CAMPBELL RIVER AIRPORT
AIRPORT MASTER PLAN
SEPTEMBER 6, 2016 FOR DISTRIBUTION FILE: 704-C31103369-01
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EXECUTIVE SUMMARY
The Campbell River Airport is the gateway to economic development in the City of Campbell River and the region and it is therefore important that the City continue to market the airport to the community and aviation industry and develop airport lands for the economic benefit of the community. The 2007 economic impact analysis showed that for every job at the airport there are another 2.25 jobs that are created through direct, indirect and induced economic factors. It is estimated that in 2013, the economic impact from the airport activities contributed as much as $52.5M to the local economy. As the City encourages new business development at the airport, it is expected that this impact will continue to grow well into the future.
In 2010, the City, under a Bylaw, appointed an Airport Authority Commission to manage and operate the airport. City Council is responsible for approving the airport’s annual budget.
In 2016, Council and the Airport Authority Commission held a Joint Strategy Workshop resulting in a recommended adjustment to Council’s relationship with the Airport Authority Commission to better align with Council’s vision of the Commission and the Airport operations.
TimberWest owns and markets a large tract of land (400 acres) immediately adjacent to the airport. These lands are sold to potential developers and are not subject to airport related fees and charges with the exception of landing fees. To date, four parcels of land have been sold and Sealand Aviation, one of the largest businesses, owns and operates from one of these parcels. These private lands complement the airport lands for a variety of development opportunities.
The airport is well served by two airlines, Central Mountain Air and Pacific Coastal, and for the purposes of the master plan a new air service entrant is not anticipated.
The forecasts for passenger volumes and aircraft movements used in this plan are relatively conservative (1% low growth and 2.2% high growth). The growth projections are based on the expected population growth and Gross Domestic Product (GDP) forecasts.
As part of the plan development, a business opportunity scan was completed and a number of key business opportunities were identified. The opportunities focussed on aviation-related businesses [e.g., hangar construction, air cargo (courier and specialty seafood), manufacturing (specialty parts for aircraft), warehousing and storage, mini-storage, fixed base operators (FBO), flight training, maintenance repair and overhaul (MRO)], opportunities that would focus attention on the airport (e.g., special events) and the development of educational programs that would encourage young persons within the community to pursue careers in aviation.
Section 7.0 of the report identifies development opportunities for the airport. Some of the developments are required immediately to address specific constraints; the terminal building vehicle parking lot may need to be expanded to provide additional parking for both short-term and long-term parking. A vehicle parking study is planned for 2016. The main apron at the terminal is constrained during the summer months when commercial and private pilots require parking space for their aircraft. The apron will be expanded to accommodate user’s requirements.
The airport has a significant inventory of lands that can be developed. The master plan anticipates a careful development strategy based on demand triggers. As an example, first priority is given to lands that are easily developed. These are lands that already have road access, services and utilities. There is currently approximately 3.0 ha of land meeting this criteria. The next development phase requires the construction of an entirely new development area.
The Northwest Development Area is approximately 9 ha in size and is divided into two development phases. Each phase requires the construction of access roads, water and sewer services, utilities and airfield access
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(e.g., taxiways). The development area will be developed based on confirmed demand and, once developed, the next phase will only be initiated when the first phase is 70% leased and constructed. For example, Concept A shows eight lots. When six lots are leased, construction would begin on Phase II. There are two concepts shown for this area. The concept differences relate to lot sizes and taxiway access. Determining which concept is preferred will be tied to developer requirements.
At present, the fuel facility equipment (e.g., storage tanks, fuel truck, etc.) at the airport is owned by Esso. The airport operates the facility. The airport is currently developing a new Jet A fuel facility and fuel trucks that will be owned and operated by the City. The airport will provide only Jet A, while the provision of Av Gas fuel to aircraft operators may be devolved to private enterprise. It is expected that as the fuel agent, the airport will be able to purchase fuel at a lower wholesale cost.
The Master Plan includes three main deliverables: the implementation plan, the business plan and the marketing plan.
The implementation plan anticipates a logical and strategic development plan for the airport. In the short-term the following actions are expected:
Critical Studies/Reviews
. 2016 Council – Airport Authority Commission Joint Strategy Workshop;
. Economic Development/Marketing Implementation Study;
. Vehicle Parking Study;
. Logistical Study for Specialty Seafood Transportation; and
. Update to the 2011 Air Service Demand Analysis.
Infrastructure Maintenance and Improvements and Equipment
. Preparation of applications for federal and provincial funding agencies;
. Potential expansion of the vehicle parking lot;
. Expansion of the main apron to facilitate aircraft parking and maneuvering;
. Construction of an airport-managed and operated Jet A fuel depot with fuel trucks; and
. Purchase of essential new equipment: Snow Blower, De-icing Unit, Tractor, Mower and Light Pickup.
New Development
. Lease lands north of the Combined Service Building (CSB) and develop lands in the Southeast Development Area;
. Maximize development in the Central Development Area;
. At a mid-point over the next 5 years evaluate business interest to determine whether the demand exists for a new development area;
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. Based on demand begin construction of Phase 1 of the Northwest Development Area including roads, taxiways and services;
. Lobby for the return of the Canada Border Services Agency (CBSA);
. Lobby for further Air Tanker Base expansion;
. Lobby for North Island College Aerospace Program; and
. Consideration for the potential development of a Motorsports Park.
Each of the development planning objectives is tied to demand and the availability of funding assistance.
The business plan shows the expected expenses and revenues for the short-term (five year period). The projections used in the plan mirror the projections used for the passenger volume and aircraft movement growth. All of the projections are conservative.
The marketing plan includes a series of actions that are required to promote the airport and encourage business development at the airport. Actions include:
. Targeting the real market – local residents, air operators, charters, strategic partners, local, regional and national businesses.
. Developing a clear airport product – this involves developing strategies to improve the airport accessibility (signage, access roads, parking) and to make the airport as “hassle-free” as possible.
. Marketing the airport – this is accomplished through joint efforts with tenants and airport users to advertise and market the airport. This can also include improving websites, attending applicable aviation focusses conferences, participating in aviation organizations, encouraging tourism agencies to promote the airport as the preferred airport, developing a community based volunteer program at the airport, providing services at the airport for pilots and organizing community events. The Airport Marketing Taskforce could oversee these activities ensuring alignment with City branding and the new tourism model.
. Pricing Strategies – the airport needs to be price competitive with other airports on the Island (particularly Comox and Nanaimo).
The Campbell River Airport is a safe, well-maintained airport and with regular maintenance the airport will continue to provide the City of Campbell River and the region with a vital transportation link to the outside world.
All of the marketing and business development initiatives identified in the plan will promote the airport within the community and potentially result in business opportunities at the airport that will provide further economic benefit to the broader community through increased employment and business investment. As demonstrated in the airport economic impact assessments, the existing financial benefits to the community count in the tens of millions of dollars and with new business investment the economic impact will continue to grow.
The master plan provides a strategic approach to airport development over the next twenty years with a particular focus on the short-term (five-year) period. The plan is designed to focus on those areas where the airport can likely see progress and maximize revenues from airport-related businesses while at the same time promoting overall economic activity in the City of Campbell River and region.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ...... i
1.0 INTRODUCTION ...... 1 1.1 Situational Analysis ...... 1 1.2 Regional Profile...... 2
2.0 AIRPORT AUTHORITY COMMISSION ...... 3 2.1 Airport Management Structure ...... 4
3.0 EXISTING AIRPORT FACILITIES AND INFRASTRUCTURE ...... 6 3.1 Runways ...... 6 3.1.1 Runway End Safety Area (RESA) ...... 6 3.2 Taxiways ...... 7 3.3 Airfield Electrical ...... 7 3.4 Aprons ...... 7 3.5 Air Terminal Building ...... 7 3.5.1 Airport Security ...... 8 3.5.2 Canada Border Services Agency (CBSA) ...... 8 3.6 Combined Service Building (CSB) ...... 8 3.7 Services (Water and Sewer) ...... 9 3.8 Aircraft Services ...... 9 3.8.1 Aircraft Fuel...... 9 3.8.2 Aircraft De-icing ...... 10 3.8.3 Access Roads ...... 10 3.8.4 Air Terminal Building Parking ...... 10
4.0 STAKEHOLDER CONSULTATIONS ...... 11 4.1 Strength, Weakness, Opportunities and Threats Analysis (SWOT) ...... 11
5.0 AIRCRAFT MOVEMENTS AND PASSENGER FORECASTS ...... 14 5.1 Air Service Demand ...... 14 5.2 Competitor Airports ...... 14 5.3 Passenger Growth ...... 15 5.4 Aircraft Movements ...... 17 5.4.1 Historical Aircraft Movements ...... 17 5.4.2 Projected Aircraft Movements...... 20
6.0 AIRPORT OPPORTUNITIES ...... 23 6.1 Situational Analysis ...... 23
7.0 LAND USE AND DEVELOPMENT PLAN ...... 28 7.1 Airfield ...... 30 7.1.1 Runways, Taxiways and Aprons...... 30 7.1.2 Navigational Aids ...... 31 7.1.3 Airfield Electrical ...... 32
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7.2 Airport Access and Parking ...... 32 7.3 Combined Services Building ...... 33 7.4 Airport Fuel Depot ...... 33 7.5 North West Quadrant Development Area ...... 33 7.6 Central Airport Development Area ...... 35 7.6.1 Air Terminal Building (ATB) ...... 35 7.7 South-East Quadrant Development Area ...... 37 7.8 Capital Plan Cost Estimates ...... 40
8.0 OPERATIONS AND EXPENSES ...... 41 8.1 Historical Revenues and Expenses ...... 41 8.2 Staffing ...... 44
9.0 BUSINESS PLAN ...... 44 9.1 Expenses ...... 45 9.2 Revenues ...... 45 9.3 Revenues and Expenses Analysis ...... 46
10.0 FUNDING SOURCES...... 50 10.1 Airport Capital Assistance Program (ACAP) ...... 50 10.2 Island Economic Coastal Trust ...... 51 10.3 Building Canada Fund – Communities Component ...... 52 10.4 British Columbia Air Access Program (BCAAP) ...... 53
11.0 FUTURE AIRPORT MARKETING PLAN ...... 53 11.1 Assessment of the Airport’s Current Marketing Plan ...... 53 11.2 Targeting the Real Market ...... 53 11.2.1 Local Residents ...... 54 11.2.2 Air Operators / Charters ...... 54 11.2.2.1 Scheduled Carriers ...... 54 11.2.2.2 Private Air Operators/Charters ...... 54 11.2.3 Strategic Partners ...... 55 11.2.4 Local, Regional and National Businesses for Land Development Opportunities ...... 55 11.3 Strategies ...... 56 11.3.1 Product 56 11.3.2 Promotion...... 56 11.3.3 Pricing 58
12.0 CLOSURE ...... 58 12.1 Implementation Plan ...... 58 12.2 Business Plan ...... 59 12.3 Marketing Plan ...... 59
REFERENCES ...... 60
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LIST OF TABLES IN TEXT
Table 1-1: Building Permits Issued ...... 2 Table 3-1: Campbell River Airport (YBL) Airport Data ...... 6 Table 3-2: Fuel Sales Margins ...... 9 Table 3-3: Weather History 1981-2010 ...... 10 Table 4-1: Results of SWOT Analysis ...... 12 Table 5-1: Competitor Comparison ...... 15 Table 5-2: Forecast Passenger Volumes ...... 17 Table 6-1: 2014 Commercial Opportunities Scan ...... 23 Table 7-1: Project Phasing ...... 28 Table 7-2: Airfield Capital Costs ...... 31 Table 7-3: ATB Parking Lot and Airside Drive Costs ...... 32 Table 7-4: CSB Costs ...... 33 Table 7-5: Fuel Depot Capital Costs ...... 33 Table 7-6: Northwest Quadrant Development Costs ...... 35 Table 7-7: IATA – ACI Level of Service (LOS) Definitions* ...... 35 Table 7-8: ATB Capital Costs ...... 37 Table 7-9: Central Aviation Development Costs ...... 37 Table 7-10: Capital Cost Estimates...... 40 Table 9-1: Comparison of Airport Charges ...... 46 Table 9-2: Historic Operating Expenses and Revenues ($ millions) ...... 46 Table 9-3: Projected Expenses ...... 47 Table 9-4: Projected Revenues (Low) ...... 48 Table 9-5: Projected Revenues (Medium) ...... 48 Table 9-6: Projected Revenues (High) ...... 48 Table 9-7: Profit/Loss Evaluation 2013 to 2020 (000s dollars) ...... 49
LIST OF FIGURES IN TEXT
Figure 2-1 Airport Management Structure ...... 5 Figure 5-1: Historical Passenger Volumes ...... 16 Figure 5-2: Aircraft Movement Analysis ...... 19 Figure 5-3: Aircraft Trend by Power Plant ...... 19 Figure 5-4: Aircraft Operator Movements ...... 20 Figure 5-5: Monthly Aircraft Movements ...... 20 Figure 5-6: Aircraft Movement Forecasts ...... 22 Figure 7-1 Site Plan ...... 29 Figure 7-2: Northwest Development Area Concept A ...... 34 Figure 7-3: Northwest Development Area Concept B ...... 36 Figure 7-4: Central Development Area ...... 38 Figure 7-5: Southeast Development Area ...... 39 Figure 7-6: Projected Capital Investment ...... 41 Figure 8-1: Campbell River Airport Historical Expenses ...... 42 Figure 8-2: Campbell River Airport Historical Revenues ...... 42
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Figure 8-3: Expense Category Percentages 2013 ...... 43 Figure 8-4: Revenue Category Percentages 2013 ...... 43 Figure 9-1: Expense and Revenue Forecasts ...... 49
APPENDIX SECTIONS
APPENDICES
Appendix A Excerpts from Campbell River Five Year Marketing Plan (2006) Appendix B Glossary of Terms Appendix C Fees and Charges Comparison
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LIMITATIONS OF REPORT This report and its contents are intended for the sole use of the City of Campbell River and their agents. Tetra Tech EBA Inc. (operating as Tetra Tech) does not accept any responsibility for the accuracy of any of the data, the analysis, or the recommendations contained or referenced in the report when the report is used or relied upon by any Party other than the City of Campbell River, or for any Project other than the proposed development at the subject site. Any such unauthorized use of this report is at the sole risk of the user.
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1.0 INTRODUCTION
1.1 Situational Analysis
The City of Campbell River (Salmon Capital of the World) is located on the east coast of Vancouver Island at the south end of the Inside Passage shipping route. The City is home to about 36,000 residents and the Campbell River Airport (YBL) provides a critical transportation link to the outside world.
The main runway has recently been extended, the air terminal has been renovated and a new Field Electrical Centre (FEC) has been built, making the airport well poised for future development. For this reason, the City through the Airport Authority Commission has determined the need for an updated Master Plan to guide the airport’s development over the next twenty years. In 2008, the City of Campbell River concluded an agreement with Transport Canada to remove the “Option to Purchase” provision from the transfer agreement. The removal of this provision enabled the airport to guarantee the tenure of ground leases at the airport.
The airport is critical to the City’s economic objectives. When corporations are considering potential locations for their businesses and have considered a likely geographical area (e.g. North Vancouver Island), their next step is to determine where best to locate that business. To attract and maintain their employee base businesses must therefore evaluate lifestyle factors; location, size of the community, housing costs, the environment, shopping convenience, the availability of schools, recreational facilities and transportation systems.
The airport must identify strategies to differentiate itself from nearby competitor airports. To achieve this objective, the airport must consider opportunities that will increase and diversify its revenues. Increases in revenues from traditional scheduled passenger services may be limited and the opportunity to generate revenue from alternate sources is therefore essential.
A large tract of land owned by TimberWest, a large timber and land management company, is located immediately east of Airside Drive, and is currently being marketed for development. These lands, which are approximately 162 hectares, are bound by the Inland Island Highway, Jubilee Parkway, Airside Drive and forested areas to the south. A number of parcels within the TimberWest lands have been sold and are now owned by private landowners. Sealand Aviation, one of the airport’s largest businesses owns and operates from one of the parcels. Airside access to the Sealand property is via Taxiway D.
Aviation related development on these lands may complement the City’s plans to develop and lease new lands at the airport. Developers in this area are responsible for their own operations and maintenance costs. Agreements are in effect that will require land owners to rehabilitate Airside Drive as part of the initial agreements between the City and TimberWest.
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The City does not have a large inventory of light to medium industrial land and therefore it is likely development will occur at both the airport and the TimberWest lands. This plan is intended to provide a realistic evaluation of opportunities and an assessment of the capital investment triggers required to maximize expenditures in the future and provide an examination of potential new marketing strategies for the airport.
1.2 Regional Profile
The Campbell River Airport is the gateway to economic activity in the region and the City of Campbell River is located in close proximity to major natural resources. In 2007, the City commissioned an economic impact assessment that showed the airport contributed as much as $49M dollars to the local economy. The study showed that for every job created at the airport there were an additional 2.25 jobs created in the region and to some extent province based on direct, indirect and induced economic factors. Using historical provincial Gross Domestic Product (GDP) indicators (2008 to 2013), it is expected the airport’s overall economic impact may now be as much as $53M dollars. This is despite the negative economic impacts of 2008.
A recent report1 suggests economic activity within the region is positive. Table 1-1 shows the number of building permits increased in 2010 despite the global economic impacts of 2008. In 2011, there was then a relatively significant decline in permits issued; however, the issuance of building permits has been relatively steady since 2011 indicating a relatively stable economic climate.
Table 1-1: Building Permits Issued Year Number of Permits Issued 2009 298 2010 335 2011 257 2012 260 2013 262 2014 234* *to August 2014
The Campbell River Economic Development Corporation Community Profile report identifies major developments that are providing further economic benefits to the region:
. BC Hydro Campbell River Field Operations Facility – the facility is a $23M office building (28,000 sq. ft.) project, completed in 2014, that included approximately 60 jobs throughout the project construction.
. North Island Hospitals – the Campbell River Hospital received funding for $266M for the development of a 95 bed health care facility. The Comox Hospital received $301M. Between these two projects, it is estimated that as many as 330 jobs (direct and indirect) would be created during the construction phases.
. John Hart Generating Station – modernization of the existing station is expected to cost approximately $1B. This project will include a 2.1 km tunnel, a water bypass facility and a new generating station. Completion is expected in 2018 and the construction will provide jobs for approximately 360 workers.
. BC Forestry Tanker Base is expanding at the airport and will generate further economic benefits to the community as workers move to the area and through increased employment.
1 City of Campbell River, Community Profile, Campbell River Economic Development Corporation. 2014 (DRAFT)
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. BC Hydro Dam Seismic Upgrades 2019 – 2023 valued at approximately $400M
. Private development in the Downtown core valued at approximately $80M
Overall, employment in the region is relatively diversified. The top ten industries by employment include:
1. Retail
2. Accommodation and Food Services
3. Manufacturing
4. Health Care and Social Assistance
5. Agriculture, Forestry, Fishing, Hunting
6. Construction
7. Educational Services
8. Transportation and Warehousing
9. Public Administration
10. Processional – Scientific and Technical Services
A 2014 report2 by the British Columbia Ministry of Finance stated, “BC’s diverse economy continued its modest pace of growth in 2013, as the province’s real GDP expanded by 2.0% on the year after growing by 1.8% in 2012.”
Internationally, the value of BC merchandise increased 6.3% in 2013 following a decline in 2012. Wood product exports increased by 25.5% from 2012 (primarily softwood lumber). Rejuvenation in this sector may ultimately benefit the Campbell River region. 2.0 AIRPORT AUTHORITY COMMISSION
In December 2010, the City of Campbell River Council appointed members to a newly formed Commission of the City, the Campbell River Airport Authority Commission. The Commission was tasked, on behalf of City Council, to manage and operate the airport. The Commission was created under Bylaw 3444. In 2016 Council and the Airport Authority Commission held a Joint Strategy Workshop resulting in an adjustment to Council’s relationship with Airport Authority Commission to better align with Council’s vision of the Commission and the Airport operations.
The Commission has the following objectives:
. Provide an outward vision rather than internal preoccupation;
. Encourage a diversity in viewpoints;
. Offer strategic leadership more than administrative detail;
. Clarity of the distinction of Commission and Airport Manager roles;
2 2014 British Columbia Financial and Economic Review, 74th Edition, April 2013 – March 2014, BC Ministry of Finance, July 2014
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. Encourage collective rather than individual decisions;
. Focus efforts on the future rather than past or present; and
. Proactively guide the airport.
The appointed Commission members come from a variety of backgrounds including private business, other professionals, government and consulting and, as such, its members offer extensive knowledge and expertise to the airport when considering airport opportunities for the future. The Airport Authority Commission reports to Council in accordance with relevant City Bylaws.
As a City department the Airport is subject to Council polices, laws, and regulations applicable to local governments and airports in British Columbia.
2.1 Airport Management Structure
The Airport Manager reports functionally to the General Manager, Facilities and Supply Management who reports to the City Manager. The City Manager reports directly to City Council. The Airport Manager manages a total of seven full-time equivalent staff (one Administrative Assistant, four Airport Specialists, one Airport Specialist (electrical) and one Airport Coordinator).
The Airport Manager liaises with and supports the Commission. The General Manager, Facilities and Supply Management is the City Staff appointee to the Commission. In addition, some Council representatives are appointees to the Commission and attend meetings.
The master plan anticipates positive development opportunities at the airport. To achieve the proposed development objectives it will be necessary for the airport to begin an aggressive program of self-marketing and business development. Many similar sized Canadian airports have dedicated staff tasked with business development and marketing responsibilities. It is therefore important that the City consider staffing levels and specific expertise for the airport to move development opportunities forward over the short-term and the twenty year planning horizon.
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Figure 2-1 Airport Management Structure
Council Representatives Airport Authority City Council Participate In Airport Authority Meetings
City Manager
General Manager General Manager Facilities & Supply Management Participates in Airport Authority Meetings
Airport Manager
Airport Coordinator (1) Administration (1) Airport Specialists (5)
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3.0 EXISTING AIRPORT FACILITIES AND INFRASTRUCTURE
Table 3-1 identifies the Campbell River Airport data.
Table 3-1: Campbell River Airport (YBL) Airport Data REF N49 57 07 W125 16 23 4.5S 20°E, UTC-8 (7) Elev 357´ A5004 LO2, H13 CAP OPR District of Campbell River 250-923-5012 Certified, Landing Fees PF 1,2,3,6, ATB ltd hrs C-2,4,5 FLT PLN NOTAM FILE CYBL FIC Kamloops 866-WXBRIEF (Toll free within Canada) or 866-541-4101 (Toll free within Canada & USA) WX METAR 14-05Z TAF 16-05Z issue times 16, 19, 01Z (DT 15, 19 01Z) SERVICES FUEL 100LL, JA-1 (also by truck) 15-04Z O/T call out charge 2 hrs PN. OILS All 2,4 (ltd) RWY DATA Rwy 12 (115°)/30(295°) 6499x150 asphalt, Rwy 12 down 0.88% Rwy 12 RV 1200 (1/4 sm) day only/Rwy 30 RVR 1200 (1/4 sm) day only. Taxi C pavement width 34’, max weight 44,000 lbs. Taxi D is unlit HELI DATA Pad 1 - 23’ diameter concrete maximum aircraft length 58’ Pad 2 – 45’ diameter asphalt LIGHTING 12-AN-(TE HI) P2, 30,30-AO (TE HI) P2 30 Available 1330 – 0530Z O/T ARCAL-122.0 type K COMM RADIO Campbell rdo 122.0 (V) 1330-0530Z‡ (emerg only 250-923-3942) RCO Pacific rdo 123.55 (FISE) 126.7 (bcst) ATIS 128.55 14-05Z‡ MF Campbell rdo 1330-0530Z‡ O/T tfc 122.0 5NM 3300 ASL excluding the area below 700´ depicted on the Campbell River VTPC (CAR 602.98) TML Comox 123.7 227.6 NDB NDB YBL 203 (L) N50 00 23 W125 21 27 DME IBL 109.1 Ch 28 N49 57 19 W125 16 49 (376´) ILS IBL 109.1 (Rwy 12-30) RVR
3.1 Runways
Runway 12-30 is 6,505 ft. in length and 150 ft. wide. There are no major upgrades or modifications anticipated within the plan timeframe. The runway is grooved and is in good condition.
3.1.1 Runway End Safety Area (RESA)
In the long term, the effect of potential impacts of the new draft TP312 5th Edition Aerodrome Standards document and the implications of anticipated Runway End Safety Area (RESA) regulatory requirements will need to be taken into consideration.
It is anticipated that the current RESAs at the runway ends will meet the requirements of the new regulation. Minor grading and diversion of drainage ditches may be required but it is unlikely that major works will be required.
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3.2 Taxiways
Taxiway A is the primary taxiway between the main Apron (Apron I) and the runway. Taxiway B parallels the runway and ends at the old 5,000 ft. runway threshold (prior to the recent runway extension). Taxiway C parallels the runway and connects to the Runway 30 threshold. Taxiway D provides access to airport businesses located on private lands east of the main tenant hangar line.
3.3 Airfield Electrical
Recently the airport completed improvements to the airfield lighting and electrical systems. The projects ensure the airfield lighting system meets current regulatory requirements while providing expanded operating limits under low visibility conditions. Upgrades included apron, taxiway lighting, and runway edge lighting circuits. Airfield lighting components were replaced with new airfield electrical regulators and a lighting control system, as well as new runway guard lights. A new FEC was commissioned in 2014.
3.4 Aprons
Apron I provides four operational stands for scheduled aircraft. The fuelling area on the north end of the apron provides service for fixed wing and rotary wing aircraft. A helipad for rotary wing aircraft is located south of the apron along the apron edge.
Apron II is used primarily for itinerant aircraft.
Apron crowding is a key issue at the airport and is addressed in Section 7.0.
3.5 Air Terminal Building
The air terminal building (ATB) is comprised of a number of systems, each with their own processing rate capacity. The series of processors include check-in, hold baggage screening, passenger security screening, hold rooms, boarding gates and baggage retrieval. The recent airport runway extension and upgrade project (2010/11) included modernizing the airport terminal building.
Based on stakeholder consultations, the ATB in its current configuration will meet the projected needs well into the medium term. The airport might consider modifications to the ATB if a successful charter service resulted in larger aircraft using the airport (e.g., B737); however, even if this was to occur, the level of service (LOS) may only be slightly impacted for a short period on a particular day.
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3.5.1 Airport Security
Campbell River Airport is a designated airport under the Canadian Air Transport Security Act. As such, passenger screening services are provided at the main terminal by the Canadian Air Transport Security Authority (CATSA).
3.5.2 Canada Border Services Agency (CBSA)
Until October 2014, the Campbell River Airport was a designated Canada Border Services Agency (CBSA) service at the airport.
The airport received a letter dated October 9, 2014 which stated, “In an effort to ensure the most efficient use of resources, while continuing to provide service excellence, the CBSA Vice-President of the Operations Branch has determined that the CBSA Campbell River office will be de-designated and the CBSA resources will be relocated to the CBSA office located at the Comox Valley Airport. CBSA service for the Campbell River Airport will continue to be provided by the CBSA Comox Valley Airport office. This change will be effective as of November 1, 2014.”
Approximately 3.7% (680 aircraft) trans-border/international flights arrive at Campbell River Airport annually.
The vast majority of commercial and private pilots (estimated 98%) are enrolled in either the CBSA Commercial or Private Aircraft CANPASS program. This program provides participants with the following privileges:
. Aircraft can land at any Airport Of Entry (AOE) in Canada.
. Aircraft can land at an AOE any time the airport is open for landing, regardless of the hours of business of the local CBSA office.
. Aircraft can land at a CANPASS-only airport, which may be nearer to your destination.
. Aircraft receive expedited clearance.
. Aircraft can proceed to the final destination if there is no CBSA officer waiting for the aircraft by the reported time of arrival, without the pilot having to make a second call to the CBSA after landing.
As part of this program, CBSA will on occasion randomly select a particular aircraft for inspection. CBSA maintains an office at the airport for this purpose. During the master plan consultations, it was noted that CBSA has only conducted random inspections for about 2% of trans-border and international aircraft landings.
At this time CBSA has not recovered costs associated with these inspections; however, with the move of their “store-front” office from Campbell River to Comox there may be some inclination to recover costs whenever the CBSA decides to conduct an inspection. The airport will have to determine how the removal of CBSA services will impact overall costs.
3.6 Combined Service Building (CSB)
The lower section of the combined service building (CSB) located at the south end of the building is approximately 3,950 sq. ft. in size. This part of the CSB is used to maintain and store equipment (e.g., tandem trucks, light vehicles, snow plows, etc.). The building was likely constructed in the 1960s or 1970s and as such may require major rehabilitation during the master plan timeline, depending on the outcome of the City’s Facility Master Plan review.
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The newer, upper north part of the CSB houses emergency vehicles. The north section of the CSB will not require major rehabilitation during the plan timeframe.
3.7 Services (Water and Sewer)
Water and sewer services are available at the airport. Both water and sewer are provided to the BC Forestry Service to the south.
Water and sewer services end at Taxiway E near the old threshold, end of Taxiway B to the northwest. Sewer, water, and utility lines would be extended to the north with the construction of the Northwest Development area.
3.8 Aircraft Services 3.8.1 Aircraft Fuel
Both Jet A and Avgas are available at the airport through an Esso owned concession located on the northwest side of Apron 1. The facility is operated by airport staff. Jet-A fuel is delivered to the aircraft via a fuel truck and the Avgas is dispensed at the cabinet on the apron.
The airport is currently tendering the procurement of two refuelling trucks and fuel storage for Jet A only. The objective is for the airport to operate the fuel concession for Jet A only while the sale and provision of Av gas may be devolved to private enterprise. As the sole provider of Jet A fuel the airport may be able to negotiate better market based pricing based on larger volumes purchased. As an example, the airport currently dispenses approximately 500,000 L of fuel annually. Helifor purchases an additional 250,000 L of fuel for its operations.
In 2013, the airport generated approximately $774,000 in revenue from fuel sales. Esso determines the wholesale price for the fuel. The airport then considers costs associated with managing and operating the fuel depot to determine a final retail cost for users. Table 3- 2 shows the operating expenses and revenues for the period 2010 to 2013.
Table 3-2: Fuel Sales Margins Description 2010 2011 2012 2013 Total Fuel-related expenses $423,468 $557,877 $666,354 $744,634 Total Fuel Revenue $510,138 $605,244 $741,738 $773,770 Surplus (Deficit) $86,670 $47,367 $75,384 $29,136
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3.8.2 Aircraft De-icing
At present, aircraft de-icing activities occur immediately in front of the airport administration building. The airport uses approximately 10,000 L de-icing fluids annually. Water contaminated with glycol flows to a storage basin located adjacent to the apron. It is then pumped out and the fluids are removed for approved disposal. Campbell River’s climate is such that de-icing is not a regular activity and weather is normally wet during the months November to March with snowfalls minor as compared to rainfall (reference Table 3-3). When de-icing activities do occur, the glycol-contaminated water has usually dissipated before reaching the storage tanks.
Table 3-3: Weather History 1981-2010 Description Nov Dec Jan Feb Mar Days with Precipitation 21.6 21.2 20.8 16.4 19.7 Rainfall (cm) 222.1 204.2 194.6 135.5 128.4 Days with Snowfall 1.8 4.1 4.3 3 2.7 Snowfall (cm) 11 23 23 14 12 Average High (deg. C) 4.4 2.1 2.4 3.2 5.2 Average Low (deg. C) 1.0 -0.8 -0.8 -0.7 0.7
3.8.3 Access Roads
The airport is within City limits and is located approximately 12 km south of the City of Campbell River downtown core and 1 km west of the Inland Island Highway on the Jubilee Parkway. Airside Drive generally follows the airport northeast boundary. The tenant hangar line is located along Airside Drive.
Private airport lands located east of Airside Drive use Airside Drive as a main access roadway. There are currently five blocks of land in the TimberWest development areas available for private investors. Sealand Aviation occupies one of these parcels.
Agreements are in place to rehabilitate Airside Drive south of Jubilee Parkway. Airside Drive north of Jubilee Parkway will be rehabilitated in conjunction with the north development area expansion.
3.8.4 Air Terminal Building Parking
Figure 7-4 shows the overall available vehicle parking at the main terminal area. The main parking lot accommodates approximately 192 vehicles. A parking area on the east side of the terminal is allocated for terminal tenants and accommodates 31 vehicles. A third parking area located next to the Administration Building holds 12 vehicles. The City will be conducting a Vehicle Parking Study in 2016.
In general, determining the optimum number of parking spaces at an airport is difficult. As an example, at large international airports studies3 have shown an average of 558 vehicle parking spaces per 1,000,000 passengers. This ratio does not correlate to smaller airports. A number of factors must be considered:
. Smaller airports generally provide more parking because proportionally there may be a larger number of long- term parking patrons.
3 Airport Service Quality Best Practice Report, Airports Council International/DKMA, 2009
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. There is generally land available to expand parking areas.
. There is often poor public transportation available.
. The distance to the city centre is generally greater.
. The cost of parking is generally lower.
As an illustration of the variability, North Bay Jack Garland Airport handles approximately 70,000 passengers annually and their main parking lot can accommodate 165 vehicles which appears adequate for their medium term needs. Nanaimo Airport has approximately the same area for vehicle parking as Campbell River and accommodates more than twice as many passengers. 4.0 STAKEHOLDER CONSULTATIONS
In September 2014, Tetra Tech EBA Inc. conducted a series of consultations held at the airport so that key stakeholder input could be incorporated into this plan. Stakeholders included the Commission, City of Campbell River staff, Campbell River Economic Development Corporation, Campbell River Chamber of Commerce, NAV CANADA and key tenants (Sealand and Helifor).
Based on the consultations, a strength, weakness, opportunity and threats (SWOT) analysis was developed. In addition, stakeholders reviewed an opportunities scan comprising of 45 potential development opportunities where participants were able to rate the likelihood of success for a particular opportunity. Discussion on the high and medium rated opportunities is included in Section 6-1.
Airport Authority Commission . Commission Members . City Council Liaison(s) . City Staff Liaison(s) Airport Tenants
. Helifor Industries Ltd. . Sealand Aviation Ltd. . Nav Canada Economic Development Organizations
. Campbell River Economic Development Corp. . Campbell River Chamber of Commerce
4.1 Strength, Weakness, Opportunities and Threats Analysis (SWOT)
The SWOT workshops allowed airport stakeholders a means of logically assessing how the airport fits into the overall air transportation network and focused participants on a structured analysis of likely opportunities for the airport. With significant competition within a 3-hour drive from Campbell River, it is essential that the airport focus on its strengths, work on strategies to minimize weaknesses, incorporate policies and plan to maximize development opportunities and influence how potential threats can be mitigated. Table 4-1 shows the results of the SWOT analysis. This analysis is fundamental when determining realistic development opportunities at the airport.
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Table 4-1: Results of SWOT Analysis Strengths Weaknesses . Airport is well run and the Airport Manager has an . Staffing levels form part of the financial plan as approved by excellent rapport with staff, tenants and the City Council. Commission. . Required financial reporting complies with Municipal . Available lands – the airport has abundant lands that requirements. can be developed for both aviation related and non- . Much of the Airport Manager’s job is tied to airport aviation related uses. operations leading to a limited focus on marketing and . Runway length – at 6,505 ft. in length, the runway business development. can accommodate most aircraft. . Esso establishes the cost of AvGas and Jet A fuel. The City . Regional resources – abundant resources: mining, may be able to negotiate better rates with a City-owned fisheries, tourism. system. . Geographical location – reduces fog issues than can . Relatively small catchment area (+/- 50,000). be a constraint at other island airports. . The airport has not achieved wide community recognition. . Existing scheduled service to Vancouver. . The ATB hold room may be limited if larger aircraft (e.g., . Connections to North Island locations. B737) were used to transport passengers. . Float Plane connections. . Jubilee Parkway is part the City’s road network and falls . Corporate jet apron/parking area. under Council’s snow management policy, however subject . Proximity to Island Highway and City. to availability Airport staff removes snow from the Parkway. . City of Campbell River financing rates. . There is a relatively small aviation community in Campbell . Business oriented, friendly atmosphere. River. . ATB meets medium term needs. . CBSA decision to relocate service to Comox Airport. . Campbell River is a shopping destination for North . Potential costs associated with Perfluorooctanesulfonic acid Island/First Nation residents. (PFOS) cleanup. . Both Jet A and Av Gas fuel available. . Main apron can be constrained in summer. The new airport . Relatively flat topography is favourable to tug and relocated fuel system will improve this situation. development. . NAV CANADA maintains a Flight Service Station at airport. . Relatively well-off retirement demographic.
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Opportunities Threats . Interest in an aircraft maintenance/storage . Comox has a larger catchment area and includes WestJet opportunity. and Air Canada service. . A volunteer program to greet residents and visitors at . Developments on adjacent lands may not be paying their the airport. This would likely be a part-time program. share of airport expenses yet they have access to the . Support the BC Forestry Service growth plans. An airfield. enhanced forestry tanker base at the airport will . The Taxiway C pavement condition may affect the BC positively impact the regional economy. Forestry expansion. . Develop a made-in-Campbell River training program . Reduced air traffic can result in the loss of Nav Canada for airfield electrical. service. . Potential to work with the local college to develop a . Carriers and charter companies are sensitive to fuel prices helicopter/fixed wing flight training program. Other and failure to be competitive can result in these companies institutions have combined aviation training with seeking alternate airports. academic diplomas/degrees. . Comox Airport currently has incentives in place for . Involve the community in airport events to improve corporate jet aircraft parking. the visibility of the airport within the community (e.g., . Customs Service designated status removed and moved to the success of the Wings and Wheels event). Comox. . Commission members and airport management . Comox has two runways, one at 10,000’ and a second at should attend select aviation focused trade shows 12,000’. and conferences to promote the airport. . Comox has a 48 man fire response. . Encourage a restaurant that caters to the fly-in community with a local cuisine (e.g., salmon barbeque). . Consider competitive airport rates and charges and position the Campbell River Airport to be the most economical. . Determine whether First Nations fish processing will result in increased airport needs. . Promote the airport as the “alternate’” choice when adverse weather limits airport operations at Comox. . Encourage development of a fixed base operation that caters to corporate and private aircraft operators. . Market land for aviation-related business where appropriate. . Annex/purchase adjacent lands for airport development. . Create an Airport Industrial Park. There is not a lot of light to medium industrial lands available in the city. . Add a First Nations representative to the Commission. . Make the airport a “tax-free zone”.
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5.0 AIRCRAFT MOVEMENTS AND PASSENGER FORECASTS
5.1 Air Service Demand
Although communities are always interested in increased and affordable air service, it is recognized that a relatively small population catchment area can only support limited air services. At this time, stakeholders generally consider that the airport is well served by Central Mountain Air and Pacific Coastal.
In 2011, an Air Service Demand Analysis4 was completed. Highlights from the analysis show the following:
. 60% of potential passengers in the Campbell River Airport region use other airports largely due to lower airfares (e.g., Westjet in Comox).
. Leakage estimates are 67% to Comox, 16% to Vancouver, 13% to Victoria and 4% other.
. 58% of flights are business, 36% leisure and 6% business/leisure.
. There is a demand for sun destination travel; however, the size of aircraft used in that market tends to be larger thereby requiring a more reliable number of passengers.
. Travel agents rated the top reasons why passengers choose alternate airports. The top four reasons were:
Airfare from Campbell River to sun destinations is too high;
Flight frequencies are inadequate;
Security screening services are extreme; and
The type of aircraft (e.g., too small) – passengers definitely prefer large wide-bodied jet aircraft.
. The calculated ratio of potential regional passengers to actual demand is deemed, “one of the lowest in Western Canada”. This is not unusual; however, as several Canadian airports in proximity to larger international airports have similar ratios (e.g., Hamilton, London, and Sudbury are close to Toronto, and Nanaimo is close to Victoria).
. Airlines serving trans-border traffic are more difficult to secure from smaller airports. There is a trend to larger aircraft for this market sector and as such, a larger catchment area is normally required.
An update to the 2011 Air Service Demand Analysis should be completed.
5.2 Competitor Airports
Table 5-1 compares Campbell River Airport to Comox and Nanaimo. These two airports are in direct competition with Campbell River Airport given that all three airports compete for a similar population catchment area. It is therefore important that each airport define a particular niche that differentiates itself from its competition. As an example, Comox is a military air force base and as such, enjoys the benefits of the Department of National Defence (DND) presence. In this particular instance, DND assumes the cost of maintaining airfield infrastructure, which is a significant cost to an airport. Nanaimo has a larger population base, therefore, airlines can size aircraft to accommodate the potential passenger base and maximize load factors. Interestingly, the Air Demand study showed Nanaimo and Campbell River were comparable in terms of the ratio of actual passengers to potential passengers,
4 Air Service Demand Analysis, Campbell River Airport, Leigh Fisher Management Consultants, May 2011
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each with a ratio around 1.1 to 1.3. The Comox ratio was 4.0, largely because of the Westjet service. It is important to note that Nanaimo now has a Westjet service and it will be interesting to monitor the impact of that service on the Nanaimo market and see its effect on the Comox market.
In general, each airport appears to offer services suitable to the community size.
Table 5-1: Competitor Comparison Campbell River Comox Nanaimo Number of Airlines 2 4 4 Airlines CMA, Pacific Coastal ACJ, CMA, Pacific Coastal, ACJ, Island Express, WestJet WestJet, Kenmore Destinations Vancouver, Bella Bella Vancouver, Calgary, Vancouver, Victoria, Edmonton Abbotsford, Seattle, Calgary Terminal Building 16,200 sq.ft 32,300 sq. ft 29,063 sq. ft Runways 1 2 1 Main Runway Length/Width 6,500 x 150 10,000 x 200 6,602 x 200 Precision Landing Systems Yes Yes Yes Total Passengers (2011) 61,080 238,612 225,251 Share of Island Traffic (2011) 3.34% 13.06% 7.53%
A comparison of fees and charges is included in Appendix C.
5.3 Passenger Growth
Global issues can affect passenger travel such as wars in distant lands, virus outbreaks, and economic market uncertainty resulting from the global issues all tend to have negative impacts on consumer optimism and as a result discretionary travel can suffer. As an example, the price of oil has dropped from $111 per barrel in 2010 to $81 per barrel as of October 2014. Analysts suggest a drop in oil price below $80 per barrel can begin to impact the overall economic activity in that sector. In Canada, the oil price is an important indicator of overall economic health. As of late October 2014, some economists were forecasting oil prices to drop to $70/barrel. At this price the oil sector is likely to put many projects on hold until such time oil prices rise. Economists are therefore predicting a relatively slow economic growth through 2016 (as of September 2016 the price for oil is ~$46 per barrel).
Population growth and demographics can also impact air travel. The Campbell River region is anticipating a relatively slow growth (approximately 1% per year) over the plan horizon. The region’s population of those older than 65 years of age represents a financially stable demographic and as such, discretionary travel and the use of the airport is more likely in this demographic.
Two airlines, Central Mountain Air and Pacific Coastal, provide seven scheduled arrivals and five scheduled departures daily from the airport. As shown on Figure 5-1, passenger volumes approached 65,000 (enplaned and deplaned) in 2005; however, the 2008 worldwide recession had a relatively significant impact on passenger volumes (-16%) despite the fact that Canada weathered the recession favourably. As the figure shows, even with a high scenario the number of passengers may not reach this level until approximately 2016.
The number of weekly available seats provided by the two airlines far exceeds the current passenger needs and as such, it is unlikely another carrier will enter this market. The introduction of a low cost carrier (e.g., WestJet) can significantly stimulate a market (e.g., 40% to 60%); however, given that WestJet already serves Comox, Nanaimo and Victoria, it is unlikely the relatively small Campbell River catchment area population would attract WestJet at this time. Smaller airlines could potentially be attracted to the Campbell River marketplace; however, rather than
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stimulating a market a new entrant would likely attract customers from the existing customer base, by offering lower airfares. The overall effect is to reduce load factors for all airlines and not necessarily increase passengers through the airport.
The projections used on Figure 5-1 for passenger volume growth are based on the following assumptions:
. Low Forecast: 1% per year growth similar to expected population growth.
. High Forecast: Based on the Leigh Fisher Air Service Demand Analysis, 2011. The breakdown in air travel is as follows:
Domestic: 74%
Trans-Border: 16%
International: 10%
. Recent BC passenger volume growth 2011 to 2012 show Domestic growth at 3.9%, Trans-border at 1.7% and International at 2.3%. These values were used in the high forecast scenario calculation. The medium forecast is based on projected Real GDP growth of 2.7% to 2018 and 2.2% annually to 2033.
Figure 5-1: Historical Passenger Volumes
Table 5-2 shows the projected passenger volumes at key stages during the master plan timeline. These growth scenarios form the basis for decisions relating to facility and infrastructure improvements or expansion. As an example, if the ATB is currently meeting passenger needs, one must determine whether the ATB will continue to meet those needs in 10 years if the passenger volumes have increased by 36.4% (medium forecast).
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Table 5-2: Forecast Passenger Volumes Low Medium High 2013 56,600 2023 62,500 77,200 83,900 2033 69,000 96,000 117,000
Passenger volumes during the summer of 2014 was above average; recreational fishing was exceptional resulting in a healthy increase (+/- 12%) in both itinerant aircraft movements and passenger volumes.
5.4 Aircraft Movements 5.4.1 Historical Aircraft Movements
Aviation activity at the Campbell River Airport consists of aircraft movements by air carriers, general aviation and local traffic. Statistics Canada defines aviation activity as follows:
. Air Carrier
Effective in 2010, every Canadian carrier, licensed by the Canadian Transportation Agency to transport persons, mail and/or goods by air and in the calendar year immediately preceding the reporting year, transported:
Level I – At least 2 million revenue passengers or at least 400 thousand tonnes of cargo;
Level II – At least 100 thousand, but fewer than 2 million revenue passengers, or at least 50 thousand but less than 400 thousand tonnes of cargo;
Level III – Air carriers not classified in reporting level I or II that realized gross revenues of at least 2 million dollars for the provision of air services for which the air carrier held a license; and
Level IV – Air carriers not classified in reporting level I, II or III that, realized gross revenues of less than 2 million dollars for the provision of air services for which the air carrier held a license.
. General Aviation
Commercial – Flights by aircraft operators licensed by the Canadian Transportation Agency (CTA) to perform commercial air services. Commercial operations are divided into two categories, air carrier and other commercial.
Other commercial – Flights performed by commercial aircraft operators not included in the air carrier categories; flying schools, agricultural sprayers, water-bombers, aerial photography and survey, etc.
. Local Movements
At airports with control towers and/or flight service stations and for the purpose of completing air traffic records, local movements are considered as movements in which the aircraft remains in the circuit.
At airports without control towers: an aircraft movement in which the aircraft remains in the close proximity of the airport.
Local movements are often carried out during training flights as touch-and-go’s, equipment tests, etc.
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. Itinerant Movements
At airports with control towers and/or flight service stations: for the purpose of completing air traffic records, itinerant movements are considered as movements in which aircraft proceed to or arrive from another location, or where aircraft leave the circuit but return without landing at another airport. At airports without control towers: an aircraft movement in which the aircraft arrives from or departs to a point other than the reporting airport, or a movement by an aircraft that leaves the close proximity of an airport and returns without landing at another airport.
Hourly airport capacities and annual aircraft delay computations are needed to design and evaluate airport development and improvement projects. The Federal Aviation Administration (FAA) throughput methodology is used to calculate airport capacity and delay. When considering annual movements, airports with a single runway can accommodate a significant volume of air traffic (greater than 200,000 movements). The Campbell River Airport has a relatively small number of aircraft movements and as such runway capacity is not an issue.
Aircraft Movement Analysis
Figure 5-2 shows a decline in both itinerant and local aircraft movements during the period 2004 to 2013. The initial decline (2004 to 2006) likely was the tail end of the year 2000 recession and the events of September 11, 2001. In 2007, there appeared to be a relatively healthy increase in aircraft movements that may have indicated a renewed energy in the aviation industry; however, the 2008 recession resulted in a further decline in aircraft movements with some stability apparent in the last couple of years. The resulting reduction in aircraft movements was common to most airports in Canada. Pilot training accounts for the most significant component of “local” movements and the reduction in aircraft movements can usually be attributed to a reduction in pilot training activity. Flight schools often suffer during periods of economic uncertainty when unemployment rates tend to rise and individuals are more cautious in discretionary spending (e.g., pilot training).
Figure 5-3 shows the largest decline in the piston engine category aircraft which likely coincides with reduced recreational flying. Jet aircraft appear to be relatively stable throughout the 2004 to 2013 period suggesting this sector (general aviation aircraft: charter and tourism) is a relatively stable sector. Figure 5-4 shows all aviation sectors showing stability during the period 2010 to 2013.
Figure 5-5 shows monthly aircraft movements for 2013. It is noteworthy that the busiest months coincide with the peak salmon fishing periods (June through October). It is also at this time of the year that the airport main apron is most constrained by increased private jet operators.
Itinerant aircraft movements to September 2014 have shown a 10% increase over the same period in 2013.
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Figure 5-2: Aircraft Movement Analysis
Figure 5-3: Aircraft Trend by Power Plant Aircraft Trend by Power Plant 12000
10000
8000
6000
4000
2000
0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Jet Turbo Prop Piston Helicopter
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Figure 5-4: Aircraft Operator Movements
Figure 5-5: Monthly Aircraft Movements
5.4.2 Projected Aircraft Movements
In general, forecasts are informed predictions of future aviation activity that are supported by the analysis of historical trends in traffic demand, projected economic growth and other factors that may affect local aviation activity. For complex projects, elaborate forecasting tools and techniques may be warranted but for simpler ones, a qualified update to existing forecasts is considered appropriate. A major assumption is that there is a direct correlation between historical aviation activity and future activity. The introduction of new entrants into a market can change runway use characteristics (i.e., peak hour capacity).
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When preparing aviation activity levels and forecasts for the Campbell River Airport, the same factors used in passenger forecasts were used to assess aviation growth; GDP and population growth projections. In general, the analysis of historical air traffic tends to show that even when there is a significant increase in annual aircraft movements due to a significant change of activity, over time, growth rates tend to moderate and reflect the general airport market. For example, if an airport brings in a successful flight training school, it would likely see a dramatic increase in aircraft movements in the first few years. However, over time the flight school will reach equilibrium in the number of students being trained and the associated annual aircraft movements in that particular sector will stabilize.
Jet Aircraft Movements
Jet powered aircraft movements are primarily related to commercial aviation/recreational pilot activity. As shown on Figure 5-3, jet aircraft movements were equally affected by the 2008 recession. During the period 2004 to 2007 jet aircraft movements increased by 21%. Over the next three years jet aircraft movements declined by about 40%. It is likely this was a result of the significant and more dramatic downturn in the U.S. economy. Since 2010 movements have increased by about 28%.
Tourism will continue to be a major market in Campbell River and there are a number of factors that may contribute to increase in this aircraft category:
. The U.S. economy appears to be rebounding from the 2008 recession.
. The price of oil is low and is expected to remain low in the short term (2014 to 2016) resulting in lower fuel prices.
. The Canadian dollar is lower which can encourage U.S. visitors to Canada.
The wide fluctuations in annual jet aircraft movements shown over the past decade indicate the challenges in forecasting for the future. Jet aircraft movements comprise about 1% of the total airport aircraft movements. Based on a relatively positive outlook for tourism related activity the following forecasts will be used for the period 2014 to 2033:
. Low Forecast: 10% annual increase 2014 to 2016, 2.2% annual increase 2017 to 2033
. High Forecast: 20% annual increase 2014 to 2018, 2.2% annual increase 2019 to 2033
Turboprop Aircraft Movements
Scheduled carriers are the largest component of the turbo-prop aircraft category (58%). Significant changes in air carrier movements are not expected during the master plan timeframes. As such forecasts relate to expected population growth during the plan period (+/- 1%) and expected GDP growth (average 2.2%).
. Low Forecast: 1% annual growth 2014 to 2033
. High Forecast: 2.2% annual growth 2014 to 2033
Piston Aircraft Movements
Piston powered aircraft appear to be the category of aircraft that have experienced the most significant decline over the last decade (60% decline). Piston aircraft are operated by smaller commercial aviation operators and recreational pilots. Both groups tend to be affected by economic activity. In addition, flight schools often use smaller piston type aircraft for pilot training. As indicated previously in the plan, pilot training has also declined in Campbell
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River. The forecast indicates a further reduction in piston powered aircraft over the next few years followed by some stability as the economy improves and disposable income levels increase.
. Low Forecast: 10% reduction annually 2014 to 2017, 1% annual growth 2018 to 2033
. High Forecast: 5% reduction annually 2014 to 2016, 2.2% annual growth 2017 to 2033.
Helicopter Aircraft Movements
As with other aircraft categories helicopter movements tend to rise and fall with the economy. A significant component of helicopter activity is tied to the resource industries so if the industries are struggling during times of poor economic activity, one would normally see a similar struggle in the helicopter industry. There appears to be optimism in the resource sector on the island and as such one would expect helicopter movements to increase.
. Low Forecast: 1% annual growth 2014 to 2017, 2.2% growth 2018 to 2033.
. High Growth: 2.2% growth annually 2014 to 2033.
The overall increase in aircraft movements at Campbell River Airport will not affect the airfield infrastructure. Increases in aircraft movements will impact future revenues. For this reason it is important to regularly review forecasts (every 5 years) and adjust the forecasts as required based on the economic environment at that time.
Figure 5-6: Aircraft Movement Forecasts
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6.0 AIRPORT OPPORTUNITIES
6.1 Situational Analysis
Results of the opportunities scan are illustrated in Table 6-1. The airport is currently limited in terms of available development lands and therefore priority should be given to aviation-related businesses requiring airfield access. These are described in Section 7.0.
Table 6-1: 2014 Commercial Opportunities Scan Local Potential Use Interest Constraints Potential Competition Aircraft hangar Yes Yes Existing tenants are currently constructing on-site hangars High and off-site areas are in direct competition. Air cargo facility No Yes A challenge to air cargo is the proximity of the Island Medium highway and the lower cost for trucking cargo by road. Air cargo will continue to arrive on existing carrier aircraft. There may be some demand for just-in-time, daily delivery by aircraft. Manufacturing Yes Yes Sealand Aviation Ltd. is currently manufacturing parts for High Twin Otter aircraft and is looking to increase manufacturing opportunities. A challenge the community would have for larger manufacturing opportunities would be a limited workforce. Warehousing Yes Yes Warehousing facilities exist within the City and the airport Medium will be in direct competition with private land developers adjacent to the airport. Mini-storage Yes Yes Mini-storage already exists on site. Medium RV/Boat Storage Yes Yes RV/Boat storage areas are relatively common in the City Low and there would not likely be a real need for developing these facilities at the airport. Special Events Yes Yes The airport has hosted a “Wings and Wheels” special High event that was successful. The airport also participates in an annual shoreline cleanup which raises the airport profile within the community. Freight forwarder Yes No Freight forwarders are normally located in close proximity Low to a larger transportation network (e.g. truck transport or large aviation centres). Fixed Base No Yes It is important to consider much of the airport commercial Low Operators (FBO) and private aircraft activity is seasonal and as such, an FBO would be challenged in off-season. Restaurant Yes Yes The airport can only support a local restaurant which Low already exists in the ATB. Flight training Yes Medium The airport has an existing flight training company. Flight Medium training is largely dependent on the regional economic health (i.e. increased disposable income for residents). Expansion of inter-airport flight training.
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Table 6-1: 2014 Commercial Opportunities Scan Local Potential Use Interest Constraints Potential Competition Aircraft Maintenance Yes Yes Existing tenants and off-site tenants (Sealand Aviation) are High Repair and involved in MRO activities. Overhaul (MRO) Gas/service station Yes No The proximity of the City and existing service station on the Low Island Highway would suggest a low interest at the airport. Fast food Yes No The proximity of the City and the limited customer potential Low at the airport would suggest a low interest by fast food chains. Motor sport park No Yes Medium Office buildings Yes No Low Other recreation Yes Yes A local skydiving company is having relative success at the Low airport. There appears to also be interest in para-sailing. It is recognized the overall demand would be minor. Hotel/motel Yes No The airport is too far from local convenience outlets. Low Auto track No No Low Tourist/outfitters Yes No Low Rental car facility Yes No This opportunity relates to larger rental car service facilities Low (e.g., car wash, fuelling, etc.). These types of facilities are normally located at larger airports or within the local City. Outdoor/indoor Yes No The airport is not in close proximity to residents and the Low market likely location for this type of activity is within or immediately adjacent to the City population base. Athletic field Yes No Low Picnic grounds No Yes There is a definite interest in developing an outdoor Low picnic/resting area for airport staff. This would not be considered a business opportunity. Incinerators No No Environmental considerations and concerns relating to Low emissions from an incinerator as related to air traffic would limit the potential for this opportunity. Resource No Yes There appears to be some interest in a hydro pole Low processing processing plant however it is likely this type of facility would be located off-airport. Shopping plaza Yes No Low Plant nursery Yes No Low Flight kitchen No No Low Postal facilities Yes No Low Educational Yes Yes An educational facility can coexist with local colleges (e.g., High institution aircraft maintenance technician training). Typically, an airport tenant would partner with the local college (e.g., North Island College) to develop a training program. Big box retail Yes No Low Outdoor advertising Yes No Low Truck terminal Yes Yes Medium/Low Golf course Yes No Low
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The opportunities scan identified nine potential development areas for development: aircraft hangar, air cargo, manufacturing, warehousing, mini-storage, and special events, fixed base operator (FBO), flight training, MRO and education institution.
Hangars
Hangars are a key component of airport activity supporting both the recreational flyer and commercial businesses. Significant hangar development often results in the development of spin-off aviation related business interests (e.g., aircraft maintenance and overhaul companies). The airport has been approached by interested parties looking to construct hangars at the airport. The Campbell River Airport is unique in having a significant inventory of land capable of accommodating large hangers.
There are a number of different strategies for hangar development:
1. The airport can construct hangars and rent the space to users. In this example, the airport would provide capital for the construction of the hangars and secure a return on investment through lease agreements over a longer term. In this scenario, the advantage is that the airport would be able to attract potential customers who may not want to or be able to obtain financing for their own hangar construction. There are examples in Ontario where the airport has managed to obtain provincial funding to support hangar construction. An important criterion with government funding is that the funding is normally related to regional economics and must therefore be related to employment. The construction of a hangar for private aircraft owners may not result in the necessary employment triggers for funding. Alternatively, a lease holder who is using the hangar space for a business enterprise may provide the requisite employment needed to approach the funding agencies.
2. Airport users construct their own hangars. One challenge individuals experience when trying to finance their own hangar is that because the City owns the land, the banks are reluctant to loan money to an individual without significant collateral.
3. Developer constructs hangars to market to potential users. In this example a prospective developer would upfront the costs for the hangars with the intention of selling or leasing the hangars themselves. The airport would gain revenues through land leases.
Air Cargo
Air cargo is a challenging market. Newer aircraft are being designed to maximize passenger needs (seating and luggage) and minimize non-passenger related belly cargo. Larger wide-bodied cargo aircraft serving more distant markets require much longer runway lengths.
Factors that affect the need for an air cargo service include the following:
. The proximity of alternate vehicle transportation networks. The Island Highway provides easy access for transporting goods throughout the Island. In addition, larger cargo can be easily shipped up the Strait of Georgia.
. Both ground and ocean based transport are normally more cost effective given they can transport much larger volumes of goods.
. There may be no direct need for air cargo (heavy lift); however, there will continue to be a need for just-in-time delivery of smaller goods (small parts for equipment repair, courier parcels, etc.). This need would likely be met using existing air services.
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Areas that have been identified as potential markets for cargo include the following:
. Courier services as related to just-in-time services, on-line shopping deliveries.
. Specialty seafood deliveries to a hub market (e.g., Vancouver). This is a potentially significant market given the Campbell River area supplies approximately 52% of the province’s specialty seafood to markets. A study will need to be conducted to determine the feasibility of transporting the seafood via aircraft to potential markets.
Manufacturing
Sealand Aviation is currently involved with small parts manufacturing for Twin Otter aircraft for Viking Air. It is recognized that a skilled aviation-related workforce in Campbell River is limited however there may be an opportunity for a small specialty parts manufacturer supporting larger aircraft manufacturer needs (e.g., Boeing).
Warehousing and Storage
Airports often provide ideal conditions for warehousing and storage facilities. The airport has a significant land base that can accommodate warehouse construction and the airport is ideally located in proximity to the Island Highway. The concepts shown in this plan identify about 12 ha (29 acres) of land available for development. There is a similar inventory of lands north of the identified areas that would also be suitable for development.
Warehousing can accommodate a number of functions including just-in-time parts storage, secure storage and resource supply support, etc. In most cases, a warehouse does not require airfield access. It is often these businesses that can be located within groundside areas and can be privately owned lots. As an example, the North Bay Jack Garland Airport in North Bay, Ontario has successfully encouraged a number of privately owned warehouse developments at the airport. In most cases, the warehouses are supporting mining activities in northern Ontario.
The location of the airport to the highway also provides excellent access for long-haul trucking companies that may require associated warehousing.
The need for a dedicated courier type aircraft to serve the retail market (e.g., online shopping) and/ or specialty seafood market was identified. There may be a need for a small warehouse/storage facility at the airport which would function as an interim storage facility.
Mini-Storage
Existing airport tenants provide some mini-storage facilities. This type of development is well-suited to non-aviation related areas (i.e., areas not requiring airfield access).
Special Events
It is recognized that any event at the airport will result in community recognition and subsequently support for the airport. On a larger scale, a number of airports continue to offer air shows. On a smaller scale, pilot groups will often organize a fly-in lunch at an airport. This offers the pilots the ability to experience a particular geographic area and airport and as a spin-off, the airport can generate revenues through local product, food service and fuel sales. To encourage this activity the airport could waive landing fees for those participating in the event. The Campbell River Airport has already demonstrated a success with the “Wings and Wheels” event at the airport. The event brought together private aircraft operators and vintage car owners.
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Fixed Base Operators (FBO)
At smaller airports the “terminal building operator” often fulfills the same role as the FBO. The underlying difference is that a terminal building is typically operated by the airport owner whereas the FBO is usually a commercial business. In both cases the facility provides a number of aeronautical services to pilots including: fueling, hangar space, tie-down and parking, aircraft rental, aircraft maintenance, office space, and concessions. Often the FBO is operated in conjunction with another business enterprise (e.g., flight schools).
The FBO is the primary provider of support services to the general aviation community. The advantage of an FBO is that the facility can be used for a multiple of purposes: charter terminal building, warehousing and storage, freight forwarding and pilot lounges (i.e., a designated space that provides pilots with a place to rest and file flight plans). FBOs will normally have washrooms and, at a minimum, include concessions.
Sealand Aviation provides local FBO services at the airport. In the short to medium term, one FBO may provide all of the needs for the airport.
Flight Training
Figure 5-3 and Figure 5-4 show a relatively significant drop in piston type aircraft and local movements following periods of economic uncertainly (e.g., 2000 and 2008). Higher unemployment and uncertainty in regional economic growth are important factors when one considers flight training. Another interesting fact is many individuals learn to fly or return to flying as they age (greater than 40 years of age) and when the economy is suffering these individuals are more likely to carefully consider how investments are performing and reduce their spending accordingly. These are only some of the factors that may explain the volatility in flight training schools.
Figure 5-3 also shows local movements (normally attributed to flight training) were stable during the period 2011 to 2013. Flight training will continue to be an important component of airport operations.
Maintenance Repair Overhaul (MRO)
Business demand based on the number of aircraft located at the airport creates a need for fixed wing and helicopter overhaul and maintenance services and as the airport grows, it is likely that there will be a market for additional smaller aircraft maintenance and overhaul companies. Interestingly, these types of companies often support a customer-base that is not necessarily directly located at the airport. Usually the MRO reputation is what drives a customer loyalty.
Educational Institution
Sealand Aviation is actively promoting aviation within the community and the company has opened their doors to an aircraft building program with young adults (ages 13 to 19). Some of the young adults are involved with the Teenflight Campbell River organization. The participants, mentored by a group of local pilots, are building an aircraft over the course of approximately two years. The hope is that the restored aircraft will be sold when complete and the proceeds going towards another “kit” aircraft.
As part of the marketing initiatives the airport can work with the local college (e.g., North Island College) to determine the number of students that would be required to initiate an aviation related training program. The College is already offering some programs related to aviation and there is potential for the College to enhance programs, particularly relating to aircraft maintenance and fabrication. One of the College’s strategies may be to reach out to local high school aged persons to communicate the benefits of trades in these areas and the potential for employment within the community.
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7.0 LAND USE AND DEVELOPMENT PLAN
The Land Use Plan (LUP) is intended to provide a framework that the airport can use to guide future development at the airport over the long-term (e.g., 20 years). The LUP:
. Identifies land use requirements for each airport subsystem in the plan. Common designations include Airside Commercial, Airport Operations, Air Terminal Reserve, Runway and Taxiway System, Airport Reserve, Groundside Commercial, Aviation Support.
. Assigns specific areas on the airport for use by specific facilities, based on priority. The priority approach requires a listing of airport facilities in order of priority. Land area and location requirements for the highest priority facilities are allocated first. In each case, an attempt is made to provide for the first ranked location alternative for each major facility. If the preferred alternative location for a particular facility cannot be accommodated due to the previous assignment of the area to a higher priority function or to an identified restriction on that area, then the second ranked alternative is considered.
. Ensures future developments proposed in the LUP will not conflict with safe airport operations. All of the work undertaken at the airport will be in conformance with TP312, Transport Canada Aerodrome Standards and Recommended Practices. TP1247, Land Use in the Vicinity of Airports will be used when considering appropriate land uses in the vicinity of airports. Electronic zoning requirements are also considered.
. Reserves sufficient lands in the plan to allow for future expansion or redevelopment of operational facilities. As part of the LUP, future requirements for airport specific operational needs are assessed. Lands have been identified to ensure those needs are met in consideration of safe and efficient airport activities.
. Provides sufficient land to meet access requirements.
Present and future use of all airport lands not set aside for airside facilities have been reviewed under the existing LUP and reclassified or reconstituted as necessary. Characteristics such as surrounding topography, proximity to airport services, and adjacent properties have been used to determine the most efficient use for each parcel of land. Lands to be reserved for key aviation services and passenger and administrative needs are clearly delineated. Auxiliary lands are those lands not reserved for key aviation services, or lands that could serve an alternate and temporary purpose until required within the 20 year plan. Development and servicing of these reserve lands have been reviewed for practicality purposes ensuring that all lands are designated effectively and that suitable guidelines for development are in place. Figure 7-1 shows an overall concept for airport lands.
The phased development plan is structured to allow the Campbell River Airport to plan for capital funding and investment over the master plan timeline. Projects are phased over five year increments. It is important to consider that unforeseen circumstances can affect air travel and it is prudent that the decisions considered in the plan be reassessed every five years so that the viability of capital investments can be confirmed for the next five year period.
Table 7-1: Project Phasing Phase Planning Years I 2015 – 2020 II 2020 – 2025 III 2025 – 2030 IV 2030 – 2035 V Beyond 2035
Figure 7-1: Site Plan
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Figure 7-1 Site Plan
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In this section development recommendations described throughout the plan are detailed with the phasing based on specific and identifiable demand triggers.
A cost estimate is also provided for each recommendation to guide investment planning. The cost estimates represent Class D level cost estimates. A Class D cost estimate is defined as a cost estimate that is preliminary which due to little or no site information indicates the approximate magnitude of cost for the proposed project, based on the client’s broad requirements. The overall estimates may be derived from lump sum or unit costs for a similar project. The Class D estimate is used in developing long term capital plans for preliminary discussion if proposed capital projects. To account for uncertainties in estimating costs without complete information (e.g., geotechnical conditions, detailed design elements etc.), a 20% contingency and a 15% engineering fee have been added to all estimates. In the main body of the plan, all of the estimated costs are rounded. ATB and CSB costs are estimated using estimates from previous projects and costs will have to be verified at such time these buildings are expanded which is likely not until the Phase III and IV timeframe. Cost estimates should be developed consistent with the City’s Capital Project Management Policy.
7.1 Airfield 7.1.1 Runways, Taxiways and Aprons
Runway 12-30
The current runway will be sufficient for aircraft service into the foreseeable future. The surface is in good condition and meets the length and width requirements for Code C jets such as the Boeing 737-800 and turbo-props like the Dash-8 Q400. The runway has been grooved to provide good friction characteristics. Future rehabilitation of the runway will likely be funded through the Transport Canada’s Airport Capital Assistance Program (ACAP).
Taxiway A
Taxiway A will not require changes from its current configuration to meet future development needs.
Taxiway B
Taxiway B provides access to developments north of the main apron and to the former threshold of Runway 12 which has since been extended 457 m (1,500 ft.). To meet the future potential use by Dash-8 Q-400 aircraft, this taxiway should be widened to 23 m to contain the extra wide gear-span of this next generation aircraft. At the time of development, the design offset from runway centreline should be changed from 92 m to 93 m to meet the future requirements of TP312 5th Edition. This assumes that the design aircraft for the airport will be AGN IIIA Non- Precision (equivalent to a Dash 8-300 with minimum 250 ft. approach limits) and AGN IIIB Non-Instrument (equivalent to a Dash 8 Q-400 on approach or take-off with 500 ft. limits).
To improve safety and increase capacity of the runway/taxiway system, Taxiway B should be extended to the threshold of Runway 12. This will also provide access to development lands north of the current taxiway end.
In the area of Apron I and the Itinerant Apron, Taxiway B should be consolidated into the apron and become an apron taxi-lane with a 26 m minimum (from centreline) obstacle free strip. This will allow greater flexibility and usability of the apron space to accommodate more parked aircraft.
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Taxiway C
Taxiway C should be widened to 23 m to accommodate Dash 8 Q-400 traffic in the future. This development will be triggered when this type of traffic begins to service Campbell River.
Consideration should be given to re-aligning Taxiway C with Taxiway B. This will allow development of more airside commercial land along the northeast side of Taxiway C.
Apron I and Apron II
The key issue with the aprons is over-crowding with itinerant executive aircraft during peak tourism periods. Apron II is insufficient to contain the demand and then overflow aircraft are positioned on Apron I due to a lack of any alternative. To increase apron space, several things should occur:
. The fuel facility at the north end of Apron I should be removed or relocated.
. Taxiway B and Taxiway C adjacent to Apron I and Apron II should be integrated into the aprons reducing the space lost by dual or parallel taxi-lanes.
. The area between Apron I and Apron II should be in-filled to provide a continuous surface that can be used to manage aircraft parking more efficiently.
. A small aircraft tug has been acquired to position the corporate itinerant aircraft more efficiently.
. Eventually Apron I should be expanded to the south to provide additional operational stands for scheduled traffic.
. Operational stands for scheduled aircraft should be provided with concrete pads to eliminate to asphalt damage that currently is occurring at these locations.
. The area behind the CSB should be expanded and the airside fence relocated to contain the FEC and other maintenance facilities. This will ensure security for the controls and emergency power supply.
Table 7-2: Airfield Capital Costs Development Work Estimated Cost Phase I Apron expansion stage I, north of Taxiway A, airside fence relocated $1,794,000 II Apron expansion stage 2, south of taxiway A, three concrete pads $2,295,000 III Apron expansion stage 3, south of taxiway A, additional concrete pad $659,000 I Decommission old fuel depot $810,000 I Widen taxi B $751,000 II Widen Taxi C $1,365,000 II Extend Taxi B $2,688,000
7.1.2 Navigational Aids
The current primary navigational aid is the Instrument Landing System (ILS) for the approach to Runway 12. The current limits have a Decision Height of 317 ft. with half mile visibility. NAV CANADA has just completed a new approach procedure design for the ILS and it is expected that new lower limits of 250 ft. and half mile visibility will
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required. The ILS procedure includes a procedure turn for aircraft approaching from the south providing reliable service to aircraft in most weather conditions other than fog.
Emerging technologies such as Performance Based Navigation (PBN) in the airspace and Required Navigational Performance (RNP) approach procedures are likely to eliminate the need for ground based navigational aids like the ILS in the future and we would not recommend adding a new ILS for Runway 30 at this time. The RNP approaches will likely meet or provide lower limits than the ILS and can be designed for both runway ends.
Consideration could be given to replacing the Omni Directional Approach Lighting System for the approach to Runway 30. By upgrading the system to a Short Simplified Approach Lighting System (SSALS) or a Short Simplified Approach Lighting with Runway Indicator Lights system (SSALR), runway visibility and therefore landing reliability will likely be increased. This will also benefit Runway 30 when the future RNP approaches are designed and implemented down to precision or non-precision limits.
7.1.3 Airfield Electrical
The airfield electrical systems have been upgraded to allow low visibility operations. The FEC has been recently upgraded and is sized for growth if required. It is anticipated there will be no modifications to the electrical system other than those caused by the expansion of the aprons and taxiways.
Consideration could be given to replacing current fixtures with LED fixtures as they become due for replacement. This would have to occur with an integrated programme including new controls and regulators.
7.2 Airport Access and Parking
Airside Drive south of Jubilee Parkway will be rehabilitated as part of the overall land development initiatives east of Airside Drive.
Airside Drive north of Jubilee Parkway will be rehabilitated in conjunction with the extension of the roadway into the new development areas. It is anticipated that the roadway will be designed and constructed to City urban standards which includes curb and gutter and sidewalks. However discussions with TimberWest regarding design details are ongoing.
Depending on the outcome of the Vehicle Parking Study it may be necessary to expand the parking lot to the east to provide additional parking at the ATB and to provide for long-term parking for users. Figure 7-4 shows the proposed parking area expansion.
Table 7-3: ATB Parking Lot and Airside Drive Costs Development Phase Work Estimated Cost I Expand the existing parking lot by 1.1 acres (134 stalls) $512,000 I Airside Drive roadway upgrades $50,000
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7.3 Combined Services Building
The lower shop area was constructed in the 1960s/70s and will need to be rehabilitated or replaced within the master plan period. At present, the shop area is adequate; however, the age of the building is resulting in increased operations and maintenance costs. The City will be conducting a Facilities Master Plan/Condition Assessment in 2016, which will include facilities at the airport.
Table 7-4: CSB Costs Development Phase Phase Estimated Cost III Reconstruct the lower shop area. $1,400,000
7.4 Airport Fuel Depot
The Campbell River Airport will be constructing a new fuel depot and purchasing new fuel trucks. The fuel depot will consist of:
. 1-60,000 L jet fuel tank including pad and associated dispensing equipment;
. Associated electrical and site works; and
. 2.5 m by 3.5 m building.
Fuel trucks will be purchased to dispense jet fuel. The trucks will be standard tandem trucks complete with 18,000L fuel tanks and associated dispensing and loading/off-loading equipment.
Table 7-5: Fuel Depot Capital Costs Development Phase Estimated Cost Phase I Construct a new fuel depot $505,000 I Purchase Jet A fuel trucks $500,000 I Paving and site development $200,000 I Total $1,205,000
Figure 7-2 shows the proposed fuel depot location.
7.5 North West Quadrant Development Area
The proposed Northwest Quadrant Development Area is approximately 25 acres in size and is a natural extension to the existing hangar line to the northwest of the terminal building. Figure 7-2 and Figure 7-3 show two different approaches for development in the area.
Figure 7-2 (Concept A) shows a concept where Airside Drive would be extended to the northern limit of the development area and then be extended to the west and south to maximize development of lots west of the proposed taxiway. The overall area would be developed based on trigger demand. As an example, the first phase would incorporate about 8 lots (roughly half acre in size). The taxiway would only be constructed to serve the lots shown in this phase. A temporary road would be developed to access the lots. When approximately 70% of the lots are leased (e.g., 6 lots), construction would begin on the next phase. Phase 2 of the development area includes an additional 27 lots. As part of the development the taxiway would be extended to serve all of the lots and the temporary road removed.
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Figure 7-2: Northwest Development Area Concept A
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Figure 7-3 (Concept B) shows a slightly different configuration wherein the taxiway is extended from each direction into the development area to provide access for the proposed lots. The access road would be constructed to accommodate each development phase. In this concept larger lots were shown for illustration purposes (e.g., 1 acre lots). Phase 1 includes 6 lots and Phase 2 an additional 15 lots. Water, sewer and other utilities would be located within the access road right-of-way (ROW). All of the lots are intended for aviation-related types of development and as such all of the lots have airside access. Lots can be combined as required to accommodate developer requirements. Development into the “Future Development” area would be initiated when Phase II lots are 70% developed.
Table 7-6: Northwest Quadrant Development Costs Development Phase Concept Estimated Cost I Concept A $2,240,000 II Concept A $4,147,000 I Concept B $3,179,000 II Concept B $4,762,000 I&II Airside Drive rehabilitation
7.6 Central Airport Development Area 7.6.1 Air Terminal Building (ATB)
The ATB currently meets user needs and it is expected that it will continue to do so in the medium term. Based on a medium passenger volume forecast; however, it is expected that by the year 2020, the airport will have experienced a 28% increase in passenger volumes. As passenger volumes increase, the Commission should monitor and assess how this increase is affecting passenger services. In order to do so, a LOS study would be beneficial. The concept of LOS is an aggregated framework used for the design and expansion of facilities as well as for monitoring of existing facilities. This study, conducted at least 5 years prior to determining exact air terminal expansion requirements would help quantify and justify an expansion and provide adequate time for the Commission to plan, design, commit appropriate funding and tender the actual ATB expansion construction. The new 10th edition of the International Air Transport Association (IATA) Airport Development Reference Manual (ADRM) (2014), a joint effort between IATA and Airport Council International, introduces a new definition for the LOS. Balancing investment decisions with LOS is a complex management and policy decision. In the new 10th Edition ADRM LOS is based on three levels.
Table 7-7: IATA – ACI Level of Service (LOS) Definitions* Level of Service Space Times Overdesign Excessive or empty space Overprovision of resources Optimum Sufficient space to accommodate the necessary Acceptable processing and waiting times functions in a comfortable environment Suboptimum Crowded and uncomfortable Unacceptable processing and waiting times * IATA Airport Development Reference Manual, 10th Edition, Effective March 2014 The primary objective is to find the correct, balanced capacity and LOS between facilities, operations, rules and procedures and airline schedules.
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Figure 7-3: Northwest Development Area Concept B
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As well, historically, departing passengers were processed for flight check at a ticket counter. The ticket counter was the central location for all functions including check-in, seat selection, issuing boarding passes and checking luggage. With the introduction of new technologies, as well as the airlines’ goals of processing passengers more efficiently and at a lower cost, the check-in process has changed substantially in the last decade.
Today, most passengers use some form of electronic check-in, either checking-in online or using a self-serve kiosk. The check-in process will continue to evolve and these technology changes will likely affect how space is used in a terminal building. This might not necessarily lead to a decrease in overall space requirements but queuing areas and passenger flows might need to be critically assessed given this technology change. Making modification to the check-in area and passenger flows might be required as airlines and the Commission implement these new technologies.
Table 7-8: ATB Capital Costs Development Phase Work Estimated Cost II Existing ATB LOS Study $15,000 III Construct new ATB expansion (based on doubling the current size) $10,000,000
Figure 7-4 shows potential development areas around the terminal building. As indicated, the ATB parking lot will be expanded to the north to provide additional parking. Lands to the east of the existing parking lot currently have a number of derelict buildings that will be destroyed and removed. These lands will be identified as Terminal Reserve lands and held for future development use as related to the terminal (e.g., additional parking, employee rest area, etc.).
Two abandoned water wells are located on lands west of the ATB access road. These wells can be decommissioned and the lands used for ATB related services (e.g., car rental parking, car wash etc.) or lots can be developed for groundside uses. In addition, the existing meteorological site will be removed and this land can also be used for the same purposes.
The parcel of land north of the new FEC will be designated as Groundside Commercial and can be used for a variety of non-aviation related uses or aviation-related support purposes. If required, the land can be designated Aviation Commercial given there is access from the taxiway connecting the T-Hangars to the airside areas.
Table 7-9: Central Aviation Development Costs Development Phase Phase Estimated Cost I Decommission existing water wells and relocate metrological site $50,000
7.7 South-East Quadrant Development Area
The proposed Southeast Quadrant Development Area (Figure 7-5) is approximately 3 acres in size and is an infill of existing available lands. The area is fully serviced and as such the lots are essentially “shovel-ready”. Some infrastructure work may be required if the area is sub-divided into separate plots.
Water, sewer, and other utilities are located along the Airside Drive ROW.
All of the lots are intended for aviation-related types of development and as such all of the lots have airside access. Lots can be combined as required to accommodate developer requirements.
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Figure 7-4: Central Development Area
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Figure 7-5: Southeast Development Area
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7.8 Capital Plan Cost Estimates
Table 7-10 shows the total capital costs associated with the proposed planning projects identified over the plan period. All of the costs shown include a 35% contingency and engineering cost. The fuel depot costs are based on the construction of a full depth pavement structure to accommodate a wide variety of aircraft type. The cost for this construction can be minimized if the airport opts for a reduced structure or gravel pad. The estimated cost also includes the purchase of a Jet A fuel tanks, a fuel trucks and a fuel depot building. To move these projects forward along with specific timing, business cases would be required.
Concept A costs were used for the Northwest Development Area.
Based on the historical passenger volumes, it is expected Transport Canada would contribute 95% of the funding for those projects meeting the ACAP funding criteria.
Table 7-10: Capital Cost Estimates Project Estimated Cost TC Funding PHASE I (2015-2020) Airside ATB Apron Expansion (north) $1,794,000 $1,704,000 Decommission old fuel depot $60,000 Widen Taxi B $751,000 $713,500 Expand ATB Parking Area $512,000 Airside Drive rehabilitation – Jubilee Parkway to Northwest Development Area $50,000 Airport Fuel Depot $1,205,000 Northwest Development Area Construction (Concept A) $2,240,000 Northwest Development Area Construction (Concept B Comparative – not $3,179,000 extended to cost totals) Decommission water wells $50,000 Equipment Tug (For Itinerant Aircraft) $50,000 Sweeper $250,000 $237,500 Loader $400,000 $380,000 Plow Truck $200,000 $190,000 Light Truck $30,000 Tractor $90,000 TOTAL PHASE 1 COSTS $7,677,000 $3,225,000 TOTAL PHASE 1 COSTS CAMPBELL RIVER AIRPORT $4,452,000 PHASE II (2020 – 2025) Apron expansion stage 2, south of taxiway A, 3 concrete pads $2,295,000 $2,180,000 Widen Taxi C $1,365,000 $1,297,000 Extend Taxi B $730,000 $693,500 Northwest Development Area Construction (Concept A) $4,147,000 Northwest Development Area Construction (Concept B) $4,762,000 ATB LOS Study $15,000 TOTAL PHASE II COSTS $8,552,000 $4,170,500 TOTAL PHASE II COSTS CAMPBELL RIVER AIRPORT $4,381,500 PHASE III (2025-2030) Apron expansion stage 3, south of taxiway A, additional concrete pad $659,000 $626,000 CSB EXPANSION $1,400,000 ATB Expansion $10,000,000 TOTAL PHASE III COSTS $12,059,000 $626,000 TOTAL PHASE III COSTS CAMPBELL RIVER AIRPORT $11,433,000
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Figure 7-6 illustrates the capital investments anticipated over the next 15 years.
Figure 7-6: Projected Capital Investment
8.0 OPERATIONS AND EXPENSES
8.1 Historical Revenues and Expenses
Figure 8-1 shows expenses for the period 2010 to 2013.
Figure 8-2 shows the revenues generated for the period 2010 to 2013. Fuel sales account for the largest source of revenue. In 2013, the airport purchased fuel at a cost of $745,000. Revenues from the sale of fuel amounted to $774,000. The net profit was then $29,000. The highest earned revenue is in the passenger revenue category which was approximately $400,000 in 2013. Other areas that indicate high expense (e.g., Airport Administration, Surface Structures, etc.) relates to the labour costs associated with those categories.
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Figure 8-1: Campbell River Airport Historical Expenses
Figure 8-2: Campbell River Airport Historical Revenues Campbell River Airport Historical Revenues $800,000
$700,000
$600,000
$500,000
$400,000 2010
$300,000 2011
$200,000 2012 2013 $100,000
$0
AIF
Fees
Jet
Other
ous…
Service…
Fees
Vehicle
Parking
Parking
Aircraft
Deli
Landing
Leased
General
100 LL 100
Services…
Oil Sales Oil
Building…
Other
Property
Terminal
Fuel Sales Fuel Sales Fuel
Passenger
Miscellane
Concession Concession Advertising RentalCars
Figure 8-3 shows that in 2013 the largest single expenditure was for the purchase of fuel (100 LL and Jet A). Airport labour and benefit costs are distributed throughout each reported category and account for approximately 40% of the overall annual expenses.
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Figure 8-3: Expense Category Percentages 2013
Figure 8-4 shows 42% of the airport revenues are generated from fuel sales followed by revenues generated from passengers. Examples include: Passenger Fees (25%), AIF (7%), Vehicle Parking (4%), and Rental Cars (4%).
Figure 8-4: Revenue Category Percentages 2013 Revenue Categories
Miscellaneous Revenue
0% Rental Cars 2% 4% Vehicle Parking 4% 6% Fuel Sales 100 LL 1% 25% Fuel Sales Jet 3% Leased Property 42% General Services Charge 7% AIF 2% Landing Fees 4% Aircraft Parking Passenger Fees Terminal Building Lease
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8.2 Staffing
The City of Campbell River employs a total of eight staff to manage and operate the Campbell River Airport. One of the challenges that the Campbell River Airport faces is that the current staff are multi-tasking. As an example, Airport Specialists are required to engage in traditional activities (e.g., grass cutting, airfield inspections, maintenance activities, etc.). In addition, although the City Fire Department are Emergency Responders, airport staff will act as support as directed by the Fire Chief. Airport staff provide airport fuelling services for both Avgas and Jet A, once the new Jet A fuel system is commissioned airport staff may only provide Jet A fuelling services. The Airport Manager is responsible for all of these activities. Many airports similar to Campbell River in size and complexity have a designated person who is responsible for specific marketing and business development initiatives.
It is recommended that the City consider resources required to undertake business development and marketing initiatives described in this plan.
It is anticipated that the new Economic Development Officer will work in collaboration with the Airport Authority Commission to develop marketing activities for the Campbell River Airport. It is recognized that a regional-based strategy can provide a net benefit to the entire region. The strategies identified in this plan are directed at the Campbell River Airport with the intention of developing strategies that will maximize local use of the airport and encourage development at the airport.
It is important to consider that the successful attraction of businesses to the airport will have an overall net benefit to the City. As previously mentioned in the plan, for every job created at the airport there will be 2.25 jobs created in the broader community. 9.0 BUSINESS PLAN
The business plan focuses on proposed developments and growth strategies identified in the short-term (e.g., 2015 to 2020) period. During this period three scenarios are presented based on low, medium and high forecasts for both aircraft movements and passenger volumes and expected leasing of lots in development areas.
It is recognized that a business plan is a “living” document and must adapt to changes in the economy that may affect a successful business attraction to the airport.
The capital plan identifies five key development initiatives:
. Northwest Development Area, Phase I – the development of this area is largely dependent on demand. The City must determine whether it is reasonable to invest in the lands in advance of a guaranteed occupancy. It is important that consideration be given to the development strategies that are being taken on TimberWest lands.
. Infill development in the Central and Southeast Development Areas – two key areas identified for development will be the area immediately north of the FEC. This area will require the decommissioning of the existing out- of-service water wells and the relation of the meteorological site. The second area is immediately north of the BC Forestry lease. This area is generally “shovel-ready” depending on the developer and the desired lease area. If the overall area is sub-divided into a series of lots there would be some cost associated with access, services, etc.
. Potential expanded parking lot at the ATB.
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. Expanded main apron for additional parking and manoeuvring.
. New Jet A Fuel Depot and Fuel Trucks – the ability for the airport to maximize cost efficiencies by negotiating preferred wholesale rates for the purchase of Jet A fuel will result in increased revenues for the airport.
The total capital cost is $21,702,000 dollars. The cost reflects Transport Canada contributions. The overall capital investments are significant but must be weighed in relation to the overall gross economic impact to the community. The airport economic impact is in the range of $52.0 M dollars annually. It is therefore evident that a safe and functional airport is necessary to maintain existing businesses and attract new businesses. The overall result in capital investment will be an increase in the net economic impact to the City, region and province.
9.1 Expenses
It is expected that overall expenses will decrease during the business plan period because of the reduced cost for purchasing fuel. The wholesale price for fuel can be significantly lower (e.g., 30% lower) depending on the quantity purchased. If the airport were to purchase fuel for all of the airport users (e.g., Helifor, Sealand) the bulk buying power would likely result in a relatively significant reduction in the purchase price. As an example, a 25% reduction in the fuel purchase price might be expected.
Increases in airport related expenses are tied to:
. Negotiated increases in salaries and benefits;
. Maintenance supplies related to increased airfield surfaces and parking lot expansion;
. Increased staffing levels; and
. Costs associated with business development and marketing.
9.2 Revenues
It is expected there will be incremental increases in revenues as related to increases in:
. Jet A fuel sales from increased number of aircraft using the airport;
. Aircraft parking fees;
. Aircraft landing fees;
. Passenger related revenues (e.g., Passenger Fees, AIF, parking, rental cars) based on expected passenger volume increases; and
. Lease revenue from new tenants.
The Commission must consider the market advantage that may be gained by matching or lowering charges to match immediate competitors. The aircraft weight related charges appear reasonable.
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Table 9-1: Comparison of Airport Charges Campbell NRRA Fort St. John Comox Nanaimo River Minimum Charge for $16.00 $25.00 $5 per enplaned $0 $10 Jet/Turbo Prop and deplaned (Domestic) General Terminal Charges (Seats) 0-9 $16 $3.20 $5.00 $0 – 0 to 7 seats $10 $2.80 > 7 seats 10-15 $28 $3.20 $5 $2.80 $20 16-25 $40 $3.20 $5 $2.80 $40 26-45 $75 $3.20 $5 $2.80 $85 46-60 $125 $3.20 $5 $2.80 $100 61-89 $190 $3.20 $5 $2.80 $147 90-125 $275 $3.20 $5 $2.80 $200 126-150 $3.20 $5 $2.80 $240 Aircraft Weight Charges (/1000 kg) <21,000 $5 $4.83 – 0 to 9999 kg) $4.87 $3.05 $4 $5.46 – 10,000 to 18,999 kg 21,000 – 45,000 $6.50 $6.92 – 19,000 to $6.26 $4.5 $5 44,999 kg >45,000 $8 $7,54 $6.82 $4.5 $6 Per Passenger Fee $0 $12.00 deplaning and $5 $10 $7.50 enplaning Note: Fees at NRRA and Fort St. John were taken from the Northern Rockies Regional Airport Business Plan, InterVISTAS, 2011 The Campbell River General Terminal Charge is a flat fee.
9.3 Revenues and Expenses Analysis
Table 9-2 shows the historic revenues and expenses for the period 2010 to 2013.
Table 9-2: Historic Operating Expenses and Revenues ($ millions) 2010 2011 2012 2013 Operating Expense 1.38 1.58 1.65 1.93 Operating Revenue 1.27 1.34 1.58 1.59 Surplus (Deficit) (0.11) (0.24) (0.07) (0.34)
Table 9-3 illustrates airport related expenses for the period 2015 to 2020. There are many variables in each category with the most significant variation relating to fuel purchases and administrative costs.
For the purposes of the business plan the following assumptions were used:
. Full-time administration support;
. 2.5% annual wage increase;
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. Benefits, overtime costs and other labour related costs are based on ratios from the base year 2013 expenses;
. Additional resources to undertake business development and marketing initiatives;
. Building, electrical, and fleet related increases ranging from 2% to 5% annually; and
. City allocation charges remaining constant over the five year business plan horizon.
Fuel labour expenses increase at approximately 2.5% annually. The differential between the cost to purchase fuel and the fuel sale price ranged from 4% to 20% during the period 2010-2013. The actual cost of the fuel minus labour and other related costs (banking, supplies, etc.) ranged from 10% to 30 % for the same period. For the purposes of forecasting future expenses, a 20% difference between wholesale and retail costs is used to 2015. Beyond 2015 the cost to purchase fuel is reduced by an average 25% for Jet A fuel to account for the airport owning and operating the Jet A fuel depot and being in a position to negotiate lower fuel prices. The costs of other related costs (e.g., bank charges, supplies, insurance, licenses, etc.) increase 2% per year. As an illustration, in 2013, the total cost for fuel (including labour and other expenses) was $745,000. The total revenue for that year was $774,000. The airport profit was therefore $29,000. Using a 25% discount on the fuel cost the profit would be $215,000 assuming all other costs are the same.
Table 9-3: Projected Expenses
Year Admin. Fuel Bldg. Electrical Fleet Repairs Allocation Marketing Total Supply 2013 $775,000 $731,000 $98,000 $7,000 $86,000 $9,000 $204,600 $15,000 $1,926,000 2014 $796,000 $742,000 $103,000 $7,000 $89,000 $9,000 $205,000 $16,000 $1,967,000 2015 $884,000 $557,000 $108,000 $8,000 $93,000 $9,000 $205,000 $17,000 $1,881,000 2016 $975,000 $566,000 $113,000 $8,000 $97,000 $9,000 $205,000 $18,000 $1,991,000 2017 $1,002,000 $575,000 $119,000 $8,000 $101,000 $9,000 $205,000 $19,000 $2,038,000 2018 $1,029,000 $584,000 $125,000 $8,000 $105,000 $9,000 $205,000 $20,000 $2,085,000 2019 $1,058,000 $593,000 $131,000 $9,000 $109,000 $9,000 $205,000 $21,000 $2,135,000 2020 $1,087,000 $603,000 $138,000 $9,000 $113,000 $9,000 $205,000 $22,000 $2,186,000
Table 9-4 to Table 9-6 show low, medium and high revenue projections during the period 2015 to 2020. As with expenses it is difficult to predict fuel revenues into the future given the volatility of the markets. As an example, oil prices are low (+/- $75/ barrel) at this time and as such the price of fuel is currently lower. Some economists predict oil prices will remain low over the next couple of years. How quickly oil prices will recover to the 2013 levels is therefore unknown. Assumptions used in the revenue projections are as follows:
. Miscellaneous revenues, and concession revenues are a small component of the overall revenue stream and as such a 5% annual growth is used in the forecast. These revenues are similar for each scenario.
. Aircraft parking and land fees will increase proportional to the expected increases in aircraft movements using a low medium and high forecast.
. Rental cars, vehicle parking and passenger fees will be proportional to the low, medium and high passenger volume forecasts.
. In the low forecast new business opportunities will be modest and over the next 5 years all lots will be occupied in the Central Development Area (largely existing “infill” areas). The medium forecast will anticipate all of the
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Southeast Development Area will be leased. The high forecast will anticipate 4 lots will be occupied in the Northwest Development Area, Phase 1, by 2020. For all scenarios the lease fee of $1.85/m2 was used.
. Fuel costs are based on incremental increases using the low, medium and high aircraft movement projections.
Table 9-4: Projected Revenues (Low)
Aircraft Misc. Rev. Rental Vehicle Passenger Year Parking Fuel/Oil Leases Total Revenues Concess. Cars Park Fees Landing Fees 2013 $3,500 $61,500 $55,000 $62,000 $773,700 $92,000 $545,400 $1,593,100 2014 $3,500 $62,100 $55,600 $62,600 $781,400 $92,400 $550,900 $1,608,500 2015 $3,600 $62,800 $56,100 $63,200 $789,300 $98,700 $556,400 $1,630,100 2016 $3,600 $63,400 $56,700 $63,900 $797,100 $105,100 $561,900 $1,651,700 2017 $3,600 $64,000 $57,200 $64,500 $805,100 $105,500 $567,500 $1,667,400 2018 $3,700 $64,600 $57,800 $65,200 $813,200 $105,900 $573,200 $1,683,600 2019 $3,700 $65,300 $58,400 $65,800 $821,300 $106,300 $579,000 $1,699,800 2020 $3,800 $66,000 $59,000 $66,500 $829,500 $106,700 $584,700 $1,716,200
Table 9-5: Projected Revenues (Medium)
Aircraft Misc. Rev. Rental Vehicle Passenger Year Parking Fuel/Oil Leases Total Revenues Concess. Cars Park Fees Landing Fees 2013 $3,500 $61,500 $55,000 $62,000 $773,700 $92,000 $545,400 $1,593,100 2014 $3,600 $62,500 $55,900 $63,000 $786,100 $92,600 $554,100 $1,617,800 2015 $3,600 $63,500 $56,800 $64,000 $798,700 $99,200 $563,000 $1,648,800 2016 $3,700 $54,500 $57,700 $65,000 $811,400 $105,800 $572,000 $1,670,100 2017 $3,700 $65,500 $58,600 $66,100 $824,400 $128,400 $581,200 $1,727,900 2018 $3,800 $66,600 $59,600 $67,100 $837,700 $151,600 $590,500 $1,776,900 2019 $3,800 $67,700 $60,500 $68,200 $851,000 $152,200 $599,900 $1,803,300 2020 $3,900 $68,700 $61,500 $69,300 $864,700 $152,900 $609,500 $1,830,500
Table 9-6: Projected Revenues (High)
Aircraft Misc. Rev. Rental Vehicle Passenger Year Parking Fuel/Oil Leases Total Revenues Concess. Cars Park Fees Landing Fees 2013 $3,500 $61,500 $55,000 $62,000 $773,700 $92,000 $545,400 $1,593,100 2014 $3,600 $62,900 $56,200 $63,400 $790,700 $92,800 $557,400 $1,627,000 2015 $3,700 $64,200 $57,500 $64,800 $808,200 $99,700 $569,700 $1,667,800 2016 $3,700 $65,700 $58,700 $66,200 $825,900 $106,500 $582,200 $1,708,900 2017 $3,800 $67,100 $60,000 $67,600 $844,100 $129,400 $595,000 $1,767,000 2018 $3,900 $68,600 $61,300 $69,100 $862,600 $152,800 $608,100 $1,826,400 2019 $4,000 $70,100 $62,700 $70,700 $881,600 $153,700 $621,500 $1,864,300 2020 $4,000 $71,600 $64,000 $72,200 $901,000 $174,100 $635,100 $1,922,000
Figure 9-1 shows expenses and revenues to 2020. As illustrated the expenses will continue to exceed the revenues over the forecast period. The expenses were projected using a standard medium forecast.
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Table 9-7 shows that in 2020, deficits will range between $230,000 (High Revenue Forecast) to $430,000 (Low Revenue Forecast).
The single largest expense relates to labour costs and the addition of an additional business development/marketing FTE. It is important to consider the purchase prices for fuel as compared to the selling price can affect overall revenues significantly. As indicated in Table 9-3, the City allocation charges were fixed at $205,000/year for the forecast period.
At airports the costs associated with scheduled airlines services generally determine an airports financial health. Increase in scheduled air service can dramatically impact an airports revenue stream through increased passenger fees, AIF charges, revenue from vehicle parking and in some cases increased leasing revenues from the ATB. It is not expected in the short-term that the Campbell River Airport will secure another scheduled air service and as such, revenues from these sources will be relatively flat with incremental annual increases during the five year business plan period.
Figure 9-1: Expense and Revenue Forecasts
Table 9-7: Profit/Loss Evaluation 2013 to 2020 (000s dollars) 2013 2014 2015 2016 2017 2018 2019 2020 Operating Expense 1.93 1.97 1.85 1.97 2.02 2.06 2.10 2.15 Low Revenue 1.59 1.62 1.63 1.65 1.67 1.68 1.70 1.72 Medium Revenue 1.59 1.62 1.65 1.67 1.73 1.78 1.80 1.83 High Revenue 1.59 1.63 1.67 1.71 1.77 1.83 1.86 1.92 Deficit/Surplus Low (0.34) (0.35) (0.22) (0.32) (0.35) (0.38) (0.40) (0.43) Deficit/Surplus Medium (0.34) (0.35) (0.20) (0.30) (0.29) (0.28) (0.30) (0.32) Deficit/Surplus High (0.34) (0.34) (0..19) (0.26) (0.25) (0.23) (0.24) (0.23)
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10.0 FUNDING SOURCES
As the City considers capital investments, it is important to evaluate the types of federal and provincial funding that may be available. The Campbell River Airport has been the beneficiary of funding from the ACAP, the Island Coastal Economic Trust and the Building Canada Fund. It is imperative the City continue to apply to these funding organizations so that the long-term capital investment strategies can be realized.
10.1 Airport Capital Assistance Program (ACAP)
ACAP funding is provided for projects that are needed to meet an airport’s required level of safety. In order of priority:
. 1st Priority: Safety-related airside projects such as:
Rehabilitating runways, taxiways and aprons;
Runway, taxiway and apron lighting;
Visual aids;
Sand storage sheds;
Utilities to service eligible items;
Site preparation costs, including directly related environmental costs;
Aircraft firefighting equipment required by regulation; and
Aircraft firefighting equipment shelters.
. 2nd Priority: Heavy airside mobile equipment (safety related) such as:
Runway snow blowers;
Runway snowplows;
Runway sweepers, spreaders;
Winter friction testing devices; and
Heavy airside mobile equipment shelters.
. 3rd Priority: ATB/groundside (safety related) such as:
Sprinkler systems;
Asbestos removal; and
Barrier-free access.
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To be approved for ACAP funding the airport must:
. Show that the airport cannot self-finance the project; and
. Provide audited financial statements for the airport for the past three years.
To be approved for ACAP funding the project must:
. Be needed to maintain or improve safety;
. Meet accepted engineering practices; and
. Be justified on the basis of current demand
Based on the Campbell River passenger volumes, the airport receives 95% funding for approved projects.
10.2 Island Economic Coastal Trust
The objective of the Economic Infrastructure Program is to support strategic economic diversification investment in the regional economy to spark new and sustainable regional economic growth and jobs. The program also seeks to leverage matching funding and incremental investment.
The program supports eligible projects with non-repayable contributions up to a maximum of $400,000. Eligible applicants include local governments, non-profits and First Nations. Businesses are not eligible as sole applicants for direct funding support.
The program funds economic development projects that demonstrate:
. Regional impact;
. Consistency with any local or regional development plans;
. Incremental economic benefits;
. Direct economic development and diversification impacts;
. Cooperation between communities, local governments and other organizations; and
. Long term sustainability.
To adjust for variations in economic vitality between communities applying for funding, ICET uses a sliding scale matching funding formula for its contribution of 1:1 (up to 1/2) for smaller, remote and resource dependent communities, 1:2 (up to 1/3) for smaller but thriving communities and 1:3 (up to ¼) for fast growing and less resource reliant communities.
The objective of the program is to support the growth of economic development readiness in communities of all sizes across the ICET region, to support high value investment attraction and retention and to foster regional economic collaboration.
This program helps smaller communities develop their economic strategies, develop the tools they need to attract economic investment and collaborate with other communities to develop regional economic strategies and marketing initiatives. The program also assists larger communities refine their economic development toolbox and improve their competitive position to attract investment to the region.
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Eligible applicants include local governments, non-profit economic development organizations, First Nations and other regional or sectoral organizations involved in economic development activities.
Eligible activities should:
. Be incremental to the organization’s existing capacity;
. Require external expertise;
. Provide lasting tools or deliverables;
. Be consistent with local or regional plans and strategies; and
. Involve regional stakeholders and collaboration (where appropriate).
Examples of eligible activities include strategic planning, asset mapping, investment attraction initiatives, regional marketing initiatives or other activities focused on investment attraction and economic growth.
Funding available:
. Eligible organizations may apply for:
Up to 50% of total project costs.
Up to a maximum of $30,000.
Up to 2 requests for funding per calendar year provided the first request has been fully completed and the annual funding cap has not been reached.
10.3 Building Canada Fund – Communities Component
The Communities Component of the Building Canada Fund targets projects in communities with populations of less than 100,000. The fund recognizes the unique infrastructure needs of Canada's smaller communities and focuses on projects that meet environmental, economic and quality of life objectives.
The program is designed to promote regional economic development by improving the efficiency of regional and local airports while mandating high levels of safety and security. Subcategories for funding include construction projects (e.g., runways, taxiways, aprons, hangars, lighting, Nav Aids, maintenance sheds, mobile equipment, ATB and groundside safety related projects as well as non-aeronautical infrastructure (e.g., groundside access, parking and commercial and industrial activities). Funding for some of these projects is eligible under the ACAP program and would only be funded as part of a larger project by the BCFCC. Funding is based on an equal matching of funds from the federal government and a 33.33% from local interests.
In general the project must promote regional economic development (i.e., number of new carriers, new business operating at the airport, etc.) and/or increase traffic volume (e.g., number of passengers, cargo etc.). A municipal council resolution in support of the project must be submitted with the application.
Some of the projects funded relate to stormwater management (Dawson Creek, BC), development of hangars (St. Thomas, ON) and an Airport Operations Building rehabilitation (Windsor, ON).
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10.4 British Columbia Air Access Program (BCAAP)
The program is designed to improve access, safety, addressing specific needs, economic benefits, long term vision and goals and improving Medevac services.
In early 2016 the City applied for 75% funding up to a value of $903,750, towards a total project value of $1,205,000. In July 2016 the province announced their commitment for the entire application amount of $903,750.
11.0 FUTURE AIRPORT MARKETING PLAN
11.1 Assessment of the Airport’s Current Marketing Plan
The Campbell River Airport developed a Five Year Marketing Plan in 2006. This comprehensive plan was intended to address a five year period from 2006 to 2011.
At that time, the following marketing objectives and goals were:
1. To promote community partnerships
2. To enhance the image of the airport
3. To raise community awareness
4. To promote the airport to the flying public
5. To improve financial performance of the airport
Excerpts from this plan, including an update which identifies elements worth pursuit in 2015 have been identified. This assessment is included in Appendix A. In general terms, it is recommended that the airport focus its efforts to promote community partnerships, promote the airport to the flying public and improve financial performance. Although the other objectives are important, the methods by which to measure success can be administratively burdensome and onerous to implement. As such, it is recommended that these, as they are described in the Five Year Marketing Plan, not be pursued at this time.
Using the results of the SWOT analysis, the opportunities scan, the work done to update the master plan/business plans and using the 2006 marketing plan as a base, a synopsis of the key components that should be considered in a future marketing plan is provided.
11.2 Targeting the Real Market
Based on the synthesis of this study it is recommended that future marketing efforts be focussed on the real opportunities that have been identified for the Campbell River Airport. As such, four target markets are proposed:
1. Local residents – the objective of this marketing strategy is to make local residents aware of airport’s position within the community and how they could benefit from using Campbell River Airport.
2. Air operators/charters – the objective of this initiative is to market the Campbell River Airport as the airport of choice for air operators servicing the North Island.
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3. Strategic partners – the objective of this strategy is to work with local organizations and businesses so that the Campbell River Airport is offered as the airport of choice for all activities involving air service and/or associated activities.
4. Local, regional and national businesses for land development opportunities – the objective of this is to work with businesses to promote the Campbell River Airport as the location of choice for the establishment of their business.
11.2.1 Local Residents
Based on the synthesis of the work done for this study, the following differentiators from competitor airports could be used in the development of a marketing program: a) Existing scheduled service to Vancouver. b) Connections to the North Island. c) Proximity to Island Highway and the City. d) Nice terminal building. e) Campbell River as a shopping destination for North Island/First Nation residents.
11.2.2 Air Operators / Charters
11.2.2.1 Scheduled Carriers
The airport is currently serviced by two airlines, Central Mountain Air and Pacific Coastal. Scheduled service is highly competitive given the proximity of Comox and Nanaimo airports and, as such, marketing efforts towards attracting a new scheduled service carrier should be directed primarily to monitoring passenger traffic and keeping a pulse on economic developments that could affect a significant increase in passenger traffic and any movements or changes at competing airports. As was suggested in the 2006 Marketing Plan, the airport could benefit from having a generic presentation prepared; one that could be used to attract new air service carriers.
11.2.2.2 Private Air Operators/Charters
Given the proximity of competitor airports, a marketing program that differentiates the Campbell River Airport from competitor airports as the airport of choice could be developed. Based on the synthesis of the work done for this study, a number of strengths that could be used in the development of a program directed at air operators include: a) Connections to the North Island. b) Proximity to Island Highway and the City. c) Nice terminal building. d) Airport restaurant. e) Aircraft parking apron. f) Extended runway – 6,500 ft. g) Meteorological advantages – good visibility in comparison to competitor airports.
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h) Meteorological advantages – for flight planning purposes, good choice as an alternate. i) NAV CANADA flight services station. j) Fuel availability and competitive pricing. k) Aircraft maintenance services – the only airport in the region with an established FBO. l) Competitive airport user charges.
The existing “Wings and Wheels” event proved to be a successful event for the airport. Activities where air operators are invited to visit the airport and become familiar with its amenities are effective. Events such as this should continue to be pursued with regularity (e.g., regular annual summer event).
11.2.3 Strategic Partners
Regional industries including mining, fisheries and tourism are critical to the local economy. Strategic partners including those identified in the 2006-2011 Marketing Plan should continue to be included in the airport’s marketing efforts. These include: a) Campbell River Economic Development Department. b) Tourism Campbell River & Region. c) Campbell River and District Chamber of Commerce. d) Sealand Aviation. e) Local businesses whose products or activities could be linked to the use of the airport.
The airport amenities described in Section 11.2.2 and Section 11.2.3 could be tailored and ‘packaged’ depending on the organization or business. For example, a local fishing lodge could help advertise the availability of Campbell River Airport on two fronts – as an airport of choice for private itinerant clients and as a provider of scheduled passenger services.
11.2.4 Local, Regional and National Businesses for Land Development Opportunities
The opportunities scan identified 10 potential development areas for development, 7 of which are related to the potential use of airport lands:
1. High Potential a) Aircraft hangars b) Manufacturing c) Maintenance Repair Overhaul 2. Medium Potential a) Air cargo b) Warehousing c) Mini-storage d) Fixed Base Operator
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The master plan lays out a plan for airport lands based on the systematic uptake of developable lands by the airport, real estate developers and businesses. At this stage, the building of aircraft hangars and the potential expansion by Sealand appear to be real opportunities. These have also been assessed as having high potential. As such, marketing efforts should focus on these real opportunities.
11.3 Strategies
The 2006 Marketing Plan offered a number of product, promotion and pricing strategies that are worthy of pursuit, some of which have already been related to particular target markets.
11.3.1 Product a) Good road access and distinctive road signage – A sign at the intersection of the Inland Island Highway and Jubilee Parkway is now installed. b) Vehicle Parking – the existing parking lot is nearing capacity and has been included in the Phase I development plan. When this is complete, vehicle parking could be incorporated in airport advertising.
11.3.2 Promotion a) Jointly, with airport tenants (private sector partners), advertise in corporate general aviation magazines.
Given Sealand’s prominent position at the airport, consideration could be given to a joint advertising program with Sealand. A comparative analysis of the cost of advertising in print versus using monies for the update of internet websites as is described below, might offer better value given budget constraints. b) Jointly with airport tenants, attend general aviation conference and tradeshows. c) Jointly with community partners, conduct marketing trips to promote the community and the airport.
Although items b) and c) are worthy of pursuit, they can be costly initiatives. The Airport Authority Commission should be very selective in determining which one of these it should attend. The potential client base should be well established prior to committing funds to these. d) Continuously improve the website
The proliferation of the internet and the use of websites and social media in our day to day lives have changed the way people do research, investigate travel options, check their flight status, etc. Everyone is connected in some form! As such, websites need to be dynamic, kept up to date and critically assessed on a regular basis as potential clients expect easy access and up-to-date information. It is recommended that the Airport Authority Commission implement and budget for an ongoing program to critically evaluate the contents and the functionality of its website. Tied to this initiative would be an accompanying program to work with strategic partners to ensure that the Campbell River Airport is prominently showcased on each partner’s website.
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e) Actively participate in aviation organizations.
Important aviation organizations include the Canadian Airports Council (CAC), the International Association of Airport Executives – Canada (IAAE – Canada), British Columbia Aviation Council (BCAC), Regional Community Airports of Canada (RCAC), Canadian Owners and Pilots Association (COPA) and Canadian Business Aircraft Association (CBAA). These organizations all have their special niche and association members, all worthy of consideration. Membership has its cost, but a critical evaluation of each organization should be undertaken; not only in terms of the marketing potential but also in terms of airport industry awareness in terms of national issues, regulations, best practices and training, to name a few. f) Focus efforts towards high end outdoor adventure by providing marketing and statistical information and links to web pages. Fund cooperative marketing efforts.
Campbell River’s international acclaim as the “Salmon Capital of the World” should not be overlooked when developing a promotion strategy for the airport. A critical evaluation of all high end outdoor adventures websites within the vicinity of Campbell River should be undertaken. The objective of this would be to work with these strategic partners to advertise and promote the use of the Campbell River Airport as the airport of choice for all the reasons presented in this section. This initiative should be pursued and exploited to every extent possible, as this is how most people do their travel research today. g) Develop volunteer program.
Many large airports have volunteer programs. Although these are effective in in terms of providing resources and offering a ‘regional flavour’ to the airport, the administrative burden and costs associated with putting these programs in place can significant. The administration and costs of such a program would need to be carefully assessed against the potential benefits. h) Pilot lounge in the existing administration building.
A pilot lounge offers commercial and recreational pilots an area where they can relax in between flights to rest, use washrooms and prepare flight plans. The existing pilot’s lounge should be promoted. i) Dedicated Area in ATB for showcasing.
A dedicated area in the ATB showcasing the historic role of the airport or for the exposition of community art is not uncommon at airports. This might add a ‘nice touch’ to the airport and help with the development of a community relations program, which ultimately showcases the airport. j) Offer Airport staff for community events.
Airport staff currently participate in some community events. This brings attention to the airport and should be encouraged to the extent possible. k) Airport Marketing Taskforce
Currently, there is an Airport Marketing Taskforce. The Taskforce in conjunction with the Airport Manager is in the process of implementing parts of the existing Marketing Plan.
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11.3.3 Pricing
The 2006 Marketing Plan identified the following action items, all worthy of continued pursuit: a) Keep fees and charges competitive with Comox Valley Airport.
As with any business, a continuous assessment of a competitor’s pricing strategy is important. An assessment of the Comox Airport rates should be undertaken on a regular basis and rates should remain competitive. b) Continue to waive fees for small general aviation traffic.
Waiving fees for small general aviation traffic is a means of attracting this type of traffic to the airport. The airport in turn benefits from other peripheral revenues such as fuel sales. c) Offer reduced landing rates for new corporate clients.
It is not unusual for airports to offer reduced landing rates for new clients. This is offered as an incentive to help jump start a service or operation. 12.0 CLOSURE
This master plan provides a strategic approach to airport development over the next twenty years with a particular focus on the short-term (five year) period. The plan is designed to focus on those areas where the airport can likely see progress and maximize revenues from airport-related businesses while at the same time promoting overall economic activity in the City of Campbell River and region.
The plan focussed on three primary plans, which are the implementation plan, business plan and a marketing plan.
12.1 Implementation Plan
The airport has significant lands available for development and also requires expansion of critical infrastructure. In the short-term (five years) it is recommended that the Airport Authority Commission focus on three key areas: Critical Studies, Infrastructure Maintenance and Improvements and Equipment and New Development.
Critical Studies
. Economic Development/Marketing Implementation Study;
. Logistical Study for Specialty Seafood Transportation.
Infrastructure Maintenance and Improvements and Equipment
. Prepare applications for federal and provincial funding agencies;
. Potential expansion of the vehicle parking lot;
. Expand the main apron to facilitate aircraft parking and maneuvering;
. Construct an airport-managed and operated fuel depot with fuel trucks, and
. Purchase new equipment: Tug, Snow Blower, De-icing Unit, Tractor, Mower and Light Pickup;
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New Development
. Lease lands north of the CSB and develop lands in the Southeast Development Area;
. Maximize development in the Central Development Area;
. At a mid-point over the next 5 years evaluate business interest to determine whether the demand exists for a new development area; and
. Based on demand begin construction of Phase 1 of the Northwest Development Area including roads, taxiways and services.
12.2 Business Plan
The business plan anticipates an increase in overall labour costs. Any gains in revenues will relate to the reduced cost for purchasing fuel when the airport completes construction of the new fuel depot.
. Maximize fuel purchasing by encouraging tenants with fuel tanks to participate in a consolidated fuel purchasing program so that the fuel volumes will be increased thereby reducing the purchase price based on volume.
. Carefully assess strategies to attract development both to the private lands to the north, and airport lands. The City will have to determine whether it is feasible to provide shovel-ready lots for prospective developers. The City may consider tax incentives for targeted lands.
12.3 Marketing Plan
. Allocate resources to develop and implement a marketing plan to promote business at the airport.
. Marketing the airport is essential to the entire growth strategy. It is recognized that the airport is not considered by users as the “first-choice” airport largely because of the competition from Comox (i.e., lower fares).
. Implement the recommendations identified in Section 11.
The Campbell River Airport is a safe, well-maintained airport and with regular maintenance the airport will continue to provide the City of Campbell River and the region with a vital transportation link to the outside world.
If the City should choose not to invest in the development strategies detailed in the plan one would expect potential businesses will situate their business at airports that provide a more attractive development investment climate (e.g. Comox Valley Airport, Nanaimo Airport). This can also be true of government related activities (e.g. forestry, CBSA etc) that tend to locate at “regional” airports where more varied aviation support services are available. Without increased development and new revenue opportunities the airport generated revenues will remain relatively stable.
All of the marketing and business development initiatives identified in the plan will promote the airport within the community and potentially result in business opportunities at the airport that will provide further economic benefit to the broader community through increased employment and business investment. As demonstrated in the airport economic impact assessments, the existing financial benefits to the community count in the tens of millions of dollars and with new business investment the economic impact will continue to grow.
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REFERENCES
2014 British Columbia Financial and Economic Review, 74th Edition, April 2013–March 2014, Ministry of Finance, July 2014 Draft Community Profile City of Campbell River, Rivercorp, October 2014 Airport Development reference Manual, 10th Edition, International Air Transport Association and Airports Council International, 2014 Evaluation of Business Case for the Campbell River Airport Runway Expansion Project, Jacobs Consultancy, January 2010 Air Service Demand Analysis (Presentation), Leigh Fisher, May 2011 Airport Service Quality Best Management Practice Report, Airport Council International/DKMA, 2009 Vancouver Island and Sunshine Coast Region Air Transportation Outlook, InterVISTAS Consulting Inc., June 2008 Campbell River Airport Runway Extension Business Case, Altitude Consulting, May 2008 Campbell River Airport Economic Impact Forecast 2011-2026, Altitude Consulting, May 2008 Campbell River Regional Airport Strategic Development Plan, Sypher-Mueller International Inc., Pryde Schropp McComb Inc., September 2002
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APPENDIX A EXCERPTS FROM CAMPBELL RIVER FIVE YEAR MARKETING PLAN (2006)
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Goals and Objectives
Objective Goal Achieved (yes/no) Worth pursuing?
Promote community Develop a relationship with the Yes Yes, with an assessment of partnerships Economic Development Officer for future approach marketing the airport Develop a lead share program with No Yes local businesses – for example, if the But informal Community partnerships airport is aware of inbound corporate communications should continue to be flight of interest to local business, the ongoing fostered airport could facilitate a meeting with local Chamber representatives. Conversely, the Chamber could facilitate meeting between airport and businesses with potential aviation interests. Enhance the image of Achieve 75% brand recognition by No No the airport 2007 and an increase of 2% each year Difficult to measure Image should continue to afterward. be enhanced but measurement system is onerous to implement Achieve 85% customer satisfaction No No rating by 2007 and in increase of 2% Difficult to measure Customer satisfaction each year afterward. should continue to be pursued but measurement system is onerous to implement Raise community Achieve an 85% community awareness No No awareness about the score in 2006 and increase this result Difficult to measure Community awareness airport’s contribution to by 2% annually for the following four efforts should continue but the community. years. measurement system is onerous to implement Promote the airport to Increase domestic passenger traffic No Continuing efforts to the flying public. market share by 15-20% (recover increase should be ongoing leakage from Comox) Increase itinerant private (including Yes, but this is due to Continuing efforts to corporate) movements by 20% each great weather and increase should be ongoing year increase in associated regional tourism, not necessarily due to marketing efforts Increase other commercial movements No Continuing efforts to by 50% increase should be ongoing Improve financial Increase revenues proportionately to Yes Yes performance of the itinerant traffic growth airport
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The study recommended tactical strategies to achieve these objectives and goals. Position Strategy
Position Strategy
Campbell River Airport position itself as a hassle free, convenient airport that gets people to their destination faster.
Product Strategy
Product Strategy
Campbell River Airport focus its marketing efforts on the following target markets, in order of priority: . Existing scheduled passenger services (Central Mountain Air and Pacific Coastal) . Corporate general aviation . Private itinerant general aviation . Local general aviation
Achieved Worth Action Item (yes/no) pursuing?
Clean, modern terminal building with wireless internet service, telephones, seats with Yes Done side arms and meeting room space.
Business aviation lounge No
Information desk No
Good road access and distinctive airport signage No Yes
Sufficient vehicle parking No Yes
Restaurant with extended hours No No
Airside land available for lease by aviation industries – MRO, corporate hangars No Yes
Promotion Strategy
Achieved Worth pursuing? Action Item (yes/no)
Air Services - Commercial Service Continue to collect accurate, current passenger travel data Yes Yes Prepare an air service presentation to Horizon and others. No Yes Air Services - Corporate General Aviation Service Ensure Canada Flight Supplement is up-to-date Yes Yes Offer reduced landing fees during specific times of the year No No
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Achieved Worth pursuing? Action Item (yes/no)
Jointly with airport tenants (private sector partners), advertise in corporate general No Yes, with Sealand aviation magazines Aviation Run regular and special fly-in events to attract pilots to the airport Yes Yes frequency to be determined Jointly with airport tenants, attend general aviation conference and tradeshows No Yes, as an Airport Commission Jointly with community partners (Campbell River Economic Development Officer No Yes, to the extent and Region Tourism Society), conduct marketing trips to promote the community that this is and the airport affordable Offer a concierge service to assist corporate general aviation with any No No requirements such as car rental, hotel or tour bookings (volunteers and existing ground handler staff) Meet with CFB Comox and the Comox Airport Commission on a regular basis to No No promote corporate general aviation to the airport Develop Marketing Materials Print material – postcard campaign No No Develop website Yes Yes Airport logo and catch phrase Yes Yes Signage on Highway 19 and other places around town No Yes Allocate resources to develop and implement a marketing plan to promote Yes Yes business at the airport. Actively participate in aviation organizations Canadian Airports Council (CAC) No Yes, for national awareness and market knowledge America Association of Airport Executives (AAAE) – IAAE Canada? Yes British Columbia Aviation Council (BCAC) Yes Regional Community of Airports Coalition of Canada Yes Canadian Owners and Pilots Association (COPA) Canadian Business Aircraft Association (CBAA) Campbell River Flying Club Develop and Build Strategic Partnerships Campbell River Economic Development Officer Yes Yes Tourism Campbell River and Region Yes Yes Campbell River and District Chamber of Commerce Yes Yes Business operating at the airport Yes Yes
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Achieved Worth pursuing? Action Item (yes/no)
Local businesses Yes Yes Assist Tour Operators
Focus efforts towards high-end outdoor adventure by providing marketing and No Yes, with reciprocal statistical information and links to web pages. Fund cooperative marketing efforts. agreements Develop formal arrangements with local hotels Commission on referrals No No Negotiate reduced rate and an airport shuttle service for private flyers No No Engage Volunteer Ambassadors
Develop Volunteer Program No Yes, with qualifier Develop Community Relations Program Airport site tours and/or open house No No
Dedicated area in air terminal for historic role of the airport No Yes Showcase community art No Yes Annual citizen award for community services No Not sure how this relates to the airport City events at the airport (City staff BBQ, Canada Day events) No No Offer airport for community events Yes Yes Lend out bicycles No No Annual Air Show No No
Pricing Strategy
Action Item Achieved (yes/no) Worth pursuing?
Keep fees and charges competitive with Comox Valley Airport No Yes, an analysis should take place so as to assess the airport’s competitive positioning
Continue to waive fees for small general aviation traffic Yes Yes
Offer reduced landing fees for new corporate clients No Yes, for initial start-up period
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APPENDIX B GLOSSARY OF TERMS
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Glossary of Terms Used in Statistics Canada Publications
Air carrier
Aircraft operators, licensed by the Canadian Transportation Agency to transport persons, mail and/or goods by air.
Level I: Effective 2010, this includes every Canadian air carrier that, in the calendar year immediately preceding the reporting year, transported at least 2 million revenue passengers or at least 400 thousand tonnes of cargo.
Level II: Effective 2010, this includes every Canadian air carrier that, in the calendar year immediately preceding the reporting year, transported at least 100 thousand, but fewer than 2 million revenue passengers, or at least 50 thousand but less than 400 thousand tonnes of cargo.
Level III. Effective 2010, this includes every Canadian air carrier not classified in reporting level I or II that, in the calendar year immediately preceding the reporting year, realized gross revenues of at least 2 million dollars for the provision of air services for which the air carrier held a licence.
Level IV. Effective 2010, this includes every Canadian air carrier not classified in reporting level I, II or III that, in the calendar year immediately preceding the reporting year, realized gross revenues of less than 2 million dollars for the provision of air services for which the air carrier held a licence.
Aircraft movement
A take-off, landing or simulated approach by an aircraft.
Class of operation
Aircraft movements are classified as either "Itinerant" or "Local".
Commercial
Flights by aircraft operators that are licensed by the Canadian Transportation Agency to perform commercial air services.
Commercial operations are divided into two categories: Air carrier and other commercial.
Domestic itinerant movements
Movements, at a Canadian airport, of aircraft departing to or arriving from another point in Canada.
FSS
Flight service station.
Government-Civil
Aircraft owned by federal, provincial and municipal bodies as well as foreign states, but excluding those owned by crown corporations, boards and commissions. Such aircraft are coded "3" under "Purpose" in the Canadian civil aircraft register.
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Government-Military
Aircraft of any branch of the armed forces of any nation.
I.F.R. flight
A flight conducted in accordance with Instrument flight rules.
International movements
Movements, at a Canadian airport of aircraft arriving from or departing to a point outside Canada. International movements are sub-classified into "trans-border" (to or from a point in the United States including Alaska, Hawaii, and Puerto Rico), and "other international" (to or from points in countries other than Canada and the United States). Since aircraft movements are reported on the basis of place "arrived from" or "departed to", an arrival at Halifax airport from London, England would appear under "other international". If the same aircraft moved on to Toronto, both the departure at Halifax and the arrival at Toronto would be shown as "domestic".
Itinerant movements
At airports with control towers and/or flight service stations: for the purpose of completing air traffic records, itinerant movements are considered as movements in which aircraft proceed to or arrive from another location; or where aircraft leave the circuit but return without landing at another airport. At airports without control towers: an aircraft movement in which the aircraft arrives from or departs to a point other than the reporting airport; or a movement by an aircraft that leaves the close proximity of an airport and returns without landing at another airport.
Local movements
At airports with control towers and/or flight service stations: for the purpose of completing air traffic records, local movements are considered as movements in which the aircraft remains in the circuit. At airports without control towers: an aircraft movement in which the aircraft remains in the close proximity of the airport. Local movements are often carried out during training flights (touch-and-go), equipment tests, etc.
Maximum take-off weight
The maximum weight for which the aircraft is licensed to operate. For operational purposes, all weights are rounded upwards to the next 1,000 kilograms. Thus 3,200 kilograms becomes 4,000 kilograms.
Other commercial
Flights performed by Commercial aircraft operators not included in the Air carrier categories. Flying schools, agricultural sprayers, water-bombers, aerial photography and survey, etc.
Power plant
The source of propulsion. For example, piston engines, turbo-propellers and jet engines. "Helicopters", in this report, include both piston and turbo-shaft-driven engines.
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Private aircraft
Aircraft used solely for private purposes, not for hire and compensation, which are classified as “Private” or “Private Restricted” in the Canadian civil aircraft register or similar registries of other countries. Owners include individuals, groups and business firms.
Runway 88
Through control zone flights, i.e. flights which communicate with the tower while transiting the tower control zone to another destination without landing at the reporting airport. Data for these runways are not included in the grand total.
Simulated approaches
Aircraft movements that are either a missed instrument or practice instrument approach that does not involve the aircraft landing.
TC
Transport Canada.
Tower control zone
A controlled airspace in proximity to an air traffic control tower that is usually within a radius of less than 24 kilometres from the tower.
V.F.R. flight
A flight conducted in accordance with Visual flight rules.
Weight group
The classification of aircraft weight classes in groups for statistical purposes
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APPENDIX C FEES AND CHARGES COMPARISON
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Airport Fees and Charges Comparison Landing Fees Daily Rate Comox Nanaimo Campbell River Domestic ($/1,000 kg) International($/1,000 kg) Domestic ($ per 1,000 kg) International ($/1,000 kg) Domestic ($ per 1,000 kg) International ($/1,000 kg) Less than $4.87 Less than $5.57 0-2,500 kg NA <30,000 kg NA <21,000 $4.00 <30,000 $5.00 21,000 kg 30,000 kg 21,000 to $6.26 30,001 to $6.58 2,501 to 21,000 $3.05 30,000 kg to NA 21,000 to $5.00 >30,000 to $6.00 45,000 76,000 kg 70,000 kg 45,000 70,000 Greater than $6.82 Greater than $6.89 21,001 and $4.50 >70,000 kg NA >45,000 $6.00 >70,000 $8.50 45,000 kg 70,000 kg over Landing Fees Domestic $13.00/1,000 kg International $15.00/1,000 kg General Terminal Fees Domestic $5.00 per enplaned and deplaned passenger 0-6 seats $0 Passenger Fees $7.50 AIF $5.00 per enplaned passenger 7 plus $2.80/seat AIF $4.00 International $16.00 per enplaned and deplaned passenger AIF $10.00 Regulatory Recovery Fee $2.50 Airport General Charges per Aircraft Aircraft Seats Domestic International 7-9 $10 $25 10-15 $20 $50 16-25 $40 $85 26-45 $65 $150 46-60 $100 $210 61-89 $147 $340 90-125 $200 $470 126-150 $240 $550 151-200 $332 $750 201-250 $435 $1,000
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Aircraft Parking Maximum daily rate for $11.93 aircraft less than 4,202 kg Maximum daily for aircraft $23.85 >4,202 kg (multiple landings) Weight (kg) Daily Monthly Annual Daily Monthly Annual Monthly Annual <5,000 kg $12.86 NA NA Grass under $6.90 $69.00 $276.00 <5,000 $60.00 $480 12m 5,000 to $13.92 NA Grass 12-24 m $13.80 $138.00 $552.00 5,000 to $262 10,000 NA 10,000 10,000 to $25.73 NA NA Grass over 24 $19.55 $195.00 $782.00 10,000 to $500 30,000 m 30,000 30,000 to $39.86 NA NA Paved under $17.25 $258.75 NA 30,000 to $750 60,000 12 m 60,000 60,000 to $60.16 NA NA Paved 12 m to $23.00 $345.00 NA 60,000 to $1,200 100,000 24 m 100,000 100,000 to $100.60 NA NA Paved over 24 $34.50 $517.50 NA 200,000 m 200,000 to $140.54 NA NA 300,000 >300,000 $181.38 NA NA Vehicle Parking Paved Lot $10.00 for the first day and $5.00 for each additional day Daily $5.00 Hourly $1.25 Overnight (24 $8.00 hours) Daily $11.50 Weekly $40.00 Weekly $69.00 Monthly $100.00 Annual $600.00 Gravel Lot Daily $8.00 Weekly $48.00
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Price of Fuel Av Gas $1.86 $1.90/L Jet A $1.74 $1.69/L Self Service $1.95 Oil $8.00/L
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