint statement can be found on the PMO Web site in English and in French.
CANADIAN NEWS
Canadian Airports Get Noticed in ACI-NA Marketing Communications Awards

Once again, several Canadian airports were among the 43 airport winners of Airports Council International-North America (ACI-NA)'s 2007 Excellence in Marketing and Communications Contest.

First place winners included Edmonton Airports for its partnership with air carriers and Vancouver Airport Authority for its rebranding.

All Canadian airport winners include:
  • Edmonton Airports
    1st Place: Partnering with Carriers
    2nd Place: Public Relations Campaigns

  • Halifax International Airport Authority
    3rd Place: Annual Reports

  • John C. Munro Hamilton International Airport (Ontario)
    3rd Place: Public Relations Campaigns

  • Ottawa International Airport Authority
    3rd Place: Newsletters-External

  • Vancouver International Airport
    1st Place: Corporate Branding Campaigns

  • Winnipeg International Airport
    2nd Place: Customer Service Initiatives
ACI-NA President Greg Principato said, "As facilities where millions of passengers spend time daily, airports have an important responsibility to ensure that they are conveying the right messages to their customers and communities.  Our winners this year have done a spectacular job at clearly communicating their services."

In 2007, 73 airports and airport authorities submitted almost 300 entries in the contest, which encompasses categories that recognize work in marketing and public relations and provides airports the opportunity to be honored for the quality of their work.  The 2007 contest judges included 37 communications and marketing professionals who reviewed the entries over a 5-day period.

Award winners will be recognized at ACI-NA's 16th Annual Conference & Exhibition in Kansas City, MO, Oct. 3, 2007, during the Chairman's Honors Luncheon

MONTHLY NUMBERS

Transport Graph

Transport Graph

Stats Can Graph
CTC Report Seeks to Understand, Reverse Japanese Tourist Decline
Japan Report Cover

A new report from the Canadian Tourism Commission examines the decline in Japanese tourists to Canada -- with an eye to reversing the trend.

As outlined, the Japanese outbound market shrank in the early part of this decade.  It has begun to recover in earnest, climbing from 13.30 million trips in 2003 to 17.54 million in 2006.

However, travel to Canada from Japan reportedly has never recovered from its peak of 647,700 visitors ten years ago. An economic slowdown, world terrorism and SARS undermined travel throughout the past decade.

The CTC contends that since the 2003 SARS crisis the flow of visitors from Japan should have steadily recovered. However, it has not -remaining below 400,000 a year.  Eight key factors are cited:

  • Destination Trends Toward Asia - The Japanese are travelling intra-Asia
  • Canada Is Off The Radar Screen - Canada is simply not "hot" anymore
  • Needs Are Changing - Move away from group tours to more independent travel
  • Canada's Core Product Now Out of Date - A need to move away from "big nature" to individual and recreational offerings
  • Canada's Current Market Reflects Its Image - Canada not appealing to the younger Japanese
  • Canada Is Receiving Little Trade Support - Japanese tour retailers not pushing Canada.
  • Lack of Airline Sensitivity - Reduced capacity and difficulty in negotiating affordable group rates
  • Need For More Assertive Leadership - CTC in Japan needs to be more aggressive in its marketing efforts
Employment in Canada is Up,
An Update from the
Canadian Chamber of Commerce


Employment in Canada rose a solid 23,300 in August, surpassing market expectations.  An estimated 6,500 full-time positions and 16,800 part-time jobs were created in August.  The unemployment rate remained steady at a 33-year low of 6.0%.  
Most of the net new jobs were created in the goods-producing sector (+20,400) with construction leading the way (+15,500).  Manufacturing posted a small decline (-3,200). 

The service sector also posted a small increase (+2,900) as large gains in education (+32,800); business, building and other support services (+14,700); and health care (+14,500) were offset by declines in other areas including professional, scientific and technical services (-14,400); transportation and warehousing (-31,000) and information, culture and recreation (-10,600).

On a regional basis, 7 of 10 provinces reported a gain in employment in August.  The biggest gains were in Ontario (+9,300) and British Columbia (+8,300).  

The bottom line: Canada's labour market remains healthy and tight. Indeed, an estimated 232,000 net new jobs have been created in Canada thus far in 2007, 84% of which have been full-time positions.  A key element contained in today's employment report is average hourly wages which continue to trend upwards, posting a 4.0% year-over-year increase in August. 

In no doubt, this is of concern to the Bank of Canada.
This, coupled with the fact that Canada's economy is operating above its capacity limits, suggests that when Canada's central bank moves on interest rates, it will be to hike its key policy rate.  

Michael Nixon
Senior Vice-President, Corporate Relations
The Canadian Chamber of Commerce

Winnipeg Airport Redevelopment Passes Major Milestone

Redevelopment of Winnipeg James Armstrong Richardson International Airport has passed 500,000 person-hours of onsite construction work.

Achieving this major milestone underlines the significant role played by Winnipeg Airports Authority in stimulating the economic life of this community. With a construction commitment of $585 million, airport redevelopment is forecast to contribute 6,370 person-years of employment to the local market, including $273 million in wages. GDP is projected at $343 million with total economic output for Manitoba at more than $1 billion.

Since initiated, Winnipeg Airport redevelopment has proceeded on several major components:
  • Air Terminal Building Approximately 51,000 m˛ 2006-2009
  • Airside Development Additional apron and improvements 2006-2009
  • Groundside Site Services Roadways, site works 2005-2008
  • Central Utilities Building Technical upgrades and tunnel 2007-2008
  • Parkade (complete) Four-level, 1,559 stalls 2005-2006

"Passing 500,000 construction hours demonstrates that we are succeeding with our vision of leading transportation innovation and growth on behalf of this vibrant community," said Barry
Rempel, President and CEO of Winnipeg Airports Authority Inc. "It is important to remember that this kind of accomplishment results from a great team effort, including the cooperation and
leadership of our customers, stakeholders, Board and staff, as well as contractors and all those working on the Redevelopment program."

Prime contractors involved with Redevelopment construction projects have included the EllisDon Corporation, Manshield Construction, McCain Electric, Mulder Construction, Nelson
River Construction, Otis Elevators and PCL Constructors Canada. Program Management is provided by Parsons and Wardrop Engineering.
Wayne Sled Retires from Edmonton Airports

Edmonton's security security manager, Wayne Sled, who was very active on the CAC's Security Committee, has left Edmonton Airports to take a teaching stint in Qatar.  He will be sorely missed.

Wayne joined the City of Edmonton as the manager of security for the Edmonton Municipal Airport in 1989 and joined Edmonton Airports in 1996.  Before his career in airports, Wayne spent 29 years with the Royal Canadian Air Force where he spent time in the Middle East and many other places around the world. 


As manager, security and emergency planning for the Edmonton International Airport, Wayne was also an active member of the CAC Security Committee where his extensive knowledge and experience added tremendous value to the Committee's work.

Wayne recently accepted a three-year position with the College of the North Atlantic Qatar where he will be developing a course curriculum on emergency planning in his first year and delivering the curriculum for the following two years.


The CAC wishes Wayne all the best!
BCIT Offering New Part Time Airport Operations Program

After two years in development, British Columbia Institute of Technology (BCIT) Aerospace will begin offering an
Airport Operations On-line Part-time Studies Associate Certificate Program. The program will focus on planning, operating and managing an airport.

Program courses include:
  • Introduction to Airport and Airside Operations
  • Airport Safety and Emergency Preparedness
  • Airfield Planning and Design
  • Airport Master Planning and Certification
  • Airport Security Systems
  • Airport Maintenance
The online part-time program started on Sept. 10 with "Introduction to Airport and Airside Operations" and is being facilitated by BCIT Airport Operations instructor Cheryl Cahill.  

Visit the BCIT Web site for detailed information and to register.
Former Toronto Intern Wins ACI-NA Scholarship


Airports Council International - North America's (ACI-NA) Commissioners Committee recently presented three scholarships of USD $2,500 each to deserving aviation students. Recipients include Heather E. Williams, a student at Georgian College of Applied Arts and Technology in Barrie, Ontario, who interned at the Greater Toronto Airports Authority Earlier this year.

Ms. Williams majors in Aviation Management.  She has completed approximately 75 percent of the required credit hours with a GPA of 77.06 and had the highest average of all of the Canadian applicants.  She interned at the Greater Toronto Airport Authority through the start of 2007.  Ms. Williams' goal upon completing the program is to seek a Masters in Aviation Management.

The ACI-NA Commissioners' Committee Scholarship is designed to encourage and promote excellence in the educational areas necessary for effective airport management or operation. The ACI-NA Commissioners' Committee has awarded over thirty scholarships totaling more than USD $90,000 to students within the past 15 years.

INTERNATIONAL NEWS
9/11 Act Implicates Air Cargo

The U.S. has signed into law the 9/11 Commission Recommendations Act of 2007, calling for 50% screening of air cargo on passenger aircraft within 18 months and 100% within three years.

As the
act contains provisions that need to be developed by the Transportation Security Administration (TSA), we do not yet know its full impact. The law, which will impact both foreign and domestic aircraft, requires at a minimum that screening methods approved by the TSA provide a level of security commensurate with the level of security for the screening of passenger checked baggage.

Screening is defined as
a physical examination or non-intrusive methods of assessing whether cargo poses a threat to transportation security. Methods of screening include x-ray systems, explosive detection systems, (including) trace detection canine teams certified by the TSA, or a physical search together with manifest verification. The act also deals with the issue of blast-proof containers.

Through the CAC Security Committee and membership in the international Air Cargo Security Industry Forum (ACSIF), the CAC continues to monitor developments in air cargo security around the world.
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.
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In This Issue
CAC Efforts on the Screening of Connecting Bags Yield Results
Canadian Airports Get Noticed in ACI-NA Mar-Com Awards
MONTHLY NUMBERS
CTC Seeks to Understand, Reverse Japanese Tourist Decline
Economic Update
Major Milestone in Winnipeg Redevelopment
Wayne Sled Retires from Edmonton Airports
BCIT Offering New Part-time Course
Toronto Intern Wins Scholarship
INTERNATIONAL NEWSL 9/11 Act Implicates Air Cargo
UPCOMING EVENTS
Upcoming Events
Sept. 16-20, 2007
SWIFT 2007 in Calgary
 
Sept. 30-Oct. 3, 2007
ACI-NA Annual Conference in Kansas City
 
Oct. 23-24, 2007
CAC Board Meeting in Regina

Oct. 24-26, 2007
Western Aerospace Alliance/Wings of Saskatchewan Conference & Trade Show in Saskatoon
 
Oct. 28-29, 2007
CAC Security Committee Meeting in Vancouver
 
Oct. 30-31, 2007
AVSEC Meetings in Vancouver
 
 
CAC board and committee meetings are open to all members
CTC

Canadian Tourism Intelligence June 2007

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