Newsletter Graphic

Sept.-Oct. 2008

The world's airlines will offer 59.7 million fewer seats in the 4th quarter of 2008 than they did a year ago, according to OAG. That's a drop in capacity of 7%

The latest figures from OAG's database reveal a 7% drop both in the number of flights and in seat capacity for October, November and December 2008 compared with the same period last year. The U.S. domestic market will account for just under 20 million of that figure, or 33% of the global decline in capacity.

In the 4th quarter of 2007, seat supply in intra-Asia markets outpaced the U.S. for the first time. However, Asia is currently showing a 13% decrease in capacity for 4th quarter 2008 (equivalent to a 3-year setback in growth) although this may not be quite as severe as current figures show as a number of Chinese carriers have not yet filed their full winter schedules.

Steve Casley, Chief Operating Officer of OAG, said, "The data speaks for itself. It took a good three years for the industry to recover from the downturn in 2001 when it had a 5% drop in capacity and a 7% drop in flights. Steady annual growth since 2002 looks set to plummet in the fourth quarter this year with an unprecedented global decline of 7%."

Other notable findings from the OAG analysis show:

275 airports worldwide to lose air service altogether, of which 32 are in the U.S. while 116 are in the Asia Pacific region.
Transatlantic routes buck the trend with 2% year on year growth
OAG adjusts its fleet forecast for 2017 down by more than 3,500 aircraft

Half-Year Canadian Traffic Still in Growth Mode

As the aviation industry prepares for a 2009 in which capacity and traffic likely will decline, interim traffic numbers for June indicate continued half-year growth across all passenger sectors.

According to Transport Canada's "Top 30" Enplaned and Deplaned Passengers traffic report. June traffic increased 3.7%, 2.0% and 8.5% over 2007 traffic numbers in the domestic, transborder and overseas categories respectively.

For the half year this represented increases of 4.8%, 3.7% and 11.0% across the same three sectors and an 5.8% total increase over the half year to June 2007.

Meanwhile, international traveller statistics from Statistics Canada indicate that Canadians are still travelling internationally at a growing rate. For the first half of the year, Canadian visits by air to the U.S. was up 13% while Americans travelling to Canada were down 4.9%.

Direct Canadian visits to other destinations were up 12.2% while visits by residents of countries other than the U.S. to Canada were up 6.1%

Half-Year Canadian Duty Free Numbers Up

The Canadian airport duty free sector continues to enjoy strong growth, with half-year revenues up nearly 16% over 2007.

According to figures from the Frontier Duty Free Association, sales numbers are up across all sectors.

PEOPLE IN THE NEWS
John Crichton Wins Controllers Award

Nav Canada recently announced that John Crichton, president & CEO, has been chosen as the 2008 recipient of the Glen A. Gilbert Memorial Award. Bestowed by the Washington-based Air Traffic Control Association (ATCA), the award honours the lifelong achievements of an individual in the field of aviation.

Announcing the 2008 award winner, ATCA noted "It has been the consistent dedication to the advancement of the industry that has earned John Crichton the prestigious Glen A. Gilbert Award." ATCA also highlighted his instrumental role in creating NAV CANADA, the world's first privatized air navigation service (ANS).

In September 2006, Crichton was selected as Canada's Transportation Person of the Year. Presented by the Transportation Association of Canada, the award recognizes an industry leader who has contributed to the improvement or advancement of the transportation industry. (Biography attached)

The trophy will be presented to John Crichton at an awards ceremony during ATCA's 53rd Annual Conference in Washington D.C. on November 5, 2008. Inscribed with recipient names, the Glen A. Gilbert Memorial Award is on permanent display at the Smithsonian National Air & Space Museum.

Airports in the News

Transportation Canada East Air Cargo Gateway aims to create a direct link between province and foreign markets such as Europe
New Brunswick Business Journal (Sept. 6, 2008)

Regina Airport Authority Still Working on New Service
NewsTalk 980 (Sept. 2, 2008)

(Kelowna) Airport Expansion Takes Off
Vernon Morning Star (Sept. 2, 2008)

Moncton Airport Releases Record High Numbers
New Brunswick Business Journal (Aug. 22, 2008)

Windsor Airport to Get $1.2 Million Upgrade
Windsor Star (Aug. 19, 2008)

Fredericton Airport Continues to Grow
New Brunswick Business Journal (Aug. 19, 2008)

1000 New Parking Stalls at Edmonton Airport
Edmonton Journal (Aug. 18, 2008)

New Runway Third Longest in Canada
Prince George Citizen (Aug. 18, 2008)

Deer Lake Airport has Busiest Month Ever
Western Star (Aug. 15, 2008)

$85 Million Earmarked for International Airport Parking Stalls
Calgary Sun (Aug. 14, 2008)

CANADIAN NEWS
Gander Airport Goes Carbon Neutral

Gander International Airport recently said it has become North America's first carbon neutral airport.

The Gander International Airport Authority (GIAA) and its tenant companies are implementing a comprehensive carbon emissions reduction program that involves a number of infrastructure and employee initiatives. The remaining emissions have been reduced by the purchase of carbon offsets through The CarbonNeutral Company, a carbon offset and climate consulting business. The GIAA has invested in green energy projects in Europe and Asia.

In early 2008, the Gander International Airport Authority engaged InterVISTAS Consulting to quantify its annual greenhouse gas (GHG) emissions. The airport has set a goal of reducing its carbon emissions by 33% by 2020.

The airport has engaged an energy engineer to recommend the adoption of renewable next generation energy systems that will reduce emissions and cost.

"The bulk of the airport's emissions are from fossil fuels usage to power our facilities and mobile vehicle fleet," said Gary Vey, Gander International Airport Authority President and CEO. "We are working to identify an alternative system which meets our needs and budget."

The airport has formed a Green Committee, comprised of airport workers, partners and tenants, to implement a green culture and practices at the airport.

Gander International Airport is among airports around the world that are signatories to the 2008 Aviation and Environment Summit Declaration, which commits to carbon-neutral growth and a carbon-free future.

Aviation is responsible for an estimated 2% of global carbon dioxide emissions.

Federal Funding for Edmonton Logistics Centre

The federal government's Western Economic Diversification department recently announced an investment of almost $760,000 in funding for Edmonton International Airport (EIA) to develop two key components of the Port Alberta initiative.

The airport will establish a logistics support centre that will serve as a one-stop cargo processing facility for services such as security and regulatory clearance. Funding also will allow for the development of a SmartPort Platform that uses state-of-the-art information technology for tracking and monitoring cargo.

The investment from Western Economic Diversification Canada, made through its Western Diversification Program, will receive a matching investment from the Edmonton International Airport for a total project cost of more than $1.5 million.

"EIA, as part of the broader regional initiative, will become a major cargo processing centre with onsite warehouse and logistics facilities, capable of hosting multiple modes of transportation and acting as a catalyst for advancing global trade and distribution across the region and the globe," said Reg Milley, EIA president and CEO.

Halifax Airport to Build New Combined Services Building

The Halifax International Airport Authority recently announced that it will build a new combined services complex to house its fire hall and maintenance facility.

The $24 million complex will combine HIAA's emergency response services (ERS) and maintenance functions. It will replace the current fire hall, built in 1981, and the airport's original maintenance garage, which has been in operation since 1960.

"This facility will be a significant addition to our airside infrastructure, providing a modern and efficient workplace that will hold almost 40% of our personnel," says Tom Ruth, HIAA president & CEO. "It was identified in our 20-year Master Plan in 2004 and we are delighted to be moving forward on this project."

The 6,000 square metre complex will be energy efficient and built to Leadership in Energy and Environmental Design (LEED) specifications, the highest standard in green building design as recognized by the Canadian Green Building Council. Its airside location will allow for optimal emergency response, meeting both Transport Canada and International Civil Aviation Organization (ICAO) standards for response times.

"Following extensive consultation with our ERS and maintenance staff, we believe we will have a state-of-the-art, environmentally sustainable, efficiency-focused facility," says Paul Baxter, HIAA vice president operations. "Having these two groups together operating in the same building will be cost effective, allowing us to take advantage of shared equipment and services."

The first phase of construction will begin immediately with environmental remediation work. The entire project will take approximately one year to complete, with an expected opening in the fall of 2009.

WestJet Leases Turboprops to Continue Prince George Service

WestJet announced last month that it is leasing two Dash 8s in order to maintain service this month to Prince George while the main runway at the Prince George Airport is being extended.

During construction, the main runway is shortened to the point where WestJet is unable to land its fleet of Boeing 737s. Faced with the decision to discontinue service, WestJet chose to lease two Dash-8s (a 37-seater and a -50 seater) from Hawkair Aviation of Terrace, B.C., on a temporary basis in order to maintain service to Prince George.

"Despite the obstacles, we felt we needed to find a way to continue to serve the people of Prince George. At the end of the day, we wouldn't be here if it wasn't for them, said Bob Cummings, WestJet executive vice president, guest experience and marketing in its press release. "We flew 200,000 guests from this city last year, and we know how lucky we are to have such tremendous support from the region,"

WestJet introduced service to Prince George in 1999. Today, the airline says the Prince George area is home to some of the most frequent fliers in the airline's network.

Parkade Opens at Edmonton International Airport

Edmonton International Airport (EIA) recently opened a 1,000-stall parkade expansion. These additional spaces will provide more parking options for customers as passenger growth continues and the airport expansion proceeds.

The $47-million parkade expansion is the first high-profile project completed as part of EIA's five-year, $1.1-billion airport terminal expansion. It was completed on time and on budget.

"We are committed to moving customers quickly and efficiently through the airport," said Reg Milley, president and CEO, Edmonton International Airport. "Even prior to this expansion, EIA offered travellers the most airport parking spaces per capita in Canada; these additional spaces will help us to offer even better customer service."

More than six million passengers moved through EIA in 2007. Another four million customers were on site to see them off or welcome them. Passenger traffic at EIA continues to grow at a steady pace and has increased by 7% year-to-date. Passenger traffic is expected to reach 6.5 million passengers by year-end.

Cargojet Expands in Hamilton

Cargojet has announced the expansion of its aircraft maintenance
hangar facilities at John C. Munroe Airport in Hamilton.

Construction is underway and will include a new 65,000 square foot hangar, 12,000 square feet of shop, offices and parts warehouse area as well as a 75,000 square foot apron area.

The new facility will accommodate a Boeing 767-200 Extended Range and a Boeing 757-200 Extended Range aircraft simultaneously and will provide apron parking for up to three widebody and narrowbody aircraft.

"Cargojet has been a key partner in Hamilton International Airport
becoming the number one intermodal cargo airport in Canada.
Cargojet shows we are just scratching the surface of the opportunity in this market for local and international cargo," said Richard Koroscil, president & CEO of Hamilton International Airport.

Cargojet operates its network across North America, transporting over 885,000 pounds of time sensitive air cargo each business
night, utilizing a fleet of 34 all-cargo aircraft.

Kelowna Airport Redevelopment Gets Underway

Kelowna International Airport (YLW) is preparing for its terminal expansion by beginning the first phase of the project - parking and road improvements.

"Passenger numbers continue to grow, and we're moving forward to meet this demand and offer competitive air service," said Assistant Airport General Manager Dave Fuller.

Passenger numbers in Kelowna are forecast to grow to 1.6 million passengers by 2015.

The parking and road improvements are all part of the ground work that needs to take place before the terminal expansion begins. Improvements include paved vehicle parking, additional metered parking and extended bus and shuttle parking. A new demand management parking and pricing strategy will be put in place later this fall.

The $36-million expansion at the Kelowna International Airport includes a two story international terminal, improved ground access and vehicle parking and the runway extension. The runway, which is being extended to 8,900 feet, is on schedule for completion in October.

Kelowna International Airport (YLW) is one of the top ten airports in Canada, serving over one million passengers annually.

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.