gaining altitude Halifax International Airport Authority’s 2002 annual report describes the difficult climb back to financial stability after the catastrophic events of 2001. It celebrates a remarkable achievement in the face of immense downward pressures that, like wind shear, threatened to cut short the ascent. Gaining altitude is not the end of the journey but the point at which the early efforts to produce speed, momentum and lift are complete and the journey is under way. Halifax International Halifax Airport Authority 2002 Annual Report

gaining altitude is a steep and rapid climb requiring decisive action, singular focus, great skill, and full power to the engines.

The new domestic arrivals area officially opened on December 18, 2002. a journey to new heights 2002 Annual Report

The new and expanded food court offers travellers and airport

Halifax International Halifax Airport Authority Message from the Chairman employees more choice. It is this early foundation that has guided our decision-making, particularly during times of great upheaval. In 2002, we made many tough decisions and presided over the difficult work of cutting costs and the ensuing impacts on staff. But there were also times of celebration. In December, I was delighted to take part, along with the Honourable Myra Freeman, Lieutenant Governor of Nova Scotia, and Mayor Peter Kelly, in the official opening of our new domestic arrivals area. Once an overcrowded and aging facility, it is now a welcoming and stunning introduction to our t the end of 2002, the board of directors and staff of region. Indeed, when I look back at our achievements over the past 3 AHalifax International Airport Authority (HIAA) are able to look back on three years, it is the growth and development of the HIAA team and the our first three years of operation with a real sense of accomplishment. transformation of the facilities that give me the greatest satisfaction. The turbulence caused by the events of 2001 has at least temporarily Halifax International Airport was the first major airport in Canada abated, and our recovery is well under way. to show signs of recovery after the extraordinary challenges of 2001. On behalf of HIAA’s board of directors, I commend airport That speaks volumes about the strength and maturity of the authority employees for their hard work in bringing the organization organization. It is a clear sign that we are, indeed, gaining altitude. back on a solid financial footing in the face of enormous challenges. In 2002, Reg Milley was appointed vice chair of the Canadian The board made a number of critical decisions in 2002, always Airports Council (CAC) just as I was completing my term as chair of that mindful of the impact these decisions would have on the organization’s organization’s Council of Chairs. HIAA continued to work diligently ability to rebound despite crushing industry losses. When you face such throughout the year to protect the community’s interests in the adversity, it is important to be able to rely on the people around you to development of the Canada Airports Act and to lobby the federal help you make the best decisions. I am fortunate to work with an government to revisit its policy on rent. Because of its active involvement extremely talented and experienced board with a deep understanding at the executive level of the CAC, the airport authority continues to have of the industry and with years of leadership experience. a strong voice on issues of national concern. Our board is comprised of CEOs and senior officers from some On behalf of the board of directors, I would like to express our of Atlantic Canada’s leading organizations, including executives with appreciation – and congratulations – to Arthur Pickup, QC, who resigned extensive air transportation industry experience. These directors bring in December following his appointment to the Supreme Court of Nova to HIAA diverse skills and expertise in corporate governance, law, Scotia. Justice Pickup was a founding member of our board and has human resources, accounting, real estate and facilities, engineering, made a major contribution to the success of the airport authority. and marketing. Good decisions stand the test of time. While no one knows what At the outset, the board created an organization founded on tomorrow will bring, world events and the ongoing volatility in the air sound and proven business principles: accountability, transparency and transportation industry will continue to test us and our ability to make good governance. Our priorities were to: the best decisions under difficult circumstances. I am confident that the • build a framework for success by incorporating the disciplines and airport authority has the solid foundation, the necessary discipline, the business practices necessary to support the continued growth and sound practices, and the committed people to ensure that it continues stability of the organization; to thrive long into the future. • build a strong leadership team to create an environment that motivates and energizes our people; and Bernie Miller, Chairman • invest wisely in the airport’s infrastructure to ensure we are equipped Halifax International Airport Authority to capitalize on the opportunities ahead. Board of Directors Halifax International Airport Authority 2002 Annual Report Message from the President & CEO passenger terminal and helicopter facility to serve NovaScotia'soffshoreservehelicopterindustry. tofacility and terminal passenger million $3.5 December,a constructedBy had subdivision. CHC airside new authority's airport the in lot first July,the HelicoptersleasedIn International CHC the powerof resilience Cutting costs, however, was only part of the journey toward financial recovery. Our entire team was relentless in its efforts to grow revenues and expand services to customers. In spite of airline cutbacks around the world, HIAA added over a dozen new passenger and cargo carriers and routes in 2002, and we leased the first lot in our airside subdivision. The airport also handled a record volume of air cargo, significantly growing our cargo revenues. By the third quarter, we had turned the corner: revenue and passenger numbers were on the way up. In July, Halifax International he theme of this report is "gaining altitude," which aptly Airport was the first major airport in the country to show a growth in 5 Tdescribes our efforts to regain our financial footing, rebuild air service, passenger traffic over 2001, and by year-end, we were one of only two and move forward with our flight plan in the face of intense downward major airports in Canada to record an increase in passenger activity year pressure on the industry and the economy. over year. Despite serious financial and operational challenges, we ended Also in 2002, we completed the largest project in our Airport the year with an operating margin of $4.8 million, approximately $1 Improvement Program, a major milestone in our long-overdue million below 2001. Given the massive losses in the industry and the expansion. On December 18th, we celebrated the official opening of significant declines in passenger traffic and revenues in the first quarter, the new domestic arrivals area, the final element of the north-end this was nothing short of remarkable. expansion and an impressive introduction to the province. We also In 2002, the airline industry lost almost $13 billion worldwide, made significant progress on our main lobby retail expansion, adding the result of changing business fundamentals and the devastating more space and new retailers. This project brings us closer to our goal human and economic toll of September 11th. By the end of the first of creating a diverse and attractive marketplace to serve our quarter, passenger numbers at Halifax International Airport were 14 per passengers, airport employees and surrounding communities. cent below the same period the previous year and revenues lagged In 2003, there will be additional financial and operational seriously behind forecasts. At the same time, operating expenses grew challenges. The federal government’s rent policy continues to be a due to a number of planned increases in taxes and financing costs and major concern for the airport authority, adding $5 million annually to substantial, unanticipated increases in insurance and security costs. our operating expenses by 2006. These charges, combined with Our finance team projected that if we did not take immediate increased insurance and security costs and higher property taxes, will measures to remedy the situation, we would experience an annual $2.3 place a significant burden on our finances as we move ahead. million operating shortfall beginning in 2003. Clearly, this was I would like to convey my sincere gratitude to our management unacceptable; clearly, we had to act. team for their efforts throughout 2002. I am proud to be associated When presented with this severe financial situation, HIAA with such a knowledgeable and dedicated group of professionals. I employees responded by identifying nearly $500,000 in combined would also like to thank Eloi Gaudet, director of operations, who retired revenue-generating and expense-cutting measures. This was a in June following 26 years of exemplary service in the airport business. tremendous help, but it was not sufficient to eliminate our projected The past year has taught us a lesson in the power of resilience, shortfall, particularly given the introduction of $3.2 million in rent and nowhere was this more evident than among the staff of the airport charges beginning in 2003. It became evident that we would not authority. We have managed to put the organization back on sound be able to stabilize our financial situation without reducing our financial ground due largely to the dedication and resolve of our major expense – personnel costs. employees in the face of very trying circumstances. For that and for In April, we announced the elimination of 37 seasonal their tremendous support over the last 12 months, I offer my heartfelt and full-time positions. To accommodate these staff reductions thanks. Together we are gaining altitude. while ensuring service and safety would not be compromised, we restructured our operations and realigned the way we Reg Milley, President & CEO do business. Halifax International Airport Authority pushing out of the gate

The airport authority relies on a team of dedicated employees who manage a myriad of intricate and diverse functions in Operations, Marketing & Business Development, Planning & Engineering, Finance, Communications & Public Affairs, and Human Resources & Corporate Services. While it is impossible to convey fully what their efforts have meant to the organization’s recovery in 2002, a few examples of their day-to-day achievements are listed at the bottom of pages throughout this report. Without these contributions the results celebrated in this report would not have been possible. carrier, introduced service between Halifax and . Local entrepreneur Ken Rowe re-launched Canjet Airlines, further stimulating the market by offering six, low-fare flights a day from Halifax to several destinations including Toronto, , , and St. John’s. Also in June, re-introduced a second daily Halifax-to-Newark flight into its summer schedule, and Tango introduced two new flights to London and Windsor, Ontario. In July, CHC Helicopters International leased the first lot in the airport authority’s airside subdivision. By the end of the year, CHC had he financial repercussions of airline industry losses, the constructed a $3.5 million, 32,500 square foot passenger terminal and 7 Tterrorist attacks of September 11th, and concerns over air security helicopter facility to serve Nova Scotia’s offshore industry. continued to erode revenues in the first quarter of 2002, while sharp More air service announcements continued into the fall. In increases in insurance, property taxes, and financing continued to add September, GoTravel Direct, in partnership with , to HIAA’s expense burden. As a result, the business growth experienced announced vacation packages to winter sun destinations direct in the past few years dissipated. Halifax International Airport Authority, from Halifax. working with community partners, met this challenge head on, In November, Air Plus Comet began offering a weekly charter attracting new airlines, routes and services to the airport, resulting in a service to Malaga, Spain, and Air Canada Vacations announced daily sun full recovery of air passenger traffic from 2001 levels. flights to Caribbean destinations including Jamaica, Barbados, Mexico, Cuba, and the Dominican Republic. Full Power to the Engines Also in November, Pan Am launched the Clipper Connection, Even as airlines were scaling back, HIAA’s business development team operated by Boston-Maine Airways, which began offering a daily flight knocked on doors around the world to rebuild air services in Halifax. to Bangor International Airport. This new service was developed by Pan Results of these efforts came quickly. In February, Delta Connection Am, in conjunction with Emera, a Halifax-based energy company with announced it would begin three daily flights to Boston starting May 1st. business interests in Bangor. This was a strategic win – it strengthened the airport’s hub position and In December, WestJet announced plans to operate two daily, round- furthered the community’s objective of growing business between trip flights between Halifax and Hamilton beginning in February 2003. Atlantic Canada and New England. Other new carriers, including DutchBird and Travel Servis A.S., In May, Conquest Vacations introduced a new summer schedule utilized airport facilities for technical stops, refuelling and aircraft offering up to 10 weekly flights to Toronto, four weekly flights to St. servicing. John’s, and two weekly flights to , and London In 2002, HIAA reported a 14.5 per cent increase in air cargo (Gatwick). Also in May, two new carriers began weekly service to business and moved a record 29,728 metric tonnes of cargo through the London (Gatwick) – Skyservice and My Travel. airport. Contributing to this growth was the introduction of two new In June, three airlines established routes from Halifax to cargo carriers, Gemini Air Cargo and . In addition, Icelandair’s destinations in eastern and central Canada. Provincial Airlines launched successful charter trial resulted in a commitment to a four-month, scheduled service out of Halifax to Deer Lake. , a new, low-fare weekly cargo flight between Reykjavik and New York via Halifax.

Emergency Response answered 394 calls, including first aid, fuel spills, structural alarms, and aircraft standbys. Our Marketing & Business Development b

Peter Sworin and Joe MacLean, Emergency Response Carol Mackie, Marketing & Business Development Transport Association’s (IATA) Global Airport Monitor program. IATA measures 27 airport service elements, surveying passengers before and after flights. In the second quarter, Halifax International Airport ranked above the global average in passenger satisfaction and first in North America in "Courtesy and Friendliness of Airport Staff."

U.S. Pre-clearance Securing U.S. pre-clearance for Halifax International Airport continues to be a major priority for the airport authority and the community. U.S. pre-clearance benefits customers, airlines and the airport; it encourages 8 increased passenger traffic, attracts new airlines and passenger services, and boosts economic growth. In 2002, HIAA hired Intervistas, a New Opportunities to Flyhalifax.com consulting company with extensive experience in supporting HIAA introduced an innovative service in 2002 called flyhalifax.com. This organizations with U.S./Canada cross-border issues and negotiations. web-based travel-planning tool uses the Official Airline Guide, the As part of its war on terrorism, the U.S. government is in the world’s most comprehensive system of airline schedules. With only a process of integrating a host of federal agencies under the umbrella of few mouse clicks, visitors to the site can see all direct and indirect Homeland Security. Because of the magnitude and priority of this work, alternatives for flying between Halifax and anywhere in the world. all discussions related to U.S. pre-clearance are temporarily on hold Flyhalifax.com saves time, helps potential travellers make informed until integration is complete. decisions before booking, and is convenient and easy to use. It also has Despite this temporary delay, HIAA will continue its efforts to links to travel agents and airlines providing the option to either call or ensure that as soon as the U.S. government is in a position to resume book online. discussions, pre-clearance for Halifax is at the top of the agenda. In addition to stimulating passenger traffic, flyhalifax.com provides an opportunity for airlines to participate with HIAA in joint marketing opportunities to reach potential customers. During the year, the airport In 2002, the following 22 passenger and cargo airlines served the authority ran a radio, print and billboard advertising campaign to Atlantic region through Halifax International Airport: Air Canada, promote partner airlines and the flyhalifax.com website. Air Canada , Air Canada Tango, Air Plus Comet, Air St. Pierre, Air Transat, Canjet Airlines, Cargojet, Continental Airlines, Delta New FACES in Customer Service Connection, Federal Express, Gemini Air Cargo, Icelandair, Jetsgo, HIAA’s customer service team implemented a new initiative to enhance Maritime Air Charters, My Travel, Pan Am Clipper Connection, service called FACES – Friendly, Accessible, Comfortable, Efficient, and , Provincial Airlines, Purolator, Skyservice, and Safe and Secure. Emphasizing traditional Maritime hospitality, the Zoom Airlines. program encourages and rewards the natural customer service approach already demonstrated by frontline staff. The airport authority is a participant in the International Air

a Department administered contracts, leases, and airline operating agreements netting over $21,000,000 and attracted 14 new passenger and cargo airlines and 5 new service routes. 12 Tour Guides conducted

Kellie Hannam, Customer Service and Elaine Dixon, Volunteer Host Securing Peace of Mind The standards for safety and security, under which the Canadian air transportation industry operates, are among the most stringent in the world. The federal government, through Transport Canada, is responsible for security regulation and inspection in the aviation industry. The department makes the rules, establishes who is accountable, and ensures compliance. The airport authority is responsible for maintaining a secure perimeter around the restricted areas of the airport. It controls access for vehicles and persons who have a need to work in these secure areas. In cooperation with the Corps of Commissionaires and the RCMP, HIAA provides patrols, 9 policing, armed response, and surveillance throughout the airport. In April, the federal government established the Canadian Air Transport Security Authority (CATSA) through Bill C49. CATSA ensures the effective and efficient delivery of screening services at 89 designated Canadian airports, including Halifax. Specifically, CATSA is responsible for pre-board screening of passengers and their belongings as well as acquisition, deployment, operation, and maintenance of explosives- detection equipment at airports. Effective January 2003, CATSA assumed control of the pre-board screening process from the airlines at all major Canadian airports. Working together with CATSA, Transport Canada and other security agencies, HIAA is committed to making Halifax International Airport among the safest in the world.

32 tours for 766 guests. 92 Volunteer Hosts logged 14,662 hours. Our Security Section processed 1,156 restricted area passes and 933 parking passes, recorded 4,359 lost and found items, b

Junior Gosse, Security and S/Cst. Steve Gilmore, Corps of Commissionaires staying the course on airport improvement

a returning 1,561 of them, and members of B Shift assisted in the delivery of a baby in the public parking lot. Accounting Services paid 5,717 invoices, and issued 2,908 cheques and 2,871 invoices.

Angela Hartt, Procurement and Cathy Towers, Accounting Services the three new baggage belts; replicas of Alexander Graham Bell’s kites; a large mobile of an airplane circling a striking metallic globe suspended from the ceiling; and high-tech plasma screens for arrivals and departures information. The airport authority thanks the many community partners for their support and contribution to this project including the Aerospace and Defence Industry Association of Nova Scotia, Anchor Models, Atlantex Creative Works, Bluenose Preservation Society, the Greater Halifax Partnership, Halifax-Dartmouth Bridge Commission, Image Design, the eyond meeting the current and future needs of the Information Technology Industry Alliance of Nova Scotia, Interspace 11 Btravelling public, the Airport Improvement Program is crucial to Airport Advertising, Natural Resources, the Onshore/Offshore Halifax International Airport’s ability to grow. It enables the airport Technologies Association of Nova Scotia, Parks Canada, the Technology authority to attract new airlines and create alternative sources of and Life Sciences Association, Woolgar & Associates, and others. revenue, in effect, reducing the airport’s dependence on the volatile air passenger business. A New Market Takes Shape Construction began on a $12 million main lobby retail expansion project A New Experience for Arriving Passengers in early 2002. This new marketplace will offer customers choice and On December 18th, HIAA celebrated the opening of the domestic flexibility. Attractive boutiques, restaurants, expanded hours, and value arrivals area, marking the completion of the north-end expansion – pricing will appeal to air travellers, airport employees, and residents of a $25 million project and the largest component of the Airport surrounding communities. The airport shopping experience will be Improvement Program. further enhanced by a panoramic view of airside activity from a public Designed and constructed by WHW Architects and Rideau observation deck on the third floor of the main lobby. Construction, the new area is four times the size of the original facility. When the expansion is complete in the summer of 2003, this area The expansion alleviates the long-standing congestion issue and will be three times the size of the existing space with room for 70 per enhances passenger experience. It also provides an opportunity for the cent more retail amenities. Further, the project will increase concession airport authority to collaborate with various organizations to create a employment by about 40 per cent, adding 50 to 60 additional jobs. smart city theme. The design balances elements of the region’s rich During 2002, new and renovated facilities were constructed on the culture and heritage with contemporary icons representing advances in departures level for Legends Bar and Lounge, Hudson Group newsstands technology and economic growth. and gift shops, Tim Hortons, Brisket Boardwalk Deli, and Starbucks. On The domestic arrivals area includes passenger amenities such as an the main level, contractors completed construction of a new food court, expanded Visitor Information Centre, an interactive business-information introducing Tim Hortons, Brisket Boardwalk Deli, and Burger King into kiosk, an improved ground transportation services booth, renovated car the retail mix, and work began on the Maritime Ale House. rental counters, a new convenience store, and an Internet café to open A number of new retailers established a presence at Halifax in 2003. Among the aesthetic features are scale models of the Town International Airport, including Aer Rianta Duty Free, HMS Host, Hudson Clock and the Angus L. Macdonald and A. Murray MacKay Bridges on Group, and Island Beach Company, and several others will join them in

Our Procurement Section issued 2,000 purchase orders and processed 900 credit card transactions. Ground Transportation processed approximately 147,000 cars in the public parking lot. Our Environment Section b

Wayne Black, Ground Transportation treatment plant was designed by CBCL Limited and built by ACL Construction. It meets or exceeds provincial environmental protection standards.

Supporting Business Growth In addition to the major projects outlined in this report, HIAA also initiated a number of smaller capital projects throughout the year to accommodate growth in air carriers and services. The start-up of new airlines created short-term space challenges in the months ahead. Airport concessionaires have created a merchant’s the ticketing and baggage-handling areas. HIAA began work on a 12 association, which is exploring initiatives to develop and market the project to relocate existing ticket counters, add 10 additional counters, airport as an attractive, family-shopping destination not just for airline and make changes to the baggage-processing areas. The airport travellers but for people in neighbouring communities as well. authority is also examining the feasibility of installing Common Use Terminal Equipment – a more cost-effective and efficient way to serve Water Supply Upgrade and Replacement Project the needs of new carriers by enabling them to share equipment. In November, HIAA began a $3.3 million water supply upgrade project. As well, HIAA purchased and installed a passenger loading bridge Improvements to water pressure and flow capacity were required as a at a cost of approximately $800,000. This third HIAA-owned bridge result of the expansion of the airport terminal building and the addition provides the organization with greater flexibility and an additional of the airside subdivision. source of revenue. These enhancements offer significant opportunities for economic growth. Upgraded water services make these properties more attractive Master Plan to local companies and better serve the needs of large hangar facilities HIAA made significant progress in preparing a master plan, which and other air transportation businesses. Because of the potential examines long-term development issues to optimize land use at the benefits to the local economy, in early 2003, HIAA was able to secure airport. It assesses existing airside and groundside systems, facilities, funding support of $900,000 from Atlantic Canada Opportunities Agency services, and forecasted traffic demands to determine future needs. It (ACOA) and $500,000 from the province of Nova Scotia for this project. then evaluates and presents development options that are realistic, Once complete, HIAA expects even more rapid growth in air cargo and affordable and sustainable. related businesses. An integral part of developing the master plan is consulting with the community and gathering input on development alternatives. This New Treatment for Environmental Issue consultation process is scheduled to begin in the spring of 2003. In 2002, HIAA commissioned its state-of-the-art water treatment plant to neutralize acidic run-off caused by the presence of pyritic slate on airport property. Developing an environmentally acceptable solution to this long-standing challenge has been a priority of the airport authority since it assumed control of the airport in 2000. The $7 million

a processed approximately 2.5 billion litres of water through the new treatment plant. Information Technology Services resolved nearly 3,000 help desk problems.

Shawn Hicks, Environment Section Wayne DeCoste, Information Technology Services ne of the major advantages of establishing a community-based 13 Oairport authority is that it is better equipped to respond to community needs. HIAA is accountable to the community it serves, and as a result, a major focus of the airport authority’s operations involves outreach. In 2002, HIAA executive and staff delivered 34 speeches to business and community groups such as chambers of commerce, Rotary clubs, and professional associations; held three formal briefings with stakeholders; hosted an information day for media and partner organizations; and worked closely with local and national media to provide information and interviews. a community The airport authority consults with another important group - the Community Consultative Committee. This committee, which met twice in of support 2002, provided HIAA with insight into the community's needs, valuable feedback on the Master Plan, and input into its five-year capital plan.

Partners in Economic Development A key element of HIAA’s mandate is to contribute to and create economic growth in the community. The Association of Canadian Travel Agencies, ACOA, the Greater Halifax Partnership, the Metropolitan Halifax Chamber of Commerce, Nova Scotia Department of Tourism and Culture, Nova Scotia Office of Economic Development, Nova Scotia Business Inc., and the Tourism Industry Association of Nova Scotia are just some of the organizations in the region that work with HIAA on initiatives to foster regional economic growth. The airport authority has participated in joint marketing opportunities such as trade missions, trade shows and industry events to attract investment and showcase Nova Scotia’s growing economic strength. In addition, these organizations have assisted HIAA to attract

Facilities Maintenance staff handled the upkeep of a 54,000 m2 terminal building. Maintenance Garage staff spread 517,000 kgs of salt and 552,000 kgs of sand over the winter. Communications & Public Affairs handled 320 media b Aaron Whynder, Facilities Maintenance and Billy Turple, Maintenance Garage new airlines and air services, and they have supported the ongoing Approximately 350 people attended this moving commemoration efforts to secure U.S. pre-clearance. including the Honourable Myra Freeman, Lieutenant Governor of Nova During the design and construction of the domestic arrivals area, Scotia, and Mr. Freeman; provincial and federal politicians; airport HIAA collaborated with economic development agencies and industry authority board members and staff; airport employees; volunteer hosts; associations to develop the facility’s smart city theme, including the and local media. installation of an innovative, interactive business-information kiosk that promotes local industry to the travelling public. Gathering Community Feedback In September, the airport was pleased to support the Nova Scotia In August, the airport authority conducted a stakeholder survey to International Air Show, providing facilities and services for various aircraft. evaluate HIAA’s success in developing and maintaining strong relationships in the community. Among those who completed the survey, 14 Blue Tartan Welcome 95 per cent knew that the private sector had assumed responsibility for A unique feature of Halifax International Airport is the volunteer host administration of the airport, and 86 per cent believed that privatization program. After two years in operation, there are almost 100 volunteer has been beneficial. Most respondents were aware of (94 per cent) and hosts who are on duty providing directions, information, assistance, and a approved of (92 per cent) the Airport Improvement Program. warm Maritime welcome to passengers daily from 8 a.m. to 8 p.m. Approximately 80 per cent of those surveyed felt that HIAA does an In addition, the airport tour program, now in its fifth year, continues excellent or very good job of communicating with stakeholders, and 95 to be popular with schools and community organizations. Nearly all of per cent described the role the airport plays in facilitating economic the groups who have taken it have rated the airport tour as one of the development as important. best available. Awards and Recognition A Voice on National Issues In 2002, HIAA was recognized for its leadership and community outreach. In February, Reg Milley, president and CEO of the airport authority, was Reg Milley, president and CEO, was named one of Atlantic Canada’s named Vice Chair of the Canadian Airports Council (CAC). The CAC Top 50 CEOs by Atlantic Business Magazine and was the bronze winner of represents 40 members, which between them operate over 120 airports the Metropolitan Halifax Chamber of Commerce Business Person of the and provide service to more than 97 per cent of all passengers travelling Year award. in Canada. As a member of the CAC executive, HIAA has a strong voice, The airport authority received two Gemstone Awards from the Nova and has been actively involved in working with and lobbying government Scotia Chapter of the Canadian Public Relations Society for its 2001 on issues of national concern to airports such as the development of the annual report and its management of communications during the new Canada Airports Act, Transport Canada’s rent policy, and the September 11th crisis. government of Canada’s policy on security fees. The Royal United Services Institute of Nova Scotia presented the airport authority with an award for its efforts to ensure the safety and Remembering September 11th security of passengers and staff. The U.S. Consul General, Stephen Kashkett, and Premier John Hamm Finally, WHW Architects Inc. received The Lieutenant Governor’s hosted a September 11th anniversary memorial ceremony in the airport’s Award for Architecture: Medal of Excellence for their work on Halifax international arrivals area. International Airport’s north-end expansion project.

a calls, held 8 news conferences, issued 14 news releases, and responded to 540 web requests. Planning & Engineering managed 42 construction projects totaling approximately $12,800,000.

Sherrie Clow, Communications & Public Affairs Larry Butler, Planning & Engineering Five-Year Forecast Year 2002 (actual) 2003 2004 2005 2006 2007 Passenger Volume 2,853,778 3,052,586 3,223,758 3,336,130 3,437,206 3,524,430 Per Cent Change .01 % + 7.0 % + 5.6 % + 3.5 % + 3.0 % + 2.5 % Total Aircraft Movements 85,012 91,218 97,514 104,123 107,247 110,572 Per Cent Change - 9.5 % + 7.3 % + 4.8 % + 3.5 % + 3.0 % + 3.1 % Planned Capital Expenditures $ 12,406,600 $ 19,425,000 $ 14,954,000 $ 17,575,000 $ 14,979,000 $ 15,086,000 Rent Payable to 15 Transport Canada $ - $ 3,180,000 $ 4,243,000 $ 4,327,800 $ 4,558,100 $ 4,649,300

forecast and review

Financial Review For the year ending December 31, 2002, HIAA generated $28.4 million in $12.4 million, which were financed by cash from operating activities including operating revenues as compared to $28.7 million in 2001. HIAA collected an AIF and a $3.0 million line of credit from the Canadian Imperial Bank of additional $8.7 million in Airport Improvement Fees (AIF), for total revenues of Commerce. HIAA has established financing of up to $27.0 million to fund the $37.1 million in 2002, compared to $37.0 million in 2001. According to the Airport Improvement Program in addition to any future surpluses. terms of HIAA’s agreement with the airlines, every dollar collected in AIF is Looking ahead, escalating charges will continue to erode HIAA’s operating applied to capital projects, which are approved through a consultation process. margin and require management to keep day-to-day operating costs as low as In 2002, these projects included expansion of the domestic arrivals and main possible. In 2003, the airport authority anticipates continued increases in costs lobby retail areas; completion of a water treatment facility and airside for enhanced security, war and terrorism insurance, full realty taxes on new subdivision; and work on the water supply upgrade and replacement initiative. construction, and maintenance of the expanded facility. As well, HIAA operates Total operating expenses for 2002 were $23.6 million as compared to the airport under a lease with Transport Canada that sets out a calculation of $23.0 million for 2001. The increase in annualized operating expenses was annual ground rent. In 2003, HIAA begins to pay a $3.2 million annual rent mostly attributable to added security and insurance costs, and increased obligation to Transport Canada, which will escalate each year thereafter. In amortization costs resulting from new construction. addition, in 2003, the airport authority will commence repayment of its chattels Excess of operating revenues over operating expenses totaled $4.8 million loan to Transport Canada, amounting to $1.3 million annually for four years. as compared to $5.7 million in 2001, excluding AIF. This excess was retained HIAA’s five-year plan sets a course for managing these financial challenges and invested in HIAA’s minor capital program enabling the airport authority to despite a volatile air transportation industry. Over this period, HIAA will meet ongoing operating requirements and proceed with much-needed continue to grow and diversify its revenues, carefully manage its operating improvements to an aging infrastructure. Capital expenditures for the year were costs, and continue to work to improve its operating efficiency. halifax international airport authority balance sheet auditors’ report to the directors

As at December 31, 2002, with comparative figures for 2001 (in thousands of dollars)

16 We have audited the balance sheet of Halifax International Airport Authority as at 2002 2001 December 31, 2002 and the statements of operations and changes in net assets $ $ and cash flows for the year then ended. These financial statements are the Assets responsibility of the Authority’s management. Our responsibility is to express an Current opinion on these financial statements based on our audit. Cash 2,092 1,144 Accounts receivable 4,651 4,332 We conducted our audit in accordance with Canadian generally accepted auditing Inventories 383 393 standards. Those standards require that we plan and perform an audit to obtain Prepaid expenses 362 257 reasonable assurance whether the financial statements are free of material 7,488 6,126 misstatement. An audit includes examining, on a test basis, evidence supporting Capital assets (note 3) 44,494 33,589 the amounts and disclosures in the financial statements. An audit also includes Organization costs (note 4) 91 1,188 assessing the accounting principles used and significant estimates made by 52,073 40,903 management, as well as evaluating the overall financial statement presentation. Liabilities and Net Assets In our opinion, these financial statements present fairly, in all material respects, Current the financial position of the Authority as at December 31, 2002 and the results of Accounts payable and accrued liabilities 8,434 13,532 its operations and its cash flows for the year then ended in accordance with Deferred revenue 70 129 Canadian generally accepted accounting principles. As required by the Canada Current portion of long-term debt (note 5) 1,965 268 Corporations Act, we report that, in our opinion, these principles have been 10,469 13,929 applied on a basis consistent with that of the preceding year. Long-term debt (note 5) 5,867 5,332 Security deposits 1,086 515 The financial statements for the preceding year were audited by other auditors. 17,422 19,776 2002 Annual Report Net assets Equity in capital assets 34,651 21,127 52,073 40,903 Commitments (note 8) See accompanying notes to the financial statements. Chartered Accountants Halifax, Canada On behalf of the Board: February 14, 2003

Director Director Halifax International Halifax Airport Authority Financial Statements statement of operations and changes in net assets statement of cash flows

Year ended December 31, 2002, with comparative figures for 2001 Year ended December 31, 2002, with comparative figures for 2001 (in thousands of dollars) (in thousands of dollars)

2002 2001 2002 2001 17 $ $ $ $ Revenues Operating Activities Terminal and passenger security fees 8,302 8,165 Excess of revenues over expenses 13,524 14,071 Landing fees 8,102 8,407 Items not involving cash: Concessions 5,904 6,142 Amortization 2,561 1,973 Parking revenues 3,412 3,691 Change in non-cash operating working capital: Rentals 2,199 1,538 Increase in accounts receivable (319) (1,205) Other revenue 497 785 Decrease in inventories 10 35 28,416 28,728 Increase in prepaid expenses (105) (27) Airport improvement fees (note 7) 8,695 8,328 (Decrease) increase in accounts payable 37,111 37,056 and accrued liabilities (5,098) 7,067 Decrease in deferred revenue (59) (33) Operating Expenses Increase in security deposits 571 28 Salaries, wages and benefits 11,046 10,634 Cash provided by operating activities 11,085 21,909 Materials, services and supplies 6,908 6,867 Amortization 2,561 1,973 Investing Activities General and administrative 2,393 2,981 Expenditures on capital assets (12,369) (35,679) Property taxes 679 530 Cash used in investing activities (12,369) (35,679) 23,587 22,985 Excess of revenues over expenses 13,524 14,071 Financing Activities Net assets, beginning of year 21,127 7,056 Increase in long-term debt 3,000 — Net assets, end of year 34,651 21,127 Repayments of long-term debt (768) (130) Increase in deferred contributions See accompanying notes to the financial statements. related to capital assets — 6,000 Cash provided by financing activities 2,232 5,870

Increase (decrease) in cash 948 (7,900) Cash, beginning of year 1,144 9,044

Cash, end of year 2,092 1,144

See accompanying notes to the financial statements. notes to financial statements

December 31, 2002 (tabular amounts in thousands of dollars)

1. General Capital assets 18 The Halifax International Airport Authority (the “Authority”) was incorporated on Capital assets are recorded at cost including interest on funds borrowed for capital November 23, 1995 as a corporation without share capital under Part II of the Canada purposes, net of contributions and government assistance and are amortized over their Corporations Act. On February 1, 2000, the Authority signed a 60-year ground lease estimated useful lives on a straight-line basis as follows: with Transport Canada and assumed responsibility for the management, operation and Assets Rate development of the Halifax International Airport. Excess revenues over expenses are Computer hardware and software 20% - 33% retained and reinvested in airport operations and development. Leasehold improvements 2.5% - 10% The Authority is a dynamic and multi-faceted aviation enterprise that provides air Machinery, equipment, furniture and fixtures 5% - 20% access to the world, facilitates personal and business connections and promotes Vehicles 5% - 17% regional economic growth. The Authority is governed by a Board of Directors whose members are nominated by Construction in progress is recorded at cost and is transferred to leasehold the Halifax Regional Municipality, the Province of Nova Scotia and the Federal improvements when the projects are complete and the assets are placed into service. Government, as well as the Metropolitan Halifax Chamber of Commerce. The nominated members can also appoint additional members who represent the interests Organization costs of the community. Organization costs represent start-up expenditures, including due diligence, engineering The Authority is exempt from federal and provincial income tax, federal large studies, and legal fees, incurred by the Authority in advance of the transfer of corporation tax, and Nova Scotia capital tax. operations to the Authority from Transport Canada. Organization costs are being amortized to operations on a straight-line basis over a period of three years. 2. Significant Accounting Policies The Authority’s financial statements have been prepared in accordance with Canadian Revenue recognition generally accepted accounting principles. The preparation of financial statements Landing fees, terminal fees, parking revenues and passenger security fees are requires management to make estimates and assumptions that affect the reported recognized as the airport facilities are utilized. Concession revenues are recognized on amounts of certain assets and liabilities at the date of the financial statements and the the accrual basis and calculated using agreed percentages of reported concessionaire reported amounts of certain revenues and expenses during the year. Actual results sales, with specified minimum guarantees where applicable. Rental revenues are could differ from those estimates. recognized over the lives of respective leases, licenses and permits. Airport improvement fees (“AIF”) are recognized when departing passengers board their Inventories aircraft as reported by the airlines. Inventories consist of materials, parts and supplies and are stated at the lower of cost Deferred revenue consists primarily of concession revenue for minimum guarantees determined on an average cost basis and estimated replacement cost. and license fees received in advance of services being rendered. 3. Capital Assets 5. Long-Term Debt 19 2002 2002 2001 Accumulated Net Book $ $ Cost Depreciation Value Halifax Regional Municipality deed transfer tax loan, unsecured, $$$non-interest bearing, repayable in monthly instalments of $5,633. 140 208 Computer hardware and software 1,240 620 620 Halifax Regional Municipality repayable contribution, unsecured, Leasehold improvements 23,212 723 22,489 non-interest bearing, repaid in full on April 1, 2002. — 200 Machinery, equipment, furniture and fixtures 1,850 571 1,279 Canadian Imperial Bank of Commerce demand instalment Vehicles 4,542 1,656 2,886 loan, bearing interest at prime rate less 70 basis points, Construction in progress 17,220 — 17,220 repayable in monthly instalments of $50,000. 2,500 — 48,064 3,570 44,494 Transport Canada non-interest bearing debt, secured by a general security agreement, repayable in annual instalments of 2001 $1,298,000 commencing January 1, 2003 through January 1, 2006. 5,192 5,192 Accumulated Net Book 7,832 5,600 Cost Depreciation Value Current portion of long-term debt 1,965 268 $$$ 5,867 5,332 Computer hardware and software 918 409 509 Leasehold improvements 4,337 109 4,228 Principal repayments required in each of the next five years are approximately as follows: Machinery, equipment, furniture and fixtures 1,476 414 1,062 2003 $ 1,965 Vehicles 4,291 1,173 3,118 2004 1,965 Construction in progress 24,672 — 24,672 2005 1,903 35,694 2,105 33,589 2006 1,899 2007 100 4. Organization Costs 2002 2001 The Authority has authorized credit facilities with the Canadian Imperial Bank of $ $ Commerce for $27.0 million, which, in the event of default, will be secured by an Organization costs 3,290 3,290 Agreement containing a fixed mortgage by way of sublease of the Authority’s interest Accumulated amortization (3,199) (2,102) in the lease with Transport Canada, and a security interest in all of the other assets of 91 1,188 the Authority. This security is not registered, recorded or filed in any public registry until an event of default has occurred. notes to financial statements (cont’d.)

December 31, 2002 (tabular amounts in thousands of dollars)

The credit facilities consist of an operating line of credit to a maximum of $3.0 2002 2001 20 million bearing interest at prime rate less 70 basis points. A demand instalment loan $ $ to finance construction costs is available to a maximum of $24.0 million and bears AIF revenue (net): interest at prime rate less 65 basis points. The Authority has begun to draw on these AIF revenue, net of bad debts 9,459 9,108 credit facilities to finance certain capital expenditures. AIF collection costs (764) (780) 8,695 8,328 6. Deferred Contributions Related to Capital Assets Expenditures: Deferred contributions represent the unspent balance of contributions received from Centre core retail expansion 4,665 459 Transport Canada to fund capital asset expenditures. International and domestic arrivals expansion 3,088 10,553 2002 2001 Water supply upgrade 941 — $ $ Passenger terminal building and airside infrastructure 861 — Opening balance — 1,830 Airside access lots 708 6,767 Contributions received from Transport Canada — 6,000 Other 685 — Less: amounts applied to capital asset expenditures — (7,830) Passenger loading bridge 674 — — — Pyritic slate treatment facility 567 6,045 Replace approach lighting 34 918 7. Airport Improvement Fees 12,223 24,742 On January 1, 2001, the Authority implemented an AIF of $10 per local boarded Excess of expenditures over AIF revenue (3,528) (16,414) passenger to fund the cost of a major capital program. These fees are collected by the Excess of expenditures over AIF revenue, beginning of year (16,414) — air carriers (for a fee of 8% of the amount collected) under an agreement between the Excess of expenditures over AIF revenue, end of year (19,942) (16,414) Authority, the Air Transport Association of Canada, and the air carriers serving Halifax International Airport. Under the agreement, AIF revenues may only be used to pay for Net assets of the Authority as at December 31 are as follows: the capital and related financing costs of airport infrastructure as jointly agreed with air 2002 2001 carriers operating at the airport. $ $ A summary of the AIF collected and capital and related financing expenditures are as Net assets provided by airport improvement fees 17,023 8,328 follows: Net assets provided by other operations 17,628 12,799 34,651 21,127

8. Commitments Transfer agreement Effective February 1, 2000, the Authority signed a 60-year ground lease with Transport Canada (the “Landlord”) which provides for the Authority to lease the Halifax International Airport (the “Airport”). A 20-year renewal option may be exercised, but to become members of the defined contribution plan in lieu of the defined benefit 21 at the end of the term, unless otherwise extended, the Authority is obligated to return plan. All other employees will become members of the defined contribution plan. control of the Airport to the Landlord. An actuarial valuation has been prepared as of February 1, 2000, for purposes of The operating lease for the Airport requires the Authority to calculate rent payable to funding the Plan. As of the effective date of the funding valuation, the Plan had no the Landlord utilizing a formula reflecting annual airport revenues, passenger volumes, assets or liabilities and, therefore, had no surplus or deficit. The existing Government and predetermined base operating costs and capital expenditures. The estimated lease of Canada pension assets and accrued benefits obligation for certain employees may be obligations over the next five years are approximately as follows: transferred to the Authority as described in note 8. Until such time as the Pension 2003 $ 3,191 Transfer Agreement has been finalized and the transferred employees have chosen to 2004 4,243 transfer their PSSA Plan pension credits to the Plan, there will be no liability for 2005 4,328 pensionable service prior to the effective date of February 1, 2000. 2006 4,558 Pension costs are charged to operations as services are rendered. Pension expense 2007 4,649 for 2002 amounted to $126,000 (2001 - $103,000) for the defined contribution plan and $612,000 (2001 - $621,000) for the defined benefit plan and consisted of the Pension Authority’s contributions for the year in accordance with the recommendations of the As a condition of transfer, the existing Government of Canada pension assets and actuarial valuation. accrued benefits obligation for certain employees may be transferred to the Authority under a Reciprocal Transfer Agreement. Employees have up to June 25, 2003 to direct 10. Financial Instruments the disposition of their Government of Canada pension funds. The remaining assets of Fair value the plan, together with the actuarially determined pension benefit obligation, will be The carrying values of cash, accounts receivable, accounts payable and accrued transferred to the Authority’s pension plan on a fully funded basis. The amount of this liabilities, and security deposits approximate their fair value due to the relatively short transfer to the Authority cannot be determined at this time. periods to maturity of the instruments. At December 31, 2002, the fair value of long- term debt was $4,866,000 (2001 - $5,007,000) relative to the carrying value of Construction in progress $7,832,000 (2001 - $5,600,000). At December 31, 2002, the Authority had outstanding contractual construction The fair values of long-term debt were estimated based on the present value of commitments amounting to approximately $2.7 million (2001 - $3.2 million). contractual future payments of principal and interest, discounted at the current market rates of interest available to the Authority for similar debt instruments. 9. Pension The Authority sponsors a pension plan (the “Plan”) on behalf of its employees which Credit risk has defined benefit and defined contribution components. The defined benefit The Authority is subject to credit risk through its accounts receivable. A significant component is for former Transport Canada continuing full-time employees who were portion of the Authority’s revenues, and resulting receivable balances, are derived from employed by the Authority on February 1, 2000 and previously participated under the airlines. The Authority performs ongoing credit valuations of receivable balances and Public Service Superannuation Act (“PSSA”) Plan. However, these employees may elect maintains reserves for potential credit losses. corporate governance

Halifax International Airport Authority is a dynamic and multi-faceted 22 aviation enterprise that provides air access to the world, facilitates personal and business connections, and promotes regional economic growth. The airport authority is governed by a board consisting of 13 directors nominated by the following entities: Federal Government ...... 2 Provincial Government ...... 1 Halifax Regional Municipality ...... 4 Metropolitan Halifax Chamber of Commerce ...... 3 HIAA Board of Directors ...... 3 A director may serve no more than a total of eight years. Collectively, directors are expected to possess knowledge relating to the aviation industry, air transportation, business, finance, administration, law, government, engineering, labour organizations, and the interests of consumers. In 1995, the board established a series of sound corporate governance practices reflecting the guidelines for effective corporate governance adopted by the Toronto Stock Exchange. The board oversees the conduct and operation of the airport authority; reviews and approves corporate strategies, plans and financial objectives; appoints the chief executive officer; assesses the performance of the board and the chief executive officer; ensures effective communication with the nominators and the community; and ensures the effectiveness of the airport authority’s internal controls and systems in

2002 Annual Report preserving and enhancing the airport authority’s assets and pursuing its mission. The board meets as often as is required to carry out its responsibilities and maintains four standing committees that make recommendations to the board with respect to matters within their jurisdiction, including the Governance Committee, chaired by James S. Cowan; the Finance and Audit Committee, chaired by Frank Matheson; the Human Resources and Pension Committee, chaired by Arthur Pickup; and the Capital, Safety and Environment Committee, chaired by Stephen Wallace. The airport authority has adopted a code of conduct and conflict of interest guidelines to govern the conduct of, and the disclosure and avoidance of conflicts of interest for, all officers and directors. This disclosure is updated as required but no less frequently than once Halifax International Halifax Airport Authority Corporate Governance each year. During 2002, there were no breaches of the code of conduct or the Contracts in excess of $75,000 23 conflict of interest guidelines by any officer or director of the airport Halifax International Airport Authority, in accordance with its lease with authority. Transport Canada, is required to report on all contracts in excess of Compensation of the senior officers and directors of the airport $75,000 which were entered into during the year and which were not authority is reviewed annually. Amounts paid to the airport authority’s awarded on the basis of a public competitive tendering process. The officers and directors during 2002 follow. following contracts were in excess of $75,000 and were awarded without public tender: Senior Officers Salaries • Time and Space Media, contract value $93,735. This supplier was an President & CEO: R. Milley ...... $165,000 industry specialist that had a previous history in completing the same Vice President Finance: J. Carter ...... $108,000 type of work under difficult time constraints. After an evaluation process Vice President Operations: P. Clarke ...... $108,000 this contractor was determined to be the most qualified. Senior executive officers are also included in a management incentive • Intervistas, contract value $165,963. This supplier was uniquely qualified plan. Payments under this plan are contingent upon the achievement of in the area of work required as the team expertise and network individual and corporate objectives, including financial performance. In contacts with integral decision makers has translated into a superior 2002 a total of $93,555 was paid to the senior executive officer group for success record. After an evaluation process this contractor was management performance. determined to be the most qualified.

Board of Directors Total Compensation Chairman: B. F. Miller ...... $ 65,400 Vice Chairman: F. Matheson ...... $ 28,700 Directors: M. R. Brooks ...... $ 14,200 P. Champagne ...... $ 13,800 K. S. Filbee ...... $ 2,950 J. S. Cowan ...... $ 29,900 R. J. MacBurnie ...... $ 11,800 D. Mills ...... $ 13,000 M. J. O’Hara ...... $ 10,600 A. W. D. Pickup ...... $ 13,700 W. H. Richardson ...... $ 6,100 R. Rideout ...... $ 13,000 R. J. Scott ...... $ 7,500 F. Smithers ...... $ 11,400 K. Streatch ...... $ 6,700 S. L. Wallace ...... $ 18,100 J. R. Winters ...... $ 3,750 board of directors

24 Bernard Miller, Chairman Bernie owns and operates MILR Inc., a labour-relations consulting business, and is a member of the Saint Mary’s University management faculty. A senior executive with Air Canada until he retired in 1991, Bernie has over 45 years of aviation experience. Since 1992, he has been closely involved with the transfer and operation of Halifax International Airport and served as the airport authority’s CEO for much of the first year after the transfer.

Frank Matheson, Vice Chairman Frank is president and CEO of Homburg Canada Inc., an international real estate company with holdings in residential, commercial, industrial, and retail properties. He is corporate secretary of Homburg Invest Inc. and a director of Cedar Income Fund. Frank is a past chair of the Halifax School Board and the Halifax Forum Commission and has served on many community and industry-related boards and commissions.

Mary R. Brooks, Director Mary holds the William A. Black Chair of Commerce at Dalhousie University and is a professor of marketing and transportation at the university. She currently chairs the International Trade and Transport Committee at the Washington-based Transportation Research Board.

Pierre Champagne, Director

2002 Annual Report Pierre is a retired senior executive of Transport Canada where he was responsible for the management of all airports across Canada. A former RCAF pilot, he has 37 years of aviation experience. Pierre is a graduate of Saint Mary's University and consults on domestic and international airport projects.

James S. Cowan, QC, Director Jim is a partner in the law firm Stewart McKelvey Stirling Scales. He is the Back row from left: Mary R. Brooks, Pierre Champagne, Don Mills, chair of the board of governors of Dalhousie University and past chair of James S. Cowan, Ken Streatch, Robert J. Scott. the Atlantic Provinces Transportation Commission. Since 1995, Jim has Seated from left: Reg Milley, Bernard Miller, Frank Matheson. acted as secretary and general counsel to the airport authority. Missing: Arthur W. D. Pickup, Roy Rideout, Fred Smithers, Stephen Halifax International Halifax Airport Authority Board of Directors Wallace, J. Robert Winters. 25 Don Mills, Director Ken Streatch, Director Don is president and CEO of Corporate Research Associates Inc., and vice Ken has over 30 years of senior management experience in both business chair of CCL Group. He is currently chair of the Greater Halifax Partnership and government. He is the president and CEO of Sunberry Cranberry and president of the Canadian Association of Marketing Research Producers Inc., and chairman of the board of Atlantic Canada Cranberries Organizations. He also serves as a director for the United Way Advisory Inc. Ken has held a number of portfolios with the government of Nova Board, the Board of Trustees for the YMCA, Dalhousie University, The Office Scotia, including minister of transportation and communications and Interiors Group, Ashburn Golf Club, Market Decisions (LLC - Maine), and minister of economic development. Total Marketing & Communications (Bermuda). Stephen L. Wallace, Director Arthur W. D. Pickup, QC, Director Stephen is president of the Bedford-based consulting firm Wallace Art has 27 years of experience in municipal, employment and education Macdonald & Lively, Ltd. He is a former director of the Nova Scotia chapter law. He has served on several provincial and local boards and is on the of the Urban Development Institute and past president of the Consulting National Advisory Board of the Education Law Reporter. In December 2002, Engineers of Nova Scotia. Art was appointed to the Supreme Court of Nova Scotia at which time he resigned from the HIAA Board of Directors. J. Robert Winters, QC, Director Bob is the chair of Napwick Holdings Limited of Truro and counsel to Roy Rideout, Director the law firm of Burchell MacDougall. He is also director of High Liner Roy is past chairman and CEO of Clarke Inc., a publicly traded company in Foods Inc., chair of the board of regents of Mount Allison University, chair the transportation industry. He is also a director of Fortis Inc. Prior to 1988, of the board of Colchester Park Development Society, and a member of Roy held senior executive positions with both Eastern Provincial Airways and the advisory boards of Oxford Frozen Foods Limited and Inland International for 15 years. Roy is a chartered accountant. Technologies Inc.

Robert J. Scott, Director Bob is executive vice president of Glenora Distillers International Ltd. and HIAA Executive Management Team is a former director of the Small Business Development Corporation for the Reg Milley, President & CEO province of Nova Scotia. Joyce Carter, Vice President Finance Peter Clarke, Vice President Operations Fred Smithers, Director Gina Connell, Director Communications & Public Affairs Fred is the president and CEO of the Secunda Group of Companies and Eloi Gaudet, Director Operations* chair of ProGear Golf Manufacturing. He is honorary British Consul for the Bryan Roach, Director Human Resources & Corporate Services Maritime Provinces and serves on the board of governors of Saint Mary’s Jerry Staples, Manager Marketing & Business Development University as well as the board of directors for The Shaw Group, St. John John Zawadzki, Director Planning & Engineering Ambulance Society, Metropolitan Halifax Chamber of Commerce, and the Nova Scotia Sport Hall of Fame. *On June 28, 2002, Eloi Gaudet retired from Halifax International Airport after 26 years of dedicated service. 28

Halifax International Airport Authority is a dynamic and multi-faceted aviation enterprise that provides air access to the world, facilitates personal and business connections, and promotes regional economic growth.

Halifax International Airport Authority’s Seven Strategic Priorities • Optimize Safety and Security • Optimize Community Economic • Sustain and Grow Air Traffic Growth • Optimize Financial Performance • Enhance Corporate Reputation • Enhance User Experience • Realize Human Potential Halifax International Airport Authority 1 BellEnfield, Scotia Nova Boulevard, B2T 1K2 902.873.4422 Tel: Fax: 902.873.4750 www.halifax-airport.com