Qualicum Beach Airport Business Plan 2016

1 Qualicum Beach Airport Business Plan 2016

TABLE OF CONTENTS

A. Executive Summary B. Business Plan Development C. History and Economic Impact 1. Airport History 2. Airport Operator 3. Airport Users Committee 4. Economic Impact D. External Factors and Market Influences 1. Planning Environment 2. Location E. Challenges and Opportunities 1. Branding, Marketing and Partnerships 2. Land Development Opportunities 3. Business Processes and Airport Presence 4. Capital Funding and Revenue Generation F. Strategy and Implementation 1. Maintain Airside Capacity 2. Administrative Initiatives 3. Confirm Governance and Airport Presence 4. Establish Land Use and Development Plan 5. Develop Terminal and Parking Area 6. Apply for Provincial and Federal Funding 7. Implement Marketing and Communications Initiatives G. Vision and Mission 1. Vision 2. Mission H. Financial Strategy and Reporting 1. Airport Fee Review and Update 2. Annual Business Plan 3. Annual Report I. Key Deliverables

Appendix A Airport Attendant Job Description

Appendix B Land Use Plan

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A. Executive Summary

Centrally-located on Vancouver Island the Qualicum Beach Airport has a long history of contributing to the community’s social, recreational and economic wellbeing. The airport also has the potential to contribute further to the quality of life for residents of the community through the maintenance and enhancement of services, such as air Medivacs, while also contributing to the economic sustainability of Qualicum Beach through further employment and business development. This business plan does explore diversifying revenues by using airport lands for compatible business and commercial development to grow the financial base in support of airport operations. It does this while recognizing, preserving and remaining the niche aviation market, within which the airport operates. This plan does not contemplate or recommend expanding the airport runway in favour of larger aircraft nor does it look to competing in the larger market that is currently satisfied by regional airports such as Nanaimo and Comox.

The Qualicum Beach Airport is currently in an excellent tourism location with arguably the best weather in British Columbia. The airport was built by volunteers and still has a strong volunteer base, a committed flying club, private aircraft owners, a world-class skydiving company, two air carriers, and provides a safe location for Medivacs from the central Vancouver Island Region.

The airport is already well run, meets all Transport Canada standards and has a committed and balanced Airport Users Committee. Financially, the airport struggles to break even and the Town operates the airport using town staff on a part-time basis. The airport has 18 tenant leases, 45 private aircraft, a terminal and an excellent restaurant. Businesses located at the airport support 64 full and part-time jobs.

This plan recommends that the Town of Qualicum Beach adopt a new vision and mission statement for the airport, as follows:

Vision “To become a viable community-based Municipal Airport and Business Hub while contributing to the economic growth and quality of life for residents of the Town of Qualicum Beach.”

Mission “To provide safe, high quality airport services and facilities to meet the needs of shared community air services, general aviation, helicopter and medivac operations while contributing to the economic viability of the airport through airport-compatible business development including maintenance, distribution and storage facilities, small cargo operations, training facilities, high tech facilities and related support services”.

Priorities for action have been divided into seven goal areas with a brief description of the key initiatives described below.

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Goal 1: Airside Facilities and Capacity A key requirement to maintain the full capability of the runway is tree removal. This is a challenge for all airports in BC. The town is currently negotiating with private owners and this removal will be needed to allow continued night operations. Additionally, the high frequency of Medivacs dictates the need for further apron management and helipad identification, as well as a capital development plan for tie downs and apron facilities.

Goal 2: Administrative Initiatives A primary detriment to investment in the airport for hangars and other commercial development is the current 5-year lease term. Lengthening the term to 30 or even 40 years would provide more certainty and be consistent with the vision recommended. It is also recommended that the current fee structure be updated and innovative collection procedures be put in place, as well as an annual business plan and short annual report.

Goal 3: Confirm Governance and Airport Presence By confirming the proposed mission statement and delegating additional responsibilities to the Airport Users Committee, the Town sets the stage to develop the airport as a community asset and realize additional revenues. It is recommended that a part-time Airport Attendant be hired or contracted to provide a presence at the airport, respond to customers, carry out airport maintenance and collect fees.

Goal 4: Land Use and Development Plan A key element in attracting any business is both stability and a clear plan. By adopting a land use plan and identifying available development areas with both aviation and non aviation-related areas it is expected that the town will be able to attract storage facilities, aquaculture cargo, technical training facilities, movie production facilities and terminal support industries, such as car rental and garage facilities.

Goal 5: Terminal and Parking Area To attract more passengers and more tourists, it is recommended that the existing terminal be redeveloped and expanded to better use existing space; repair the air conditioning; establish a pilot briefing area; and expand the restaurant which is a major draw to the airport. The parking lot could be expanded and divided into long term and short term with a minimal parking charge. Electronic pay systems such as “pay-by-phone” are recommended to minimize facility costs.

Goal 6: Apply for Provincial and Federal Funding Starting with the proposed apron and helipad development, it is recommended that the airport apply for capital funding in accordance with a 10-year Capital Plan.

Goal 7: Marketing and Communications Along with the vision statement, it is recommended that Qualicum Beach Airport be branded as XQU (the IATA location code). XQU deserves an expanded web page, as part of the town web site with links to both Orca and KD Air, as well as the flying club. A partnership for marketing with the Parksville Qualicum Beach Tourism Association is recommended.

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Detailed action plans for these goals are contained in the following report. It is recognized that development takes time and attracting the right anchor tenants requires advance planning, detailed design, servicing and town approvals.

This plan should provide a stable framework for the Town to pursue new businesses which will provide both increased revenues and jobs. It is also recognized that the airport must continue to be an integral part of the community and consultation will be required, as well as maintenance of good neighbour policies.

B. Business Plan Development

Aeroedge Consulting Inc. was selected through a competitive process to complete a business plan for the Qualicum Beach Airport. The objective is to provide an overview of the airport market in a regional and municipal context; consult with stakeholders; identify opportunities for the airport; provide comparisons with other airports; examine alternatives; establish achievable goals and objectives; and formulate a strategic business plan for 1, 5 and 10-year periods. The resulting business plan is intended to be strategic and conceptual in nature rather than provide detailed financial and engineering proposals.

Business Plan Objectives

 Vision - a clear statement of where the airport is going. Size and expectations. The vision will govern the investment, land use and operational priorities for the airport.  Key Elements - define the key elements for success including defining “low-hanging fruit” and the changes or possible investments required to grow.  Opportunities - define what the opportunities are for this size of airport. Create a recommended approach and governance structure to deliver.

C. History and Economic Impact

Airport History

The Qualicum Beach Airport (XQU) was built by volunteers of the Qualicum Beach Rotary Club, beginning in 1954. In 1957, the Province transferred 160 acres of Crown land to the Town of Qualicum Beach for airport purposes.

In 1986, the runway was widened to 75 feet and in 1989, the runway was extended to its current length of 3,564 ft. The runway has displaced thresholds to ensure adequate clearance from trees located at the ends of the runway 11-29. In 1996, runway lights were installed to permit extended hours of operation in the summer and winter. The airport noise management program ensures that the airport is closed from 10 pm to 6 am except for Medivac or prior approval (PPR).

The airport has provided scheduled passenger service since 1975 and in 1991, the airport terminal was constructed. The airport serves a “niche” market offering passenger service to Vancouver, Tofino, Texada/Gillies Bay and Powell River. As a Canadian non-designated airport, no security screening is required which makes passenger arrival and departure procedures both fast and convenient.

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The restaurant located in the terminal is renowned for its excellent meals serving residents, passengers and visiting pilots. The airport has an active flying club and many committed volunteers who support the operation of the airport. In 2007, the town installed sewer and water service to the airport providing support to both hangars and future development.

The airport is of critical importance to the Town in providing a location for 24-hour Medivac services. (45 Medivacs in the last 18 months). The airport also serves as a convenient and quick connection to Vancouver, as well as an important asset for the tourism industry operating in the Parksville/Qualicum Beach area. The airport is a base for approximately 45 private aircraft and also has over 18 tenant leases for hangars, as well as a unique skydiving operation with customers from the Island, the Lower Mainland and around the world.

Airport Operator

The Town of Qualicum Beach is the operator of Qualicum Beach Airport and the airport is certified by Transport Canada through an approved Airport Operations Manual and Emergency Response Plan. The airport is checked daily by town staff and it is certified for day and night operations with a mandatory radio frequency for operations.

Airport Users Committee

In 2015, the Town of Qualicum Beach established a well-balanced Airport Users Committee which meets quarterly to guide the operations of the Qualicum Beach Airport airport. This committee can make recommendations provides full and part-time related to airport operations, propose new employment for 65 residents, as well as close to $.4M business opportunities, promote better revenue to the town of communication and provide recommendations to Qualicum Beach annually. Town Council. This business plan recommends an enhanced role for this Committee in order to better guide the operations of the airport.

Economic Impact

Qualicum Beach Airport is a catalyst for employment in the Parksville/Qualicum area. The following employers: Final Approach Restaurant (19), KD Air (17), Sunwest Helicopters (11), SkyDive (9), Orca Air (5), Airspan Helicopters (1), ZFF engines (1) and the Town (1) provide 64 full and part-time jobs for residents. Leasing charges and fees at the airport contribute $300,000 which cover the major portion of operating costs while total taxes paid are $100,000 for a total revenue to the town of $.4 million dollars. This does not account for the direct economic impact of employees in related industries, such as hotels, golf courses, car rental, Medivac staff and tour operators that are directly dependent on airport services.

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D. External Factors and Market Influences

Planning Environment

Since 1997, total General Aviation (GA) movements have been trending down in Canada from a peak of 3 million to about 2.5 million in 2012. Load factors for airlines have been trending upwards through more efficient ticketing and scheduling and as a result, total movements have dropped. At major international airports, the size of aircraft has also grown with more passengers carried on each aircraft. General aircraft movements at Qualicum Beach Airport are expected to stay relatively steady or grow in the 1% to 2% range over the planning period.

Small regional airline operations are expected to move slowly to a turboprop environment. Qualicum Beach Airport offers very convenient walk-on walk-off service with no requirement for security screening and the advantage of having to show up only 15 minutes before flight time. The size of aircraft operating at Qualicum Beach is limited by runway length.

As a similar comparison, Boeing Field near Seattle is serviced by Kenmore Air which operates nine-passenger Cessna Caravans serving such airports as Friday Harbour. Friday Harbour Airport has a 3,400 ft. by 75 ft. runway and serves approximately 10,000 passengers annually. Qualicum Beach airport serves approximately 12,000 passengers annually with two scheduled airlines Orca Air and KD Air, who contribute approximately $80,000 in head tax payments per year. Qualicum Beach Airport`s runway is 3,564 ft. by 75 ft.

Qualicum Beach Airport (as with most B.C airports) is challenged with the removal of trees which can limit the length of available runway and, at the present time, the airport has displaced thresholds to accommodate this limitation.

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Location and Catchment

There are 11 public airports on Vancouver Island and Qualicum Beach Airport is well-positioned to offer niche market service to both general aviation and small regional carriers. Both Comox and Nanaimo airports cater to larger scheduled traffic and are located a minimum of an hour from Qualicum Beach. Port Alberni airport is in the catchment area but, has more challenging weather

Qualicum Beach Catchment Area

patterns. Courtenay Airpark is a limited general aviation airport and is almost at capacity. Qualicum Beach, Parksville and Port Alberni together have a population of 38,500 based on the Statistics Canada 2011 Census. Adding the relevant Nanaimo Regional District figures puts the catchment area well over 40,000. Increased marketing of the XQU no-hassle passenger convenience offered can also have a positive impact for surrounding hotels, golf courses, businesses and tourist destinations.

Qualicum Beach Airport is well run and has done well without a dedicated marketing focus. With a growing tourism focus and excellent and growing catchment area, it is well-positioned for managed growth. E. Challenges and Opportunities

1. Branding, Marketing and Partnerships - Qualicum Beach Airport is well known by the “locals”, but unknown to most people in the Lower Mainland and Vancouver. This business plan recommends a number of action items to develop a brand for the airport and increase marketing in cooperation with the airlines and businesses operating at the airport. Surrounding golf courses, hotels, businesses and airlines offered several suggestions for “package” deals to attract international and lower mainland clients. 2. Land Development Opportunities - Qualicum Beach Airport is blessed with a relatively large land mass that, with appropriate planning, can be developed as a revenue source to support critical aviation operations. This plan identifies a land use plan that is flexible, but promotes development of hangars, aircraft parking, helicopter operations, business and commercial

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aviation areas. In addition, opportunities for compatible businesses such as movie production, restaurants, maintenance facilities, technical training facilities, distribution, and support industries could be accommodated. 3. Business Processes and Airport Presence - One clear The primary objective of this opportunity to attract capital development is to business plan is to diversify the increase the length of leases offered at the airport. In revenue base to ensure the addition to revenue opportunities for pay parking, economic viability of the airport short-term tie downs, landing fees and lease and keep aeronautical fee management could be improved by committing increases to a minimum. resources to a dedicated Airport Attendant position. 4. Capital Funding and Revenue Generation - Qualicum Beach Airport is unique as a small Municipal-run airport in that it has two scheduled airline services and other services operating out of a terminal that is at capacity. Trail and Anaheim Lake airports have similar operations and both have received provincial funding in the past several years to fund such projects as new terminal buildings. A clear vision and capital plan will allow the Town to apply for future grants to increase the financial viability of the airport.

F. Strategy and Implementation

The Town of Qualicum Beach has made significant investments in the airport over a number of years and the airport is providing a good service to the region. Most recently, the Town installed sewer and water to the airport and this serves as an excellent base for future development. Although a business plan generally forecasts action over a 1 to 5-year period, we have divided the initiatives into seven goal areas to consider actions over a longer period of time. The individual action plans suggested are, of course, subject to funding, resources and municipal legislation. The timing will need to be adjusted accordingly.

The primary objective of this business plan is to diversify the base of revenue to ensure the economic viability of the airport and keep aeronautical fee increases to a minimum.

Goal 1: Maintain Airside Capacity

Qualicum Beach Airport is certified by Transport Canada and must maintain a current operating certificate. The most important immediate term requirement is to remove the trees that currently violate the obstacle limitation surfaces of the runway. As with most small airports in BC, Qualicum Beach does not have registered zoning and the town must rely on the cooperation of private land owners in areas that are not directly owned by the Town.

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The second recommendation for improvement is the development of an apron management plan and establishment of a helipad parking area. With the high incidence of Medivacs experienced by the airport, there is ample justification for Provincial funding and this project could be implemented quite quickly through a design/build contract. Noise management, tie downs and snow removal are all operational areas that require some attention and these can be addressed through the Airport Users Committee.

Over the longer term, the town has an opportunity to use airport lands for a works yard and other municipal storage requirements, particularly for equipment that is used primarily at the airport. The land use plan below serves as a preliminary concept for the division of uses and diversification of the revenue base.

The action plan below also addresses improvements to airport maintenance and operations that will clearly contribute to sustainable and safe airport operations. Maintain and Improve Airside Facilities and Capacity Project Description Implementation Timing Remove Trees At the present time, the airport has Requires agreement with Year 1 two displaced thresholds and both land owners. night operations and aircraft size will be hindered without removal. Apron A separated helipad would Complete preliminary Year 1 Management/ promote safety and be an asset to design and apply for BC Helipads Medivac operations, as well as Air Access Funds. increase apron space. Run ups Establish best location for run-ups Ensure cooperation of Air Year 1 as part of a good neighbour policy. Carriers and Flying Club. Tie downs Work with the Flying Club to Consistent with detailed Year 1 to establish short and long-term land use plan. Year 2 locations, signage and a fee collection process. Snow removal Review snow removal priority in To be reviewed by the Year 1 line with maintaining reliable air Airport Users Committee. service. Airside Complete an airside review and Application for ACAP Year 5 to Capacity plan to eliminate displaced funding. Year 10 thresholds, improve taxiways and security fencing.

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Goal 2: Administrative Initiatives

One of the primary concerns raised by tenants was the current 5-year leases offered at the airport. It is recommended that the town make legislative adjustments which would allow leases up to 30 years and to allow sub-leasing of hangar space. Abbotsford Airport which is municipally-owned offers leases up to 40 years, as well as Boundary Bay Airport offers sub-leases based on an overall head lease. This change would likely be the most significant initiative in bringing further development to the airport. Section 73.1 of the Land Titles Act addresses this area and the town will need to seek legal advice to implement this change.

Qualicum Beach Airport has a well-documented fee structure contained in Schedule “A” Bylaw No. 457.08. Rates have not changed since 2014. It is recommended that this Bylaw be updated, reviewed by the Airport Users Committee and recommended for Council approval. In addition, the Town has an opportunity to be a leader in fee collection by considering proven technology solutions like “pay-by-phone” for both parking and tie down fee collection.

It is also recommended that the required building permit process be clearly outlined for prospective development tenants. Individual lease rates and development cost charges can be negotiated on a case by case basis in order to encourage development.

In the longer term, it is recommended that airport revenues and expenses be separated to show progress in revenue generation, and an annual business plan and annual report govern administrative initiatives at the airport.

Increase Lease Length-Solidify Fee Structure and Annual Reporting Project Description Implementation Timing Lease Length Currently leases are authorized to a It is recommended that Year 1 term of 5 years. Standard practice administrative delegation suggests a 25 to 40-year range to be put in place to encourage investment. authorize extended leases. Fee Collection Both tie down fees and lease Consider alternatives Year 1 rentals should have a focal point such as “pay-by-phone” for collection. technology solutions. Annual Report A financial report covering primary This could be part of the Year 3 to airport revenues and expenses, as Town report to citizens. Year 10 well as progress could encourage additional investment.

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Goal 3: Confirm Governance and Airport Presence

The proposed “Vision” recommends a long-term objective to increase non-aeronautical revenues and promote the economic viability of the airport. Airports worldwide are using their land base to promote compatible uses which do not impact airport operations. Examples include the shopping centre at YVR, food distribution companies at Boundary Bay airport and a golf course in Nanaimo. It is recommended Qualicum Beach Airport also consider development which meets good neighbour, noise and environmental objectives.

The majority of smaller airports are owned and operated by municipalities. Some have appointed Commissions or Boards reporting to Council and others have created Airport Authorities under the Society Act of BC. Qualicum Beach Airport is located within municipal boundaries and by nature will require ongoing involvement of the Town for building permits, operational issues and land management. It is recommended that the Town of Qualicum Beach formalize and build on the already well- functioning Airport Users Committee. The membership of the committee is well-balanced and serves as an excellent forum to guide airport operations. It is recommended that Council over time, delegate short-term leases (up to 5 years), sub-leases and fee adjustments to the Airport Manager with the ongoing input of the Users Committee.

In order to complete fee collection, solve operational issues, comply with safety requirements, solve tenant issues and promote airport development, it is recommended that an Airport Attendant be hired or contracted to provide a presence at the airport. This position would be phased in from part-time to full-time as business grows. This position could potentially reduce the current time taken by numerous town staff while also supporting additional regular seasonal and periphery/connecting services. A proposed job description is attached as appendix “A”. Confirm Governance and Hire an Airport Attendant Project Description Implementation Timing Mission Following consultation, the The approved statement Year 1 Statement proposed Mission Statement will provide certainty for should be adopted by Council. airport tenants. Airport Users The current Users Committee is The committee would be Year 1 Committee well functioning and should be authorized by Council, on strengthened. an annual basis, to govern operations at the airport. Airport The airport is checked by A proposed list of job Year 2 Attendant maintenance staff daily. A separate functions is included as trained airport attendant should be Appendix A. phased in over time with growth.

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Goal 4: Establish Land Use and Development Plan The airport land was granted to the Town of Qualicum Beach in 1957 “For Airport Purposes”. Over the last 30 years, airports in Canada have diversified their revenue sources as a means of supporting airport development and reducing the requirement for increases in aeronautical fees. The Federal Government has leased larger airports to Airport Authorities and does not dictate land use, with the exception of approving their Master Plan which ensures continued and safe airside operations. Smaller Federal Airports were transferred to Municipalities with no restrictions on land use as long as they comply with airside requirements outlined under the Aeronautics Act. It is expected that the Province would have similar views with respect to the Qualicum Beach Airport lands.

Similarly, the Town of Qualicum Beach must operate XQU in accordance with established Transport Canada standards and is responsible for the maintenance and operation of the runways, taxiways, electrical systems, lighting, painting, grass cutting, terminal operations and general airport operations at the airport. Compatible business/industrial development is recommended, subject to zoning regulations as approved by the Town of Qualicum Beach.

Proposed Land Use Plan The land use plan (Appendix “B”) has identified both aviation and business/industrial development areas. It is recommended that the town develop a phased servicing plan for roads, sewer, water and power. The actual development plan will also be dependent on the location of an expanded parking lot for the terminal and any municipal facilities, solar power generation facilities or anchor tenants that might locate to the airport. (This plan is for illustrative purposes only - lot lines and road locations will be adjusted after review)

Adopt a Land Use Plan and seek compatible Business Development Project Description Implementation Timing Land Use Plan It is recommended that the Town Consultation and final Year 1 adopt the proposed land use plan zoning requirements with both Aviation Support and defined through the OCP Business Park areas. See Appendix process. B. Drop Zone SkyDive is a major benefit to the A drop zone should be Year 1 airport in attracting tourists and defined and protected business. for future use. Servicing Plan The Town has provided sewer and A conceptual plan can Year 2 water and future roads and service guide development. corridors should be defined. A drainage plan would be included. Building In order to encourage investment, This can be completed as Year 2 Permits zoning should be established for part of the OCP review. airport areas, as well as expected permit requirements.

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Town Materials are currently stored at This can be discussed as Year 3 Maintenance the airport site. Storage of part of the OCP. and Storage equipment through a satellite works yard should be considered. Terminal The terminal support area is well Publication of the Land Year 1 to Support located for a service hub which Use Plan will encourage Year 5 may include a gas station, grocery development and transportation support or opportunities. tourism retail. Cargo Promote a freight facility for Possible cold storage and Year 1 to aquaculture and quick air cargo processing facilities. Year 5 transportation. Solar Power With the cost of solar panels Government funding is Year 3 to declining, Qualicum Airport has an likely possible. A lead Year 10 opportunity to demonstrate both company or agency “good weather” and a green should be identified to commitment through a solar farm manage the project. location. Movie Studio Following adoption of the Land Use Immediate needs include Year 1 to or Technical Plan, it is recommended that an the helipad and Year 10 Training Facility RFP be developed to encourage an terminal/parking lot anchor business tenant at the development. airport.

Goal 5: Develop Terminal and Parking Area

The 2,500 sq. ft. terminal building was designed and constructed to provide multiple uses. It currently has areas that are underutilized and also areas that are over crowded. The restaurant has become a focal point for the airport and provides an attractive marketing tool for visiting pilots, as well as members of the local community. Budget Rent-a-Car services the airport and would like to have a drop box and counter location. Orca Air would like to have a better counter location. A pilot briefing counter would be simple to set up and offer improved customer service to visiting pilots, and encourage additional fuel sales.

Depending on discussions through the OCP, it is recommended that a design/build firm be contracted to provide a proposal for the redevelopment and expansion of the airport terminal building. This could be done by RFP process and would provide a clear signal of the Town’s commitment to improving both aviation and community services at the airport. Similarly, many stakeholders suggested a reasonable parking fee that could be implemented with parking lot improvements. It is recommended that the parking lot redevelopment be included in the proposed RFP and be phased over a 2 to 3-year period.

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Design/Build Redevelopment of the Terminal and Parking Lot Project Description Implementation Timing Terminal The restaurant area and hold room A design/build concept Year 1 to Development locations should be expanded to could provide airline Year 2 and Expansion improve passenger comfort and offices, car rental counter signal the long-term commitment and airport attendant to the airport. locations. Parking Lot Both the access road and parking A reasonable day-parking Year 2 lot can be relocated to offer short, fee could use several medium and long-term parking. options such as “Pay-by- Phone”. Appendix C. Car Rental Provide a counter location and key In the medium term, a Year 1 to drop box. car rental company Year 3 should be encouraged to locate their servicing bay at the airport. Roads Access through Ravensbourne Lane A phased approach to Year 1 to to an Airport Business Park is development is Year 5 recommended. In addition, moving recommended, in line the main airport access road will with business lease allow better use of the Terminal progress. Support Area. FBO Visiting pilots currently access the Qualicum Beach is Year 1 to restaurant and terminal. A pilot already an attractive Year 3 briefing area with computer is General Aviation airport. recommended as a low-cost Good services encourage service. lucrative fuel sales.

Goal 6: Apply for Provincial and Federal Funding

Small airports worldwide have difficulty funding capital projects. In the United States, the Federal Government has established an Airport Improvement Fund (AIP) which allocates funds to smaller airports on a formula basis. With the transfer of Canadian airports to local entities, Transport Canada established the Airport Capital Assistance program (ACAP). Similarly, the Province has established the BC Air Access Program (BCAAP).

Qualicum Beach is eligible for both the Federal and Provincial programs and it is recommended that the town make application to both programs for the 2017 construction period. It should be noted that the ACAP program priority is for rehabilitation and safety-related projects primarily while the BCAAP program will also fund economic development projects.

The terminal redevelopment and apron management projects should be developed to preliminary design over the next several months and put forward in separate funding requests. Both Federal and Provincial programs require a certain percentage to be paid by the airport operator.

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Make Application for 2017 Funding Project Description Implementation Timing Apron The high Medivac use provides A preliminary Design- Year 1 Management excellent justification for funding of Build cost estimate to be Project apron expansion and separated used for 2017 helipad area. application. Terminal Both Trail and Anahim Lake have Recommend a Design- Year 1 Expansion received terminal building funding. Build approach. Justification for parking and terminal expansion is possible. Airside The ACAP program favours funding These projects would be Year 3 Improvements of airside projects. Any airside the commencement of signage or taxiway improvements the 10-year Capital Plan. should be included. 10-Year Capital A listing of capital requirements The Airport Users Year 5 to Plan including equipment, runway Committee would be Year 10 overlay, lighting, signage, security responsible for and safety projects would be recommending this plan. developed to cover the long term.

Goal 7: Implement Marketing and Communications Initiatives

The Qualicum Beach Airport is a well-kept secret. For those living in the community, it is seen as an asset and a quick way to Vancouver, but the benefits and economic impact are not well advertised. Signage is needed on the Island Highway, as well as at the entrance to the airport. A listing of airport businesses could be placed on the web site. The Town of Trail has promoted their airport over the last few years and has a good example of a simple addition to their town web site outlining relevant airport information.

Airports in Canada have become recognized as economic generators for their community and they often use their location identifier as a short form logo such as YVR for Vancouver International Airport and YXX for Abbotsford. The International Air Transport Association (IATA) provides location codes for all airports served by air carriers. Qualicum Beach Airport is designated XQU and is part of the worldwide listing of airport location identifiers. It is recommended that the town start using XQU as a short form for the airport. You will note that your baggage tags from both Orca and KD Air use this designation.

Along with web site development, it is recommended that the Town develop a simple airport brochure on XQU that can be distributed electronically to all hotels and tourism associations, outlining the advantages of the airport and its development opportunities. Success stories and word of mouth are the best advertisers.

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A partnership with the air carriers, hotels and golf courses is recommended to develop a pilot package to be marketed in both Vancouver and YVR. Develop Web Site, Brand XQU, and Market the Airport Project Description Implementation Timing Web Site Trail Airport is operated by the Updates to the website Year 1 Town and serves as a good would be provided by the template for an `Airport Page` on proposed Airport the Qualicum Beach Website. Attendant. Tourism It is recommended that the Pacific Coastal provides a Year 1 Packages Tourism Association lead the template for several development of a pilot package examples. tour combining Air Carrier, Hotel and Golf experiences. Signage A flexible business listing sign is Individual tenants would Year 2 recommended at the Airport contribute for their entrance. portion of the Town- controlled sign. XQU It is recommended that the Town The Transport Location Year 2 start using the IATA Location Identifier CAT4 could be Identifier of XQU in material changed to XQU over relating to the airport. time. Logo A simple logo is recommended to The logo can be used on Year 2 differentiate the airport and signage, lease documents promote pride in the airport. and joint tourism advertising. Development Recommend tendering of land An anchor tenant will be Year 2 Incentives development opportunities and an important long-term negotiated Development Cost asset to the airport. Charge for new leases at the airport.

G. Vision and Mission

It is important to define the role of the airport in a regional context and to provide certainty to the aviation community that the Town supports the airport and that the community recognizes the airport as an economic asset. A clearly-defined mission statement is important as a guideline for development of the airport and also as a tool in setting priorities for capital and business development. Qualicum Beach Airport already offers excellent and convenient service to both passengers and general aviation customers. This business plan is more about improving an already well-functioning and convenient airport rather than starting from the ground up.

The following recommended vision and mission statements should be discussed and vetted by the Airport Users Committee, as well as the community at large through the Official Community Planning process.

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Vision

“To become a viable community-based Municipal Airport and Business Hub while contributing to the economic growth and quality of life for residents of the Town of Qualicum Beach.”

Mission

“To provide safe, high quality airport services and facilities to meet the needs of shared community air services, general aviation, helicopter and Medivac operations while contributing to the economic viability of the airport through airport-compatible business development including maintenance, distribution and storage facilities, small cargo operations, training facilities, high tech facilities and related support services”.

H. Financial Strategy and Reporting

Fee Review As with most Municipal airports, fees for Qualicum Beach airport are established by Municipal bylaw. Schedule “A” of Bylaw No. 457.08 establishes rates for leases, tie downs and user fees. These fees were established for the years 2010 to 2014 and are presently “over holding” at the current rates. These fees were compared with other Vancouver Island airports.

Tie down fees (grass) at the Nanaimo Flying Club are currently $420 annually and at Campbell River Airport they match Qualicum Beach at $480 annually. As a comparison, the cheapest tie down location at Boundary Bay Airport is $1,260 annually, plus GST. Land Lease rates are more difficult to compare as they are traditionally based on local land value. For example, lease rates at Boundary Bay Airport are $1.00 per square foot annually while XQU is currently at $.25 to $.35 per square foot annually.

Qualicum Beach Airport is currently charging less than both Nanaimo ($1.86) and Campbell River ($1.88) for 100LL Avgas ($1.68). Per passenger user fees at $7.00 each way are similar to Campbell River; however, Campbell River has put in place an additional airport improvement fee and regulatory recovery fee for enplaning passengers of $4.00 and $2.50 respectively. In summary, Qualicum Beach Airport fees are comparable and the current bylaw should be updated using both Nanaimo and Campbell River for comparison purposes.

Update Airport Fee Bylaw Project Description Implementation Timing Tie Down Fees Recommend a 2-year price Include ability to sub- Year 1 freeze to remain competitive. lease hangar space. Passenger Fees Recommend a 2-year price Establish rates with 3- Year 1 freeze to encourage traffic. year review period.

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Fuel Rates Charges for Avgas and Jet A-1 Update on a quarterly Year 1 basis, using Campbell River and Nanaimo comparisons. Update Bylaw Establish rate update on a 3- Fees and charges based Year 2 457.08 year cycle. on comparison airports. Lease Rates Implement annual increase, Lease rates to be Year 2 based on local land values. established over 5-year periods with long-term (25 to 30-year) leases.

Business Plan The airport currently has total revenues from operations of approximately $325,000, as well as tax revenue that accrues to the Town. Expenses for aviation fuel, airport staff and internal allocations result in an annual loss for current operations. With the development of an airport Business Park to diversify revenues, the airport is well positioned to deliver a positive cash flow for operations. Establishment of the airport attendant position (through contract of a part-time employee) should focus more attention on airport revenues and allow better collection of fees. In addition, the establishment of an annual business plan will encourage both better marketing and current updates of airport fees.

As with most small airports, capital expenditures are difficult to cover from current airport operations. Both the Federal and Provincial capital funding programs should be accessed, in order to fund capital improvements and ensure continued economic benefits to the town. An annual update of the business plan is recommended to identify both capital expenditures and operational changes that will improve the financial position of the airport.

Annual Report Qualicum Beach Airport is clearly a community asset, delivering critical Medivac services, providing convenient access to Vancouver, promoting aviation businesses, contributing to the tourism market and providing jobs for the region. An annual report which covers the improvements delivered on an annual basis, traffic statistics, good neighbour initiatives and capital improvements would solidify the value proposition of the airport.

19 Qualicum Beach Airport Business Plan 2016

I. Summary of Key Deliverables Recognizing that all business plans are subject to priorities and competing demands, the following listing summarizes the most important deliverables contained in this plan. This listing contains the key initiatives that will contribute to the financial viability of Qualicum Beach Airport and solidify the airport’s economic contribution to the town.

 Confirm Land Use - The Province land grant is “for airport use”. Provincial acceptance of an airport business park will contribute to the airport bottom line.

 Increase Lease Lengths - New investment in the airport (aviation and non-aviation) favours longer lease terms to allow both financing and commercial stability.

 Confirm Airport Vision - A clear airport vision will ensure the long-term commitment to the airport and attract both passengers and aviation business.

 Diversify Revenues - To move from the current “break even” status, both aviation and non-aviation revenues will be important.

 Manage Airside (trees) - The current runway has displaced thresholds, and management of trees and airside facilities will be required to ensure safe aircraft operations.

 Apply for Capital Funds - As the airport develops, the Town should apply for capital funds as a means of sustaining and growing aviation traffic.

 Phase in an Airport Attendant - Fee collection, incident response and airport development are hindered by a lack of on-site resources. A part-time (growing to full- time) airport attendant is recommended.

 Pursue Regional and Fiscal Participation - Work towards regional and fiscal participation at the Airport, based on projected use and benefits for the Regional District of Nanaimo Northern Service Area and the City of Parksville.

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Appendix A

Airport Attendant-Qualicum Beach Airport

Reporting to the Airport Manager, the Airport Attendant’s accountability is to offer the highest level of service possible to our clients. The Airport Attendant works closely with the Airport Manager to ensure all aspects of a fully functioning airport are in place, as well as coordinating the delivery of fuelling, parking, tie downs, and other services to our aviation and passenger customers. The position is responsible for the effective implementation of airport services, including communicating priorities, coordinating projects and creating an environment that promotes teamwork and excellent customer service. The Airport Attendant assists the Airport Manager in maintaining airport certification and ensuring regulatory compliance in safety, security, and environmental areas.

RESPONSIBILITIES:

1. Work with the airport tenants and air carriers to develop a good understanding of airport requirements and priorities and ensure all airport services meet requirements. 2. Recommend new business opportunities to the Airport Manager and ensure smooth daily operations at the airport. 3. Support a culture that promotes safety through daily observation, maintenance of aviation Safety Management System (SMS), monthly safety meetings, training and documented safety procedures, and carry out procedures for use in event of aircraft accidents, fires or other emergencies. 4. Implement established procedures for aircraft fuelling, parking, hanger operations, lease obligations, runway operations as well as liaising with Nav Canada and Transport Canada on airport operational requirements, as requested by the Airport Manager. 5. Provide a daily reporting log of airport operations and events for follow up. 6. Respond to surrounding noise complaints and ensure noise abatement procedures are followed. 7. Carry out minor projects, such as fence repair, Foreign Object & Debris (FOD) control, lock repair and coordinate small projects conducted by contractors. 8. Report against the annual airport maintenance budget and coordinate with town maintenance staff for snow removal. 9. Participate with the Airport Manager in establishing an annual airport budget and reporting against the set budget.

Training and Experience:

Diploma or Degree preferred with airport management experience or multiple years of service in a related industry with both safety and maintenance requirements.

The incumbent must demonstrate the following core competencies: operational decision making, customer orientation, managing and measuring work, interpersonal skills and superior ability to positively relate and communicate to customers.

Working knowledge of Microsoft Excel, Word, and web-based applications.

Must possess a valid driver's licence and preference will be given to candidates with direct aviation experience and qualifications.

Qualicum Beach Airport Business Plan 2016

Appendix B Qualicum Beach Airport Conceptual Land Use Plan

Note: Road location, parking, lot sizes and boundaries are all subject to change with consultation through the Official Community Planning process.

The Land Use Plan groups similar activities to promote safety. This plan will need to be adjusted once final road locations are identified. The area (south triangle) which identifies both aviation support and future airport Business Park will not likely be developed within a 10-year period, but it is recommended that it be zoned, along with the north-east portion, as a protection for the future.

It is recommended that this plan be included as a portion of the Official Community Planning process for the Town of Qualicum Beach.

A satellite image is contained on the next page.

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Land Use Plan - Satellite Image for Reference