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May-June 2008

Winnipeg Airports Authority President and CEO Barry Rempel has been elected chairman of the association for the next two years. William A. Restall, President and CEO of Saskatoon Airport Authority has been elected the association's new vice chair.

Mr. Rempel has served on the board of the CAC since 2002, since 2006 as vice chair, and replaces outgoing chair Jim Cherry. Mr. Cherry, who is president and CEO of Aéroports de Montréal, retains his seat on the CAC board.

"Under the leadership of Jim Cherry, the CAC has matured in its position as the voice of Canada's airports. On behalf of the board, I thank him for his dedicated leadership of the CAC during a period that marked the 15-year anniversary of the first locally-responsible airport authorities in Canada," said Mr. Rempel. "Over the next two years, I look forward to serving the CAC as Canada's airports continue to face competitiveness challenges, most notably the continued financial burden of airport rent, the need for continued liberalization with international markets and the quest for the adequate provision of border services at airports throughout Canada."

Mr. Rempel has been president and CEO of Winnipeg Airports Authority. He has some 30 distinguished years in the Canadian aviation industry.

Prior to his appointment with Winnipeg Airports Authority, he was president and CEO of Tradeparks Development Corp., the land/business development subsidiary of the Calgary Airport Authority and served as chief executive for two of Canadian Airlines International's operating divisions: Cargo and Canadian North. Mr. Rempel is the former President of the Northern Air Transport Association.

Mr. Rempel has a strong commitment to the community, also serving on the boards of Travel Manitoba, the University of Manitoba Associates, the Canadian Chamber of Commerce, and Airports Council International. He also serves as Chair of the Associates of the I.H. Asper School of Business at the University of Manitoba, is Honourary Colonel of 17 Wing Winnipeg and a member of the Manitoba International Gateway Council and the Business Council of Manitoba.

Bill Restall Assumes Vice Chair Position

Bill Restall

U.S. Aviation Emissions Down 13% Between 2000 and 2006

Even as traffic grew 18% in the U.S. between 2000 and 2006, USA Today reports that aviation emissions were down 13% on aircraft that were 23% more efficient - the first extended period of time in which this has occurred.

The improvement reportedly is due to the retirement of older, less fuel efficient aircraft, and measures such as the installation of winglets and lighter seats and new navigation equipment.

Emissions from automobiles were up 6% over the same period with automobiles 2% more efficient.

Members in the News

New carrier, renovation for Windsor Airport
(Windsor, Windsor Star, May 16, 2007)
Flights daily from city reach 20 as 'regional hub' expands
(London, London Free Press, May 12)
Abbotsford airport flying high
(Abbotsford, Business Examiner, May 12)
Airport to Focus on Cargo Growth
(Monction, Times Telegraph, May 10)
Airport Body Feels Fuel Pain
(Montreal, The Gazette, May 8)
Airport sees record 4M passengers in 2007
Ottawa, Ottawa Business Journal, May 7
Calgary airport moves record number of flyers
Calgary, Calgary Herald, April 17
Regina airport poised to break passenger record
Regina, Leader-Post, April 17

U.S. Carriers Forecast Slight Decline in Summer Traffic

The Air Transportation Association, which represents air carriers in the U.S., has forecast a one percent decline in travel for this coming summer season.

ATA forecasts that slightly fewer passengers will travel June 1 through August 31 compared to the same period last year. Approximately 211.5 million passengers are expected to fly this summer, down approximately 1% from the 214.2 million passengers who traveled during the summer months of 2007.

ATA cites "Record-high jet fuel prices, a weakening economy and airline capacity cuts" for the anticipated decline, noting that aircraft should be slightly less full at 85% average load factors.

Canadian Traffic Up Significantly in First Two Months

Despite continued concern about the U.S. and world economies, Transport Canada statistics* for the first two months of 2008 indicate that passenger traffic in Canada is up significantly across all segments so far this year.

In the U.S. stats from the Bureau of Transportation Statistics indicate that systemwide passenger traffic was up just 1% for January, compared to 5.9% in Canada.

For the two months in Canada, domestic passengers were up about 7.1%, transborder passengers up 5.1% and overseas passengers up a whopping 11.4%.

In its spring 2008 forecast -- issued March 26th when a barrel of oil was about 20% less expensive than it is now -- Transport Canada projected domestic traffic to increase for 2008 about 3.3%, transborder traffic to increase about 2.6% and overseas traffic to increase about 7.4%.

* Monthly statistics are based on Transport Canada's monthly "Top 30 Airports" report, which account for about 96% of all passenger traffic in Canada.

CANADIAN NEWS
Edmonton Airports Secures Funding for Expansion

Edmonton Airports has finalized a new financing arrangement with Alberta Capital Finance Authority (ACFA) to finance a $1.1-billion capital program at Edmonton International Airport (EIA). Robust passenger increases over the past three years and continued greater Edmonton region growth are driving the need for expansion at EIA.

ACFA is a special act corporation established in 1956 under the authority of the Alberta Capital Finance Authority Act (Alberta). ACFA provides local authorities within the province with flexible funding for capital projects at the lowest possible cost.

"We are pleased to partner with ACFA as we embark on a critical expansion of Edmonton International Airport," says Reg Milley, Edmonton Airports president and CEO. "Being an ACFA shareholder allows Edmonton Airports to borrow money at favourable rates to finance airport capital projects that are so vital to our region's transportation system and competitiveness."

ACFA approved a $200-million credit facility for EIA expansion in late 2006, and has now expanded that facility by $800 million. Driven by sustained passenger increases, almost 50% over the past three years, the five-year EIA expansion involves $70 million in work already completed or underway, including a 1,000-stall expansion to the parkade and significant aircraft parking space added last summer and fall.

Construction will begin in late 2008 on a new south concourse that will add 13 passenger gates to the existing 17 passenger gates, boosting the total to 30. Additional aircraft parking space, systems upgrades and other enhancements are planned. The expansion, when completed in late 2012, is designed to handle nine million passengers. The current terminal was originally designed to serve 5.5 million passengers. In 2007, EIA served 6.1 million passengers.

The $15 Airport Improvement Fee paid by enplaned passengers at Edmonton International Airport enables the expansion and improvement of airport facilities. Edmonton Airports says it has no plans to increase the Airport Improvement Fee.

INTERNATIONAL NEWS
World Air Traffic Continues to Grow in the First Quarter

Despite rising economic concerns around the world, passenger traffic continued to grow in the first quarter, according to statistics released recently from Airports Council International. Cargo traffic also was up, but down domestically.

During the first quarter 2008, passenger traffic rose 4.5% compared to the same period in 2007. For the first three months of the year, international passenger traffic rose strongly by 7.6% and domestic by 2.3%.

In the US, travel choices continue to be impacted by persistently high fuel prices and rising air fares, as well as route changes due to air service consolidation and carrier bankruptcies.

Freight traffic for March 2008 compared to March 2007 was flat, balancing a 4% rise in international freight against a stark decrease of 7% in domestic freight. Only Asia Pacific showed positive domestic growth.

In addition to the overall negative effect of global financial and economic data, airports report a direct impact on traffic from freight carrier business decline, as well as fewer scheduled passenger flights, which also lowers volume capacity. In the U.S. and Europe air freight continues to compete with rail and road transport due to high fuel prices, in particular a transfer of small, lower value package shipping from air to surface.

The full results, including regional results, can be found here.

Table 1: Summary Worldwide Traffic Results, March 2008 (% change)
	Mar 2008 over Mar 2007	YTD (Jan-Mar 2008) Over YTD 2007	Rolling 12 months, through Mar 2008
PaxFlash
International passenger	7.2	7.6	7.2
Domestic passenger	0.8	2.3	3.7
Total passenger	3.5	4.5	5.2
FreightFlash
International freight	3.8	5.6	5.2
Domestic freight	(6.9)	(1.9)	(0.5)
Total freight	0.4	3.1	3.3

Source: ACI

More than 300 Airports Sign-Up to Commitment on Climate Change

Airports Council International (ACI) member airports have responded strongly in favour of a cross-industry declaration "Aviation Industry Commitment to Action on Climate Change" issued recently -- more than 300 airports have signed up, including ten airports in Canada.

Speaking to over 450 delegates attending the Aviation & Environment Summit in Geneva, ACI Director General Robert J Aaronson called for accelerated action. "For the airports community, environment has joined safety and security to form a triumvirate of top industry priorities. We agree with our aviation partners on the need to develop new technologies, to optimise our operations, to coordinate with key stakeholders including government and regulatory bodies and to implement cost-effective economic instruments.

"Airports are integral components of the local and regional community infrastructure; gateways for tourism; enablers of new business development," said Mr. Aaronson. "They are also key community employers and financial contributors. They feel the weight and pressure of corporate responsibility and want to fulfil their public service capacity in a sustainable manner."

At their annual general assembly in 2007, ACI members unanimously approved a resolution calling for a series of environmental commitments from the world's airports. The targets provide priority focus areas for airports around the world and the resolution identifies a long-term objective of carbon neutral status.

At the same time, ACI calls for acceptance of more stringent international standards at ICAO that will look beyond what the industry knows it can comfortably accomplish to more ambitious goals that the industry must set in order to accelerate results.

View full speech

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 49 members represent 180 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 $45 billion in economic activity in the communities they serve. And more than 200,000 jobs are directly associated with CAC member airports, generating a payroll of more than $8 billion annually.