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January-February 2009
CANADIAN NUMBERS
Sharp November Traffic Decline, Recovery in Overseas Traffic Growth

Traffic numbers for November released by Transport Canada in its "Top 30 Airports" listing were discouraging.  While it looked like the declines were beginning to recover in October, domestic and U.S. transborder passenger numbers were sharply down in November -- particularly domestically -- although all segments still remain in growth territory nationally year-to-date. 

For a second straight month overseas traffic grew, and at increasingly greater rates although it remained far short of the overseas traffic growth experienced earlier in the year.

November

 
International Traffic Down in November

The International Air Transport Association (IATA) announced traffic results for November showing a 4.6% drop in international passenger traffic and a 13.5% drop in international cargo. International capacity dropped by 1.0%.

The November international passenger load factors stood at 72.7% which is a decline of approximately three percentage points over the same month last year.

"The 13.5% drop in international cargo is shocking. As air cargo handles 35% of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown. By comparison, this is largest drop since 2001, in the aftermath of September 11," said Giovanni Bisignani, IATA's director general and CEO.

"The industry is now shrinking by all measures. The 1.0% capacity cut in international passenger markets in November could not keep pace with the 4.6% fall in passenger demand. We can expect deep losses in the fourth quarter," said Bisignani.

International Passenger Traffic

The November passenger decline of 4.6% is a considerable worsening from both the 1.3% demand contraction in October and the 2.9% fall in September.

Asia-Pacific carriers face the most difficult operating environment with a 9.7% decline in November, following a 6.1% contraction in October. The region also had the most aggressive capacity cuts at -5.1%. While Chinese domestic traffic rebounded after the Olympics, travel to and from international markets continues to decline, reflecting the weakness in both global trade and consumer confidence.

North American carriers saw international traffic decline by 4.8% - the second largest drop among the regions. Until August, the region's carriers had been shifting capacity to international markets. With the near collapse of the investment banking sector and consequent reductions in business travel, North Atlantic travel slumped. Carriers started to cut international capacity with a 0.8% drop in November (following 0.4% growth in October)

European carriers saw international traffic drop by 3.4% as all the region's major markets (intra-Europe, North Atlantic, and Asia) slumped.

Smaller emerging markets fared better. African carriers saw traffic decline by 1.6%. Middle Eastern carriers saw traffic increase by 5.6%. Latin American carriers saw a slight decline in growth to 3.3% (compared to 4.5% growth in October), buoyed by the region's positive, albeit slower, economic growth.

International Freight Traffic

Asia-Pacific carriers (representing 44.6% of global freight) saw freight traffic fall by 16.9% in November-the largest decline of any region. As freight accounts for a larger percentage of revenues for the Asia-Pacific carriers, fourth quarter profits for the region's carriers will be disproportionately (and negatively) impacted by the downturn in the global air freight market.

Double-digit freight declines were also experienced by Latin American carriers (-15.7%), North American carriers (-14.4%) and European carriers (-11.0%).  Freight traffic for Middle Eastern carriers turned negative (-1.6%), following 1.0% growth in October. Plummeting business confidence and the continuing turmoil in financial markets indicates that the worsening trend most likely continued in December.

View the full results
Top Aviation Sector Leaders to Address
Airports Canada 2009 Conference & Exhibition
Airports Canada Logo

The Canadian Airports Council recently unveiled its initial speaker line-up for the Airports Canada 2009 Conference and Exhibition.  The conference, Canada's largest airport event, will be held in Ottawa-Gatineau April 28-30, 2009.
 
"Airports Canada 2007 set a new standard for the CAC," said CAC President and CEO Jim Facette.  "As the aviation sector in Canada continues to face global challenges, Airports Canada 2009 will examine important issues facing our sector from a uniquely Canadian vantage."
 
Themed "Leadership for Challenging Times," Airports Canada 2009 will tackle the following issues:
  • Economic Outlook and Canadian Competitiveness in the World
  • World-Impacting Security Challenges in the 21st Century
  • Passenger and Freight Facilitation
  • International Air Policy for the 21st Century
  • Aviation and the Environment
Confirmed speakers and panellists include:
 
  • Andy Blackwell - Head of Aviation Security, Virgin Atlantic Airways
  • Joram Bobasch, EVP, ICTS Europe
  • Montie Brewer - President and CEO of Air Canada
  • John Byerly - Deputy Assistant Secretary, Transportation Affairs, U.S. State Department (invited)
  • Michelle di Leo - Director, Flying Matters (UK)
  • Jean-Marc Eustache, President & CEO, Transat A.T
  • Angela Gittens - Director General of Airports Council International
  • Allan Gregg - Chairman of Harris/Decima
  • Marc Gregoire - Assistant Deputy Minister, Safety and Security at the Department of Transport, Infrastructure and Communities
  • Nick Nanos - President and CEO, Nanos Research
  • Catherine Harmel-Tourneur - Director, DKMA
  • Tina Kremmidas - Assistant Vice President and Senior Economist of the Canadian Chamber of Commerce
  • Andrew Lynch - CEO of SSP
  • Kevin Molloy - Vice President, Simplified Passenger Travel and Chief Information Officer for the Vancouver Airport Authority
  • Dr. Lloyd McCoomb - President and CEO of the Greater Toronto Airports Authority
  • Andrew Parker - SVP, Public and Environmental Affairs, Emirates
  • Guylaine Roy - Associate Assistant Deputy Minister, Policy, Transport Canada
  • Jeffrey Shane, Partner, Hogan & Hartson LLP; Chair, IATA Agenda for Freedom
  • Stanis Smith - Senior Vice President, Stantec
  • Mike Tretheway, Executive Vice President, InterVISTAS
  • Ajay Virmani, President & Chief Executive Officer, Cargojet
Sponsorship opportunities are still available for organizations involved in the airports sector.  Now held only every two years, Airports Canada is attended by over 200 top airport executives, and senior executives/officials from air carriers, retail/service partners and government. 

For more information, visit the CAC Web site.
Mid-January Ministerial Marathon

Voice 1

CAC Director Paul Benoit (left) President and CEO Jim Facette, Director of Communications and Policy Daniel-Robert Gooch and Vice Chair Bill Restall, recently met with Minister of Public Safety Peter Van Loan, Minister of State for Small Business and Tourism Diane Ablonczy, Minister of Transport, Infrastructure and Communities John Baird and Minister of State for Transport Rob Merrifield.

Voice 1

Public Safety Minister Peter Van Loan

Voice 2

Minister of State for Small Business and Tourism Diane Ablonczy

Voice 3

Minister of Transport, Infrastructure and Communities John Baird (center left) and Minister of State for Transportation (centre right)
CANADIAN NEWS
Quebec City Airport Reaches 1 Million Passengers

Following a new terminal opening last year, Aéroport
de Québec reached another historical milestone with the arrival in Quebec City of its millionth passenger -- eight years ahead of schedule.

"This is a historical moment for Aéroport de Québec,"
said Pascal Bélanger, president and chief operating officer at the airport. "The attractiveness of our terminal and most importantly, the dedication of our team striving every day to offer passengers an airport experience beyond their expectations, are key elements of our success.

Last year, Aéroport de Québec enjoyed unprecedented growth with a 17% increase in passenger traffic. New carriers such as Westjet, United Airlines, Porter Airlines and Corsairfly have introduced service to the airport recently, leading to an increase in destinations offered from the airport.

"We now have a welcoming entry point to the Quebec City area for tourists and investors," said Mr. Belanger.  "The next step will be to offer even better services and improve passenger experience further with the expansion of international arrivals and customs preclearance."

Since November 1st, 2000, Aéroport de Québec inc. has been responsible for the management, operation, maintenance, and development of Aéroport international Jean-Lesage. Thirteen carriers offer service to North American, Latin American and European destinations.
WestJet Spent Millions on Passenger Re-Accommodation

On Boxing Day, WestJet released information regarding the efforts made by its employees to get as many guests as possible
home for Christmas during the storm-ridden holiday travel season. In total, WestJet spent approximately $2 million over the previous six days to accommodate passengers stranded across the country.
   
The most severe and widespread winter weather across Canada in nearly 40 years wreaked havoc with travel coast to coast, causing numerous airport closures and record numbers of flights delays and cancellations.   

"This week was WestJet's finest hour, despite the delays and cancellations," Ken McKenzie, WestJet's executive vice president, operations.  "We provided for our guests in their time of need and truly demonstrated WestJet's caring attitude. This was an unprecedented situation and we responded in an unprecedented way."
   
Airline tariffs do not require airlines to provide meal vouchers or hotel accommodations if the flight cancellation is the result of inclement weather.

"We believe it's important to do the right thing," said Mr. McKenzie.  "During this situation of severe weather, uncertainty and the time of year, the right thing was for us to provide guest relief in the form of meal vouchers, hotel accommodations and transfers. It is our belief that we are the only airline in Canada to provide this level of service to its guests."
Airports in the News

Airport Expansion Set for Takeoff
(Nanaimo Bulletin, January 12, 2009)

London Airport Named to Cargo Transshipment Program

The federal government recently announced the approval of the London International Airport to participate in the international air cargo transshipment program. The program allows international air cargo to be moved through the airport for shipment to third countries, enabling the airport to seek new market opportunities and further develop its air cargo activity.

Minister of Transport, Infrastructure and Communities John Baird said. "The London International Airport now has an additional tool to help develop its air cargo business, which will benefit South Western Ontario and help invigorate the Canadian market in this time of economic uncertainty."

The international air cargo transshipment 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 London, Ontario, 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 London to the United States.

"This announcement supports our goals of growing our air cargo presence internationally and enabling the South Western Ontario Economic Assembly to attract area economic development. We thank the government for supporting South Western Ontario with this important initiative, " said Steve Baker, president and CEO of London International Airport.

The program enables the Canadian Transportation Agency to authorize any Canadian or foreign air carrier to use London International Airport to transship international air cargo, even if these rights are not provided in Canada's bilateral air transport agreements. In addition, air carriers will be able to combine such cargo transshipments with other services for which they may be licensed.

The international air cargo transshipment program was introduced in 1982 at Mirabel Airport as part of a larger effort to improve the use of Montréal-area airports. It has since been expanded to other airports, including Hamilton (1987), Windsor (1993), Gander (2000), Winnipeg (2004), Edmonton (2006), Calgary (2007), Abbotsford, Vancouver, Moncton, Toronto, Halifax and Prince George (2008).
Free Wireless Internet Now Available to Calgary Airport Passengers

Calgary Airport Authority recently announced that the Calgary International Airport has become a free Wi-Fi wireless Internet zone.

"Offering the best passenger experience is a top priority for the entire Calgary International Airport community," said Garth Atkinson, president and CEO of The Calgary Airport Authority. "With the introduction of airport-wide, free Wi-Fi, YYC continues to be a leader in innovative customer service initiatives."

The Calgary Airport Authority is a not-for-profit, non-share capital corporation, responsible for the management, maintenance and development of YYC (Calgary International Airport) and YBW (Springbank Airport) under long-term lease from the Government of Canada.
INTERNATIONAL NEWS
Appeals Court Blocks New York Slot Auctions

North American airport groups had a small victory to celebrate towards the end of the year when the U.S. Court of Appeals issued an order prohibiting the U.S. Department of Transportation from auctioning slots at the three major New York airports unless and until the court formally considers and rules on the merits of the case.

The CAC, its partner Airports Council International-North America (ACI-NA) and airline groups are all opposed to the plans to auction slots at New York's John F. Kennedy, La Guardia, and Liberty Airports. 

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.

ACI-NA says that the U.S. Federal Aviation Administration should focus on working collaboratively with the Port Authority of New York and New Jersey, which operates the airports, to develop and implement a reasonable and effective program to reduce passenger delays and congestion.

"Airport proprietors are in the best position to manage the use of the facilities they plan, design, fund, build and currently operate. Slot auctions mandated by the federal government would not have reduced delays or improved efficiency, competition or passenger service," said Airports Council International-North America President Greg Principato.   "We do not believe the Federal Aviation Administration (FAA) has the statutory authority to force the slot auctions, which are universally opposed by the airport industry."
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
International Traffic Down in November
Top Aviation Sector Leaders to Address
Mid-January Ministerial Marathon
Quebec City Airport Reaches 1 Million Passengers
WestJet Spent Millions on Passenger Re-Accommodation
Airports in the News
London Airport Named to Cargo Transshipment Program
Free Wireless Internet Now Available to Calgary Airport Passengers
INTERNATIONAL NEWS...Appeals Court Blocks New York Slot Auctions
Upcoming Events
Upcoming Events
February 4-6, 2009
ACI-NA Winter Board Meeting and CEO Forum in Weston, Fla.

March 10-12, 2009
ACI-NA Air Cargo Conference in Memphis

March 15-18, 2009
ACI-NA Operations and Technical Affairs Conference in San Diego

March 15-18, 2009
ACI-NA Public Safety and Security Spring Conference in San Diego

April 2-3, 2009
HR Committee Meeting

April 22-24, 2009
ACI-NA Customer Service and Aviation Education Conference in Detroit

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

May 14-15, 2009
ACI-NA Human Resources Conference in San Francisco

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

June 3-4, 2009
Air Cargo Logistics Symposium in Moncton

July 7-9, 2009
ACI-NA Deicing Conference in Cincinatti

July 16-17, 2009
ACI-NA Small Airports Conference in St. Louis

August 24-26, 2009
ACI-NA Public Safety and Security Conference in Arlington, Va

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

  CAC board and committee meetings are open to all members

CTC

Tourism Snapshot from the Canadian Tourism Commission

CTC Graphic

Short-Term Market Outlook from the Canadian Tourism Commission

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