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2016 Annual Report Leading Transportation Innovation and Growth Photo by Laird Kay TABLE OF CONTENTS Routes and Airlines 4 Message from Board Chair 6 Message from President & CEO 9 Message from Management 10 2016 Financial Review 22 Consolidated Financial Statements 27 Notes to Consolidated Financial Statements 33 Corporate Governance Practices 54 Enhance Customer Service and Value STRATEGIC We will understand our customer needs and assure value DIRECTIONS through measurements relevant to them. Deliver and Operate Excellent Facilities and Services We will deliver safe, secure and environmentally sound facilities and services incorporating universal design principles. VISION To lead transportation innovation and growth With our community, we provide MISSION excellent airport services and facilities in a fiscally prudent manner VALUES Respect Integrity Service Excellence Expand Air Service to and from Winnipeg Develop and Realize Employee Potential To improve Manitoba’s links to the world, we will build Our team attracts and inspires excellence. We have on our 24-hour access and our intermodal connectivity. engaged employees, with the right skills, in the right place at the right time. Be an Effective Community Partner We will be a source of pride for our community and a Develop New Revenue Streams leader in its growth and development. Through business development initiatives, we will seek opportunities that will enhance and diversify revenue streams. 4 WAA Annual Report 2016 Routes and Airlines 2016 NON-STOP DESTINATIONS Ranin nlet Lonon K urchill Sankiluaq Gllam Topson Flin lon onton The as Saskatoon Vanouver elowna Calary Re ake Halfax Victoria Regna Abotsford Thuner Montreal Winnpeg Ba Ottaa Toronto Halton nneapolis Lonon Chicao Denver La ea al Sprns oenix Orlano Fort Nassau Lauderdale aradero Santa Cao lara Coo Holun Lo ao aatlan Puerto lata Canun unta Monteo ay Cana Puerto Vallarta Ixtapa-Zihuataneo Huatulco Destinations and airlines serving YWG are subject to change. Routes and Airlines WAA Annual Report 2016 5 AIRLINES SERVING MAIN TERMINAL BUILDING Air Canada Air Transat Bearskin Airlines Calm Air Delta Air Lines First Air NewLeaf Travel Company Sunwing United Airlines WestJet 2016 NON-STOP DESTINATIONS CANADA U.S. CHARTER* Calgary Denver Bahamas Edmonton Chicago Nassau Vancouver Minneapolis Churchill Las Vegas Cuba Flin Flon Phoenix* Cayo Coco Gillam Palm Springs* Holguin The Pas Fort Lauderdale* Santa Clara Thompson Orlando* Varadero Rankin Inlet Sanikiluaq United Kingdom Dominican Republic Ottawa Punta Cana Red Lake London* Thunder Bay Jamaica Toronto Montego Bay Montreal Regina Mexico Saskatoon Cancun London* Huatulco Hamilton Ixtapa-Zihuatanejo Abbotsford Los Cabos Victoria* Mazatlan Kelowna* Puerto Plata Puerto Vallarta * Seasonal destinations 6 WAA Annual Report 2016 MESSAGE FROM THE BOARD CHAIR The Honourable Marc Garneau, Federal Minister of Transportation, has laid out a vision for our industry. Duty free purchases on arrival, enhancing passenger screening to reduce wait times and an Air Travellers Passenger Rights Regime all have the potential to bring positive change to our airport. We are putting the structure in place to adapt and take advantage of the opportunities this presents. Much of what lies ahead remains unknown. Potential Tom Payne Jr. – Board Chair changes in airport governance is top of mind for many in our field and as a Board we are considering what With our community. this means for our community. There is no doubt the current community-based airport governance model is a Those first three words of our mission statement guide success and is serving the market well. Selling an asset the Board as we consider the vision for our airport. like our community airport should only be done in an Together with the incredible WAA team, we are building environment of significant consultation with those most a company that delivers world-class airport facilities and directly impacted, and with an understanding of what services in a fiscally prudent way. All for the benefit of the benefits accrue to the community that developed the community we serve. market and facilities. Our priorities remained unchanged as we complete 2016 Our Board is confident we will continue to succeed and look to 2017 – Business Transformation, Revenue because we have the right team to navigate these Optimization and Stakeholder Engagement. What is changes. I would like to welcome Scott Penman to changing is the world around us. the Board. Nominated by the City of Winnipeg, Scott Innovation is forcing companies to adapt. It is no longer brings 35 years of financial management experience to sufficient to say “this is how we do things around here.” our team. I would also like to thank Don Price for his Disruptive technology is everywhere and challenging us contribution as he retires from the Board. He has been to adjust but with leadership and a clear vision there is an important part of our success since joining the Board tremendous opportunity in change. We need to have in 2014. the courage to challenge our orthodoxies and find new WAA employees are leaders in our industry and in our ways to succeed. WAA’s vision is to transform how we do community. 2016 saw WAA again recognized as one business to be more efficient and increase performance of Manitoba’s Top Employers, the sixth year in a row. so that we are ready to lead in times of change. Their diligent efforts helped propel Winnipeg Richardson We need a sound and diverse foundation to better International Airport to break through the 4 million handle what is to come and ensure we are starting from passenger level in 2016, a first for our community. a position of strength. By optimizing our revenue and Our vision is clear and we have the right people in place maximizing potential we will be in position to face what to ensure that WAA is well placed to lead transportation is on the horizon. innovation and growth in our city, province and region. What we are creating is being built from our strength. WAA needs to continue to engage our stakeholders and Sincerely, community to better understand their changing needs and align our work. We are an economic driver and need to work closely with government, business and the community to deliver on our collective objectives. Tom Payne Jr. Our strategic priorities prepare WAA to be nimble enough to handle change. Some of this coming change is known. Disruptive technology is everywhere and challenging us to adjust but with leadership and a clear vision there is tremendous opportunity in change. – Tom Payne Jr. We are also investing in technology and people to give our city and province an edge in the global marketplace. – Barry Rempel WAA Annual Report 2016 9 MESSAGE FROM THE PRESIDENT & CEO our current airport tenants to facilitate their needs and unlock new opportunities on our airport campus which will spur economic growth in the near and long term. We are also investing in technology and people to give our city and province an edge in the global marketplace. We are leveraging our position as the centre of a cluster of world-class transportation and logistics firms, as well as tourism and hospitality operators to drive our economy forward. Barry Rempel – President & CEO Winnipeg is at the nexus of trading routes and is a transportation and logistics hub, with our airport at its Disrupt or be disrupted. This is the new reality for centre. Providing direct access to more than 60 national companies as our business landscape is changing and international destinations as well as cargo routes faster than ever before. As a management team we are around the world, we are integral to the trade and developing, refining and implementing the strategy to transportation interests of our city and province, today lead WAA in this dynamic environment. and into the future. More passengers than ever before walked through our We are equally ready for the challenge ahead. With doors in 2016. This is an incredible milestone for our the right people, our dedicated team is guided by the airport and our community. We also know that while understanding that they are here to serve. Our employees it took 20 years to witness a growth of one million keep the airport open 24/7, including Christmas 2016 passengers and achieve the record four million number, when our team stepped away from their families to keep we are also projecting to reach five million passengers the airport open so others could connect with theirs. It is by 2025, less than half the time. In fact, we expect to our team members, planting and harvesting over 6,000 double our passenger totals in the next 20 years. If we pounds of vegetables in our garden this year to donate aren’t planning for this today we won’t be prepared for to Winnipeg Harvest, cooking a meal for families at the challenges this will bring. Ronald McDonald House and helping to build a Habitat We are ready because we have the right plan in place. for Humanity home. It is the people going the extra mile We are changing how we do business now so we can every day to get you safely where you need to go. better serve our customers today and tomorrow. This Our commitment to serve is why 2016 was such an year we implemented LEAN processes and training for incredible success for WAA and why we are ready to our team, creating a corporate culture that will allow us take advantage of what comes next. to optimize our company for the future. WAA is strategically aligning with our community partners Sincerely, to promote our province and secure new routes. In 2016 WestJet added non-stop service to London, England, a first for our community since 2008. We also saw ultra- low cost carrier NewLeaf Travel Company launch in July.
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