FINAL REPORT Ontario Municipal Airports Data Collection Study
2011 Update
LeighFisher Canada Inc. 220 Laurier Avenue West, Suite 500 Ottawa, ON K1P 5Z9 Telephone: (613) 236-4318 Fax: (613) 236-4850 www.leighfisher.com Table of Contents
ABBREVIATIONS……………………………………... 3 3. 2011 SURVEY RESULTS (continued) 1. Aviation Activity………………………………………….. 78 GLOSSARY…………………………………………….. 4 2. Direct Employment……………………………………… 85 EXECUTIVE SUMMARY……………………………… 5 3. Air Policy…………………………………………………. 87 4. Regulatory Impact………………………………………. 88 1. INTRODUCTION………………………………… 25 5. Passenger Leakage…………………………………….. 89 1. Background & Introduction…………………………. 26 2. Approach & Methodology…………………………… 29 4. OVERVIEW OF OTHER JURISDICTIONS MANAGEMENT & FUNDING SUPPORT 2. PROFILE OF ALL ONTARIO MUNICIPAL MODELS………………………………………… 90 AIRPORTS………………………………………. 31 1. Introduction……………………………………………… 91 1. Geography……………………………………………. 32 2. Passenger and Cargo Leakage to US Airports……… 92 2. ACAP Eligibility………………………………………. 35 3. US Airports Funding and Management Model………. 98 3. Aerodrome Status…………………………………… 37 4. Other Provinces / Territories…………………………… 102 4. Operator Type……………………………………….. 38 5. Runways……………………………………………… 39 APPENDICES………………………………………….. 108 6. Public Service Use………………………………….. 41 A. List of Study Airports……………………………………. 109 7. Aircraft Traffic………………………………………… 46 B. Canadian Airports - Numbers and Types……………. 110 8. External Funding……………………………………. 48 C. Summary and Comparison to 2006 Results…………. 111 9. Summary……………………………………………... 55 3. 2011 SURVEY RESULTS……………………… 56 1. Participation………………………………………….. 57 2. Ownership & Operator Structure…………………… 59 3. Aerodrome Status…………………………………… 60 4. ACAP Eligibility………………………………………. 61 5. Financial Situation – Viability……………………….. 62 6. Financial Situation…………………………………… 66 7. Condition of Facilities & Equipment………………... 75
2 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ABBREVIATIONS
ACAP Airports Capital Assistance Program MEDT Ministry of Economic Development and Trade
AIF Airport Improvement Fee MOHLTC Ministry of Health and Long Term Care (Ontario)
AIP Airport Improvement Program MNR Ministry of Natural Resources (Ontario)
ASP Airport Security Program MTO Ministry of Transportation Ontario
ATB Air Terminal Building MTOW Maximum Take-off Weight
AMCO Airports Management Council of Ontario NACC National Airlines Council of Canada
BCF Building Canada Fund NAP National Airports Policy
CAC Canadian Airports Council NAS National Airports System
CAF Communities Adjustment Fund NPIAS National Plan of Integrated Airport Systems
CAGO Community Airports Group Ontario NPIS Non-profit institutions
CAP Canada Air Pilot NOHFC Northern Ontario Heritage Fund Corporation CARs Canadian Aviation Regulations OPP Ontario Provincial Police
CATSA Canadian Air Transportation Security Authority PFC/PUF Passenger Facility Charge/Passenger Usage Fee
CBSA Canada Border Services Agency PILT Payments in Lieu of Taxes CFS Canada Flight Supplement RCMP Royal Canadian Mounted Police
FAA Federal Aviation Authority RESA Runway Safety Area
FTE Full-Time Equivalent SMS Safety Management Systems GA General Aviation SeMS Security Management Systems
ICAO International Civil Aviation Organization TC Transport Canada
ISF Infrastructure Stimulus Fund U.S. United States
3 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011
GLOSSARY OF TERMS
Aircraft Movement. A take-off, a landing, or a simulated approach by an CARs 705, Airline Operations. Applies in respect of the operation by a aircraft. Canadian air operator, in an air transport service or in aerial work involving sightseeing operations, of any of the following aircraft: (a) an aeroplane, other Airport Improvement Fee (AIF).. The fee is charged to all departing passengers set by the airport added to the fare and is entirely reinvested in than an aeroplane authorized to operate under Subpart 4, that has a MTOW infrastructure projects and improvements to traveler services. This method of of more than 8 618 kg (19,000 pounds) or for which a Canadian type collecting fees to improve services is used in most major Canadian airports certificate has been issued authorizing the transport of 20 or more and is not part of operating revenues but rather capital revenue for the airport. passengers; (b) a helicopter that has a seating configuration, excluding pilot seats, of 20 or more; or (c) any aircraft that is authorized by the Minister to be Bilateral Agreement. An agreement with formal treaty status between operated under this Subpart. governments regulating the conduct of trade in international air services. It consists of a series of articles (or provisions). Certified Airport. Meets one of the following criteria: scheduled CARS 704 or 705 service; located within a “built-up area” of a city or town; where CARs 302, Aerodrome Standards and Recommended Practices. Applies certification is in the public interest; or where the airport wants to remain to (a) an aerodrome that is located within the built-up area of a city or town; (b) certified and is willing to pay for that status. Certified airports are inspected a land aerodrome that is used by an air operator for the purpose of a periodically for compliance with Transport Canada Standards which have scheduled service for the transport of passengers; and (c) any other been recorded in an Airport Operations Manual and Airside Operating aerodrome that is not (d) a military aerodrome; (e) a land aerodrome where the Procedures. Minister has issued a written authorization for each air operator using the aerodrome to land at and take-off from the aerodrome; or (e) heliports. Itinerant traffic. Air traffic where aircraft proceed to or arrive from another location or where they leave the circuit or the close proximity of the airport and CARs 704, Commuter Operations. Applies in respect of the operation by a return without landing at another airport Canadian air operator, in an air transport service or in aerial work involving sightseeing operations of any of the following aircraft: (a) a multi-engined Leakage. Passenger traffic flowing through an airport other than the airport aeroplane that has a MTOW of 8 618 kg (19,000 pounds) or less and a seating closest to those passengers. configuration, excluding pilot seats, of 10 to 19 inclusive; (b) a turbo-jet- Local traffic. Air traffic where aircraft remain in the circuit or the close powered aeroplane that has a maximum zero fuel weight of 22 680 kg (50,000 proximity of the airport. pounds) or less and for which a Canadian type certificate has been issued authorizing the transport of not more than 19 passengers; b.1) a multi-engined Registered Airport. An airport for which an Airport Certificate has not been helicopter with a seating configuration, excluding pilot seats, of 10 to 19 issued by Transport Canada. Aerodrome information is however published inclusive, unless it is certified for operation with one pilot and operated under and maintained in the Canada Flight Supplement. Registered aerodromes VFR; or (c) any aircraft that is authorized by the Minister to be operated under are not required to comply with CAR 302 regulations and Transport Canada this Subpart. publication TP312 – Aerodrome Standards and Recommended Practices Scheduled Services. Flights listed in a published timetable (or that are so regular and frequent as to constitute a recognizably systematic series) and performed for remuneration.
4 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011
EXECUTIVE SUMMARY
5 ES1 Background & Introduction
Update of 2006 study with focus on financial viability and traffic . Background . Methodology & Approach – Update 2006 study with focus on – Airport survey financial and traffic data – Industry association collaboration – May 2011, Municipal Airports Data Collection Study announced at Panel – Public service input meeting – Publicly available data . Objective – Multi-jurisdictional review – Collect operating and financial information from municipal airports that could be used in the development of a business case to demonstrate the Municipal Airports Defined importance of municipal airports to government decision makers and to essentially those public airports further support the need for that serve local / municipal investment in Ontario’s municipal needs and provide a socio- airports. economic contribution – . Scope regardless of the ownership – Data collection and analysis only structure, although most are – Presentation of results by geography municipally owned. and ACAP eligibility
6 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES2 Profile of All ON Municipal Airports - Geography
84 Municipal Airports in Ontario: 38 in North (45%); 46 in South (55%)
North South
7 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES2 Profile of all ON Municipal Airports - ACAP Eligibility
The majority of Municipal Airports in Ontario are not ACAP eligible . Very few (19 or 23%) Ontario Municipal Airports are ACAP eligible – More (12) in the North than in the South (7)
ACAP eligible Non-ACAP eligible
8 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES2 Profile of All ON Municipal Airports - Aerodrome Status
Less than half of all municipal airports in Ontario are Certified
. 38 (45%) of Municipal Airports in Ontario are Certified . Trend towards de-certification continues (71% in 2006)
Aerodrome Status - All Ontario Municipal Airports (source: CFS June 2011) 90 80 70 38 60 50 40 20 30 18 20 46 10 20 26 0 North South Total (38) (46) (84) Registered Certified
9 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES2 Profile of All ON Municipal Airports - Other
. More than half of the municipal airports are “municipally” operated . The majority (80%) have paved runways . The majority (63%) have runways of less than 5,000 feet . Ontario municipal airports play a key role in supporting public services – Aerial fire fighting, resource management, aerial policing and enforcement, military, medevac, remote sensing . Several funding programs
10 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES3 2011 Survey Results - Participation
68% response rate (57 of 84)
. 40% improvement in response from 2006 – 5 more airports took part in north; 11 more from south . More respondents in south than in north
Geographical Response (out of 38 possible respondents in North and 46 in South)
Geographical Response Distribution (out of 57 respondents)
11 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES3 2011 Survey Results – Aerodrome Status
Slightly more than half of the respondents are certified
. Airport Certification – 56% of the respondent airports are certified (32/57) – Proportionally, there are more certified respondent airports in the north – Trend towards de-certification
• 60% of the respondent registered airports were previously certified; de-certified due to regulatory burden
Aerodrome Status (out of 57 respondents)
12 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES3 2011 Survey Results – ACAP Eligibility
Majority of respondents not ACAP eligible
. 30% (16/54) of the respondent airports are ACAP eligible . Those 16 airports received approximately $32 million in ACAP funding between 2006-2010 . All safety related projects; only represents a small percentage of municipal airports in province ACAP Eligibility (out of 54 respondents)
. Of the 16 respondent airports that are ACAP eligible, 12 (46%) are located in North
13 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011
ES4 2011 Survey Results – Financial Viability
Financial viability is a significant concern
. 78% of respondents consider themselves “not self-sustaining” i.e., insufficient cash flow to cover operation costs . Northern airports in general are more self-sustaining or viable than their southern counterparts – Higher percentage of scheduled service . ACAP eligible airports are in better financial health, but – Even though ACAP eligible, a large percentage (24%) consider them selves not self- sustaining . More than half of the respondents indicated that their financial viability has declined in the past five years
14 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES4 2011 Survey Results – Financial Viability
The average operating loss (excl. AIF revenue) was more than $90K per year in 2010
Average Operating Revenue & Expenses Median Operating Revenue & Expenses
$900,000 $450,000 $850,000 $430,000 $410,000 $800,000 $390,000 $750,000 $370,000 $700,000 $350,000 $650,000 $330,000 $310,000 $600,000 $290,000 $550,000 $270,000 $500,000 $250,000 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 24 27 31 36 49 24 27 31 36 49 Respondents Respondents Respondents Respondents Respondents Respondents Respondents Respondents Respondents Respondents
Average of Operating Revenue (excl. AIF) Average of Operating Expenses Median Operating Revenue (excl. AIF) Median Operating Expenses (excl. AIF)
Average and Median Operating Profit (Loss) . Operating losses (excl. AIF revenue) at southern $- airports higher than at northern airports in 2010 $(20,000)
$(40,000) . Operating losses (excl. AIF revenue) at ACAP eligible airports significantly more than at non-ACAP airports in $(60,000) 2010 $(80,000) $(100,000) . Average operating losses (incl. AIF revenue) at southern $(120,000) airports; profits at northern ones $(140,000) . Operating profits (incl. AIF revenue) at ACAP eligible 2006 2007 2008 2009 2010 24 27 31 36 49 airports; loses at non-ACAP eligible airports Respondents Respondents Respondents Respondents Respondents
Average of Operating Profit / Loss (excl. AIF) Median of Operating Profit / Loss (excl. AIF) Subtract Median Operating Expenses
15 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES4 2011 Survey Results – Financial Viability
. Fees and Charges – The most commonly applied aeronautical fee is for aircraft parking followed by landing fees – Fee collection after hours is problematic . Heavy reliance on aeronautical revenue (incl. AIF) – 70%
16 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES5 2011 Survey Results – Non-ACAP Infrastructure Projects
. Funding of non-ACAP infrastructure projects varies by source and amount – 54 airports reported 64 non-ACAP funded projects between 2006-2010 totalling over $142 M – Approximately equal north/south split in terms of numbers of projects and numbers of airports; however value of funded projects in south is 7.5 times more than in north
Average Project Funding Source
Regional / Municipal NOHFC AIF FedNor CAF ISF Private Other FedDev - Ontario BCF
0% 10% 20% 30% 40%
17 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES6 2011 Survey Results – Condition of Airport Facilities & Equipment
. Generally speaking, the majority of airports rate the condition of facilities and equipment as “fair” or better
Runways 7% 15% 33% 26% 19%
Taxiways 4% 17% 31% 35% 13% Pavements Apron 15% 13% 39% 22% 11% Terminal 6% 10% 40% 27% 17% Perimeter Fence 21% 31% 29% 10% 8% Vehicles/Equipment 13% 17% 40% 26% 4% Facilities/ Equipment Roads/Parking 4% 16% 43% 29% 8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Very Poor Poor Fair Good Excellent
. Pavements, terminals and parking facilities are rated better in the South than in the North – likely due to recent infrastructure stimulus investments
18 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES7 2011 Survey Results – Aviation Activity
. Different kinds of public service activity in the north than in the south . More scheduled commercial service in the north than in the south – Northern airports have a higher % of itinerant movements, but fewer absolute numbers . Itinerant traffic less affected by 2009 recession than in south . Passenger traffic at northern airports relatively constant over past five years E/D Passengers 1,200,000 1,098,448 1,128,825 1,058,907 1,042,324 1,000,000 983,087 Avg: 21,477 Avg: 25,370 Avg: 46,097 Avg: 46,358 Avg: 46,718 Max: 124,137 Max: 121,269 Max: 118,586 Max: 110,400 Max: 142,756 800,000 Min: 100 Min: 200 Min: 150 Min: 280 Min: 150
600,000
400,000 Avg: 43,993 Avg: 45,568 Avg: 46,097 Avg: 46,358 Avg: 46,718 Max: 172,000 Max: 185,000 Max: 194,000 Max: 170,000 Max: 190,000 Min: 1,250 Min: 1,400 Min: 1,400 Min: 1,500 Min: 1,500 200,000
0 2006 2007 2008 2009 2010
North Airports - 16 Respondents South Airports - 13 Respondents . Air cargo services important in the north
19 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES8 2011 Survey Results – Employment
. A significant number of airports (21%) have five or fewer employees (airport staff) . Airport staff make up a relatively small proportion of employment at the airport . Average direct employment at southern airports (including tenants) is 36% higher than at northern airport . Average direct employment at ACAP eligible airports higher than at non- ACAP eligible airports
20 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES9 2011 Survey Results – Regulatory Burden and Policy Requirements
. The majority of respondents (69%) see a need for an overarching air policy – Targeted at small airports – Financial support for infrastructure and maintenance – Standardization and safety . Regulatory changes can have significant impacts on smaller airports
21 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES10 Passenger Leakage – The Problem
. Air passengers are price sensitive; particularly in leisure market and in short-haul domestic market . The number of trips taken by Canadians out of US airports has doubled in the past decade (1.1 million one-way trips in 2009), and costs Canada at least $1.1 billion each year in economic impact . Majority of respondent airports not affected by transborder leakage however border airports can be significantly impacted
22 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES11 US Airports – Ownership & Operations Structure
. Typically owned by local or state governments . Can be managed by government (city, county or state) or Airport Authority . FAA is the regulator and provides air navigation services . Capital funded largely by Passenger Facility Charge (PFC) Program and Airport Improvement Program (AIP) administered by FAA • FAA approval required . New motivations driving renewed interest in various forms of airport privatization
23 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 ES12 Other Provincial / Territorial Jurisdictions
. Ontario is one of the few jurisdictions in Canada to levy a fuel tax on international flights . Quebec has an official Air Policy . Alberta, British Columbia, Manitoba, Saskatchewan have dedicated capital programs
24 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 1. INTRODUCTION
1. Background and Introduction 2. Approach & Methodology
25 1.1 Background & Introduction
Update of 2006 study with focus on financial viability and traffic
. Background – Results from 2006 study conducted by LeighFisher (then Sypher, a division of Jacobs Consultancy) extensively used by AMCO, individual airports, and provincial ministries – Minister of Transportation struck an Air Advisory Panel in 2007 – October 2010, Panel expressed interest in obtaining additional and current information with focus on financial and traffic data – May 2011, Municipal Airports Data Collection Study announced at Panel meeting
. Objective – Collect operating and financial information from municipal airports that could be used in the development of a business case to demonstrate the importance of municipal airports to government decision makers and to further support the need for investment in Ontario’s municipal airports.
26 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 1.1 Background & Introduction (continued)
Current data and analysis
. LeighFisher’s Scope – Update and administer the airport survey – Analyze and summarize the survey results in a presentable format for use by MTO – Analyze and summarize information received from provincial government stakeholders and industry associations – Prepare presentation &/or briefing materials for use by MTO – Excludes the provision of advice and recommendations
. Presentation 2011 Survey Results – Geography – ACAP eligibility – Comparison to 2006 Results
27 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 1.1 Background & Introduction (continued)
Public, Municipal Airports
Municipal Airports Defined essentially those public airports that serve local / municipal needs and provide a socio-economic contribution* – regardless of the ownership structure, although most are municipally owned.
* Socio-economic benefits are typically qualitative in nature, such as providing residents of a community access to critical health care through the availability of air ambulance / medevac services
28 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 1.2 Approach and Methodology
Active collaboration between MTO and LeighFisher
Project Initiation
Document Review
Draft Survey
Preliminary Industry Association Consultation
Finalize and Collect Aviation Activity Data from Public Distribute Survey Sector Aviation Organizations
Analyze Data
Prepare report
29 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 1.2 Approach & Methodology (continued)
Results based on input from stakeholders and publicly sourced data
. Airport Survey . Publicly Available Canadian – Online / hard copy Airport Data – Issued by MTO – Canada Flight Supplement (CFS) – 2 follow-up attempts by Consultant – Statistics Canada Aircraft Movement Statistics . Industry Association Collaboration . Multi-Jurisdictional Review – AMCO and CAGO – MTO provincial counterparts – Input on survey instrument – Public documents – Membership contact lists – LeighFisher’s US office . Public Service Input – MNR, MOHLTC / Ornge, OPP, FedNor – Input on socio-economic importance of airports – Traffic data / use of airports
30 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2. PROFILE OF ALL ONTARIO MUNICIPAL AIRPORTS
1. Geography 2. ACAP Eligibility 3. Aerodrome Status 4. Operator Type 5. Runways 6. Public Uses 7. Aircraft Traffic 8. External Funding
31 2.1 Geography
84 Municipal Airports in Ontario: 38 in North (45%); 46 in South (55%)
North South
32 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.1 Geography – Municipal Airports in Northern Ontario
38 Municipal Airports in North (45% of total municipal airports in Ontario )
CYIB ATIKOKAN MUNI CYYU KAPUSKASING CYQK KENORA CYQA MUSKOKA CPE6 SOUTH RIVER/SUNDRIDGE CNW3 BANCFORT CYAG FORT FRANCES MUNI CPT2 KILLARNEY CYQN NAKINA CYSB SUDBURY CYLD CHAPLEAU CYGQ GERALDTON (GREENSTONE REGIONAL) CYKX KIRKLAND LAKE CYYB NORTH BAY CPL5 THESSALON MUNI CYCN COCHRANE CYZE GORE BAY-MANITOULIN CYMG MANITOUWADGE CNK4 PARRY SOUND AREA MUNI CYTS TIMMINS/VICTOR M. POWER CYHD DRYDEN REGIONAL CYHF HEARST (RENÉ FONTAINE) MUNI CYEM MANITOWANING/ MANITOULIN EAST MUNI CYRL RED LAKE CKQ7 VERMILION BAY CYXR EARLTON (TIMISKAMING REGIONAL) CYHN HORNEPAYNE MUNI CYSP MARATHON CYAM SAULT STE. MARIE CYXZ WAWA CYEL ELLIOT LAKE MUNI CZUC IGNACE MUNI CMA2 MATTAWA CYXL SIOUX LOOKOUT CNA4 EMSDALE CNE4 IROQUOIS FALLS CYMO MOOSONEE CKM2 SIOUX NARROWS
33 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.1 Geography – Municipal Airports in Southern Ontario
46 Municipal Airports in South (55% of total municipal airports in Ontario)
CNP3 ARNPRIOR/SOUTH RENFREW MUNI CYCC CORNWALL REGIONAL CNS7 KINCARDINE CNL4 PORT ELGIN CYZD TORONTO/DOWNSVIEW CYLS BARRIE-ORILLIA (LAKE SIMCOE REGIONAL) CNN8 GANANOQUE CYGK KINGSTON CYSN ST. CATHARINES/NIAGARA DISTRICT CYOO TORONTO/OSHAWA MUNI CNU4 BELLEVILLE CYGD GODERICH CYKF KITCHENER/WATERLOO CYQS ST. THOMAS MUNI CNQ3 WELLAND/NIAGARA CENTRAL CNC3 BRAMPTON CNP8 GREENBANK CNF4 LINDSAY CYZR SARNIA (CHRIS HADFIELD) CYVV WIARTON SMITHS FALLS-MONTAGUE (RUSS CYFD BRANTFORD CNZ8 GRIMSBY AIR PARK CYEE MIDLAND/HURONIA CYSH CYQG WINDSOR BEACH) BROCKVILLE-THOUSAND ISLANDS REGIONAL CNL3 CNC4 GUELPH CYRP OTTAWA/CARP CNM4 STRATFORD MUNI CPR7 WINGHAM/ RICHARD W. LeVAN TACKABERRY CZBA BURLINGTON EXECUTIVE CND4 HALIBURTON/STANHOPE MUNI CYOS OWEN SOUND/BILLY BISHOP REGCNQ4 TILLSONBURG CNR6 CARLETON PLACE CYHM HAMILTON CYPT PELEE ISLAND CNR4 TOBERMORY TORONTO/BILLY BISHOP TORONTO CNZ3 CHATHAM-KENT CPN4 HANOVER/SAUGEEN MUNI CYTA PEMBROKE CYTZ CITY AIRPORT CNY3 COLLINGWOOD CNP7 IROQUOIS CYPQ PETERBOROUGH CYKZ TORONTO/BUTTONVILLE MUNICIPAL
34 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.2 ACAP Eligibility
The majority of Municipal Airports in Ontario are not ACAP eligible . Only 19 (23%) of the 84 Municipal Airports in Ontario are ACAP eligible – 12 (14%) are in the North and 7 (8%) are in the South
ACAP eligible Non-ACAP eligible
35 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.2 ACAP Eligibility (cont’d)
There are more municipal airports in the North that are ACAP eligible than in the South
. 12 (32%) of Municipal Airports in Northern ON are ACAP eligible . 7 (15%) of Municipal Airports in Southern ON are ACAP eligible
ACAP Eligibility- All ON Municipal Airports 90 80 70 60 50 65 40 30 26 39 20 10 12 19 0 7 North South Total (38) (46) (84) Yes No
36 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.3 Aerodrome Status
Less than half of all municipal airports in Ontario are Certified
. 38 (45%) of Municipal Airports in Ontario are Certified – 18 (47%) of Municipal Airports in Northern Ontario are Certified – 20 (43%) of Municipal Airports in Southern Ontario are Certified
Aerodrome Status - All Ontario Municipal Airports (source: CFS June 2011) 90 80 70 38 60 50 40 20 30 18 20 46 10 20 26 0 North South Total (38) (46) (84) Registered Certified
37 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.4 Operator Type
More than half of the Municipal Airports in Ontario are Municipally operated
. 55% are operated by a Municipality, Town, City or Township . 24% are privately operated . 21% are operated by an Airport Commission, Authority or Board . There are more airports privately operated in the South than in the North . There are more airports operated by a municipal body in the North than in the South
Airport Operator - All Ontario Municipal Airports (source: CFS June 2011) 90 80 20 70 60 50
40 15 46 5 30 20 24 22
10 18 9 9 0 North South Total (38) (46) (84) Airport Commission / Authority Municipality / City / Town / Township Private
38 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.5 Runways
The majority of Municipal Airports in Ontario have paved runways
Surface (longest runway) - All Ontario Municipal Airports (source: CFS June 2011)
100% 1 1 1 5 4 4 90% 7 1 3 1 1 80% 1 1 2 70% 60% 50%
40% 30 37 67 30% 20% 10% 0% North South All (38) (46) (84) Asphalt Asphalt / Gravel Gravel Sand / Gravel Turf Turf / Asphalt Turf / Gravel
39 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.5 Runways (continued)
The majority (63%) of Municipal Airports in Ontario have runways of less than 5,000 feet
Longest Runway - All ON Municipal Airports (source: CFS June 2011)
10,000 + 2 9,000 - 9,999 1 8,000 - 8,999 7,000 - 7,999 3 6,000 - 6,999 5 5,000 - 5,999 20 4,000 - 4,999 14
Runway Runway Length (feet) 3,000 - 3,999 28 0 - 2,999 11
0 5 10 15 20 25 30
# of ON Municipal Airports
40 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.6 Public Service Use
Ontario municipal airports play a key role in supporting public services . Aerial Fire Fighting – Water bombing – Fire crew and equipment transport . Resource Management – Fish planting – Wildlife transfers – Rabies baiting – Wildlife surveys – Aerial photography . Aerial Policing – Search and rescue – Reconnaissance – Enforcement – Prisoner and tactical team transport – Tactical team transport . Military – Training – Escorts – Troop movement & equipment transport – Evacuation . Air Ambulance – Inter-facility patient transfer – On-scene response requiring aero-medical evacuation – Transport of organs and surgical recovery teams . Remote sensing
41 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.6 Public Service Use – Protecting Ontario’s People, Property and Communities from Natural Hazards (through MNR) Airports in Northern Ontario are critical to MNR’s Fire Fighting Program
. Fleet . Other – 30 aircraft (rotary wing & fixed wing) – 7 month fire season (April – October) valued at over $270 million – 2 fire regions (East / West) – Rotary wing aircraft (helicopters) – Small, single engine turbine fixed wing – 29 fire attack bases (incl. 5 primary bases aircraft and 2 maintenance bases) – Large, twin engine CL415 water bombers – 100 km helitack and 160 km water – Fleet supplemented with private sector bombing attack radius aircraft for bird-dogging, fire detection, – Typically respond to 1,000 forest fires / yr helitack and transport . Financial . Employees – Aviation Services operates on a cost – 150 full-time and seasonal staff recovery basis; ~ $25M / yr . Air Bases – In 2010, MNR paid $144K in landing fees – 7 primary aviation bases with full-time staff at Ontario airports year round (Sault Ste. Marie, Dryden, – MNR has 22 land lease agreements in Timmins, Sudbury, Muskoka, Thunder Ontario ; 15 are at Northern Municipal Bay, Toronto Pearson) Airports – Pilots and AMEs on-base during fire season – 5 primary bases during fire season at Dryden, Greenstone (Geraldton), Sudbury, Chapleau, Kenora
42 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.6 Public Service Use – Protecting Ontario’s People, Property and Communities from Natural Hazards (through MNR) Airports in Northern Ontario are critical to MNR’s Fire Fighting Program
. Airport Infrastructure & Service . Use of Municipal Airports Requirements – Mostly in North (north of Pembroke) – Runways at least 3,500’ (for water – Most frequently used airports: Sudbury, bombing operations) Dryden, Thunder Bay and Timmins – Ample apron space to park & refuel large – 61 municipal airports used by MNR in aircraft 2010/11 – Turbine fuel with a pressured fuel system • 32 (52%) in the North (MNR purchased $2.4 M (pre-tax) in fuel • 29 (48%) in the South in 2010/11) . Aircraft Movements – Operating environment with few constraints and little to no congestion – 15,574 air traffic movements conducted by or on behalf of MNR in 2010/11 – 11,943 (77%) were at municipal airports • 94% at municipal airports in the North
Without access to Northern ON airports with adequate airside infrastructure, and fuelling services, the costs to the taxpayer for fire response would increase. There would also be an increased reliance on ground crews and the ability to respond effectively and efficiently could be affected.
43 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.6 Public Service Use – Supporting Critical Health Care Services (through Ornge) Air Ambulance is an essential service in communities where medical care is 240+ km away
. Service Delivery . Air Bases – Ontario’s air ambulance program one of – Government owned hangars at Toronto City the largest in North America Centre, Sudbury, Timmins, Thunder Bay and – Ornge is the transport medicine provider Sioux Lookout airports for Ontario patients through a performance agreement with MOHLTC – Another 15 wing based (Primary Care) and 4 helicopter bases (Advanced Care) – All air ambulance services in Ontario provided by private operators with the exception of paramedical and . Statistics administrative staffing for the Critical Care – Ornge transports over 19,000 patients each Transport rotary and fixed wing programs year – More than 75% of flight paramedic staff – Approximately 60% of patient transfers are provided by private sector taken in fixed wing aircraft. . Ornge Fleet – 20,968 “unique legs” landed at, and 19,964 – 11 Sikorsky S76 helicopters “unique legs” departed from ON municipal airports in 2010/11 – 6 Pilatus PC-12 • 75% of total “unique legs” in North – 10 AgustaWestland 139 helicopters to replace aging S76 aircraft (first went into – 73 ON municipal airports used in 2010/11 service in Sudbury in Dec. 2010) • 32 (44%) in North; 41 (56%) in South – Access to over 50 aircraft in bases throughout province . Expenditures . – In 2010/11, health ministry expenditures for the Staff air ambulance program were $136 million – 400+ including flight paramedics (200+), transport medicine physicians and a team of educators and researchers
44 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.6 Public Service Use – Aerial Policing (through OPP)
64% of municipal airports used in support of aerial policing activities
. Service Delivery . Airports Used – Search and rescue – The OPP commonly uses 54 of the ON – Surveillance municipal airports – Drug eradication • 23 (43%) in North – Transport of personnel • 31 (57%) in South – Prisoner escorts . Expenditures – Aerial enforcement – Fuel costs approx. $640K / year – Support of specialized units • Avgas / Jet A ~ $340K / year . OPP Fleet & Bases • Helicopter fuel (Jet A) ~ $300K / year – Pilatus PC-12 in Thunder Bay – Cessna 206T in Oro (Lake Simcoe) – 2 Eurocopter 135s (Orillia Heliport & Sudbury Heliport)
45 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.7 Aircraft Traffic (Movements)
Statistics Canada publishes aircraft movement statistics for approx. 30 of the 84 municipal airports
. Total aircraft movements among reporting ON municipal airports increased 15% between 2006 and 2010; an average of 3% p.a. . Itinerant traffic represents approximately 57% of the total aircraft traffic among reporting airports – Itinerant traffic grew a total of 16% between 2006 and 2010; an average of 4% p.a.
Aircraft Movements (~ 30 ON municipal airports report to StatsCan) 1,000,000
800,000 416,648 388,359 370,248 370,248 348,183 600,000
400,000 558,446 491,783 200,000 480,298 480,885 473,594
- 2006 2007 2008 2009 2010
Itinerant Local
46 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.8 External Funding Programs For Ontario Municipal Airports Several funding programs available – some ongoing; some time limited
. Airports Capital Assistance Program (ACAP) . Building Canada Fund – Communities Component (BCF-CC) – Intakes 1 & 2 . Infrastructure Stimulus Fund (ISF) . Communities Adjustment Fund (CAF) . FedNor . FedDev Ontario . Northern Ontario Heritage Fund Corporation (NOHFC)
47 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.8 External Funding - ACAP
Ontario airports have received $127.8 M (23%) of the total $556M in ACAP funding since 1995
. Created in the mid-1990s and is . Eligible Airports: administered by Transport Canada – year-round regularly scheduled passenger service, . Renewed in 2010 – Renewable every 5 – not be owned by the Federal Government, years – 1,000 + annual passengers – ‘Certified’ per TP312 . Funding envelope $38 M / year (avg) . Priority Projects (100% safety related) – Airside safety – Heavy airside mobile equipment – Air terminal building/ groundside
ACAP Contributions (1995-June 2011) $556 M (source: TC April 2011)
$140 $127.8 $120 $98.1 $100 $85.9 $80 $56.0 $55.9 $60 $31.2 $30.9 Millions ($) $40 $22.4 $15.5 $20 $10.1 $11.8 $10.2 $0 NL NS NB QC ON MB SK AB BC NT YT NU
48 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.8 Airport Eligibility – Recent Infrastructure Programs
Good news – municipal airports were included in infrastructure stimulus programs
. Federal infrastructure funds have nearly all been allocated . Most of the decade’s large infrastructure funds coming to an end – ISF in 2011, GBCF and APGCI in 2014, BCF in 2017
49 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.8 Infrastructure Programs – Building Canada Fund
8 Ontario airports received $14.8 million in BCF funding (fed/prov/muni) – Intakes 1 & 2
Building Canada Fund . $8.8 billion Building Canada Fund is one BCF FUNDING ALLOCATED TO ONTARIO AIRPORT PROJECTS of three targeted national infrastructure Total Eligible Airport Project programs part of the GOC’s seven year Costs (2007-2014) Building Canada Plan Collingwood Runway rehabilitation $1,323,000 . Funding allocated based on population Haliburton / New runway & $3,789,500 Stanhope associated projects . Airport projects fall within “Communities Atikokan Runway rehabilitation $2,446,686 Component” (communities less than Misc. – lighting, hangar 100,000) Manitouwadge $ 300,000 etc. . Cost shared: generally on a 1/3 basis Air terminal building Red Lake $4,311,700 (fed/prov/muni) replacement . Ontario airports received 4% of the Sioux Narrows Runway resurfacing $2,491,919 original $362M allocated to Ontario as Air terminal building – Wawa $80,000 part of Communities Component roof replacement Airport electrical . Additional $500M ‘top-up’ announced for Earlton $48,630 Communities Component (Canada wide) building – upgrading – projects to be completed Oct. 2011 $14,791,435
50 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.8 Stimulus Programs –Infrastructure Stimulus Fund
10 projects at 9 Ontario airports received $69 million in ISF funding *
ONTARIO AIRPORT PROJECTS FUNDED THROUGH ISF Infrastructure Stimulus Fund (announcements June 2009, October 2009, July 2010) Total Eligible Airport Project . Established in 2009 federal Costs budget Barrie / Lake Upgrades & expansion $13,788,000 Simcoe . $4 billion Infrastructure Stimulus Fund Arnprior Taxiway reconstruction $100,000 Gilles Emergency Helipad $30,000 . Projects to be materially Airside pavement Wawa $801,419 completed before 10/31/2011 rehabilitation St. Catharine's / Infrastructure (originally 3/31/2011) $11,608,000 Niagara District improvements . Municipal airports in “Local St. Thomas Corporate hangar $1,500,000 Government Asset” category (1 Airport operations building Windsor $2,250,000 of 11 asset types) rehabilitation Parallel taxiway Windsor $7,000,000 . Cost sharing typically on 1/3 construction basis (fed/prov/muni) Apron & runway expansion, Peterborough $28,600,000 terminal & groundside dev.
Rehabilitation of airfield $3,371,985 * Gore Bay (incl. $1M in NOHFC & pavements private funding) $69,049,404
51 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.8 Stimulus Programs –Communities Adjustment Fund
CAF now closed
. Part of Canada’s Economic Action Examples of CAF airport projects: Plan . Muskoka $405K for fencing, gates, sand – Administered by FedNor in Northern ON; shed and equipment shelter by FedDev Ontario in Southern ON . Sault College $1,230K for aviation . $1 billion (total) – Ontario’s share is hangar/repair facility and learning space $348.98 million over 2 years . Sault Ste. Marie $447.5K expand ATB and . In Northern ON, projects must be upgrade and improve potable water supply completed by 3/31/2011 . Manitoulin East $111K to extend water . services to industrial park and construct 5- Populations of less than 250,000 unit hangar . Projects eligible under other federal . Muskoka $87.8K to extend taxiway programs not eligible for CAF . Parry Sound $450K for new fencing, gates, sand shed and equipment shelter . Windsor: $4M for a maintenance-repair- overhaul (MRO) facility . Tillsonburg: $2.1M for new 1,800 sq.ft ATB, runway overlay and 1,500 ft runway extension
52 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.8 Other Federal Economic Development and Infrastructure Programs in Ontario FedNor and FedDev Ontario administer federal programs in Ontario
. Programs Examples of SODP and NODP funded – Southern Ontario Development Program airport projects: – Northern Ontario Development Program . London International: $8M towards an – Eastern Ontario Development Program International Air Freight Terminal – Community Futures Program . Parry Sound: $495,000 to support expansion . Economic Development Agencies . South River: $22,500 for a development plan – FedNor – FedDev Ontario Examples of FedNor funded airport projects: . Infrastructure projects such as Confederation College ACE, hangar development, engineering design for an aviation business park, runway resurfacing, site servicing
. Marketing and technical studies
. Airside equipment replacement
53 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.8 External Funding – Northern Ontario Heritage Fund Corporation (NOHFC) NOHFC has been supporting airports in Northern Ontario since 1988
Infrastructure & Community Examples of NOHFC funded airport Development Program projects: . Conditional contributions, forgivable . Geraldton $1M ($700K from NOHFC, $300K performance loans, repayable loans from FedNor) towards $1.5M airport . NOHFC contribution generally 50% or $1M expansion (or $500K for community development . Red Lake $825K for construction of a single projects) storey ATB and parking lot
. Projects include (but not limited to): . Sudbury $450K to expand GA and – Industrial parks commercial apron – Winter road projects . Gore Bay Manitoulin $843K to renovate and – Waterfront development expand main runway and repave two taxiways – Projects in support of long-term job creation and main apron – Community facilities . Kapuskasing $998K for airport water and fuel . Airport projects excluded: serving improvements (part of $2.6M industrial development project) – New airports – Airport runway improvements . Sudbury $1M to develop 9 ha of land for GA and non-aviation business growth (part of a – Lighting and navigational systems $2.5M project) – Maintenance costs, etc. . North Bay $2M for development of aviation business park (part of a $13.4 M project)
54 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 2.9 Summary – Overall Profile of 84 Ontario Municipal Airports
. There are more municipal airports in the South (55%) than in the North (45%) . Very few (23%) Ontario municipal airports are ACAP eligible – There are more municipal airports in the North (12) that are ACAP eligible the in the South (7) . Trend towards “de-certification” continues – In 2006, 60 of the 85 municipal airports (71%) were certified. In 2010, there were 38 of 84 (45%) - CFS . More than half are “municipally” operated (municipality, region, town, township) . The majority (80%) have paved runways . The majority (63%) have runways of less than 5,000 feet . Ontario municipal airports play a key role in supporting public services
– aerial fire fighting, resource management, aerial policing and enforcement, military, medevac, remote sensing . Several funding programs available, however infrastructure funding programs have come to an end, and ACAP only available to certified airports with scheduled service
55 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3. 2011 SURVEY RESULTS
1. Participation 2. Ownership & Operator Structure 3. Aerodrome Status 4. ACAP Eligibility 5. Financial Situation - Viability 6. Financial Situation 7. Condition of Facilities & Equipment 8. Traffic 9. Economic Impact
10. Additional Questions 56 3.1 Survey Participation
57 Respondents: 26 in North ; 31 in South
. 57 respondents = 68% response rate – 26 of 38 in North (68%); 45% of all 57 respondent airports – 31 of 46 in South (67%); 55% of all 57 respondent airports . Five Years Later – Overall response rate was over 20% higher in 2011 compared to 2006 – 5 more airports took part in the north with 11 more airports taking part from the south
2011 2006 (A) (B) (C = B/A) (A) (B) (C=B/A) # of Airports Included in # of Airports Response Rate # of Airports Included in # of Airports Response Rate (%) Study Responded (%) Study Responded North 38 26 68% 36 21 58% South 46 31 67% 49 20 41% TOTAL 84 57 68% 85 41 48%
57 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.1 Participation Rate by Geography
57 Respondents: 26 in North ; 31 in South
North - Airport Respondents
South - Airport Respondents
58 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.2 Ownership and Operations Structure
Over 80% of the respondent airports are Municipally owned
. All airports (57) that took part in the survey responded to this question . 82% are “Municipally” owned: North: 81% South: 84% . 48% are “Municipally” operated: North: 65% South: 32% – More airports are operated by commission/authorities or private groups in the south compared with more operated by municipalities in the north . 74% are located in the same town as the airport owner: North - 92% South - 58%
Airport Owner Airport Operator
19 33%
5 9% 11 47 19% 82% 5 9%
27 48%
Municipality (Region / City / Town / Township) Municipality (Region / City / Town / Township) Airport Commission / Authority / Board Airport Commission / Authority / Board Private Private
59 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.3 Aerodrome Status
Proportionally, there are more certified airports in the North than in the South
. All airports (57) that took part in the survey responded Aerodrome Status North South Total to this question 16 16 32 . 32 (56%) of the 57 respondent airports are Certified Certified 62% 52% 56% – 16 (62%) of the 26 respondent airports in the North are Certified 10 15 25 Registered – 16 (52%) of the 31 respondent airports in the South are 38% 48% 44% Certified 26 31 57 . Among the respondent group, there are the same number of certified airports in the North and South; however proportionally, there are more certified in the North North . The proportion of certified airports among the Registered respondents (56%) is higher than among the total 10 population of 84 airports (45%) Certified 38% 16 . Trend towards de-certification 62% – 15 (60%) of the 25 registered airports that responded were previously certified – The majority of the 25 registered respondent airports (86%) South stated that the cost and requirements of maintaining certification was not justifiable
Certified Registered 16 15 52% 48%
60 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.4 ACAP Eligibility
The majority of respondents are not ACAP eligible
ACAP . 54 of 57 airports responded to this question North South Total ELIGIBILITY . 16 (30%) of the 54 respondent airports are ACAP eligible 12 4 16 Yes – 12 (46%) of respondent airports in the North are ACAP eligible 46% 14% 30% – 4 (14%) of respondent airports in the South are ACAP eligible 14 24 38 No . 12 (75%) of the 16 ACAP eligible respondents received over $32 million in 54% 86% 70% ACAP funding between 2006 and 2010 26 28 54
ACAP Eligibility of Respondent Airports
ACAP Year # of Average per North South Total ($) Received Airports Airport ($)
2010 9 $ 6,848,678 $ 760,964 Yes 4 2009 9 $ 4,636,613 $ 515,179 Yes 14% 2008 8 $ 12,494,378 $ 1,561,797 12 No 2007 5 $ 3,468,500 $ 693,700 46% 14 2006 6 $ 4,999,471 $ 833,245 54% No 24 Total 37 $ 32,447,640 $ 876,963 86%
61 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.5 Airport Financial Situation - Viability
78% of respondent airports consider themselves “NOT self-sustaining”
. Definitions: – Viable: sufficient revenues to cover operating costs and airport’s share of capital costs – Self-Sustaining: sufficient revenues to cover operating costs – Not Self-Sustaining: insufficient cash flow to cover operating costs
. 54 of 57 airports responded to this question
. The majority of airports cannot cover operating costs – 42 (78%) of respondent airports are not self-sustaining: North – 19 (73%) South - 23 (82%) – 11 (20%) of respondent airports are self-sustaining: North – 6 (23%) South - 5 (18%) – 1 (2%) of the respondent airports is viable: North – 1 (4%) South - 0 (0%)
. There are more airports in the North that consider themselves self-sustaining than in the South – There is only 1 respondent airport that considers themselves “viable” and it is located in the North
Total North South 1 2% 1 4% 5 11 6 18% 20% 23% Not Self-Sustaining Self-Sustaining Viable 42 78% 19 23 73% 82%
62 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.5 Airport Financial Situation – Viability (continued)
Northern airports in general are more self-sustaining or viable
. Distribution by Geography – Northern airports in general seem to be financially better off than the southern airports since they have a higher percentage of scheduled passenger service in which to recover their costs – There are more northern airports that are ACAP eligible which contributes to overall financial health
. 52 airports responded to the question – “Has the financial viability of your airport changed in the past five years?” – Almost half (46%) responded that it has – Majority of comments indicate that operating costs have increased more then revenues in recent years; and significant concern regarding the funding of capital projects
2011 North South Total
Not-Self- 19 23 42 Sustaining 73% 82% 78%
Self-Sustaining 6 5 11 23% 18% 20% 1 Viable - 1 4%% 2% 26 28 54 100% 100% 100%
63 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.5 Airport Financial Situation - Viability (continued)
ACAP eligible airports are in better financial health
. Distribution by ACAP Eligibility: – 6% of respondent ACAP eligible airports consider themselves viable – 31% of respondent ACAP eligible airports consider themselves self-sustaining – 63% of respondent ACAP eligible airports consider themselves not self-sustaining
2011 ACAP Non-ACAP Total Eligible Eligible
Not-Self- 10 32 42 Sustaining 63% 84% 78%
Self-Sustaining 5 6 11 31% 16% 20% 1 Viable - 1 6% 2% 16 38 54 100% 100% 100%
64 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.5 Airport Financial Situation - Viability (continued)
Even though ACAP eligible, a large % consider themselves not self sustaining
. Combined Viability and ACAP Eligibility: – 100% of respondent airports that consider themselves viable are ACAP eligible (1 only) – 45% of respondent airports that consider themselves self-sustaining are ACAP eligible – 24% of respondent airports that consider themselves not self-sustaining are ACAP eligible
2011 ACAP Non-ACAP Total Eligible Eligible
Not-Self- 10 32 42 Sustaining 24% 76% 100%
Self-Sustaining 5 6 11 45% 55% 100% 1 Viable - 1 100% 100% 16 38 54 30% 70% 100%
65 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation
The average operating loss (excl. AIF revenue) was more than $90K per year in 2010
Average Operating Revenue & Expenses Median Operating Revenue & Expenses
$900,000 $450,000 $850,000 $430,000 $410,000 $800,000 $390,000 $750,000 $370,000 $700,000 $350,000 $650,000 $330,000 $310,000 $600,000 $290,000 $550,000 $270,000 $500,000 $250,000 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 24 27 31 36 49 24 27 31 36 49 Respondents Respondents Respondents Respondents Respondents Respondents Respondents Respondents Respondents Respondents
Average of Operating Revenue (excl. AIF) Average of Operating Expenses Median Operating Revenue (excl. AIF) Median Operating Expenses (excl. AIF)
Average and Median Operating Profit (Loss) . 49 airports provided financial data for one or more years $- (2 airports in the south were classified as significant outliers $(20,000)
and excluded from this slide and the following 4 financial $(40,000) slides) $(60,000) . Average and median operating loss significant $(80,000) $(100,000) . Average operating revenue is below operating expenses $(120,000) over all years with revenue not rebounding as much as expenses from the 2009 low $(140,000) 2006 2007 2008 2009 2010 24 27 31 36 49 . Median operating revenue has a similar trend to average Respondents Respondents Respondents Respondents Respondents operating revenue Average of Operating Profit / Loss (excl. AIF) Median of Operating Profit / Loss (excl. AIF) Subtract Median Operating Expenses
66 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation (continued)
Operating losses (excl. AIF revenue) at southern airports significantly more than in north
. Median operating losses (excl. AIF revenue) at southern airports are 3.9 times that at northern airports in 2010; 2.5 times overall between 2006-2010
. Average operating losses (excl. AIF revenue) at southern airports are 2.9 times that at northern airports in 2010; 2.3 times overall between 2006-2010
26 NORTHERN RESPONDENT AIRPORTS 2010 2006-2010 Overall
Operating Operating Operating Profit / Loss Operating Operating Operating Profit / Loss Revenues Expenses (excluding AIF) Revenues Expenses (excluding AIF) excluding AIF (excluding AIF) Average $951,958 $1,001,759 ($49,800) $841,215 $884,662 ($43,447) Median $509,277 $663,049 ($27,637) $447,000 $538,350 ($36,417) Minimum $0 $10,854 ($560,000) $0 $10,854 ($560,000) Maximum $4,500,000 $4,400,000 $900,000 $4,500,000 $4,400,000 $900,000
23 SOUTHERN RESPONDENT AIRPORTS 2010 2006-2010 Overall
Operating Operating Operating Profit / Loss Operating Revenues Operating Operating Profit / Loss Revenues Expenses (excluding AIF) (excluding AIF) Expenses (excluding AIF) (excluding AIF) Average $497,688 $644,338 ($146,651) $379,822 $480,607 ($100,785) Median $262,736 $386,773 ($108,255) $235,781 $349,972 ($90,887) Minimum $19,200 $61,390 ($832,000) $19,200 $61,390 ($832,000) Maximum $2,649,000 $3,481,000 $150,000 $2,649,000 $3,481,000 $150,000
67 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation (continued)
Operating losses (excl. AIF revenue) at ACAP eligible airports significantly more than at non-ACAP airports
. Median operating losses (excl. AIF revenue) at ACAP eligible airports are 3.8 times that at non-ACAP eligible airports in 2010
. Average operating losses (excl. AIF revenue) at ACAP eligible airports are 1.9 times that at non-ACAP eligible airports in 2010; 0.1 times overall between 2006-2010
14 ACAP ELIGIBLE RESPONDENT AIRPORTS 2010 2006-2010 Overall
Operating Operating Operating Profit / Loss Operating Operating Operating Profit / Loss Revenues Expenses excluding AIF Revenues Expenses excluding AIF excluding AIF excluding AIF Average $1,670,453 $1,813,201 ($142,748) $1,550,310 $1,618,319 ($68,008) Median $1,463,844 $1,655,582 ($170,290) $1,547,455 $1,921,000 $37,500 Minimum $160,000 $130,000 ($832,000) $160,000 $130,000 ($832,000) Maximum $4,500,000 $4,400,000 $900,000 $4,500,000 $4,400,000 $900,000
35 NON-ACAP ELIGIBLE RESPONDENT AIRPORTS 2010 2006-2010 Overall
Operating Operating Operating Profit / Loss Operating Revenues Operating Operating Profit / Loss Revenues Expenses excluding AIF excluding AIF Expenses excluding AIF excluding AIF Average $362,167 $436,363 ($74,195) $288,431 $355,501 ($67,069) Median $222,231 $312,493 ($45,095) $224,274 $291,521 ($42,068) Minimum $0 $10,854 ($552,511) $0 $10,854 ($552,511) Maximum $2,503,360 $2,623,600 $150,000 $2,503,360 $2,623,600 $150,000
68 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation (continued)
Significant variance in operating profit / loss (incl. AIF revenue) between north and south
. Median operating losses (incl. AIF revenue) at airports in the south are 6.5 times greater than airports in the north in 2010; 1.8 times overall between 2006-2010
. Average operating losses (incl. AIF revenue) at airports in the south are 2.8 times the gain among airports in the north in 2010; 3.3 times overall between 2006-2010
26 NORTHERN RESPONDENT AIRPORTS 2010 2006-2010 Overall
Operating Operating Operating Profit / Loss Operating Operating Operating Profit / Loss Revenues Expenses (including AIF revenue) Revenues Expenses (including AIF revenue) (including AIF) (including AIF) Average $1,029,591 $1,001,759 $27,833 $905,456 $884,662 $20,794 Median $509,277 $663,049 ($11,927) $446,030 $538,350 ($28,800) Minimum $0 $10,854 ($477,000) $0 $7,679 ($564,000) Maximum $4,803,000 $4,400,000 $900,000 $4,803,000 $4,400,000 $1,100,000
23 SOUTHERN RESPONDENT AIRPORTS 2010 2006-2010 Overall
Operating Operating Operating Profit / Loss Operating Revenues Operating Operating Profit / Loss Revenues Expenses (including AIF revenue) (including AIF) Expenses (including AIF revenue) (including AIF) Average $545,649 $644,338 ($98,689) $411,438 $480,607 ($69,169) Median $246,380 $370,695 ($77,602) $229,443 $330,465 ($52,917) Minimum $19,200 $61,390 ($552,511) $9,700 $30,000 ($552,511) Maximum $3,203,000 $3,481,000 $150,000 $3,203,000 $3,481,000 $150,000
69 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation (continued)
Median operating profit at ACAP eligible airports; losses at non-ACAP eligible airports
. Non-ACAP eligible airports reported a median operating loss including AIF while ACAP eligible airports reported operating profits
. Non-ACAP eligible airports reported an average operating loss including AIF while ACAP eligible airports reported operating profit
14 ACAP ELIGIBLE RESPONDENT AIRPORTS 2010 2006-2010 Overall
Operating Operating Operating Profit / Loss Operating Operating Operating Profit / Loss Revenues Expenses (including AIF revenue) Revenues Expenses (including AIF revenue) (including AIF) (including AIF) Average $1,875,262 $1,813,201 $62,060 $1,720,803 $1,618,319 $102,484 Median $1,132,391 $1,381,163 $84,000 $1,136,106 $1,227,206 $37,500 Minimum $160,000 $130,000 ($477,000) $66,000 $130,000 ($564,000) Maximum $4,803,000 $4,400,000 $900,000 $4,803,000 $4,400,000 $1,100,000
35 NON-ACAP ELIGIBLE RESPONDENT AIRPORTS 2010 2006-2010 Overall
Operating Operating Operating Profit / Loss Operating Revenues Operating Operating Profit / Loss Revenues Expenses (including AIF revenue) (including AIF) Expenses (including AIF revenue) (including AIF) Average $368,235 $436,363 ($68,128) $291,141 $355,501 ($64,360) Median $218,000 $280,178 ($42,190) $225,186 $288,761 ($42,190) Minimum $0 $10,854 ($552,511) $0 $7,679 ($552,511) Maximum $2,656,360 $2,623,600 $150,000 $2,656,360 $2,623,600 $150,000
70 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation – Aeronautical Fees
The most commonly applied aeronautical fee is for aircraft parking, followed by landing fees
. 54 of the 57 respondent airports provided information regarding the aeronautical fees charged . Almost all respondents charge aircraft parking fees . The majority of respondents charge landing fees
2011
Yes No North South Total AIF 13 41 Airports Airports Airports 24% 76% AIF Landing 39 15 7 6 13 72% 28% Landing 23 16 39 Terminal 18 36 Terminal 12 6 18 33% 67% Other Passenger Charge 2 3 5 Other Passenger Charge 5 49 9% 91% Fuel Surcharge 8 9 17 Fuel Surcharge 17 37 Aircraft Parking 23 27 50 31% 69% Aircraft Parking 50 4 93% 7%
71 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation – Aeronautical Fees (continued) Over 40% of airports stated tracking and the collection of fees is a problem after hours
. 54 of 57 respondent airports provided information regarding the tracking and collection of fees after hours – 22 airports (41%) stated it is a problem, of those 20 airports had comments with the majority (70%) stating: it is difficult to track and collect fees from aircraft that use the airport when airport staff are not on duty and is not cost effective to keep staff on duty for longer hours
72 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation (continued)
Funding of non-ACAP infrastructure projects varies by source and amount
Average Project Funding Source . 54 airports reported 64 non-ACAP funded projects between 2006-2010, totalling over Regional / Municipal $142 million: NOHFC – North – 26 airports, 30 projects, $16.7 million AIF – South – 28 airports, 34 projects, $125.4 million FedNor CAF . Respondent airports in the South received 7.5 ISF times more funding than those in the North Private Other . The average project funding received among FedDev - Ontario airports in the South is 6.6 times that in the BCF North 0% 10% 20% 30% 40% . The primary funding source is region / municipality (38%) Overall Average Project Cost Share followed by NOHFC (12%), AIF (10%), and FedNor (10%) Total Airports North Airports South Airports – The average cost-share Provincial distribution among northern Provincial Municipal 8% airports is fairly even 15% Provincial / Airport Municipal 22% Regional 9% – Regions / municipalities have / 22% Airport been the primary funding partner Regional Municipal 17% for projects in the south 43% Federal / 20% Regional Airport 63% 25% Federal 31% Federal 25%
73 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.6 Airport Financial Situation (continued)
Heavy reliance on aeronautical revenue
. Average AIF revenue has decreased since 2007 $600,000 with a similar trend if you exclude airports that $500,000 responded with a value of zero $400,000
. Overall AIF Revenue has averaged over $387,000 $300,000 per year between 2006-2010 of the respondent airports $200,000 $100,000
$- 2006 2007 2008 2009 2010 11 11 14 16 25 Respondents Respondents Respondents Respondents Respondents Average of AIF Revenue
100% . 90% Revenue distribution remains fairly constant from 29% 28% 29% 80% 32% 32% year to year varying slightly with an overall 70% average of: 60% 50% – Aeronautical (including AIF)* - 70% 40% 71% 72% 71% 30% 68% 68% – Non-Aeronautical* - 30% 20% 10% 0% 2006 2007 2008 2009 2010 *Aeronautical revenue includes AIF, landing, terminal, other 26 29 35 40 50 passenger charges, fuel surcharges, and aircraft parking while non- Respondents Respondents Respondents Respondents Respondents aeronautical revenue is any other revenue generated by the airport such as leasing land for non aviation uses. Average of Total Revenue Distribution - % Aeronautical (inc. AIF) Average of Total Revenue Distribution - % Non-Aeronautical
74 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.7 Condition of Airport Facilities and Equipment
. Airport managers were asked to qualitatively assess the condition of key airport facilities and equipment . 54 of 57 respondent airports provided responses – 26 in North, 28 in South – 16 ACAP eligible, 38 Non-ACAP eligible
. 5 point rating scale:
Very Poor Poor Fair Good Excellent
. Categories – Runways – Taxiways – Apron – Terminal – Perimeter Fence – Vehicles/Equipment – Roads/Parking
75 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.7 Condition of Airport Facilities and Equipment (continued)
The majority of airports rate the condition of facilities and equipment as “fair” or better
. All Respondent airports (54) ranked each category between very poor to fair more then 50% of the time
Pavements Very poor, Poor, or Fair Good or Excellent Most Frequent Rating – Runways 55% 45% Fair (33%) – Taxiways 52% 48% Good (35%) – Apron 67% 33% Fair (39%) Facilities/Equipment – Terminal 56% 44% Fair (40%) – Perimeter Fence 81% 19% Poor (31%) – Vehicles/Equipment 70% 30% Fair (40%) – Roads/Parking 63% 37% Fair (43%)
Runways 7% 15% 33% 26% 19% Taxiways 4% 17% 31% 35% 13%
Pavements Apron 15% 13% 39% 22% 11% Terminal 6% 10% 40% 27% 17%
Perimeter Fence 21% 31% 29% 10% 8%
Vehicles/Equipment 13% 17% 40% 26% 4% Facilities/ Equipment Roads/Parking 4% 16% 43% 29% 8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Very Poor Poor Fair Good Excellent
76 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.7 Condition of Airport Facilities and Equipment (continued)
Pavements, Terminals, and Parking Facilities are rated better in the South than the North
. Respondent airports in the south have better ratings for pavement, terminals, and parking facilitates while respondent airports in the north have better ratings for perimeter fences and vehicles and equipment North Versus South Airports – Rating of Facilities and Equipment
North 8% 15% 35% 27% 15% South Runways 7% 14% 32% 25% 21% North 4% 19% 38% 23% 15%
South Taxiways 4% 14% 25% 46% 11% Pavements North 12% 15% 50% 15% 8%
Apron South 18% 11% 29% 29% 14%
North 4% 8% 58% 27% 4%
South Terminal 8% 12% 23% 27% 31%
North 22% 26% 26% 17% 9%
Fence South 20% 36% 32% 4% 8% Perimeter Perimeter
North 13% 8% 38% 38% 4%
South
Facilities/Equipment 13% 26% 43% 13% 4% Vehicles/ Equipment North 8% 20% 40% 28% 4% Roads/ Parking South 12% 46% 31% 12%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Very Poor Poor Fair Good Excellent
77 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.8 Aviation Activity – Public Services
Different kinds of public service activity in the north and south
. All airports (57) responded to this question . Majority of respondent northern airports have scheduled service and aerial water bombing/fire fighting as opposed to southern airports . Almost all (93%) of respondent airports that indicated they have a public service activity type also reported 2010 aircraft movements . Most of the medevac, and resource management, and almost all of the aerial fire fighting takes place in the north . Search and Rescue (SAR) and aerial policing mostly takes place in the south
2010 Total Movements
North South Movements Movements # Responses # Responses Medevac/Air Ambulance 13,705 2,503 19 23
Aerial Water Bombing/Fire Fighting 7,913 60 14 1
Search and Rescue 274 896 11 16
Aerial Policing/Enforcement 370 2,209 10 21 Aerial Resource Management (eg. bear 1,733 524 tagging, rabies baiting) 10 16
78 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.8 Aviation Activity – Types
Activity distribution by type does not necessarily match distribution by movements
. More respondent airports in the north have % with Activity scheduled and charter commercial service than in the south North South 26 31 . More respondent airports in the south have Airports Airports flight training and other GA than in the north Scheduled Commercial 12 4 46% 13%
. Air ambulance / medevac activity appears to Charter Commercial 21 22 take place equally at airports in the north and 81% 71% GA - Flight Training 12 24 south 46% 77%
. Much more airports in the north have aerial GA - Other 18 23 69% 74% fire fighting activity Medevac/Air Ambulance 23 26 . More airports in the north have SAR activity 88% 84% Aerial Water Bombing/Fire Fighting 20 3 . More airports in the south have aerial policing 77% 10% / enforcement activity Search and Rescue 18 16 69% 52%
. More airports in the north have aerial resource Aerial Policing/Enforcement 14 23 management activity 54% 74% Aerial Resource Management (eg. bear 18 16 tagging, rabies baiting) 69% 52%
79 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.8 Aviation Activity – Aircraft Movements
Northern airports have a higher % of itinerant movements but fewer absolute numbers
. Average itinerant and local movements are shown below indicating the number of respondent airports per year . Maximum and Minimum values are also given for itinerant and local movements below . Northern airports were not as affected by the 2009 recession as southern airports
North Airports South Airports 14,000 30,000
12,000 25,000 Max: 27,512 Max: 29,384 Max: 34,104 Max: 31,388 Max: 26,017 10,000 Min: 40 Min: 40 Min: 40 Min: 40 Min: 40 Max: 60,000 Max: 60,000 20,000 Max: 60,000 Max: 53,000 Min: 350 Min: 400 Max: 50,000 8,000 Min: 300 Min: 500 Min: 150 15,000 6,000 Max: 28,000 Max: 30,000 Max: 27,793 Max: 27,900 Max: 30,000 Min: 50 Min: 50 Min: 50 Min: 50 Min: 50 10,000 Max: 49,410 4,000 Max: 45,972 Max: 46836 Max: 47259 Max: 46,129 Min: 500 Min: 500 Min: 500 Min: 125 2,000 5,000 Min: 150 - - 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Respondents: Respondents: Respondents: Respondents: Respondents: Respondents: Respondents: Respondents: Respondents: Respondents: Itinerant-21 Itinerant-21 Itinerant-21 Itinerant-20 Itinerant-21 Itinerant-21 Itinerant-21 Itinerant-21 Itinerant-22 Itinerant-23 Local-14 Local-15 Local-15 Local-16 Local-18 Local-22 Local-22 Local-21 Local-22 Local-24
Average Itinerant Movements Average Local Movements Average Itinerant Movements Average Local Movements
80 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.8 Aviation Activity - Passengers
Passengers at northern airports have been relatively constant over the last 5 years
. Total number of enplaned / deplaned (E/D) passengers are shown below based on 16 north and 13 south respondent airports (one southern airport with significant passengers compared to others was removed) . Average, maximum, and minimum values are indicated for each region
1,200,000 1,098,448 1,128,825 1,058,907 1,042,324 1,000,000 983,087
Avg: 21,477 Avg: 25,370 Avg: 46,097 Avg: 46,358 Avg: 46,718 Max: 124,137 Max: 121,269 Max: 118,586 Max: 110,400 Max: 142,756 800,000 Min: 100 Min: 200 Min: 150 Min: 280 Min: 150
600,000
400,000 Avg: 43,993 Avg: 45,568 Avg: 46,097 Avg: 46,358 Avg: 46,718 Max: 172,000 Max: 185,000 Max: 194,000 Max: 170,000 Max: 190,000 Min: 1,250 Min: 1,400 Min: 1,400 Min: 1,500 Min: 1,500 200,000
0 2006 2007 2008 2009 2010
North Airports - 16 Respondents South Airports - 13 Respondents
81 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.8 Aviation Activity – Air Cargo
Air cargo services important in the north
. 54 of the 57 respondent airports answered the question “Are cargo services available at your airport?” – 16 (30%) indicating cargo services were available: North: 12 of 26 (46%) South: 4 of 24 (14%)
. Airports were asked to indicate the top 3 cargo airlines at their airport: – Northern airports responded with many different large and local cargo airlines operating at their airport with Air Creebec and Bearskin Airlines selected the most – There were not many responses from south airports with the most frequent response being Cargojet
. Airports were asked “How important is air cargo to the surrounding communities of your airport?” – Northern airports commented that it was very important; while southern airports indicated with good rail and highway infrastructure air cargo services are not needed as much
82 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.9 Direct Employment – Airport Staff
A significant number of airports (21%) have five or fewer employees
. 49 of 57 airports provided employment figures (22 in North, 27 in South) . With more respondents since the 2006 study, direct employment has changed in some categories: – More airports took part with increasing respondents in the 6-10 and 11-25 FTE categories
% of Respondent Airports Direct Employment (FTE) 2011 2006 49 Respondent Airports 31 Respondent Airports ≤ 5 21% 29% 6 – 10 15% 6% 11 – 25 15% 6% 26 – 100 29% 29% 101 – 250 17% 23% 251+ 4% 6%
83 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.9 Direct Employment – At Airport
Average FTE is significantly higher at ACAP-eligible airports
. North / South Geographic Total Direct # FTE Among – Average direct employment at northern airports is Location Employment (FTE) Respondent 36% less then southern airports Airports (2011) – Average direct employment at northern airports Average 77 has declined in the last five years while it has North Minimum 1 increased at southern airports Maximum 400 . ACAP / Non-ACAP Average 105 – Average direct employment at ACAP eligible airports is almost seven times that of non-ACAP South Minimum 1 eligible airports Maximum 1,382 – Average direct employment at ACAP eligible airports has stayed relatively flat in the last five years, while it has doubled at non-ACAP eligible ACAP Eligibility Total Direct # FTE Among airports Employment (FTE) Respondent Airports (2011) Average 224
Minimum 8 ACAP Eligible Maximum 1,382
Average 33 Minimum 1 Non-ACAP Eligible Maximum 240
84 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.9 Direct Employment - Distribution at Airport
Airport staff make up a relatively small proportion of employment at the airport
. Air carriers are on average the largest employment group among ACAP respondent airports, while aircraft maintenance and repair is the largest for non-ACAP respondent airports . Public Sector based aviation organizations on average are the largest employment group for northern airports, while air carriers and aircraft maintenance and repair are the largest for southern airports
Airport % Distribution of Total Full-time Positions Employment Category ACAP Non-ACAP North South Overall Airport Staff (on payroll) 6% 8% 8% 5% 6% Airport Contracted Resources (eg. building maintenance, snow 5% 13% 4% 8% 6% removal, security, policing) Government Dept's/Agencies supporting airport operations (e.g., 13% 1% 11% 10% 10% CATSA, NAV Canada, CBSA, Health Canada etc.) Public Sector based aviation organizations (e.g., ORNGE/Ministry 15% 9% 33% 3% 13% of Health, Ministry of Natural Resources, OPP Air Services, RCMP) Other government (e.g., Environment, Coast Guard, Agriculture) 1% 2% 1% 1% 1% Flight Training Schools 4% 8% 2% 7% 5% Fixed Based Operators (FBOs) and Fueling Providers 8% 3% 5% 9% 7% Air Carriers (scheduled passenger and cargo) 24% 0% 8% 25% 19% Flying Club (mgt & admin) 0% 0% 0% 1% 0% Charter Operators 5% 9% 10% 3% 6% Aircraft Maintenance & Repair 16% 35% 17% 22% 20% Retail and/or Food and Beverage 3% 11% 2% 6% 5% Total 100% 100% 100% 100% 100% Note: Air carriers include cargo services as well which you do not need to be ACAP eligible for. One airport took part in the survey which have a significant number of employment at their airport.
85 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.9 Distribution of Direct Employment (continued)
ACAP-eligible airports employ the majority of each employment category
. Overall ACAP airports employ more employees (79%) than non-ACAP airports (21%) while airports in the north make up 36% of total employment compared with southern airports (64%)
. Southern airports appear to contract out more services than northern airports
. Employees of government departments and agencies, as well as FBOs, air carriers, flight training schools and flying club management, work predominantly at ACAP eligible airports, and mostly in the south
. The majority of employment at flight training schools is in the south
. Employees of charter operators are employed mostly at ACAP eligible airports in the north
. Employees of maintenance, repair and overhaul companies are employed mostly at ACAP eligible airports in the south
. Most of the retail, and food & beverage employment is at airports in the south
Airport % Distribution by Category Employment Category ACAP Non-ACAP North South Airport Staff (on payroll) 73% 27% 45% 55% Airport Contracted Resources (eg. building maintenance, snow removal, 57% 43% 20% 80% security, policing) Government Dept's/Agencies supporting airport operations (e.g., CATSA, 98% 2% 39% 61% NAV Canada, CBSA, Health Canada etc.) Public Sector based aviation organizations (e.g., ORNGE/Ministry of Health, 87% 13% 87% 13% Ministry of Natural Resources, OPP Air Services, RCMP) Other government (e.g., Environment, Coast Guard, Agriculture) 55% 45% 43% 58% Flight Training Schools 65% 35% 14% 86% Fixed Based Operators (FBOs) and Fueling Providers 91% 9% 24% 76% Air Carriers (scheduled passenger and cargo) 99% 1% 15% 85% Flying Club (mgt & admin) 100% 0% 7% 93% Charter Operators 65% 35% 65% 35% Aircraft Maintenance & Repair 63% 37% 29% 71% Retail and/or Food and Beverage 52% 48% 16% 84% Total 79% 21% 36% 64% Note: Air carriers include cargo services as well which you do not need to be ACAP eligible for.
86 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.10 Air Policy
The majority of respondents see a need for an overarching provincial air policy
. 54 respondent airports answered the question: “Do you feel there is a need for an overarching air transportation policy to guide provincial decision making regarding airports in Ontario?” . 37 (69%) agreed with the need North – 19 Airports agreed South – 18 Airports agreed . 31 airports commented, the majority of comments referred to: – A policy specifically for small rural airports is required – Funding support for airport infrastructure and maintenance – Policies that assure standardization and safety are imperative. Funding to implement changes is needed. – Airports are a huge economic generator for the local communities and need to be supported
87 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.11 Regulatory Impact
Regulatory changes can have significant impacts on smaller airports
. Airports were asked to comment on the impact of recent and proposed federal regulatory changes (e.g. Runway End Safety Areas (RESAs), Safety Management Systems (SMS), Airport Security Program (ASPs)/Security Management Systems (SeMS), reporting of financial and traffic data), at their airport . 44 airports had comments with most referring to: – Additional costs overburden small airports; no resources or funding considered for implementation of programs – Expensive and very time consuming but with these measures we will ensure a more efficient and much safer operation
88 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 3.12 Passenger Leakage
Majority of respondent airports are not affected by transborder leakage
. 53 airports responded to the question: “Has your airport been affected by passenger leakage to US airports in border States?” – 7 airports (13%) indicated they have – 22 (42%) stated no – 24 (45%) stated not applicable (we do not have scheduled passenger service)
. 4 (33%) of the 12 respondent airports in the south indicated it is an issue while 8 (67%) stated it is not . Of the 7 airports that stated leakage was an issue all had comments: – All comments were in reference to how close their airport is to bordering states and how cost is a major issue for leakage
89 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4. OTHER JURISDICTIONS
1. Introduction 2. Passenger and Cargo Leakage to US Airports 3. US Airports Funding and Management Model 4. Other Provinces / Territories – Air Policy and Funding Support
90 4.1 Introduction
How does Canada and Ontario in particular compare?
. Recent media attention regarding leakage (cargo and passenger) to U.S. airports – How big is the problem? – Why is it happening? . How is the US situation different than in Canada? . What funding is available to Ontario airports? . Do other provinces / territories have air policies?
91 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.2 Passenger Leakage – Price Sensitivity
Air passengers are price sensitive
. Airline ticket purchases are influenced much more by price than by brand, especially compared to other purchasing decisions . IATA estimates that in the leisure market, a 10% rise in price results in a 15% decline in traffic . The short-haul domestic segment is the most price sensitive
92 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.2 Passenger Leakage – How Big is the Problem?
More and more Canadians travelling by car to the U.S.
. 21% of leisure travellers travelled by car to a U.S. airport in 2010 – up 3% from 2009
– another 11% may do it in 2011 (Hotel Association of Canada) . In 2009, 1 in 6 Canadians flying to a U.S. destination departing from U.S. border airports to take advantage of cheaper fares (G&M) . The number of trips taken at US airports by Canadians has more than doubled in the past decade (Globe and Mail) . Passenger leakage costs Canada at least $1.1 billion a year in economic impact (AirTrav Inc. as sourced from Globe and Mail) . “Potential for almost 1/3 of Canadian travellers spending money on foreign airline tickets and taking flights outside of Canada” Tony Pollard, President of Hotel Association of Canada . Approximately ¾ of Canada’s population lives within roughly 160 km of the Canada-U.S. border (Globe and Mail)
93 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.2 Passenger Leakage – How Big is the Problem?
4.6 million one-way trips made by Canadians who departed or arrived at U.S. airports in 2009
94 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.2 Passenger Leakage – Why Is It Happening?
Ground rent costs each passenger approximately $4.17
. Why are domestic fares so expensive? – High ground rent – Layers of taxes and security fees – Relatively low competition between carriers . Why are U.S. fares lower? – Economies of scale – Government ownership of airports – Aviation viewed as critical economic generator, receiving direct infrastructure funding from Federal and state general revenue – Lower taxes – Airline ticket and fuel taxes collected are re-invested in U.S. aviation infrastructure
“During the past 10 years, the federal government has collected directly and indirectly almost $6.9 billion from the air transport industry in Canada – equivalent to $12.28 per passenger or approximately 5% of the average discounted domestic and international fare for the NACC member carriers in the 4th quarter of 2008” Dr. Fred Lazar
95 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.2 Toronto Pearson as an Example
YYZ is often more expensive than other proximate airports
. Even when taking into account ground transport costs to/from Toronto, Buffalo is a more cost-effective option for short, mid and long-haul flights
[source: “Competing beyond price - Why Canada’s tourism industry must innovate to survive” Deloitte for TIAC (2008) with data from Expedia.ca; Kayak.com; Megabus.com; Canadian Airports Council]
96 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.2 Diversion of Air Cargo to US Airports
. Diversion of air cargo from a local airport to more distant larger airports or cargo hubs is common – Diversion rate varies greatly between airports and over time depending on factors such as available air services at the local and alternate airports, trucking distances, time and costs to the alternate airports, relative airport costs and freight forwarder preferences – Some of the diverted cargo is trucked to other Canadian airports, and some to U.S. airports . How big is the problem? – In 2006, Toronto had an estimated 60-65% of potential air cargo from the Toronto area being diverted to airports other than Toronto Pearson despite the high level of wide-body international passenger services at the airport. – In Atlantic Canada, it is estimated that 33% of Nova Scotia’s and 15% of New Brunswick’s and PEI’s potential air cargo is diverted to U.S. airports – In Winnipeg in 1998, approximately 4% of the potential air cargo to/from Winnipeg was diverted to U.S. airports – In 2000, a study concluded that Vancouver International Airport (YVR) was capturing approximately one- half of the total cargo market – It is estimated that the amount of potential Canadian air cargo traffic diverted to U.S. airports is in the order of 15-25% or between 280,000 and 480,000 tonnes (2006). Almost all of this cargo is bound for international markets, primarily Europe and Asia – An additional 150,000 – 270,000 tonnes of air cargo is transhipped through the U.S. to/from international markets on transborder flights
97 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.3 U.S. Airports - Numbers and Types
The U.S. has more than 6 times the number of public use airports in Canada
. How Many? – 19,734 airports* – 5,179 (26%) open to the general public – 503 with commercial services – Majority of public airports (2,829 or 55%) are designated as reliever or GA
. Types – Primary Commercial Service Airports • large hubs, medium hubs, small hubs, non-hubs – Cargo Service Airports
– Reliever Airports * 19,734 “airports” includes 13,477 airports, 5,576 heliports, 495 seaplane bases, 35 glider ports, 13 balloon ports & 138 ultralight parks – General Aviation Airports
98 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.3 U.S. Airports - Ownership & Operational Structure
Much more federal and state involvement in U.S. . Ownership – Commercial service airports typically owned by local or state governments – No major commercial service airport in the US is owned by an entity other than a unit of the U.S. government, a state or local government; however several airports have contracted retail development and management to foreign firms (e.g., AIRMALL® USA manages terminal concessions operation at several international airports) – At larger hub airports, not uncommon for carrier to directly own & operate a dedicated terminal . Management Structures – City, County or State • E.g., Atlanta, Pittsburgh, Honolulu • Occasionally airport governed by appointed commission that reports to City Council or Board (e.g., Los Angeles, St. Louis) – Airport Authority • Autonomous entities with appointed Board that makes policy and financial decisions • E.g., Orlando, Minneapolis, San Diego – Port Authority Management (multi-modal) • e.g., PANYNJ manages JFK, LaGuardia, Newark, Stewart and Tetorboro airports + trains, tunnels & seaports . Roles & Responsibilities – Operator • Management control of airport = right to operate & develop airport • Long and short term planning, financial performance, maintenance, operation & compliance with federal, state and local laws and regulations – FAA • Regulator • Air traffic control and navigation • Administrator of PFC and AIP Programs
99 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.3 U.S. Airports – Funding Structure
Much more federal funding in U.S.
. Airport Revenues – Aeronautical – charge levied on carriers / aircraft operators for use of runways and other facilities – Commercial – rent for space occupied and/or right to provide services on airport property – PFC (see below) – Only an extremely small portion of revenue at a few airports comes from the local tax base . Airport Improvement Program (AIP) – FAA grants derived from Aviation Trust Fund – Allocated based on formulas and funding levels mandated by Congress – Approx. $3.5 billion in FY08 (incl. $1B to GA or reliever airports) – Eligible airports must be listed in NPIAS – Funds MUST be used for infrastructure, and NOT for operating expenses . Passenger Facility Charge (PFC) Program – Must be approved by the FAA – Range from $3 - $4.50 per segment for up to 4 segments on a round-trip ticket (max $18) – Airlines collect PFCs and remit to charging airport – Assist airports in airport development and expansion – Can only be used to fund specific capital improvement projects that will preserve or enhance safety, capacity or security; reduce noise, or increase air carrier competition . Funding of Design & Construction of Airport Infrastructure – Local Airport Authorities design and construct infrastructure such as terminals, parking lots – Airports normally issue revenue bonds to fund these improvements – Debt then repaid by airlines, passengers and other users through landing fees, terminal rents, PFCs, concession revenues, parking fees
100 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.3 Does privatization have a future in the U.S.?
New motivations are driving renewed interest in various forms of airport privatization
. Cash strapped state and local governments seeking to raise money by leasing or selling public assets, including airports . State and local financial positions weakening, combined with growing federal deficits reduce prospect that future grants will keep pace with airport needs . Privatization is part of an evolving business model for airport sponsors to consider . Federal support for airports has declined in real terms and is expected to decline in absolute terms given federal deficit . PFCs have been capped at same level since 1999 and are losing value in real terms . Some airport sponsors considering long-term leases of airport assets to extinguish debt (e.g., parking facilities) . Investment banks and institutional investors aggressively pursuing P3s as they offer steady long- term returns at very low risk and are less susceptible to inflation
101 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.4 Other Provinces / Territories - Summary
QC has official Air Policy; AB, BC, MB, SK have dedicated capital programs
Capital Program(s) Other Air Policy Own &/or Operate (excl. Prov/Terr share of Infrastructure Tax Exemptions, Discounts & Rebates (examples only – list is not (Document) Airports Stimulus) exhaustive)) . Community Airport Program (CAP) . int’l traffic (pax & cargo) exempt . Studies (ad-hoc) AB . AB Municipal Sustainability Initiative . 1.5 cent / L for domestic traffic (pax & cargo)
2 for fire protection . Transportation Partnerships Program (funding . Repeal of International Aviation Fuel Tax (4/2012) . Studies (ad-hoc) BC levels currently under review) . 100% rebate int’l all cargo flights . Through all programs $65M since 03/04 . Reduced to 2 cents / L domestic (was 5 cents)
24 northern . $81 K / yr operating grants for airports without . Air cargo on certain international flights exempt . Studies (ad-hoc) MB remote scheduled service
- . Ad hoc: $700K since 2001 . Rebate on international air service (2.5 cents/L) . Studies (ad-hoc) NB . Airports exempt from provincial property tax
22 . Federal Restoration Pgrm (~ $1M/yr) for . international flights exempt . Studies (ad-hoc) NL Coastal Labrador airports . Start-up $ for assoc’n . Ad-hoc e.g,r/w extension, ATB expansion
- . Ad hoc – in 2008 provided one-time grants to - . Studies (ad-hoc) NS small airports of $250K each (airport ops OR . Start-up $ for assoc’n capital) x 8 airports . Ad-hoc e.g. new route
27 . Part of ownership & operation of NWT - . Studies (ad-hoc) NWT Territorial Airports System
25 arctic & 3 - . Airports exempt from territorial taxes (except Iqaluit) NU others . GST is only tax on fuel
29 remote - . PILT based on passenger throughput . Studies (ad-hoc) ON
. Ad-hoc . Charlottetown Airport exempt from prov.. prop. tax . Start-up $ for assoc’n PEI
27 remote . Ad-hoc - . Studies (ad-hoc) . $ for CAQ, AQTA, AGAQ QC . $1M/yr Air Transportation Assistance Pgrm $1.85M/yr Air Fare Reduction Program
16 northern . Community Airport Partnership (CAP) $700K / . Av. Fuel tax 1.5 cents / L (from 1.3 cents) . Studies (ad-hoc) SK yr . Transborder and int’l flights exempt (through rebate)
YK 29 - . Studies (ad-hoc)
102 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.4 Other Provinces / Territories - Summary
Ontario is one of the few jurisdictions in Canada to levy a fuel tax on international flights
Aviation Fuel Taxes, Canada & Provinces . Ontario currently charges 2.7 (cents per liter) cents / litre aviation fuel tax on Jurisdiction Domestic International transborder and international Canada 4.0 0 flights departing Ontario airports AB 1.5 0 BC 2.0 0 ** . Eliminating the tax could lead to: MB 3.2 3.2 ** – Additional economic output of between NB 2.5 0 $59 - $74 million NL 0.7 0 ** – 19,000 – 29,000 more tourists / year NS 2.5 2.5 – An additional 690 – 1,015 jobs in the ON 2.7 2.7 province PEI 0.7 0.7
QC 3.0 0
SK 1.5 0 “Removal of the provincial tax on aviation fuel on transborder and internal air services would *: Transborder flights are subject to the tax; international flights are exempt substantially improve the cost competitiveness of **: 1.5 cents per litre for domestic cargo flights, 0 cents Ontario’s airports and allow airlines to enhance their per litre for transborder and international cargo flights product and service offerings to consumers. ” ***: Proposal to eliminate fuel tax for all international flights George Petsikas, President, National Airlines Council of Canada Source: Table 1 in “The Case for Eliminating the Government of Ontario Tax on Aviation Fuel on Transborder and International Flights” by Dr. F. Lazar, for NACC and IATA, January 2011.
103 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.4 Québec’s Air Transportation Policy
Policy adopted in 2002
PRIORITIES & STRATEGIES ENSURING AIRPORT VIABILITY . • Ensuring the regulations with a financial impact on Improving air service in airports are accompanied by assistance programs Québec • Supporting air tourism development by all concerned – Providing passenger air service to in order to boost airport growth, in cooperation with the region Tourism Québec and tourism associations – Promoting North American and • Supporting the pooling of technical expertise for international connections regional airports • Continuing to provide free services in all Government . Ensuring a competitive, viable of Quebec (GOQ) airports air transportation system • Promoting, with community support, a new sharing of – Increasing carrier competitiveness airport earnings to ensure airport viability • Examining feasibility of no longer permitting (at least . Ensuring airport viability for a certain period) the transfer of local or regional airports to municipal organizations in order not to . Showcasing Québec’s weaken the financial health of regional municipalities expertise and assets in the air • Examining feasibility of the marketing of services by GOQ airports that do not serve very remote or transportation sector isolated regions – Supporting training and research & • Recognizing the strategic nature of ground access to development Montreal’s airports in its general and sectoral policies – Maximizing the presence of internal as well as in transportation and traffic management plans organizations Item 4.2.2 (page 42) of Québec Air Transportation Policy 104 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.4 Alberta’s Airport Funding Programs
No specific policy document, but funding programs with specific inclusion of airports
Community Airport Program (CAP) Alberta Municipal Sustainability Initiative (MSI) . 72 Community Airports considered “a . $11.3 billion announced in 2007 ($3.1 B allocated necessary part of transport infrastructure and to-date) provide access to communities for resource, medical, tourism and personal travel” . $50 million each year allocated to conditional operating projects; rest for qualifying capital . CAP provides financial assistance for the projects rehabilitation and construction of Alberta’s community-owned public use airports without . Regional and Community Airport Facilities and scheduled service Equipment included as “Capital Project Category 2.l” for: . Currently funded at approximately $2M / year – Primary runway, cross-wind runways, secondary runways and taxiways, and runway extensions ; Aprons; Primary . CAP funds up to 1/3 with municipality and taxiway from main/terminal apron to runway ; Airport industry funding 1/3 each buildings, including terminals and storage areas/sheds ; Development areas, access roads, fencing and drainage ; . Includes major capital rehabilitation of airside Lighting and navigation equipment (primarily pavement rehabilitation) . Municipalities have 6 years to use allocated capital . Excludes all buildings, new runways, land funding acquisition, access roads, fencing etc.
“Alberta Transportation’s overall goal is to maintain and protect the existing network of public licensed community airports in support of: . safe airport operations; . general aviation operations and commercial air charters; . forest fire suppression and medi-vac operations . local and regional economic development; and . protection of provincial investment in airports.”
105 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.4 Saskatchewan’s Airport Funding Programs
No specific policy document, but CAP program for non-ACAP eligible municipal airports
Community Airport Program (CAP) . Provides capital contributions to airport infrastructure Saskatchewan Ministry of Highways and Infrastructure’s overall goal is to maintain and protect the existing . Intended to rehabilitate and upgrade network of network of publicly licensed community airports in strategic regional community airports in support of: southern Saskatchewan . safe airport operations; . Objective: provide eligible airports with stable, . general aviation operations and commercial air charters; long-term financial assistance for the . air ambulance and medevac operations; and rehabilitation, construction and capital . local and regional economic development. improvements of infrastructure . Eligible Airports – Regionally focused municipal or community owned airports that are not ACAP eligible – Projects need to contribute to economic and social development of region the airport serves . Priority given to safety related airside capital improvement projects . Funding – Program funding approved annually ($700K in 2011-12) – Ministry provides up to a maximum of 50% of eligible project costs – Maximum Ministry contribution (2011-12) is $250,000 – Competitive bids required
106 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 4.4 British Columbia’s Airport Funding Program
No specific policy document, but TPP includes airports
Transportation Partnerships Program (TPP) . Primary means of provincial contributions to airport capital projects . Funding levels currently under review . Percentage of TPP budget set aside for capital rehabilitation at airports not eligible for federal ACAP . Number of recent projects funded through federal/provincial/local infrastructure programs (1/3, 1/3, 1/3). Through all sources, BC has contributed $65 M to airport infrastructure since 2003/04.
107 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 APPENDICES
1. Appendix A – Study Airports 2. Appendix B – Canadian Airports (#s and Types) 3. Appendix C - Summary and Comparison to 2006 Results
108 Appendix A - Study Airports
North / ACAP Aerodrome Participated in North / ACAP Aerodrome Participated in North / ACAP Aerodrome Participated in No. Airport Name Identifier No. Airport Name Identifier No. Airport Name Identifier South Eligible Status Survey South Eligible Status Survey South Eligible Status Survey ARNPRIOR/SOUTH RENFREW 1 CNP3 South No Reg No 29 HAMILTON CYHM South Yes Cert Yes 57 PEMBROKE CYTA South No Cert Yes MUNI HANOVER/SAUGEEN 2 ATIKOKAN MUNI CYIB North No Reg No 30 CPN4 South No Reg Yes 58 PETERBOROUGH CYPQ South No Cert Yes MUNI HEARST (RENÉ 3 BANCROFT CNW3 North No Reg Yes 31 CYHF North No Reg Yes 59 PORT ELGIN CNL4 South No Reg Yes FONTAINE) MUNI BARRIE-ORILLIA (LAKE 4 CYLS South No Reg Yes 32 HORNEPAYNE MUNI CYHN North No Reg No 60 RED LAKE CYRL North Yes Cert No SIMCOE REGIONAL) ST. 5 BELLEVILLE CNU4 South No Reg No 33 IGNACE MUNI CZUC North No Reg Yes 61 CATHARINES/NIAGARA CYSN South No Cert Yes DISTRICT 6 BRAMPTON CNC3 South No Cert Yes 34 IROQUOIS CNP7 South No Reg No 62 ST. THOMAS MUNI CYQS South No Cert Yes SARNIA (CHRIS 7 BRANTFORD CYFD South No Reg Yes 35 IROQUOIS FALLS CNE4 North No Reg Yes 63 CYZR South Yes Cert No HADFIELD) BROCKVILLE-THOUSAND 8 ISLANDS REGIONAL CNL3 South No Reg Yes 36 KAPUSKASING CYYU North Yes Cert Yes 64 SAULT STE. MARIE CYAM North Yes Cert Yes TACKABERRY 9 BURLINGTON EXECUTIVE CZBA South No Reg Yes 37 KENORA CYQK North Yes Cert Yes 65 SIOUX LOOKOUT CYXL North Yes Cert Yes 10 CARLETON PLACE CNR6 South No Reg No 38 KILLARNEY CPT2 North No Reg Yes 66 SIOUX NARROWS CKM2 North No Reg #N/A SMITHS FALLS- 11 CHAPLEAU CYLD North No Cert Yes 39 KINCARDINE CNS7 South No Reg Yes 67 MONTAGUE (RUSS CYSH South No Cert No BEACH) SOUTH 12 CHATHAM-KENT CNZ3 South No Cert Yes 40 KINGSTON CYGK South Yes Cert Yes 68 CPE6 North No Reg No RIVER/SUNDRIDGE 13 COCHRANE CYCN North No Reg Yes 41 KIRKLAND LAKE CYKX North No Cert Yes 69 STRATFORD MUNI CNM4 South No Cert Yes 14 COLLINGWOOD CNY3 South No Reg Yes 42 KITCHENER/WATERLOO CYKF South Yes Cert Yes 70 SUDBURY CYSB North Yes Cert Yes 15 CORNWALL REGIONAL CYCC South No Reg Yes 43 LINDSAY CNF4 South No Reg Yes 71 THESSALON MUNI CPL5 North No Reg No 16 DRYDEN REGIONAL CYHD North Yes Cert Yes 44 MANITOUWADGE CYMG North No Reg No 72 TILLSONBURG CNQ4 South No Reg Yes
EARLTON (TIMISKAMING MANITOWANING/ TIMMINS/VICTOR M. 17 CYXR North No Cert No 45 CYEM North No Reg Yes 73 CYTS North Yes Cert Yes REGIONAL) MANITOULIN EAST MUNI POWER
18 ELLIOT LAKE MUNI CYEL North No Reg Yes 46 MARATHON CYSP North No Reg No 74 TOBERMORY CNR4 South No Reg Yes TORONTO/BILLY 19 EMSDALE CNA4 North No Reg No 47 MATTAWA CMA2 North No Reg No 75 BISHOP TORONTO CITY CYTZ South Yes Cert No AIRPORT TORONTO/BUTTONVILL 20 FORT FRANCES MUNI CYAG North Yes Cert Yes 48 MIDLAND/HURONIA CYEE South No Reg Yes 76 CYKZ South No Cert No E MUNICIPAL
21 GANANOQUE CNN8 South No Reg No 49 MOOSONEE CYMO North Yes Cert Yes 77 TORONTO/DOWNSVIEW CYZD South No Cert No
GERALDTON (GREENSTONE TORONTO/OSHAWA 22 CYGQ North No Cert Yes 50 MUSKOKA CYQA North No Cert Yes 78 CYOO South No Cert Yes REGIONAL) MUNI 23 GODERICH CYGD South No Reg Yes 51 NAKINA CYQN North Yes Cert Yes 79 VERMILION BAY CKQ7 North No Reg Yes 24 GORE BAY-MANITOULIN CYZE North No Cert Yes 52 NORTH BAY CYYB North Yes Cert Yes 80 WAWA CYXZ North No Reg No WELLAND/NIAGARA 25 GREENBANK CNP8 South No Reg No 53 OTTAWA/CARP CYRP South No Cert Yes 81 CNQ3 South No Reg No CENTRAL OWEN SOUND/BILLY 26 GRIMSBY AIR PARK CNZ8 South No Reg No 54 CYOS South No Reg Yes 82 WIARTON CYVV South No Cert Yes BISHOP REGIONAL PARRY SOUND AREA 27 GUELPH CNC4 South No Reg No 55 CNK4 North No Reg Yes 83 WINDSOR CYQG South Yes Cert Yes MUNI WINGHAM/ RICHARD W. 28 HALIBURTON/STANHOPE MUNI CND4 South No Reg Yes 56 PELEE ISLAND CYPT South Yes Cert No 84 CPR7 South No Reg Yes LeVAN
109 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 Appendix B - Canadian Airports - Numbers and Types
The U.S. has more than 6 times the number of public use airports in Canada
. How Many? – 1,828 “airports” – 1,503 aerodromes in Canada + 325 waterdromes 1,828 Total “Airports” in
– 316 certified land aerodromes in Canada (CFS 2011) Canada
. Types (as defined in NAP) LAND HELI WATER – National Airports System 1,167 336 325 • handle 90%+ of passenger traffic (airports in national & provincial/territorial capitals &/or > 200,000 passengers/yr) PUBLIC 847 – Regional Airports (incl. 26 NAS) • Scheduled service but < 200,000 passengers / yr
– Small Airports PRIVATE • No scheduled service 310 – Remote Airports • Exclusive, reliable year-round access to isolated MILITARY communities 10 – Arctic Airports *”Airports” includes land aerodromes, heliports, and water aerodromes Data from Canada Flight Supplement, June 2011 (Marh 2011 WAS) # of public land aerodromes estimated by LeighFisher using CFS data
110 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 APPENDIX C Summary and Comparison to 2006 Results (based on survey responses)
1. Survey Participation 2. Ownership & Operator Structure 3. Aerodrome Status 4. ACAP Eligibility 5. Financial Viability 6. Condition of Facilities and Equipment 7. Aviation Activity 8. Employment
111 Appendix C - Survey Participation
Excellent response rate in 2011
. 40% increase in overall participation – 57 respondent airports in 2011, 41 in 2006 – 26 northern respondents in 2011, 21 in 2006 – 31 southern respondents in 2011 20 in 2006 . More respondents from south in 2011 – 46% of respondents in 2011 from north; 51% in 2006 – 54% of respondents in 2011 from south; 49% in 2006
2011 – 57 Respondents 2006 – 41 Respondents
South North South North North 26 South 31 20 21 54% 46% 49% 51%
112 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 Appendix C - Ownership and Operations Structure
Slight shift away from “municipal” operations in past 5 years
. Majority remain “municipally” owned – 82% in 2011; 81% of respondents in 2006 – No significant difference in distribution between North and South either in 2011 or 2006 . Majority remain “municipally” operated but move towards airport authority or commission – 48% municipally operated in 2011; 56% in 2006 – 33% operated by an airport authority or commission in 2011; 20% in 2006 – 19% privately operated in 2011; 22% in 2006 – More airports in North remain municipally operated than in south; however declined slightly since 2006
113 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 Appendix C - Aerodrome Status
Apparent trend towards de-certification
. Number of certified airports declining – 71% of all respondent airports in 2006 were certified; 56% in 2011 – 71% of respondent airports in north in 2006 were certified; 62% in 2011 – 70% of respondent airports in south 2006 were certified; 52% in 2011
114 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 Appendix C - ACAP Eligibility
Upward shift in ACAP eligibility in north; downward shift in south
. Slight decline in ACAP eligibility overall – 34% of all respondent airports in 2006 were ACAP eligible; 30% in 2011 – 43% of respondent airports in north in 2006 were ACAP eligible; 46% in 2011 – 25% of respondent airports in south 2006 were ACAP eligible; 54% in 2011
115 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 Appendix C - Financial Viability
Increase in financial difficulties
. Increase in % of airports self-assessed as “not self- sustaining” – 74% of all respondent airports in 2006 considered themselves “not self-sustaining”; 78% in 2011 – 63% of respondent airports in north in 2006 considered themselves “not self-sustaining”; 73% in 2011 – 85% of respondent airports in south in 2006 considered themselves “not self-sustaining”; 82% in 2011 – 54% of respondent airports in 2011 reported that their financial viability has declined in the past 5 years . Large decline in financial health among ACAP eligible airports – 50% of ACAP eligible airports in 2006 considered themselves “not self-sustaining”; 63% in 2011 . Increases in operating revenue, expenses and profit . Increase in AIF as a funding source
116 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 Appendix C - Condition of Airport Facilities & Equipment
All most all facilities and equipment average ratings are lower compared to 2006
. Self-reported condition of airport facilities and equipment deteriorating:
Very Poor Poor Fair Good Excellent
Selection: 2011 Average Rating 2006 Average Rating Change – Runways Fair Good – Taxiways Good Good Same – Apron Fair Good – Terminal Fair Good – Perimeter Fence Poor Fair – Vehicles/Equipment Fair Good – Roads/Parking Fair Good
117 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 Appendix C - Aviation Activity
. Types – Increased scheduled commercial activity; decline in charter commercial (overall and in north and south) – Increase in flight training activity in north – Increase in public service activity (overall and in north and south) . Aircraft movements – Traffic declined between 2009 and 2010 both in the north and south; neither quite reaching 2006 levels by 2010 – In 2010, southern airports had on average, almost double the amount of air traffic movements than in the north; while in 2006 the difference was approximately 36% . Passenger Traffic – Overall passenger traffic has remained relatively flat since 2006
118 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011 Appendix C - Employment
. Airport Staff – A significant amount of airports continue to have less than 5 staff, however the % has declined to 21% of respondents in 2011 from 29% in 2006 – The amount of airports with 6-10 staff has increased from 6% of respondents in 2006 to 15% in 2011; the same shift is reported for the 11-25 employee category . Direct Employment at the Airport – The average direct employment at airports in the north has declined by 38% since 2006, and has increased by 98% at airports in the south – The average direct employment at airports that are non-ACAP eligible has remained relatively stable (+3%) while employment at ACAP eligible airports has increased over 50%
119 Ontario Ministry of Transportation JCI646 Ontario Municipal Airports Update 2011