Fort Mcmurray Airport Authority | 2011 Annual Report BUILDING the VISION
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Fort McMurray Airport Authority | 2011 Annual Report BUILDING THE VISION 2012 Annual Report.indd 1 5/1/2012 2:14:43 PM MESSAGE FROM THE CHAIR .................................................................................................... 4-7 GOVERNANCE AND ACCOUNTABILITY.................................................................................... 8 BOARD OF DIRECTORS AND SENIOR MANAGEMENT........................................................... 9 BREAKING GROUND: CONSTRUCTION TIMELINE.................................................................. 10-11 BUILDING A NEW PASSENGER EXPERIENCE......................................................................... 12 BUILDING OUR ORGANIZATION.................................................................................................13 BUILDING OUR BUSINESS......................................................................................................... 14 BUILDING RELATIONSHIPS, BUILDING COMMUNITY..............................................................15 BUILDING ON SUCCESS BY MEASURING IT............................................................................18 MANAGEMENT DISCUSSION & ANALYSIS................................................................................20 FINANCIAL STATEMENTS...........................................................................................................32 TABLE OF CONTENTS Mission “We are responsible stewards of our airports, achieving superior performance in the conduct of safe, secure, effective and efficient operations. Our airport businesses contribute significantly to the economy of the Region, Alberta and Canada.” Vision “We are Canada’s Premier Regional Airport, connecting the World to the people, resources and opportunities in the Wood Buffalo Region.” 2 2012 Annual Report.indd 2 5/1/2012 2:14:43 PM bag.pdf 1 3/16/2012 12:23:32 PM C M Y Key Success Drivers CM MY CY CMY K Core Values To Optimize the Customer Experience To Lead a High Performing Airport Team Excellence in Safety, Security and Environmental To Achieve Environmentally Responsible Sustainable Performance and Profitable Growth We conduct our businesses in a culture of safety and security that promotes To Foster Effective Stakeholder Relationships best practices and sharing of experience and mutual support. We are sensi- tive to and support sustainable environmental processes. Mission Commercially Focused and Fiscally Responsible “We are responsible stewards of our airports, achieving superior performance We have a commercial operating philosophy/culture and operate the airport in the conduct of safe, secure, effective and efficient operations. Our airport as a robust business. We maintain a strategic focus on risk mitigation and businesses contribute significantly to the economy of the Region, Alberta and financial strength. Canada.” Exemplary Customer Service through Teamwork We are customer service leaders. Together with our stakeholders, we are Vision Team FlyFortMac with a common goal of superior customer service. “We are Canada’s Premier Regional Airport, connecting the World to the people, resources and opportunities in the Wood Buffalo Region.” Leadership 3 We value leadership with integrity and innovation in support of our Vision. 2012 Annual Report.indd 3 5/1/2012 2:14:44 PM Authority (ACFA), which offers inherent advan- Building the vision tages similar to those enjoyed by municipali- ties. For the Fort McMurray Airport Authority (FMAA), 2011 was a year of building momen- tum, following on a very successful planning Developing our organization year in 2010. Construction began on the new Building the vision is more than a solid credit 15,000 square-metre air terminal building. rating or concrete and steel. It’s about people. Passenger numbers soared to lead the nation. We are a young organization – 2011 was our We set a new path for real estate develop- second full year of operation. As we prepare ment. Looking ahead, 2012 is the year of for the 2014 opening of the new terminal, we continuing to build the vision – the vision to be have to develop the organization to efficiently Canada’s premier regional airport. and effectively run the new facility. In 2012, we are focusing on further nurturing and develop- The cornerstone of that vision is the design ing a high-performance team that top-perform- and construction of the new air terminal build- ing individuals will want to join. These individu- ing set to open in April 2014. We officially als will be given an opportunity to grow as the broke ground during a ceremony on August team achieves the best airport experience for 29, 2011 with former Premier Ed Stelmach our customers. and key stakeholders attending. The new ter- minal will provide the Regional Municipality of Our people, whether they work directly for Wood Buffalo with an airport that matches its the airport authority or for one of our partner status as a primary engine propelling Alberta’s companies operating at the airport, reflect the and Canada’s economic growth. It will dra- Wood Buffalo region. We want to ensure the matically improve how we connect the people, warmth and hospitality of our region greets resources and opportunities of this region with each customer. the rest of Canada and the world. Team FlyFortMac is a concept that brings E Construction was awarded the Site Works together the entire airport community. From contract in May 2011. In August, Ledcor taxicabs, to parking, to check-in, to security, Construction Ltd. was awarded the contract to to food and beverage, to airline services, we construct the new terminal. Both projects are want to provide a consistently friendly, top-tier on time, on budget and on track. customer experience. With that aim, we are working together with our tenants and airline Underpinning the start of this critical project partners under the Team FlyFortMac banner is FMAA’s secure financing condition. The to offer customer-service training and improve loan is very large; however, we have secured communication among all airport employees. financing from the Alberta Capital Finance 4 2012 Annual Report.indd 4 5/1/2012 2:14:48 PM Connecting to the world Real estate development is one way to increase non-aero- nautical revenue. This in turn helps keep passenger fares While we build the terminal and the organization, we continue competitive. to diligently pursue airlines to provide the air service the region needs. Target number one is international service. Starting in 2012, we will provide management advisory ser- We believe the demand here supports a wider array of flights vices to the Fort Chipewyan Airport for the Regional Munici- catering to business and leisure markets. pality of Wood Buffalo. These flights also bring with them more cargo opportuni- Working with our region ties. Given the number of international companies that are currently invested in the oil sands region, significant cargo FMAA is strongly committed to working within our region, is shipped by truck to the region. Customs services at Fort and partners farther abroad, to build an efficient, integrated McMurray Airport would greatly enhance this key logistic transportation system – a system that combines all modes requirement, potentially taking many trucks off Highway 63. of transportation for the optimal movement of people and goods. That’s why we participate in many stakeholder Negotiations are underway with the Canada Border Services initiatives such as the Municipal Development Plan and the Agency (CBSA) to provide customs services to passengers Comprehensive Regional Infrastructure Sustainability Plan and handle cargo. They will use interim facilities in the cur- (CRISP). rent terminal which are currently under construction and will be ready for fall 2012. Our CEO is also a member of the Athabasca Oil Sands Area Transportation Coordinating Committee recently established WestJet’s foray into the regional service with turboprop by the provincial government to make recommendations on regional aircraft will open new short-haul markets in Western current and future transportation needs in the region. Canada that we hope to take advantage of. Improving air service and communication is a community Pursuing new business opportunities endeavour and that’s why we are members of the Fort Mc- Fundamental to being Canada’s premier regional airport is Murray Chamber of Commerce, Rotary Club and other key building all aspects of our business. That includes seizing community and industry organizations. all the opportunities our land base and our location offers. In March we announced a new Industrial Park with up to 46 acres of land available for lease. Gas, water and power will be available on the site by fall 2012. 5 2012 Annual Report.indd 5 5/1/2012 2:14:49 PM Forging accountability We recognize operating Fort McMurray Airport is an important responsibility. We are striving to earn and foster trust by being accountable to the region we serve. We do that through this publication, the Annual General Meeting, our website, community presentations, our Business Advisory Committee, Team FlyFortMac, and by engaging local media. How we define and mea- sure success is available in our yearly business plans, and our rolling five-year strategic plan which is available on our website. We are clear about our progress and our challenges. Building the terminal is absolutely critical. The project financing is secured and we have a strong credit rating. Still, our debt to revenue ratio is high. We have essentially