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October-November 2008
Bloc, NDP Open to Changes on Airport Rent
Bloc Logo
In response to election questionnaires presented to the major political parties, both the Bloc Québécois and the New
NDP   Democratic Party committed to look at  
   changes to the matter of airport rent.

The questionnaire, distributed to the Bloc Québécois, Conservative Party, Green Party, Liberal Party and New Democratic Party immediately following the election call, polls the parties for their positions on a wide variety of issues important to airports.  The other parties have not yet responded to the questionnaire request, but any additional responses received will be posted on the CAC Web site's Elections 2008 page.

Supporting the reduction of airport rent, conclusion of an Open Skies agreement with the European Union and airport participation at future international air talks:  These are among the policy commitments made by the Bloc Québécois in response to the CAC's federal election questionnaire.

The NDP, meanwhile, said that "greater fairness" is needed in the rent matter and that it would work with Parliament towards "more equitable' arrangements for leases and "better conditions under which airports operate."

The NDP also said that it would review the status of Canada-European Union air talks before proceeding and does not have plans to negotiate increased liberalization of air service agreements.

The full responses to the questionnaires are available on the CAC Web site's Elections 2008 page.

Questions regarding aviation structural costs also were included in a questionnaire that the Tourism Industry Association of Canada produced. No party committed to reducing airport rent further in their responses.  Click here to see party responses to that questionnaire.

Note: The CAC does not endorse any particular party.  The questionnaire is designed to gather information about each of the party's positions for the benefit of members and others interested in issues of importance to Canada's airports.
Cargo Canada Front and Center at World Freight Forwarding Conference
FIATA 1

The 15 Canadian cargo airports participating in the Cargo Canada marketing program recently were on show at the FIATA freight forwarding conference in Vancouver with a joint presence and reception sponsorship with the federal government's Asia-Pacific Gateway and Corridor Initiative.

In coordination with the Department of Foreign Affairs and International Trade, which is charged with promoting the Gateway initiative among overseas audiences, Cargo Canada sponsored a wine and cheese reception in the exhibit hall.  It was well attended by delegates among the 600 attending from all over the world.  Cargo Canada also held a draw for a seaplane tour of Vancouver for three that was promoted through inserts to the delegates bags and a newspaper wrap of the Globe and Mail delivered to guests of the three main conference hotels.

FIATA 2Cargo Canada is an information campaign from 15 cargo airports of the Canadian Airports Council. 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.

Cargo Canada and the Asia-Pacific Gateway initiative also will be on display in November in Kuala Lumpur at TIACA's Air Cargo Forum.
CAC, Canadian Airports on Focus in August Airport Business

Airport BusinessAirports Business magazine in August published its Canadian issue, featuring Vancouver Airport Authority President and CEO  (and CAC board member) Larry Berg on the cover.

In addition to an article on the passenger experience at YVR and airport rent, the magazine featured an in-depth interview with CAC President and CEO Jim Facette on airport competitiveness in Canada.

Other Airports in the News

New Airport Runway Now Open for Traffic
Prince George Citizen (Sept. 30, 2008)

Needed: Transit to the airport from all directions
Toronto Star (Sept. 24, 2008)

Airport turns 70
Gander Beacon (Sept. 24, 2008)

Airport signs 'milestone' cargo facility deal
Chronicle Herald (Sept. 19, 2008)

Will Prince George take off?
Financial Post (Sept. 13, 2008)

Airport trying to lure carriers
The Daily Gleaner (Sept. 12, 2008)

International Traffic Up in August, Down in Asia-Pacific

With the exception of the Asia Pacific region (-6.2%), international traffic worldwide grew in August, according to monthly international traffic figures from Airports Council International.

Impaired by the sharp decline in Asia-Pacific, global international traffic grew by +0.6%. China, Taiwan, Japan and Korea were the countries suffering the most significant declines in Asia-Pacific while Europe (+1%) and North America (+2%) grew moderately. Africa (+9%), Latin America-Caribbean (+9%) and the Middle East (+8%) managed solid growth benefiting from the holiday season.
 
International traffic growth slowed markedly in the Middle East (+8.3%) where the dominant international airport Dubai only saw an increase of 2.8% in August while Abu Dhabi, Bahrain, Sharjah and Beirut continued to perform two digit growth figures.
 
Domestic traffic with the exception of Latin America-Caribbean (+4%) fell considerably across the world leading to a decrease of total domestic traffic of minus 4%. India was affected hardest with Delhi down 16% and Mumbai down 18%. German, U.K. and Spanish airports suffered the greatest domestic reductions in Europe while North America declined by 5% (primarily due to declines in the U.S. -- Canadian traffic figures for August are not yet available).
 
While total passenger numbers were down 2% in August year-on-year, over the 2008 eight months period, international traffic was still growing by 4.2% and domestic passengers were unchanged. Total passenger numbers have grown by 1.7% over the eight months period.
 
Domestic freight continued its decline in August (-19%) mainly driven by North America (-27%) and Africa (-28%). International freight shrunk by 2.6% lead by North America (-8%) and Asia Pacific (-4.3%). Overall freight was down 8% in August, while over the eight months period total freight defended a 1% increase.
 

Please note that the next November-December edition of The Airport Voice will be the final one for the year and will be published Nov. 29, instead of on the 15th.

CANADIAN NEWS
Halifax Signs Agreement for Multi-Tenant Cargo Facility

Halifax International Airport Authority (HIAA) has signed a lease agreement with Gateway Facilities Inc. to have that company build and manage an approximately 40,000 square foot multi-tenant cargo facility at Halifax Stanfield International Airport (HSIA).

The $12 million joint project will see HIAA develop the site in the airport's airside subdivision, bringing it up to grade and building an aircraft apron area.

"This is a major milestone for the airport authority and our community," says Tom Ruth, HIAA president & CEO. "As the hub and gateway of Atlantic Canada and the closest North American continental link to Europe, this facility opens the door for tremendous economic growth for the region's air cargo industry, as well as other aviation businesses like the one we're seeing today."

"Gateway Facilities Inc. looks forward to making a modern cargo facility a reality at Halifax Stanfield International Airport," says Doug McRae, an investor in Gateway Facilities Inc. "The new facility will better position cargo stakeholders to attract domestic and foreign cargo operators to our community and will allow stakeholders to confidently pursue new import and export business which require temperature management."

Recently, Transport Canada granted HSIA approval to participate in the international air cargo transshipment program. The program allows air cargo to be moved through Canada for shipment to third countries. For example, cargo could be flown from the United States into Halifax, stored temporarily, and then flown to a European destination. Similarly, international air cargo could also arrive from overseas and then be shipped by rail or road from Halifax to the United States, allowing the airport to take full advantage of NAFTA opportunities.

"Approval to participate in this transshipment program is certainly welcome, and combined with our new cargo facility, will enable us to produce significant economic benefit," says Jerry Staples, HIAA vice president, marketing & business development. "We estimate that each additional wide body cargo flight per week will generate nearly $100,000 per year for HIAA and, as we grow, has the potential to create dozens of direct and indirect jobs and millions in additional revenue for the region."
 
Prince George Runway Opens

Prince George Airport recently announced that its extended third runway is now open.  As the lights were turned on and the final pieces of equipment rolled off runway 15 / 33, one part of the Prince George Airport Authority's vision and dream was realized.
 
"There is still work to be completed" commented Airport General Manager Stieg Hoeg, "but what we have today is the beginning of something big".

These comments shortly after the month long runway closure for the final stages of the 4,000 ft runway extension project ended were followed by expressions of thanks to the crews that worked tirelessly on ensuring that this massive project was completed by this date and to the airport authority's funding partners - Government of British Columbia and Government of Canada.
 
The project involved extending the current runway by 4048 ft to 11,450 ft (3490 m) and  supporting infrastructure including centerline lighting, dual Instrument Landing System and fueling/deicing infrastructure for up to two wide body aircraft initially. The latter is expected to be complete in spring 2009 and was hampered by environmental issues of the amphibious kind.

Mr. Hoeg explained "We halted construction to ensure the safe removal of the western spade footed toad.   A species "at risk," the toads had to be moved from the north end of the runway and were relocated to a creek at the far south end of the airport property."

Mr. Hoeg says the airport, located in northern British Columbia along the great circle route, is strategically situated to act as a weather, safety or fueling alternative for those carriers using traditional trans-Pacific airports.
 
"With our competitive cost structure and no operational restrictions or congestion - Prince George Airport - YXS is poised for entrance into the trans-Pacific tech stop market"  Mr. Hoeg explained "This winter (December 08) airlines will have another choice for fueling." 

Final electrical work including the centerline lighting will be completed during the month of October.  Construction also will begin next spring on the first phase of a 3,000 acre logistics park adjacent to the airport.
INTERNATIONAL NEWS
Airports Urge Further Progress in Aviation Liberalization and Security Compatibility

During a Sept. 20 joint board of directors meeting of Airports Council International-North America (ACI-NA) and ACI-Europe, U.S., Canadian and European airport executives called for negotiators in U.S.- European Union (EU) and Canadian-EU aviation talks to move forward on full liberalized transatlantic regime, including relaxing remaining restrictions on airline ownership and control.

"Air service is a critical link in the international trade and tourism value chain.  Canada needs a comprehensive Open Skies agreement with the EU.  The significance is highlighted by the fact that our respective leaders will discuss liberalizing trade next month in Quebec City," said Barry Rempel, Chair of the Canadian Airports Council and President and CEO, Winnipeg Airports Authority.
 
Additional flexibility would provide greater opportunities for airlines in the U.S., Canada and Europe to obtain access to capital to the ultimate benefit of consumers.  This is particularly important because of the difficult economic environment in which the air transportation sector is operating.
 
"We were very encouraged by the success of the first round of negotiations, which created new economic opportunities for both sides.  We look forward to continued progress on reducing barriers which will facilitate trade and travel," said Randall H. Walker, Director of Aviation, Clark County Department of Aviation, McCarran International Airport and Chair, ACI-NA.
 
"Phase two" US-EU negotiations will take place on September 24-25 in Washington, D.C.; a third round of Canada-EU negotiations was just completed.
 
Canadian and European airports also urged regulators to work towards mutual recognition in aviation security screening, equipment and procedures. This is critical to develop procedures to resolve limitations on the transport of duty-free, liquids, aerosols and gels.
New York Slot Auctions to Continue

Despite significant opposition, the U.S. government has decided to proceed with slot auctions at New York City-area airports as an attempt to address congestion.

The CAC joins Airports Council International-North America, the Air Transport Association and the International Air Transport Association in opposition to the plan.

The CAC in particular contends that the plan would disproportionately impact access to New York from major Canadian economic centers since most Canadian flights into the market are operated by the regional jets that the slot auction plan targets.

The U.S. Government Accountability Organization (GAO) recently weighed in on the proposed auctioning of slots at Newark Liberty International Airport -- Saying the Federal Aviation Administration does not have the authority to do so.

GAO General Counsel opinion also concluded that FAA similarly lacks authority to retain and use auction proceeds as proposed in the pending rulemaking proposals for La Guardia Airport and for John F. Kennedy International Airport. 
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 48 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.
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In This Issue
Cargo Canada Front and Center at World Freight Forwarding Conference
CAC, Canadian Airports on Focus in August Airport Business
Resilient International Traffic in August
CANADIAN NEWS...Halifax Signs Agreement for Multi-Tenant Cargo Facility
CANADIAN NEWS...Prince George Runway Opens
INTERNATIONAL NEWS...Airports Urge Further Progress in Aviation Liberalization and Security Compatibility
New York Slot Auctions to Continue
Upcoming Events
Upcoming Events
Oct. 20-22, 2008
ACI-NA Public Safety and Security Conference in Arlington, Va.

Oct. 30-31, 2008
CAC Board Meeting in Québec City

Nov. 2-5, 2008
IAAE Operations and Facility Managers Conference in Winnipeg

Nov. 4-6, 2008
Cargo Canada at the Air Cargo Forum in Kuala Lumpur

Nov. 10-13, 2008
ACI-NA Airport Concessions Conference in Toronto

Nov. 19-20, 2008
CAC Security Committee Meeting in Saskatoon

Nov. 27-28, 2008
Communications Group Meeting in
St. John's

April 2-3, 2009
HR Committee Meeting in Victoria

April 28-3, 2009
Airports Canada Conference and Exhibition in Ottawa-Gatineau

May 31-June 3, 2009
ACI-NA Marketing Communications Conference and Jumpstart in Montréal

Oct. 11-14, 2009
ACI-NA Annual Conference in Austin

  CAC board and committee meetings are open to all members

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Tourism Snapshot from the Canadian Tourism Commission

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Short-Term Market Outlook from the Canadian Tourism Commission

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