Newsletter Graphic

Sept-Oct 2009
Overseas Traffic Overtakes Transborder

Something interesting in Canada occurred in June:  overseas passenger numbers overtook U.S. transborder passenger numbers for possibly the first time ever.

For the year to the end of June, Transport Canada reports that 10.5 million enplaned/deplaned passengers travelled to international destinations other than the U.S., versus 10.1 million to the U.S.  For the year to June, overseas traffic was the most stable, down 2.3 percent with two months of double-digit losses after previously being relatively stable.

System wide for the first half of the year, E/D passengers were down 7.5%, led by an 8.7% domestic fall and a 9.3% transborder fall.

The news comes amid a second straight month in which Canadians travelling overseas was down.  This previously had been resilient.  Also down -- and to a significant degree -- are Canadian visits from residents of several key overseas sources for tourism.  Most notable are the U.K., Japan and South Korea. 

Graphic 2

In June, overseas traffic overtook U.S. tansborder for the first time.  This is part of a trend that we can date back a few years.

Chart 1

Graph 3

On a month by month basis, May and June were the worst so far with continued deep domestic traffic cuts and a turn to losses in the overseas traffic market - which had been resilient.

Graph 5

The decline in Canadians travelling aboard is troubling as this had been pretty resilient even as other markets declined.  The declines in visits to Canada is troubling for the tourism sector as a whole but the available figures do not indicate whether or not the Canadians who did not travel overseas may have travelled closer to home - off setting somewhat the decline in foreign tourists (albeit at deeply discounted pricing widely available).


Graph 6

Graph 7

The departure of Zoom from the market place in 2008 may be partly the blame for the deep declines in UK visits.  Japan's decline has been longer term and reflects the maturity of that country's outbound travel market - they are venturing to newer destinations. 
 
Australia and South Korea hold perhaps the most immediate potential for growth due to two new air routes from Australia to the U.S. West Coast (Qantas actually withdrew from the Canadian market) and new service to South Korea made possible by the recently announced Open Skies agreement. 
 
Mainland China also holds great potential but a key factor will be Approved Destination Status.  There is hope that there may be some movement on that file in November, when the prime minister visits China.

Graph 8


AIRLINE TRAFFIC
World Airline Traffic Losses Improve in July

The International Air Transport Association (IATA) announced international scheduled airline traffic results for July showing passenger demand traffic in revenue passenger kilometers 2.9% compared to the same month in the previous year - a relative improvement over June.

Airline traffic is calculated differently from airport traffic as airline traffic incorporates distance travelled.  Freight traffic was down 11.3%. International passenger load factor stood at 80.3%.

The July passenger demand fall of 2.9% was a relative improvement over the 7.2% drop in June and the 6.8% decline recorded over the first seven months of the year. July capacity was more in line with reduced demand than in previous months and load factors are similar to those recorded in July 2008. These positive developments, however, have come at the expense of yields, which continue to fall sharply.

The 11.3% decline in cargo demand for July was also a relative improvement over the -16.5% recorded in June and the -19.3% average for the first seven months of the year.  Despite this improvement, the July freight load factor of 47.6% was lower than the 49% recorded in July 2008.

All regions saw improved demand performance compared to June, but significant differences by region should be noted:
Asia-Pacific carriers are experiencing the extremes of this recession. The 7.6% fall in passenger demand compared to July 2008, was the largest decline of any region. At the same time, compared to the -14.5% recorded in June, the relative improvement to -7.6% was also the biggest among all regions.

International Air Freight

Freight traffic on international markets was 11.3% lower in July than a year earlier, but was a considerably better result than the -16.5% recorded in June. All regions, except Africa, saw improvement in demand compared to June. The Middle East was the only region to grow.

Falls by Asia-Pacific carriers, European carriers and North American carriers were 9.5%, 16.2% and 14.6% respectively.  
African carriers posted the worst performance at -25.9%. This was the only region to see a deterioration in freight demand compared to June when the region's carriers posted a 20.2% decline compared to the same month in the previous year.

Middle Eastern carriers were the only region to grow, posting a 1% growth in demand compared to July 2008.

"The freight numbers tell an interesting story," said IATA Director General Giovanni Bisignani.  "The sector is being boosted as companies re-stock depleted inventories. Once inventories are at desired levels in relation to sales, improvements in demand will level off until business and consumer confidence returns. Given the large amount of debt in all sectors of the economy, instant relief is not in the forecast."

Full Results
AIRPORTS IN THE NEWS

Top Honours for Edmonton International Airport
(Leduc Representative, August 28, 2009)

 
Toronto Receives Environmental Award

Toronto Pearson International Airport has been selected as a winner of Airports Council International - North America's (ACI-NA) 2009 Environmental Achievement Awards.

Pearson is the first airport to win the newly added award category for Special/Innovative Projects for its Partners in Project Green & Pearson Eco-Business Zone program. Launched in October 2008, Partners in Project Green is a growing community of businesses working together to improve their financial and environmental performance by creating an internationally-recognized "Pearson Eco-Business Zone" around Toronto Pearson International Airport.

Through new forms of business-to-business collaboration, Partners in Project Green delivers programming that helps businesses reduce energy and resource costs, uncover new business opportunities, and address everyday operational challenges in a green and cost-effective manner.
 
"The ACI-NA Environmental Achievement Awards recognize those airports that set an example for the industry by going above and beyond regulatory compliance standards to protect and preserve the environment," said Jessica Steinhilber, ACI-NA Senior Director of Environmental Affairs. "The 2009 winners demonstrate outstanding qualities that illustrate the mission of this award."
 
Award winners will be recognized at the ACI-NA's 18th Annual Conference & Exhibition in Austin, Texas, Oct. 14, 2009, during the Chairman's Honors Luncheon.
 
Winners in each category are selected by a three-judge panel based on the project's environmental benefits, innovation, effective implementation, widespread applicability and cost-effectiveness.  
Kelowna Announces "Drive to 1.6 Million" Passengers Development Program

Kelowna International Airport (YLW) passenger activity is forecast to grow to 1.6 million passengers by 2015. 
 
To accommodate this growth the airport is putting in place a phased approach where construction will be triggered by passenger traffic demand.

"If by 2011 we are ahead of schedule and passenger numbers are closer to 1.6 million then we expect we will move on these projects at a faster rate," says Sam Samaddar, airport director. "However, if passenger numbers start to level out, something like we are seeing this year, these projects will be completed as planned over the next five to six years. By having a phased approach to the construction we can trigger each component of the project based on actual passenger demand."
 
Since 2004, passenger numbers at YLW have increased by 55%. In 2009, passenger numbers are slightly behind 2008's record breaking year by 3.4 per cent, although April, June and July 2009 were slightly ahead of their respective months in 2008.
 
The Drive to 1.6 Million program includes an interim customs facility which will be constructed this fall while elements such as the runway overlay, relocating and upgrading utilities, upgrade to the outbound baggage system, improvements to the Highway 97 intersection, Apron 1 expansion and large aircraft taxiway, the new International Arrivals Concourse and renovation to the existing arrivals area will take place between 2011 and 2016.
 
The order of magnitude cost estimated for these projects is budgeted at $50.5 million and will be paid for through the Airport Improvement Fee (AIF). The AIF at Kelowna International is currently $10 per departing passenger. As elements of the program are completed, the AIF is expected to increase to $12 in 2011 and to $15 per enplaned passenger effective January 1, 2013. 
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 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.
Join Our Mailing List
In This Issue
AIRLINE TRAFFIC...World Airline Traffic Losses Improve in July
AIRPORTS IN THE NEWS...Island Airport Tunnel by 2011?
Toronto Receives Environmental Award
Kelowna Announces "Drive to 1.6 Million" Passengers Development Program
Upcoming Events
Upcoming Events

Sept. 25, 2009
Open Skies Summit in Vancouver

Oct. 5-7, 2009
Altitudes East in Halifax

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

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

CTC

Tourism Snapshot from the Canadian Tourism Commission

CTC Graphic

Short-Term Market Outlook from the Canadian Tourism Commission

Enviro.aero


NEXUS
Quick Links
 
Industry Partners
ACI-NA ATAC


Safe Unsubscribe
This email was sent to daniel.gooch@cacairports.ca by daniel.gooch@cacairports.ca.
Canadian Airports Council | 706-350 Sparks Street | Ottawa | K1R 7S8 | Canada