YXS Prince George Airport Authority 2003 Annual Report
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YXS Prince George Airport Authority 4141 Airport Road - 10 Prince George, BC Canada V2N 4M6 www.pgairport.ca YXS Prince George Airport Authority 2003 Annual Report YXS: GATEWAY TO NORTHERN BRITISH COLUMBIA Prince George Airport Authority 4141 Airport Road - 10 Prince George, British Columbia Canada V2N 4M6 Telephone (250) 963-2400 Facsimile (250) 963-3313 Email [email protected] Website www.pgairport.ca YXS Prince George Airport Authority Table of Contents Report of the Chair 4 Report of the General Manager 6 The Prince George Airport Authority: Growth and Development 8 The Prince George Airport Authority: Overview of Operations 10 The Prince George Airport Authority: 2003 Annual Report 13 Auditor’s Report 14 2003 Audited Financial Statements 15 - 26 Corporate Governance 27 - 29 The Prince George Airport Authority: Board of Directors 30 Our Goals and Objectives 31 YXS Prince George Airport Authority Report of the Chair March 31, 2003 will be a significant date in the history of the Prince George Airport. million, were acquired. This amount is repayable to Transport Canada over a seven- On that date Prince George became the last of Canada’s national airports to be year period commencing in 2007. Prince George now has a fleet of “state of the art” transferred from the Federal Minister of Transport to a local authority. The transfer maintenance equipment comparable to any airport in Canada. The transfer agreement followed two long and successful years of negotiations with the Federal also provided a capital grant of $2 million and an operating grant of $1.1 million. Government. My thanks go out to my very capable Board of Directors who all voluntarily sacrificed their time spending many long hours at the negotiating table. The Authority awarded a tender of $4.5 million in October 2003 to expand the departure lounge and outgoing baggage facilities. The expansion included new The staff, under the capable leadership of Stieg Hoeg, Airport General Manager, baggage screening equipment and greatly improved departure lounge facilities. The has supported the transfer of operations with dedication, hard work and enthusiasm. screening equipment is being paid for by the Canada Air Transport Security Agency. It is no simple task suddenly to be confronted with new responsibilities such as the Prince George is the first airport outside of major Canadian cities to have this new establishment of a financial reporting system, maintenance systems, collective generation of equipment deployed. The departure lounge will have washrooms bargaining, capital project management and working with a Board of Directors, all available to passengers who have cleared security and a daylight lounge with glass responsibilities which did not exist under Transport Canada Management. frontage and skylight. Completion is slated for May 2004. This modification to our air terminal building will be the first exterior modification since the building was built The transfer agreement negotiated with Transport Canada resulted in the repaving thirty years ago. of the main runway and apron in front of the terminal building last summer. In addition three Oshkosh snow removal and runway maintenance units, valued at $2.7 Looking ahead, tenders for a phase II expansion to the air terminal building will close Our Mission Statement: The Prince George Airport Authority supports provision of efficient and safe facilities, reflecting the airport’s vital role in the region’s economy. The PGAA promotes sustainable development with due consideration for the environment and future growth potential. in April 2004. This expansion will add Customs and other Canadian Inspection Services of 4% over 2002, an increase achieved by only a handful of other Canadian airports. facilities allowing the Airport to seek international status. This second phase of our The Authority is thankful for the extremely positive support received from the citizens expansion results from generous assistance provided by the Province of British of Prince George and the Region, Prince George Mayor Colin Kinsley and Ministers Columbia and from the Federal Government’s Softwood Industry Community Shirley Bond and Pat Bell. We are also grateful for the support of our nominating Economic Adjustment Initiative Program. Discussions are now underway to provide bodies, the City of Prince George, the Fraser Fort George Regional District, direct air passenger service and charter service to the United States and other Initiatives Prince George and the Federal Government. destinations. Once phase II has been completed the airport terminal building will be roughly double its present size. Finally, a sincere thank you to Robert Leverman and Valerie Kordyban who served as Airport Authority Board members until they moved from the community just prior The only bleak note in an otherwise positive story was an announcement in 2003 by to transfer. Nav Canada of a study to decide whether or not the Prince George air control tower should be decommissioned. We have met with Nav Canada officials and we are confident that the business plan developed by the Airport Authority will convince Jim Blake them to maintain the tower and assist in the economic development of this region. Chair Prince George Airport Authority The year saw the welcome return of Central Mountain Air to Prince George with a number of new routes and destinations. Overall air passenger traffic was up in excess It was with great regret that the Board learned of the passing of Jerry Deere just as this Annual Report went to print. Jerry was a member of the original Airport Community Advisory Committee in the late nineteen eighties and early nineties. In 1997 he became a member of the Airport Transfer Planning Committee which subsequently recommended the formation of the Prince George Airport Authority in the year 2000. Upon formation of the Authority he was appointed a Director of the Authority representing Initiatives Prince George. Jerry was a man of few words but every word spoken was insightful and cut to the heart of the issue. His colleagues are grateful for the service he provided to the Board and the citizens of Prince George and surrounding region. His presence around the Board table will be missed. 5 YXS Prince George Airport Authority Report of the General Manager The transfer of operations to the Prince George Airport Authority in April 2003 prior to the transfer of the airport to the PGAA. Our terminal while operational was signaled to the airport staff that we were “cleared for take off” - to act on the plans pushed to constraints. We looked to alleviate bottlenecks and congestion in our check and priorities approved by the Board of Directors. Airport employees were energized in and security areas. By expanding the check in area to include additional customer about helping transform a former federal government facility into an independent, service counters and appropriate queuing it is our anticipation that higher customer self-sustaining airport that is the “Gateway to Northern British Columbia.” service levels can be attained. Our customers routinely said they wanted washrooms, and less congestion in the security hold room, so we listened. The new hold room We had always felt the potential to grow and diversify our business was achievable offers washrooms, additional queuing and expanded seating with a panoramic view and despite news on April 1, 2003 that Air Canada had filed for bankruptcy protection, of our airfield and surrounding area. we entered the new era of independence with a sense of unlimited opportunity for the Prince George Airport. Phase Two will position Prince George Airport to compete in the international marketplace with the addition of an enhanced arrivals area complete with Canada In the time leading up to our transfer we toured our region and met with our regional Customs and Immigration facilities. This phase, expected to begin in 2004 will open communities, sharing our vision for our region and our airport. These meetings up the opportunity for direct flights for US destinations and sunspot charters. provided valuable feedback, and built relationships that continue today and are vital Travelers departing from Prince George Airport could be in Seattle in less than two to our success. The opportunities that lie ahead for this region are immense, with hours! Throughout 2003 airport personnel were in regular communication with US tourism product development, focused effort and regional transportation issues being based airlines as marketing activities focused on this phase continued. the prevalent messages. It became evident that our vision for this region was shared throughout the communities and our activities were gaining attention in the industry. Phase Three will see the main runway lengthened to 10,000 feet and beyond. Our To move forward, we needed to address our infrastructure impediments. transborder and international air service initiatives identified the need for a longer runway to facilitate wide body, long-range aircraft. In lengthening our runway another To position YXS as a true gateway to BC’s Heartlands, change was needed. opportunity was presented – Cargo. Our first priority was to transform an airport terminal that had not seen much Prince George is ideally situated in Northern BC as a fuel stop and cargo transfer improvement since being built in 1973. A three-stage airport improvement plan center for companies flying routes from Eastern US centers to Asia and as well the was finalized. It was important at the onset that this project encompassed regional Central US to European centers. With developing markets in China, Taiwan and focus, innovative technologies and supported the needs of tourism, business and Korea, several cargo companies have expressed interest in YXS for tech (fuel) stops. the people of Northern BC. The three-phase $20 million airport expansion program is more than just an airport Phase One would see a new departure lounge featuring an expansive glass wall modernization project, it’s an investment in growth, development and diversification facing the arrival apron and prominent use of wood in keeping with the Prince of our region’s economy.