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November-December 2009
Multilateral Statement for International Air Service Reform Signed -- Canada Not in Attendance

AgendaCountries from around the world gathered in Montebello, Que. recently to discuss international air service liberalization. 
The summit resulted in the signing of a Multilateral Statement of Policy Principles regarding the Implementation of Bilateral Air Service Agreements by seven states and the European Commission.
 
The signing took place at the conclusion of the International Air Transport Association (IATA)-hosted second Agenda for Freedom Summit.  The states that signed the non-binding document are Chile, Malaysia, Panama, Singapore, Switzerland, the United Arab Emirates and the United States of America; and was endorsed by the European Commission. In total they represent some 60% of global aviation.
 
"This is an historic achievement that will help set the foundation for a financially sustainable global aviation industry....One agreement will not change the world. But this is a strong signal that this industry's future must be realized in a much more liberal environment," said Giovanni Bisignani, IATA's director general and CEO.
 
The policy principles address three main areas:
  • Freedom to access capital markets: States agreed on principles that would open the possibility for airlines to access global capital markets. This would be achieved with an agreement not to exercise bilateral rights that could allow them to block international services from airlines with non-national ownership structures. States also agreed to consider the possibility of a multilateral agreement to waive ownership restrictions.
  • Freedom to do business: States agreed on principles that seek to reduce restrictions on market access and to expedite the further opening of markets in future bilateral negotiations.
  • Freedom to price services: States agreed on principles that would allow greater freedom to price airline services in line with market realities.
"While these policy principles are non-binding, they are an important statement of common government intention among the most active countries driving global aviation policy," said IATA in its statement.

The document notes specifically that the signatories "recognize the importance of promoting compatible regulatory approaches and reducing the potential for conflicts and the intention to use the policy principles to guide implementation of existing air service agreements and approach to the negotiation of new or amended air services agreements in the future."

Canada did not participate in the summit.
Tourism Officials Meet Transport Minister

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Members of the tourism coalition recently met with Minister of Transport, Infrastructure and Communities John Baird, Minister of State for Transport Rob Merrifield and Minister of State for Tourism and Small Business Diane Ablonczy. 

In addition to CAC President and CEO Jim Facette, the meeting was attended by Chris Jones of the Tourism Industry Association of Canada and George Petsikas of the National Airlines Council of Canada.

The meeting was held to discuss several key issues facing Canada's tourism and aviation sectors, including airport rent and the competitive disadvantage it imposes on the sector.
Third Quarter Traffic Declines Slow

Transport Canada has released its enplaned/deplaned passenger numbers (top 31 participating airports) for the third quarter of 2009, still showing declines year over year, but improved over the declines of the second quarter - particularly in the domestic segment.

On a month by month basis, domestic traffic declines have steadily improved since a peak in the traffic decline rate in May.  Transborder and overseas traffic declines were improved as well since August, particularly in the overseas segment where traffic was down just 1.5%.

For the first nine months of 2009, domestic traffic is down 7%, trans-border down 8.4% and overseas traffic is down 3.2%.  Overseas total traffic continues to outpace U.S. transborder, which it only recently overtook in traffic numbers.

With Air Canada's capacity cuts starting in September 2008,  the declines should improve through the rest of the year, and may even turn back to growth in some segments.  Nevertheless, the real benchmark is pre-economic decline traffic.

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In international visit statistics from Statistics Canada, visits to/from Canada in September continued to be down across most segments. 

The declines were much less deep in U.S. resident visits to Canada by air and Canadian residents overseas versus August.  For a second month in a row, Canadian visits to the U.S. by air were back in growth mode. 

For the first nine months of the year, all segments remain down over the first nine months of 2008 except Canadian visits overseas, which were up about 75,000 visits.

On a market by market basis, for the first nine months visits are down across all top 15 overseas foreign tourist markets except mainland China and Switzerland (both stagnant at +1%).  This was consistent with the month of September itself, so there is no clear indication yet that a recovery is on the way.  In fact, September's 15.2% decline in visits across all foreign tourist source markets is deeper than the cumulative 9-month decline of 13.2%.

The declines, for the first nine months, are particularly pronounced in Mexico (-32%), Japan (-31%), South Korea (-29%), the UK (-18%), Hong Kong (-17%), Australia (-16%), Brazil (-14%), Netherlands (-12%) and Italy (-10%).

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AIRPORTS IN THE NEWS


Tiny Prince George Airport Takes a First Step on Global Stage
Vancouver Sun (Nov. 17, 2009)

EU Law Could Bring Air Cargo to Halifax
Halifax Chronicle Herald (Nov. 10, 2009)

Billy Bishop is Island Airport's New Name
Toronto Star (Nov. 10, 2009)

Ottawa Airport Hikes Airline Fees
Ottawa Business Journal (Oct. 28, 2009)

Airport Activity Gives Lift to Economy
Chronicle Herald (Oct. 23, 2009)

Edmonton-Houston Trade Mission Highlights Non-stop Air Service
Edmonton Journal (Oct. 21, 2009)

Saskatoon Airport Enjoys Healthy Traffic
SaskatoonHomepage.ca (Oct. 19, 2009)
 
November World Airline Capacity Up

Global airline capacity for November 2009 shows 3% growth over November 2008, reports OAG in its monthly report on trends in the supply of airline flights and seats.

The world's airlines have 285.4 million seats available this month, a rise of 3% over November 2008 levels. Global frequencies are up 1% compared to November 2008, with a total of 2.3 million flights for November 2009, despite an average North American frequency decline of 2%.

Worldwide, frequencies and capacity in the low cost sector are both up by 8%, compared to a year ago, accounting for 424,458 flights (18%) and 62.6 million seats (22%).

The transatlantic market between North America and western Europe shows an 8% decrease in capacity year on year, representing 434,467 fewer seats. Frequencies are down 10%, representing 2,144 fewer transatlantic flights for the month. Within Africa, Asia, Latin America and the Middle East there have been a strong increase in frequencies.

Analysis of all hubs reveals that frequency and capacity to and from certain hubs reflects positive growth of more than 30%, with some showing reduced traffic and a negative growth of more than 20%. Leading the growth is Rio de Janeiro (SDU) with a 39% increase in flight activity and 49% increase in seat capacity. Kiev on the other hand, shows a large reduction in flights (30% less) and in seats (28% less).
WORLD AIRPORT TRAFFIC
Airports Report September Stabilization

Airports Council International's September 2009 PaxFlash airport worldwide traffic statistics indicate that the stabilization trend of the past two months has been maintained and the domestic traffic in certain national markets is registering real growth.  Overall domestic passenger traffic rose by 4.4% worldwide and global passenger traffic rose by 1.6% over September 2008.
 
By September 2008, traffic already was on a decline.  Nevertheless, September domestic traffic results in China, Brazil and India are leading the current global upswing, and the Asia Pacific and Latin America-Caribbean regions dominate September traffic results with increases in domestic traffic of 12.5 and 16.2% respectively.

A number of major and emerging economies expanded or returned to Gross Domestic Product (GDP) growth in the third quarter which is driving the improved results. Economic stimulus programs, stiff domestic competition and low fares are contributing to the strong results in Brazil and China. North America, Europe and Africa remained virtually flat in terms of domestic traffic change.
 
All regions are clearly up from reported lows earlier in the year for international traffic, however, Europe seems to lag slightly behind the recovery trend. The significant 5% reduction of traffic in Europe was only partially offset by a 6% increase in Asia Pacific traffic. North America has delivered promising results as domestic traffic increased marginally by 0.5% and international only shrank by 3%. Worldwide, international traffic was 1% below 2008 results for September.
 
Global freight in September 2009 was 3% below traffic in September 2008. This represents an accelerating upward trend, again driven by domestic results which rose by 4% as compared to a 6% decline in international freight.

The year-to-date slump in freight has been much deeper than the passenger decline, so seeing these moderate declines comes as a pleasant surprise and may point to a quicker recovery in the freight sector than previously thought. Drivers again are Asia-Pacific and Latin America-Caribbean regions.  Asia-Pacific performance shows a stunning recovery from -28% to an increase of 1.3% in September.
CANADIAN NEWS
Fort McMurray Appoints New CEO,
Familiar Face

Scott ClementsReturning CAC member Fort McMurray Airport Commission recently announced the appointment of Scott Clements to be the CEO of the airport effective October 19.

Mr Clements has extensive experience in aviation, airport and aerospace activity, having spent almost 50 years in the business.  After a full career in the Canadian Armed Forces, he retired in 1995 as the Commander of Canada's Air Force.  He was then CEO of the Edmonton Regional Airports Authority until 2005.  Since then, based out of Calgary, he has had various consulting and volunteer appointments, including CEO of Aviation Alberta and Chair of the Canadian Centre for Unmanned Vehicles.

"Scott Clements brings a very strong reputation as a well known leader in the industry," said Bob Findlay, chairman of the board.  "He will take over the process to accelerate the evolution of our airport commission to become an airport authority.  We are certain that he will be an excellent addition to the commission ."

It is anticipated that the Fort McMurray Airport Commission will become an airport authority under the Alberta Regional Airports Authorities Act within a few months.  Parallel work is underway to facilitate an early start to building a new terminal.

As CEO of Edmonton Airport, Mr. Clements also previously served on the board of the CAC.
Canadian Tourism Commission, GTAA Unveils Pearson Welcome Imagery 

The Canadian Tourism Commission recently announced the launch of the "Welcome to Canada" initiative at Canada's busiest airport.  More than 26,000 international passengers a day will see images of Ontario's travel features as well as inspirational Olympic and Paralympic messaging to support awareness of the 2010 Olympic and Paralympic Winter Games.

The Welcome to Canada program is a partnership between the Canadian Tourism Commission (CTC), the Canada Border Services Agency (CBSA) and provincial tourism marketing organizations. The activation at Toronto Pearson International Airport was completed in partnership with the Ontario government and the Greater Toronto Airports Authority (GTAA).

"This innovative partnership is a creative and compelling way of promoting Canada's extraordinary tourism experiences to international visitors," said the Honourable Diane Ablonczy, Minister of State for Small Business and Tourism. "It will also help to create awareness of the upcoming 2010 Winter Games."

Earlier this year, the program was officially launched at Ottawa International Airport, and will soon find its way into select other major Canadian airports and British Columbia's busiest land border crossings.
First 747 Tech Stop for Prince George Airport

SouthernPrince George Airport recently received its first Boeing 747 freighter, a key milestone in its campaign to build up a reputation as a technical stop alternative for trans-Pacific flights.
 
The Boeing 747-200f aircraft operated by Southern Air Inc, enroute to Caracas, Venezuela from Shanghai, China landed on the 11,450 ft runway in front of media, dignitaries and community supporters.
 
"Moving forward there is still much work to be completed but we are very happy to have this take place today," said John Gibson, Prince George Airport Authority CEO."There are many people and organizations whose hard work and belief made this happen. Events such as these do not take place without a collective and coordinated effort - we demonstrated that today."

The airport is part of the federal government's Asia-Pacific Gateway Program, now has Canada's third longest commercial runway and can accommodate any size aircraft for refueling.  The airport also is adjacent to a 3,000 acre Global Logistics Park development.

On hand to celebrate the event were key partners from federal, provincial and municipal governments, Northern Development Initiatives and Initiatives Prince George.
INTERNATIONAL NEWS
ACI Elects New Chair

Max Moore-WiltonThe Airports Council International annual assembly of world airport executives recently elected Max Moore-Wilton as its new chair, to serve for a two-year term.

Mr. Moore-Wilton succeeds the current chair, Aéroports de Montréal President and CEO James Cherry, effective Jan. 1, 2010. Mr Moore-Wilton knows the ACI association well, having first served as a regional advisor and then as a member of the ACI governing board and as vice chair of the board this year.  
 
In December 2002, Mr. Moore-Wilton was appointed executive chairman and chief executive of the privatized Sydney Airport Corporation.  Under his leadership Sydney Airport achieved a greater commercial focus as Australia's biggest airport, while delivering sustainable returns to shareholders in a challenging trading environment.
 
Mr. Moore-Wilton was appointed chairman of Sydney Airport Corporation Limited in April 2006.  He also is chairman of MAp Airports Limited and chairman of Macquarie Media Group.  
 
The assembly elected as vice chair, Dr. Yiannis Paraschis of Athens International Airport SA.  He joined Athens Airport in 1996 and was appointed chief executive officer in April 2007.

ACI also welcomed new board members: Mr. Tonci Peovic (Dubrovnik International Airport), Dr. Michael Kerkloh (Munich International Airport), Mr. Stefan Schulte (Fraport), Mr. Juan Ignacio Lema Devesa (Aena) and Mr. Ben DeCosta.  All of them  join the board Jan. 1, 2010 for a three-year mandate.

ACI members are the operators of over 1,670 airports that collectively handle 98% of the worlds air passengers.
ACI-NA Elects New Directors

During its annual general membership business meeting on October 14, members of Airports Council International-North America (ACI-NA) elected a new slate of officers and four new members to its board of directors.  Their terms are effective immediately.

Incoming chairman is G. Hardy Acree, director of Airports, Sacramento County Airport System. Serving as first vice chairman is Frank Miller, director of aviation, City of San Antonio Aviation Department. Thella Bowens, president and CEO of San Diego County Regional Airport Authority, will serve as second vice chairman.  Secretary treasurer is Thomas Kinton, executive director of the Massachusetts Port Authority.

New members of the board of directors, for a three-year term, include:
 
Class A/B airports:
  • Richard McConnell, Airport Director, Boise Airport
  • Brian Searles, Director of Aviation, Burlington International Airport
Class C/D airports:
  • Maureen Riley, Executive Director, Salt Lake City Department of Airports
  • Bradley Penrod, Director and CEO, Allegheny County Airport Authority
  • Bill Vanecek, Director of Aviation, Buffalo Niagara International Airport
Other membership announcements made by 2009 board chair, John D. Clark, III, executive director, Indianapolis Airport Authority, included news of additional board appointments.  Commissioners' committee representatives to the newly elected Board include Elsie Rast Stuart,Columbia Metropolitan Airport; and David G. Jennings, Chairman, Charleston County Aviation Authority.  Associate members' representative to the board is Robert Hazel, partner, Oliver Wyman.

Chairman Clark also announced the reappointment of Louis Miller, Tampa International Airport; and Frederick Piccolo, Sarasota Manatee Airport Authority, and the new appointment of Ben DeCosta, Hartsfield-Jackson Atlanta International Airport to the ACI World Governing Board.  Patrick Graham, Savannah Airport Commission, and Thella Bowens, San Diego County Regional Airport Authority, were appointed as regional advisors.

The Canadian Airports Council has two members on the ACI-NA board - Edmonton Airports President and CEO Reg Milley and Saskatoon Airport Authority President and CEO (and CAC vice chair) William Restall.  CAC Chair and Winnipeg Airports Authority President and CEO Barry Rempel is ex-officio.

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 47 members represent more than 200 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
Tourism Officials Meet Transport Minister
Third Quarter Traffic Declines Slow
AIRPORTS IN THE NEWS
November Capacity Up
AIRPORT TRAFFIC
CANADIAN NEWS...Fort McMurray Appoints New CEO
Canadian Tourism Commission, GTAA Unveils Pearson Welcome Imagery
First 747 Tech Stop for Prince George Airport
INTERNATIONAL NEWS...ACI Elects New Chair
ACI-NA Elects New Directors
Upcoming Events
Upcoming Events

Jan. 13-15, 2010
ACI-NA Insurance and Planning Conference
in San Diego

Jan. 24-26, 2010
ACI-NA Air Service & Data Planning Seminar in Las Vegas

Jan. 27-29, 2010
ACI-NA Media Relations Conference in Las Vegas

March 9-11, 2010
ACI-NA Air Cargo Conference in Seattle

April 11-13, 2010
ACI-NA Airport Board Member and Commissioners Conference in Savannah, Ga.

April 13-14, 2010
CAC Board Meeting and AGM in Toronto

June 1-2, 2010
CAC CEO Forum

June 6-9, 2010
ACI-NA Marketing Communications Conference & Jumpstart in San Diego

Sept. 26-29, 2010
ACI-NA Annual Conference & EXhibition in Pittsburgh

Oct. 4-7, 2010
ACI-NA Fall Public Safety & Security Conference in Alexandria, Va.

Oct. 26-27, 2010
CAC Board Meeting in Toronto

Nov. 1-3, 2010
ACI World Assembly, Conference & Exhibition in Bermuda

Nov. 8-11, 2010
ACI-NA Airport Concessions Conference in Phoenix

For more details on ACI-NA events, please visit the
ACI Web site

  CAC board and committee meetings are open to all members

CTC

Tourism Snapshot from the Canadian Tourism Commission

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Short-Term Market Outlook from the Canadian Tourism Commission

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