DOCSLIB.ORG

The Economic Impact of Canada's Airports

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Economic Impact of Canada's Airports A THRIVING SECTOR THE ECONOMIC IMPACT OF CANADA’S AIRPORTS A SUBSTANTIVE IMPACT THE IMPACT OF CANADA’S AIRPORTS 00 D D ,0 ire 13B ire 94 c $ c 1 t t Canada’s airports are collaborative world leaders in safe, high-quality, economically prosperous air transport. 6 2 $ , Total Employment 3 Total Wages Working together in positive ways with industry partners 0 t B 0 c 355,000 Jobs 0 e I $22B r n I i t and government, Canada’s airports promote better n d d c d n u e u I c i r c e 0 e d n d knowledge about the industry and their contribution to d 9 9 , 0 0 $ 6 B I the economy. Dire D 9B ct 8B irec $1 $4 t The numbers are impressive: in 2016, Canada’s airports directly contributed $48 billion in economic output, $19 $ $ 6 Total GDP 1 Total Output billion in GDP, 194,000 jobs and $13 billion in wages. B 1 I $35B B $79B n t c I d e n t Airports’ economic contributions are impressive, but even u r d c c i u e e d n d c i r B I e d n d more impressive is their importance in supporting and $ 1 0 $ 2 0 B I enhancing opportunities for all Canadians – and Canadian businesses. The connectivity provided by Canada’s airports creates jobs and improves the competitiveness and productivity of businesses in other economic sectors by attracting tourists, and facilitating trade and investment. When 140 MILLION 2.2 MILLION 6.2 MILLION indirect and induced data are included, the total impacts PASSENGERS FLIGHT AIRCRAFT jump to $79 billion in economic output, $35 billion in FREQUENCIES MOVEMENTS GDP, 355,000 jobs, and $22 billion in wages. Facilitating Cargo Freight to Remote Northern Communities With First Air’s home base located in Ottawa, the Ottawa Macdonald-Cartier International Airport facilitates the movement of more than 19.4 million kilos of cargo freight to Canada’s Arctic communities, including food, mail, medical supplies and other critical goods. First Air provides the largest fleet servicing Canada’s eastern Arctic region. 1988 - 2016 Partnering with Businesses AIR PASSENGER TRAFFIC CLIMBS AT CANADA’S AIRPORTS Sometimes it is cold in Winnipeg, really cold. The Winnipeg Airports Authority has used this to its Air passenger traffic in Canada has increased from 66 advantage by working with its partners in the aerospace million passengers in 1988 to more than 140 million industry to attract General Electric (GE) to the airport passengers in 2016. That’s an increase of 112 percent, or campus. In 2012, GE opened its engine testing facility, a compound annual growth rate of 3 percent in 28 years. focused mainly on cold weather conditions. The success of this partnership has led GE to upgrade the facility Averaged out, a million passengers move through to allow for year-round work. The $26 million upgrade Canada’s airports roughly every two and a half days. That to the 122,000 square foot facility brings the total means that for every 63 hours, airports directly create investment to $75 million. Partnerships like this is why 1,400 full time jobs, and generate $137 million in GDP the Winnipeg James Armstrong Richardson International andAir $50 Passenger million in taxes .Traffic (1988-2016) at Canada’s Airports Airport generates $3.4 billion in economic output and supports 17,000 jobs. 160 140 • Air passenger traffic in 120 Canada has increased from (Millions) 66 million 100 enplaned/deplaned passengers in 1988 to over 80 140 million enplaned/deplaned 60 passengers in 2016. 40 • Up 112% in 28 years, or a Enplaned/Deplaned Passengers Passengers Enplaned/Deplaned 20 2016: compound annual growth 140 Million Enplaned/Deplaned Passengers Handled rate of 3%. - 1988 1993 1999 2004 2009 2014 Domestic Transborder International Source: Air Carrier Traffic at Canadian Airports. Statistics Canada 11 DIRECT IMPACT FOR EVERY ONE MILLION PASSENGERS 1,400 $93M $137M $342M $50M jobs wages GDP economic taxes output DIRECT IMPACT FOR EVERY 1,000 AIRCRAFT MOVEMENTS 30 $2M $3M $8M $1M jobs wages GDP economic taxes output Providing Education, Jobs and Revenue Sharing for Indigenous Groups The Vancouver International Airport and the Musqueam Indian Band are located in the same community on land that is Musqueam traditional territory. In June 2017, the Musqueam Indian Band and the Vancouver International Airport signed a 30-year Sustainability and Friendship Agreement to ensure a mutually beneficial future for both. The agreement provides Musqueam with education and employment opportunities at the airport, a voice Helping Life Science Clusters Grow and Thrive in future development, environmental enhancements and restoration, and revenue-sharing that will allow the In Canada, nearly one in three inventors on medical Musqueam to continue to reinvest in the community. The science patent applications are from abroad. The agreement also includes identification and protection connectivity provided by the Toronto Pearson of archeological resources and support for ongoing International Airport is therefore important to help operations and long-term development at the airport. life science clusters grow and thrive, such as in London, The Musqueam have historically played an integral role in Ontario, where the sector has driven economic many areas of YVR’s business and operations. revitalization, employs more than 2,000 researchers, and houses internationally significant companies and research facilities. For example, the University of Western Ontario, with support from Sumagen (a South Korean-based global company), are involved in the development of the first and only preventative HIV vaccine. Patents related to the vaccine are registered in more than 70 countries. In another example, the Canadian Surgical Technologies and Advanced Robotics Centre is one of only eight training centres in the world for da Vinci Surgical Systems, which trains and certifies surgeons to perform minimally invasive procedures. TAXATION IMPACT OF CANADA’S AIRPORTS Canada’s airports are important generators of taxation revenues to all levels of government. Total taxes paid on an annual basis, by airport employers and employees, are estimated at $6.9 billion in 2016. Municipal $0.4B 6% Federal Provincial/ Territorial $4.8B $1.7B 70% Taxes are 54% of 24% $6.9B direct wages paid Total Taxes Connecting Canadians Goods with the World The total impact from air cargo exports on the Nova Scotia economy is approaching $490 million. Half of that value of cargo exports is driven by high demand, high-value seafood, including Nova Scotia’s world- famous lobster. China is the airport’s top market for live Nova Scotia lobster. The volume of exports to Canada increased by 63 per cent in 2017 compared to 2016, double the average growth of all export destination countries. The Halifax Stanfield International Airport enables local fishers to get time sensitive and high value product into the Asian market within 14 to 16 hours of departing Nova Scotia. ABOUT THE CANADIAN AIRPORTS COUNCIL The Canadian Airports Council (CAC), a division of Airports Council International-North America (ACI-NA), is the voice for Canada’s airports community. The CAC has 53 members operating more than 100 airports across Canada, including all of the non-governmentally operated National Airports System (NAS) airports. CAC member airports handle more than 90 per cent of the commercial air traffic in Canada, and an even greater share of international traffic. Canadian Airports Council 600-116 Lisgar Street Ottawa, Ontario K2P 0C2 General Line: (613) 560 9302 Fax: (613) 560-6599 www.cacairports.ca.
Load more

Recommended publications
  • Alberta – British Columbia Northern Airports Strategy
    Alberta – British Columbia Northern Airports Strategy Prepared for: NORTHERN B.C. & ALBERTA AVIATION COMMUNITIES Prepared by: Sypher a Division of Jacobs Consultancy Inc. 220 Laurier Ave. W., Suite 500 Ottawa, ON K1P 5Z9 In association with: Pryde Schropp McComb, Inc. 30 September 2006 Released: November 2006 Alberta – British Columbia Northern Airports Strategy Prepared for: Northern B.C. & Alberta Aviation Communities Prepared by: Sypher a Division of Jacobs Consultancy Inc. 220 Laurier Ave. W., Suite 500 Ottawa, ON, K1P 5Z9 In association with: Pryde Schropp McComb, Inc. 30 September 2006 Released: November 2006 Alberta – British Columbia Northern Airports Strategy Table of Contents Section Page EXECUTIVE SUMMARY ................................................................... i I. Introduction .................................................................... i II. System Overview............................................................. ii III. Findings.......................................................................... ii IV. Next Steps...................................................................... v I INTRODUCTION.................................................................... 1 II. NORTHERN AIRPORTS ARE PART OF A GLOBAL INDUSTRY: NORTH AMERICAN AVIATION TRENDS ..................................... 7 III. A TIME FOR ACTION.............................................................. 9 IV. TRAFFIC CHANGES WITHIN THE ALBERTA – BRITISH COLUMBIA NORTHERN AIRPORTS SYSTEM ..............................................
    [Show full text]
  • Workable Solutions to Meet Urgent Financial Needs of Airports in Canadian Communities
    Workable solutions to meet urgent financial needs of airports in Canadian communities Brief for Standing Committee on Industry, Science and Technology (INDU)’s study of the Canadian Response to the COVID-19 Pandemic Prepared by: The Canadian Airports Council May 22, 2020 The CAC is a Division of Airports Council International-North America Suite 600, 116 Lisgar Street / 116, rue Lisgar, Bureau 600 Ottawa, Ontario, K2P 0C2 Tel: 613.560.9302 Fax: 613.560.6599 Introduction The Canadian Airports Council (CAC) welcomes the opportunity to share perspectives and workable solutions from airports across the country for the Standing Committee on Industry, Science and Technology (INDU)’s study of the Canadian Response to the COVID-19 Pandemic. We thank the Government of Canada, members of the opposition and the public service for their work to help Canadian individuals and organizations endure the COVID-19 pandemic. Specifically, we would like to thank the government for quickly putting in place ground lease rent relief — which has helped Canada’s larger airports with immediate cash flow. We also appreciate the Canada Emergency Wage Subsidy (CEWS), which has allowed about half our 53 member airports to avoid some layoffs, despite the grounding of most flights and near elimination of passenger traffic. The CAC would like to put forward four solutions for your consideration that would help position airports for the eventual economic recovery — extended rent relief, interest-free loans, loan or bond guarantees, and funding for small airports in Canadian communities. The reality on the ground As you know, Canada’s airports are an essential part of our transportation network.
    [Show full text]
  • Canada's National Airports
    CANADA’S NATIONAL AIRPORTS A PRIMER ON CANADA’S NATIONAL AIRPORTS SYSTEM CANADA’S NATIONAL AIRPORT SYSTEM Did you know that most of Canada’s major airports haven’t been operated by any form of government since the 1990s? Were you aware that virtually all of the $19 billion that has been invested into airport infrastructure in Canada since then has come from the private corporations that operate Canada’s airports on a not-for-profit basis using funds generated by airport authority operations. Twenty-six of the airports formerly operated by government — those located in a Canadian capital city or handling more than 200,000 passengers a year — have been designated National Airports System (NAS) airports. 22 of these airports are leased to local, non-governmental airport authorities to operate. These airports, which pour all profits back into the airport, pay rent to the federal government and are responsible for some 90% of the passenger volumes in Canada. The federal government begins transfer of airports to local authorities, starting with Calgary, Edmonton, Montreal and Vancouver. NUMBERS TO KNOW: CANADA’S AIRPORTS $19 Billion $305 Million $4.6 Billion in Capital Investment Since in Rent in 2014 in Rent Since 1992 1992 Without Taxpayer Support CANADA’S AIR TRANSPORT INDUSTRY: CURRENT ECONOMIC IMPACT $34.9 Billion $7 Billion 126 Million 141,000 Contributed to Canada’s GDP Accrued Taxes Passengers in 2014 Direct Jobs Supported National Airports System (NAS) There are 26 NAS airports, including three operated by territorial governments and one operated by the City of Kelowna. 22 NAS airports are operated by local airport authorities independent from any form of government.
    [Show full text]
  • Governance Review of the Yellowknife Airport
    Final Technical Report GOVERNANCE REVIEW OF THE YELLOWKNIFE AIRPORT September 2015 The Lindbergh Group Inc. Yellowknife Airport Governance Review SC446825 i Yellowknife Airport Governance Review SC446825 TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................................................................... iv 1. INTRODUCTION ................................................................................................................. 1 1.1. Background ............................................................................................................................... 1 1.2. Engagement Objectives ........................................................................................................ 1 1.3. Engagement Scope .................................................................................................................. 1 1.4. Overall Approach and Methodology ................................................................................ 3 1.5. Key Issues and Considerations .......................................................................................... 4 2. EVOLVING PRACTICES IN AIRPORT GOVERNANCE IN CANADA AND AROUND THE WORLD ..................................................................................................... 5 2.1. Introduction ............................................................................................................................. 5 2.2. Overview of Privatization ...................................................................................................
    [Show full text]
  • Canada's Regional Airports
    CANADA’S REGIONAL AIRPORTS GETTING THE FUNDING BALANCE RIGHT Canada is home to 570 certified aerodromes, all but a dozen of which handle fewer than 570 one million passengers a year. These regional airports play an essential role in Canada’s air certified transportation sector. Those with traffic volumes below approximately 600,000 passengers a aerodromes year can find it difficult to raise enough revenue to support the maintenance and upkeep of their safety and security infrastructure. IMPORTANCE OF SMALL AIRPORTS TO THE COMMUNITY AND LOCAL ECONOMY As the world’s second-largest country by area, aviation has been at the heart of Canada’s transportation strategy since the early days of air mail. Today, some 126 million passengers a year pass through Canada’s airports—more than 18 million through medium and small airports—with More than 18 million scheduled commercial passenger service that connects Canada from coast to coast. passengers pass through Canada’s medium and But while smaller airports play just as important a role in linking their communities small airports annually to the rest of Canada and the world, lower traffic volumes can present challenges for these airports to cover the costs of their operations as well as needed upgrades. HOW AIRPORTS ARE FUNDED Under Canada’s National Airports Policy, airports are generally responsible for covering the costs associated with operations and maintenance. Airports have three main sources of revenue available to them: Average revenue stream of a small Canadian airport Landing fees and other
    [Show full text]
  • Commercializing Canadian Airport, Port and Rail Governance - 1975 to 2000
    Changing Course: Commercializing Canadian Airport, Port and Rail Governance - 1975 to 2000 By Mark Douglas Davis, B.Sc. (Hons.), M.A. A thesis submitted to the Faculty of Graduate and Postdoctoral Affairs in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Public Policy Carleton University Ottawa, Ontario © 2016 Mark Douglas Davis Abstract This thesis examines the historical public policy circumstances surrounding the Government of Canada’s decision to commercialize Canadian National (CN) Railways, as well as federal airports and ports over the period 1975 to 2000. Its focus is on testing one specific empirical hypothesis: That the commercialization of federal airport and port assets between 1975 and 2000 occurred primarily due to: (i) federal government concerns over the growing size of the national debt and deficit; and (ii) the emergence of the neoliberal ideology in Canada and its growing influence throughout federal policy making, as witnessed by the swift 1995 privatization of CN Railways. In particular, this thesis considers the role and influence of various policy factors, such as efficiencies, governance challenges, organizational cultures, stakeholder behaviours, ideological pressures, and political realities encountered by senior federal transportation bureaucrats and the political leadership during this period. The selection of CN Railways, airports, and ports also provides a window into Transport Canada’s repeated attempts at developing an integrated and multi-modal national transportation policy. This thesis conducts a rigorous, forward-looking deductive analysis using a meso institutional framework to examine the interactions of the major micro and macro circumstances surrounding federal transportation commercialization. The three modal case studies apply the meso framework to each unique case with special consideration of the context and causality of each major reform.
    [Show full text]
  • Core 1..80 Hansard
    CANADA House of Commons Debates VOLUME 138 Ï NUMBER 090 Ï 2nd SESSION Ï 37th PARLIAMENT OFFICIAL REPORT (HANSARD) Monday, April 28, 2003 Part A Speaker: The Honourable Peter Milliken CONTENTS (Table of Contents appears at back of this issue.) All parliamentary publications are available on the ``Parliamentary Internet Parlementaire´´ at the following address: http://www.parl.gc.ca 5419 HOUSE OF COMMONS Monday, April 28, 2003 The House met at 11 a.m. did not bet past second reading, which took place on February 4 this year. My motion, M-392, today is in the same vein. It reads: Prayers That, in the opinion of this House, the government should add “social condition” to the prohibited grounds of discrimination in the Canadian Human Rights Act. PRIVATE MEMBERS' BUSINESS Canada has always been a world leader in the promotion and protection of human rights. A Canadian was one of the architects of Ï (1105) the Universal Declaration of Human Rights, often called the “Magna [Translation] Carta of the World”. SOCIAL CONDITION This declaration includes the right to social security and to Mr. Serge Cardin (Sherbrooke, BQ) moved: realization of the economic, social and cultural rights indispensable for an individual's dignity and the free development of the That, in the opinion of this House, the government should add “social condition” individual's personality. to the prohibited grounds of discrimination in the Canadian Human Rights Act. He said: Mr. Speaker, allow me first to thank the House for this Also in 1976, Canada ratified the International Covenant on opportunity to introduce this motion.
    [Show full text]
  • Canadian Airports Council Is the National Trade Association for Canada’S Airports
    Canada’s Airports: Enabling Connectivity, Growth and Productivity for Canada 2018 Federal Budget Submission House of Commons Standing Committee on Finance Introduction The Canadian Airports Council is the national trade association for Canada’s airports. Representing airports from coast to coast to coast, our membership includes the countries largest international gateways, including Toronto Pearson International Airport and Vancouver’s YVR as well as community airports such as Saint John Airport and Fort McMurray International Airport. Together the country’s airports enable Canadians to access communities across this vast country and around the world - allowing businesses to be more productive and connected here at home and abroad. Travel and Leisure recently named Canada the world’s most connected country, which is not surprising given the tremendous growth in international routes and traffic Canada has seen in the past few years.1 Connectivity is essential in Canada’s globally integrated economy. Research suggests that a 10 per cent improvement in global connectivity results in a 0.5 per cent increase in long-run GDP per capita. Managing this growth in the coming years will be key to maintaining this connectivity, and the key role it plays in the productivity and competitiveness of Canadians and Canadian business. Air traffic at Canada’s major airports is up nearly seven percent in the first six months of the year with even stronger growth in overseas international markets.2 Over the next 10 years, traffic is projected to increase by another 50% or an additional 75 million passengers.3 Airports and industry partners are managing this growth today while planning for the future.
    [Show full text]
  • Report of the Air Issues Task Force on Small Airport Viability
    Report of the Air Issues Task Force on Small Airport Viability September 2006 Table of Contents Executive Summary 1.0 Introduction........................................................................................................... 7 2.0 Definitions.............................................................................................................. 7 2.1 Viability...................................................................................................... 7 2.2 Small Airports ........................................................................................... 7 3.0 Scope of the Work................................................................................................. 8 3.1 Airports within the Scope of the Work................................................... 8 3.2 Description of the Approach.................................................................... 8 4.0 Airport Mission and Role..................................................................................... 9 4.1 Data Elements............................................................................................9 4.1.1 Key Data Gaps............................................................................. 10 5.0 Analysis of Recent Trends.................................................................................. 10 5.1 Demographic Trends.............................................................................. 10 5.2 Air Transport Industry .........................................................................
    [Show full text]
  • Federal Study on Regional and Small Airports Final Report
    Transport Transports l ♦ I Canada Canada 14283B (08/2004) Regional and Small Airports Study Cana d la♦ I Transport Transports l ♦ I Canada Canada Place de Ville Ottawa K1A 0N5 Your file Votre reference Fax (613) 998-5008 Telecopieur (613) 998-5008 Our file Notre reference 2 9 2004 Mrs. Sally Beaven Peace River Airport Box 6600 Peace River, Alberta T8S 1S4 Dear Mrs. Beaven: Re: Federal Study on Regional and Small Airports Final Report In 2003, Transport Canada committed to conduct a study of the financial situation at regional and small airports that had been divested by the federal government since 1994. Please find enclosed a copy of the final report. Over 90 operators of divested airports, mostly municipalities, were contacted and 70% participated in the study. Briefly, the study found that divestiture, in and of itself, has had a neutral or positive effect on the financial state of these airports. The great majority of airports that were in a deficit position at the time of transfer have been able to significantly reduce that deficit, or even generate a surplus since divestiture. The study found that airports currently experiencing operating deficits almost all have the same obstacle. They lack a sufficient potential passenger base to attract or support significant air carrier service. There is a lack of users to support the level of airport facilities and services maintained. The demography of each catchment area, such as population, income and industry has a direct bearing on the operational and financial opportunities available to airport operators. ./2 Canada 51-0208 (98-12) - 2 - cases where airports are ~~,,.,.,, ...
    [Show full text]
  • Economic Impact: Canada’S Airports in 2016 Table of Contents
    Economic Impact: Canada’s Airports in 2016 Table of Contents Section Page Introduction 3 Canada’s Airports – By the Numbers 9 Study Methodology 16 Economic Impact of Canada’s Airports 21 Taxation Impacts 27 Glossary of Terms 32 Appendix A: List of Airports Included 35 Appendix B: Breakdown of Tax Impacts 38 2 INTRODUCTION Vancouver International Airport Overview of the Canadian Airports Council • The Canadian Airports Council (CAC), a division of Airports Council International-North America, is the voice for Canada’s airports. Formed in 1991, as the devolution of airports to local control was beginning, the CAC has established itself as the reliable and credible federal representative for airports on a wide range of significant issues and concerns. • Canada’s airports are engines for economic development in the communities they serve and one of their most important elements of local infrastructure. They provide communities with vital links to intra-provincial, national and international trade, and commerce. CAC’s 52 members represent more than 100 Canadian airports, including all of the National Airports System (NAS) airports and most passenger service airports in every province and territory. Defined by the federal government’s National Airports Policy, the 26 NAS airports link Canada from coast to coast and internationally. • Canada’s airports are collaborative world leaders in safe, high-quality, economically prosperous air transport. Working together in positive ways with industry partners and government, Canada’s airports promote better knowledge about the industry and their contribution to the economy. 4 Source: CAC website (http://www.cacairports.ca/content/about-us). Study Scope: Economic Impact of Canada’s Airports • CAC commissioned InterVISTAS Consulting to conduct an economic impact study that quantitatively determines the current economic impact of the current ongoing operations of CAC member airports.
    [Show full text]
  • Selfish Architecture
    selfish architecture DARWINIZING FLIGHT-RISK BUILDINGS. A TEST OF THE VIABILITY OF ROCKCLIFFE AIRPORT. by ROBERT ANTHONY REINIER VAN LIN A thesis submitted to the Faculty of Graduate and Postdoctoral Affairs in partial fulfillment of the requirements for the degree of MASTER OF ARCHITECTURE (PROFESSIONAL) Azrieli School of Architecture and Urbanism Carleton University Ottawa, Ontario ©2012 Robert Anthony Reinier van Lin Library and Archives Bibliotheque et Canada Archives Canada Published Heritage Direction du Branch Patrimoine de I'edition 395 Wellington Street 395, rue Wellington Ottawa ON K1A0N4 Ottawa ON K1A 0N4 Canada Canada Your file Votre reference ISBN: 978-0-494-91531-8 Our file Notre reference ISBN: 978-0-494-91531-8 NOTICE: AVIS: The author has granted a non­ L'auteur a accorde une licence non exclusive exclusive license allowing Library and permettant a la Bibliotheque et Archives Archives Canada to reproduce, Canada de reproduire, publier, archiver, publish, archive, preserve, conserve, sauvegarder, conserver, transmettre au public communicate to the public by par telecommunication ou par I'lnternet, preter, telecommunication or on the Internet, distribuer et vendre des theses partout dans le loan, distrbute and sell theses monde, a des fins commerciales ou autres, sur worldwide, for commercial or non­ support microforme, papier, electronique et/ou commercial purposes, in microform, autres formats. paper, electronic and/or any other formats. The author retains copyright L'auteur conserve la propriete du droit d'auteur ownership and moral rights in this et des droits moraux qui protege cette these. Ni thesis. Neither the thesis nor la these ni des extraits substantiels de celle-ci substantial extracts from it may be ne doivent etre imprimes ou autrement printed or otherwise reproduced reproduits sans son autorisation.
    [Show full text]