Western Premiers
Endorse Open Skies
|
 In a landmark
Open Skies Summit held in Vancouver last month, Canada's
three western-most provinces signed a joint declaration
calling for Open Skies. It was an historic first
foray by a group of provinces into international air
policy - traditionally a federal domain.
"Direct,
unfettered transportation links between Western Canada
and the world are crucial to our economic vision for our
province," said the joint declaration. "Removing
unnecessary barriers to international air carriers'
access to British Columbia, Alberta and Saskatchewan
will allow international air carriers to freely
transport passengers and cargo to and from the Canadian
airports of their choice. We believe this will allow
businesses to grow and jobs to be created, both in our
gateways and regional economies."
 The
Open Skies Summit included speeches from British
Columbia Premier Gordon Campbell and Alberta Premier Ed
Stelmach. Also signing onto the accord was
Saskatchewan Minister Ken Cheveldayoff.
As
part of their joint
declaration, the three provinces have committed
to:
- Exchange information, research and analysis;
- Participate in and jointly support projects and
programs of mutual interest;
- Engage industry and other jurisdictions to
accelerate Open Skies agreements for our provinces;
and
- Undertake advocacy and public education to advance
the case for the economic benefits of Open Skies
agreements.
The CAC has committed to
supporting the provinces in their efforts.
"As
Canada's three premiers today acknowledged, Canada's
unique geographic position in the North gives our
country a tremendous opportunity to serve as a gateway
from Asia and Europe to the Americas," said CAC Chairman
Barry Rempel. "But we are leaving valuable air links on
the table. As the prime minister said just last
week, we must redouble our efforts to keep trade
flowing."
Mr. Rempel, who also addressed
attendees at the summit early in the day, reiterated
the CAC's long-standing call for Open Skies.
"We
acknowledge some tremendous work that has been done by
our government in liberalization with several
particularly important trade and tourism markets, said
Mr. Rempel. "But with many other countries around
the world, our government is slow, reluctant or
downright hostile to opening up market access. Canadian
consumers, the tourism sector and the business community
all suffer as a result."
|
| Pearson Reduces Fees 10%
|
For the third consecutive year,
the Greater Toronto Airports Authority (GTAA) has
reduced landing fees and terminal charges at Toronto
Pearson International Airport.
Effective January 1, landing fees and terminal
charges will be reduced by 10%. These fees are charged
to airlines at Pearson to cover the cost of operating
and maintaining the airport. At a time when the aviation
industry is struggling with declines in traffic, this
reduction will result in estimated savings of $58.4
million to the airline industry next year.
"With the 10-year airport development program
completed, we have worked hard to reduce our fees to the
airlines to ensure that Toronto Pearson remains
competitive," said Lloyd
McCoomb, president and CEO
of the GTAA. "We are partnering very closely with
airlines to increase traffic at Toronto Pearson to
ensure that the aviation needs of this community are
met.
Obviously, the cost of operating will always be
a deciding factor for an airline." Since 2007,
the GTAA has worked to reduce landing fees by 13.1% and
terminal charges by 15%. Between 2007 and 2010, the
savings to the airlines is estimated to be $108 million.
"Air Canada is very appreciative of the GTAA's
work on reducing expenses and their willingness to pass
along hard won savings to its airline partners," said
Duncan Dee, executive vice president and chief operating
officer at Air Canada. "This fee reduction is welcome
because it helps us control costs in this challenging
economic environment."
The reduction has been made possible as a result of
steps taken in February of this year, including
reductions in costs and a successful of Landing Fee
Rebate Program. The GTAA also has been focussed on
efficiency of processes and using airport facilities
more effectively. In 2008, 32.3 million
passengers travelled through Toronto Pearson, making it
Canada's busiest
airport. |
AIRPORTS IN THE
NEWS
Canadian Airports Making the News for All
the Wrong Reasons
|
The cost competitiveness
challenges of operating an airport in Canada once again
made headlines this month when the Winnipeg Free
Press picked up on the ever-frustrating issue of
passenger traffic leakage to nearby U.S.
airports.
Winnipeg, which has seen passengers
leaking to nearby Grand Forks, North Dakota, has
company. Plattsburgh, N.Y.; Buffalo, N.Y.;
Burlington, Vt.; and Bellingham, Wash. all have built a
business model based on attracting Canadians from nearby
urban centers with cheaper air fares. Many of the
airports - most notably Plattsburgh - have received
federal subsidies from the U.S. government. In
all, more than 2.5 million Canadian passengers are
estimated to be flying out of border
airports.
October 6th, the story hit the U.S.
press when it was picked up by USA Today's biggest air
travel blog -- Today in the
Sky. The blog has covered the border leakage
issue on numerous occasions.
|
American Express Expects Increased
Business Travel Spending in 2010
|
In its 2010 Global Business
Travel Forecast, American Express says it expects a 15%
increase in business travel for Canada next year - a
sharp difference from the 1% projected for the
U.S.
According to the report, prices in most
travel categories are expected to go up as well next
year, on reduced capacity and pent-up demand.
According to the survey, North American domestic fares
(economy) will go up 2-7% while international long-haul
business fares will be up 1-6%.
Hotels, which
enjoy less capacity to reduce supply, will continue to
see rates down by as much as 4% in the mid-range and 6%
in the upper range.
"As the world begins to show
signs of emerging from the recession, businesses are
adapting to a fundamental shift in thinking focused on
proving the value of travel and every employee
connection," said American Express Business Travel Vice
President and General Manager Hervé Sedky, in a
statement. "Heading into 2010, companies will need to
consider the impact of these changes in mindset,
particularly as increases in key travel categories gain
momentum."
American Express notes that increasing
ancillary fees mean that businesses should actually
estimate a 15% increase in total business travel
costs.
|
AIRPORT
TRAFFIC
August Traffic
Improvement |
It now being more than a year
since capacity began coming out of the skies amid record
high oil prices, it was perhaps inevitable that August
traffic numbers would stabilize. Nevertheless, it
is still welcome news that August traffic seems to have
improved.
The ACI "PaxFlash" report indicates
that global passenger traffic grew by a modest 0.1% in
August as compared to August 2008. The key
driver was improvement in domestic traffic, up by 2.5%
with Asia Pacific and Latin America & Caribbean
regions showing greatest improvement.
"Flat is beautiful after a year of
negative results," said
ACI Director General Angela Gittens. "Even
taking into consideration that the comparison to results
in August of last year, when global traffic slowed due
to the economic situation and travel restrictions in
China related to security measures for the Olympic
Games, the improving trend is visible." If the
positive year-to-date trend continues global annual
decline will be much more moderate than expected, likely
between-3% and -4%. Looking at the rolling 12 month
average, the steep traffic contraction has turned the
corner, softening in August. Emerging markets
China, India, and Brazil are clearly pulling ahead, but
mainly in domestic traffic which currently outperforms
international traffic. Europe and North America
are lagging behind, as expected, as they also suffered
the biggest slump in the past year. Total
freight handled worldwide in August 2009 dropped by 7%
compared to August 2008 with international freight
falling by 9% and domestic by 4%. Again, the charts
reflect the impact
No turnaround has been seen as yet in international
freight, and it is to be remembered that on a month over
month comparison we are now comparing declines with
declines. North America domestic freight dipped again in
August. Singapore and Amsterdam are still down
respectively 14% and 15% in international, and Japan's
Narita is down -10% relative to August
2008.
Airports measure passenger numbers in
enplaned/deplaned passengers while airline measurements
incorporate distance travelled.
|
AIRLINE
TRAFFIC
World Airline Traffic Decline
Slows
|
The International Air Transport
Association (IATA) has announced international scheduled
traffic results for August. Compared to August 2008,
passenger demand was down 1.1%, (an improvement compared
to the 2.9% decline in July), and freight demand fell by
9.6% (also an improvement compared to the 11.3% drop in
July).
Compared to August 2008, passenger load
factors improved by 1.2 percentage points to 80.9%.
Despite the tighter supply and demand conditions average
fares continue to be depressed (-22% for premium seats
and -18% for economy).
To match capacity with
demand, airlines have reduced daily aircraft utilization
in recent months. For example, average daily hours for
the global Boeing 777 fleet dropped by 2.7% to 11.1
hours per day through the first eight months of the
year. Lower utilization helps load factors, but
spreading fixed asset costs over fewer hours in the air
pushes up unit costs.
"Demand continues to
improve, but profitability remains ever distant," said
Giovanni Bisignani, IATA's Director General and CEO.
"Fares have stabilized, but at profitless levels.
Meanwhile cost pressures are mounting from reduced
aircraft utilization and rising oil prices. The industry
is not out of the woods yet."
In international
freight, compared to the low point of December 2008,
seasonally adjusted freight demand has improved by 12%,
but remains exceptionally weak at 16% below April 2008
levels when the fall in demand began. All regions saw
improved freight demand in August compared to
July. |
| Airlines Outline Emissions Goals
|
The International Air Transport
Association (IATA) presented its proposals for
December's climate change talks to the UN Secretary
General's Summit on Climate Change in New York recently.
The sector says it is united in its approach to reduce
aviation emissions under the leadership of the
International Civil Aviation Organization (ICAO),
working in cooperation with the sector through IATA.
"Climate change is a global problem. Aviation is
a global industry. And we need a global approach for
this industrial sector if we are to deal with climate
change effectively," said Giovanni Bisignani, IATA's
director general and CEO. "Mechanisms designed for
ground-based polluters will not work effectively for
aviation, which can emit CO2 across borders and over the
high seas even on a single flight. And already
uncoordinated national and regional schemes are creating
a patchwork of punitive taxes that fill government
coffers, but do little or nothing to effectively manage
aviation's emissions."
The aviation industry
presented a paper
outlining the industry's commitment to three
sequential targets.
- Improving carbon efficiency with a 1.5% average
annual improvement in fuel efficiency to 2020
- Stabilizing emissions with carbon-neutral growth
from 2020
- Emissions reductions with a 50% absolute cut in
emissions by 2050 compared to 2005
Aviation's
emissions are expected to fall 7% in 2009 - 5% as a
result of the recession and 2% directly related to the
strategy.
The forum took place in the run-up to the United
Nations Framework Convention on Climate Change (UNFCCC)
meeting in Copenhagen this December.
|
CANADIAN
NEWS
Edmonton Conducts Emergency Response
Exercise |
More than 20 ambulances, 20
firefighting apparatuses, 140 volunteers, STARs,
emergency response services personnel, police,
government agencies, community supports and Canada's
first Mobile Aircraft Fire Trainer all added up to the
completion of a successful emergency training exercise
at Edmonton International Airport (EIA) recently.
"This was the largest emergency response
training exercise we've ever done at Edmonton
International Airport," says Burl Hamm, EIA's manager of
emergency response services and emergency planning.
"After we review the exercise, we'll use the results to
enhance our integrated regional emergency and hospital
services. Our ongoing training will make a difference in
someone's life if a real emergency situation
occurs."
Simulating an airliner crash, the
exercise was part of Edmonton Airports' regulatory
requirements with Transport Canada to maintain an
effective emergency response plan for the airport,
airlines and regional response agencies.
"This was the first large-scale simulation
exercise we have encountered since the transition of
ambulance provision to Alberta Health Services on April
1, 2009," says Shane Inkster, emergency medical services
manager with Alberta Health Services, North/Central
zone. "Based on its complexity, magnitude and dynamics,
this scenario provided us with a venue to adequately
test EMS system plans and
procedures."
EIA's emergency response
services team also had an opportunity to put its Mobile
Aircraft Fire Trainer (MAFT) through the paces during an
official exercise. The fully self-contained system
provides training in the control and extinguishment of
aviation fuel spill fires and aircraft incident fire
emergencies in and around an aircraft. Going forward,
EIA's emergency response services team will use its
expertise with the unit to provide emergency response
training at other
airports. | |
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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| Upcoming Events |
|
Oct. 27-28, 2009
CAC Board Meeting in
Toronto
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 21-22, 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
| |
Tourism
Snapshot from the Canadian Tourism Commission
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Market Outlook from the Canadian Tourism
Commission
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