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2019 Annual Report

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2019 Annual Report Y Q M 2019 ANNUAL REPORT Greater Moncton Roméo LeBlanc Y International Airport Q performance GMIAA and Vantage Airport Group M have successfully partnered to drive the airport’s growth since 1997 $ Airport $ Cumulative Improvement 87 Fees (AIF) collected 184 revenue million since 1998 million since 1998 From From $ $ 278K to 675K 3.3M to 12.1M 4% CAGR 1998-2019 Passengers 6% CAGR 1998-2019 Revenues (Excluding AIF) $ + From 100 $ $ million 320K to 1.2M Capital expenditure 14% CAGR 1998-2019 investments EBITDA since 1998 Through aviation sector and economic ups and downs, both partners have collaborated to make YQM an essential part of the community and the region. YQM TABLE OF CONTENTS 4 6 10 Chair’s President and Operations and Message CEO’s Message Environment 12 16 21 Business Board of Financial Development, Directors Review Customer Experience, Community and Stakeholder Engagement 23 2019 Audited Financial Statements Chair’s Message Another successful year at our airport Another successful year for the Greater YQM Board activities Moncton Roméo LeBlanc International Airport (YQM) was had in 2019 despite elements Our Board of Directors, its Governance, Audit, outside its control such as the grounding of Human Resources, Environment and Risk, and the Boeing Max 737 planes in March 2019. Strategic Planning Committees continued to be very active during the year. This included a On behalf of the Board of Directors, the review and update of our various governance President and CEO, and the management documents and terms of reference material as team of YQM, I am pleased to present well as the drafting of new directional policies. our 2019 Annual Report which provides a I would like to thank the Board members for summary of the operating activities and their consistent contribution and dedication successes that took place during the year. to the betterment of the airport. The Greater Moncton International Airport Director activities also included the Authority Inc. (GMIAA) Board was very participation in a Board self-assessment engaged with our management team process. The Board will be working on during the year in providing direction and addressing the identified improvement oversight related to the airport’s vision: areas over the next year with the help “Atlantic Canada’s Central Gateway to the of our management team. World.” Transparency, independence and accountability continue to be an The GMIAA Board welcomed Kathy Malley, important focus of our Board. Peter McIntyre and Pierre LeBlanc as new members. We look forward to their specific A major focus during the year was the ability insights and the additional diversity they to reach a memorandum of understanding bring to our Board. with TransAqua and the City of Dieppe to allow for the undertaking of a mutually We also made some changes to the Executive beneficial de-icing disposal treatment approach Committee after Christopher Bacich completed combined with the expansion of our apron and his mandate as Chair of the Board. In June deicing pad infrastructure in order to facilitate 2019, Luc Elsliger was nominated as Vice- growth. This project received the support Chair of the Board, Janice Lirette Evers and assistance of $8.343 million from the remained as the Secretary-Treasurer and Government of Canada at an announcement I feel very privileged to have been nominated on August 7, 2019, by Minister Ginette Petitpas as the new Chair of the GMIAA. Taylor and Minister Dominic LeBlanc. In this era of environmental concerns, YQM worked hard to find ways for the airport to become more environmentally friendly. With all of its initiatives, it was able to obtain the Carbon Accreditation Level 3 status, becoming one of only five airports in Canada to do so. 4 Greater Moncton Roméo LeBlanc International Airport Looking forward to 2020 Many exciting projects are expected for 2020 at YQM. You may have noticed the start of changes on airside with Bistro Altitude now becoming accessible post-security, as well as a new elevator allowing those with reduced mobility access to the second floor (airside). We hope that you will enjoy these new changes as you are waiting for your flights. Many other projects will not be as visible such as the de-icing project or refurbishment of parts of a runway. Rest assured that YQM will be working in the best interest of its customers to provide them with the best air service and experience in New Brunswick. Finally, I would like to recognize and thank our employees. They have faced significant changes over the past year and accommodated organizational realignment including, in some cases, new teams, operating policies and procedures. Throughout, our employees YQM have continued to provide innovative Sincerely, customer-focused operational, environment and safety improvements. In closing I would like to thank you, the users of our airport. The GMIAA continues to remain well- NANCY WHIPP, FCPA, CA, ICD.D aligned with the best interests of our customers. Chair • Greater Moncton International Airport Authority Inc. (GMIAA) 2019 Annual Report 5 President and CEO’s Message An initial risk that is paying off in a big way! “THE GREATER MONCTON INTERNATIONAL AIRPORT AUTHORITY INC. ENTERED INTO A SIXTY (60) YEAR GROUND LEASE WITH TRANSPORT CANADA TO MANAGE, MAINTAIN AND OPERATE THE GREATER MONCTON ROMÉO LEBLANC INTERNATIONAL AIRPORT EFFECTIVE SEPTEMBER 1ST, 1997.” This statement is included in Transport revenue (before gain (loss) on disposal of Canada’s annual review of the Greater Moncton assets) to date in 2019 with total aircraft International Airport Authority’s (GMIAA) and airport revenue of $12.1 million and compliance with its ground lease obligations. $7.8 million in net revenue stemming from Airport Improvement Fees, so $19.9 million It is easy to forget that the community’s decision in total. This was all accomplished in a year to establish its own not-for-profit airport where $9.7 million was reinvested in our authority was a significant risk at the time. infrastructure, $6.0 million of which was to Not only did it mean an uncertain future and resurface 1,875 metres (6,150 feet) of no guarantee of success, but it also meant taking our runway 06-24. We reported an excess on an operation facing annual deficits in the of revenue over expenditures of $2.3 million. $2 million range and operating out of an aging terminal building. How things have changed! The year was also hugely successful in regard to maintaining ongoing aeronautical activity while additionally generating new commercial activity and flight options. Thank you to Cargojet, YQM is the envy of the region! FedEx, Air Canada, Air Transat, Porter, Sunwing, Today the Greater Moncton Roméo LeBlanc WestJet, Moncton Flight College and our many International Airport (YQM) is the envy of the other partners! A total of 31 international freighter region! Although the aviation sector does have its cargo flights (Boeing 747 and 777) took place at occasional ups and downs, continued growth of YQM in 2019 and carried 1.8 million kilograms of aeronautical and commercial activity at YQM has live lobster to Europe and Asia while generating allowed for a sustainable future for our airport. more than $0.16 million in incremental revenue. Just over five years ago, the GMIAA’s debt As well, our team worked with airline partners level surpassed $40 million. As of the end of to launch new air services in 2019 – for instance 2019, it stands at $23 million – and $5 million Air Canada Rouge’s Toronto service. In 2019, our of payments toward debt reduction were made sun destination partners’ traffic (our specialty!) in 2019 alone. GMIAA saw its highest operating grew by 8.2% and, in early 2020, we will welcome a new Sunwing Miami route and an 6 Greater Moncton Roméo LeBlanc International Airport additional Air Transat Punta Cana, Dominican Commitment to environmental Republic, service. We are also anxiously and operational excellence awaiting low-cost carrier Swoop’s planned June 2020 launch and entry into the New Brunswick In May 2019, we became the fifth airport in market. So, a hugely successful year in terms of Canada – joining Montreal, Vancouver, Toronto air service development! and Ottawa – to reach the third of four levels of Airport Council International’s Airport Carbon Notwithstanding the above, and as much as Accreditation Program, thereby highlighting we are all excited about the commercial and air YQM’s commitment to the environment and service aspects of our business, our core mission reduction of our carbon footprint. remains to operate an airport. As a result, in 2019, a significant investment was made in our During the summer months, we also people to develop internal expertise, whether resurfaced 1,875 metres (6,150 feet) this be in regard to improving our Airside Vehicle of our main runway 06-24 without Operators’ Permits (AVOP) or updating our any operational impacts, which speaks Standard Operating Procedures (SOP). These are volumes of our operation team’s technical all essential components of running an airport and planning capabilities. and continuously improving our operations. National Trade Corridors Funding Commitment to our passengers, A significant achievement in 2019 was our ability airport users and partners to garner community support and work with our Over 2019, our team made a significant partners, the City of Dieppe and TransAqua to effort to enhance the passenger experience develop a de-icing fluid capture and treatment at YQM through – among other initiatives approach that was mutually acceptable. – major infrastructure investments and the As a result, we were successful in obtaining establishment of a new customer service National Trade Corridors Funding from training program with our employees and Transport Canada toward a $16.7 million partners. These commitments and investments investment at YQM that will not only address will greatly benefit all our airport users.
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