Airports see long term benefit to Rent and Chattels Relief

Monday, May 9, 2005 -

Airports see long term benefit to Rent and Chattels Relief

Monday, May 9, 2005– Ottawa – “Airport authorities in Canada are pleased with the long term solution announced today by the Federal Government.  Airports will realize significant reductions on amounts paid for rent and chattels over the remaining term of their leases,” said Mr. Reg Milley, chairman of the Canadian Airports Council.

Outstanding chattel payments, totalling almost $25 million have been forgiven.  Mr. Milley said, “the chattel relief announced today will go a long way to keeping smaller National Airport System (NAS) airports viable in the communities they serve.”
   
Today’s announcement does not provide the immediate and significant reductions in airport rent that the CAC was seeking for all its member airports. However, the solution does address the significant escalation in rent payments that were scheduled in the longer term.  The impact of the new formula will vary for each airport.

Airports are not-for-profit entities, all revenues collected are used to; off-set operating and administrative costs; re-invest in the infrastructure and reduce long term debt.  As a corporation without shareholders, there is no distribution of monies and all net revenues are invested in improving airport services for the community.

“Airports compete in an international marketplace, the long term benefit of today’s rent and chattel relief will provide airports with greater flexibility as we adjust to industry pressures,” said Mr. Milley.  Many airports in Canada compete for airline traffic with airports in the United States and around the world.  The savings realized will provide airports with greater financial certainty and improve their ability to compete.

About the Canadian Airports Council

Formed in 1992, the Canadian Airports Council represents Canada’s non-federal airports for industry policy and regulatory matters, facilitating industry education and exchange, and promoting the industry in Canada and globally. CAC members account for 100% of all international passenger and cargo air transportation in Canada and 95% of domestic passenger traffic. With 43 members, operating more than 120 airports, the CAC includes all major international airports and a number of regional airports across Canada.