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FORT Mcmurray AIRPORT AUTHORITY ANNUAL REPORT 2014

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FORT Mcmurray AIRPORT AUTHORITY ANNUAL REPORT 2014 DISCOVERFORT McMURRAY AIRPORT AUTHORITY ANNUAL REPORT 2014 DISCOVER WHAT’S INSIDE TABLE OF CONTENTS Message from the Board Chair and President & CEO ...................................5 Passengers ...............................................................................................................11 Business ....................................................................................................................21 People .......................................................................................................................27 Community ..............................................................................................................31 Governance and Accountability & Board of Directors ...................................38 Management Discussion & Analysis ...................................................................41 Financial Statements .............................................................................................49 Mission We are responsible stewards of our airports, achieving superior performance in the conduct of safe, secure, effective and efficient operations. Our airport businesses contribute significantly to the economy of the Region, Alberta and Canada. Corporate Values » Excellence in Safety, Security and Environment Performance » Commercially Focused, Fiscally Responsible We are Canada’s Business Sustainability Premier Regional » Exemplary Customer Experience » Leadership Airport » Teamwork Key Success Drivers 1. To optimize the customer experience by leading a high performing airport team that provides superior facilities and services. 2. To be financially sustainable and environmentally responsible. 3. To foster effective stakeholder relations. YMM | ANNUAL REPORT 2014 5 MESSAGE FROM THE BOARD Joint Message from the Board Chair, Sheldon Schroeder; President and CEO, Scott Clements 2014: A year to discover Discover more space, more comfort and more destinations at the new Fort McMurray International Airport (YMM). Opened on June 9, 2014, the new YMM redefines and elevates the airport experience for passengers. YMM in the new era The new YMM features a 15,000-square-metre (161,458-square-foot) air terminal that can serve up to 1.5 million passengers. Now passengers have more lounge space to relax in, and more dining and shopping choices to enjoy. The new terminal embodies YMM’s approach to serving the Wood Buffalo region. YMM has more businesses and employees trained to provide service that puts the customer front and centre. YMM has more space for larger aircraft, encouraging airlines to establish new flights to more destinations. The terminal’s striking, one-of-a-kind design and look reflects the Wood Buffalo region’s vast boreal forests and dynamic aura borealis that fill its nighttime skies. Also, its built-in energy-saving features underscore YMM’s commitment to sustainable practices financially, logistically and environmentally. As for the original terminal on the north side of the airfield, YMM renovated and reopened the facility to exclusively serve workforce charters, corporate fliers and air cargo. Record numbers In 2014, YMM saw its total passenger count ascend to a new record: 1.3 million, a 9.5 per cent increase from 2013. YMM broke into the Top 15 busiest airports in Canada and continued to lead Canadian airports in annual passenger growth. These large passenger numbers reinforce how necessary it was to expand services with a new terminal facility. Forging new air services Success is often driven by collaboration. YMM seeks out strategic relationships with airlines, business and municipal organizations and other stakeholders to establish new air services. These relationships with Air Canada and WestJet are strong, with Air Canada increasing the number of non-stop flights to established domestic destinations, including Edmonton, Calgary, Vancouver and Toronto. WestJet has added a second non-stop flight to Vancouver and a new non-stop to Kelowna. Sunwing has established a seasonal non-stop flight to Cancun. 6 MESSAGE | FROM THE BOARD CHAIR AND PRESIDENT & CEO The Kelowna non-stop service was secured through collaboration with WestJet, Kelowna International Airport and the Greater Westside Board of Trade for the Thompson-Okanagan region in British Columbia. The collaborative work continues between all parties to advance economic and tourism partnership between Wood Buffalo and central B.C. Business relationships with local businesses and major companies are critical to YMM’s success. The larger terminal enables YMM to expand its concessions program to be one of the best in class. In fact, our concession program has won a prestigious award from Airports Council North America as the number one airport of our size in North America. In adding to bragging rights, this gives passengers more choice in shopping, dining and services, while increasing revenue for the airport. New revenue streams provide YMM opportunities to invest in further improvements beyond the new terminal — such as expanded air cargo services — without increasing airport fees. Meeting new challenges With uncertain economic conditions, YMM will closely monitor fiscal performance and adjust its short- and medium-term planning accordingly. Presently, conservative forecasts show continued moderate passenger growth over the next four years. As many experts have acknowledged, we believe that the energy sector SHARING will continue to invest long-term in the oil sands. As such, with a brand new Master Plan in place, YMM’s long-term plan remains in lock-step with overall growth over with the the next 20 years. community Sharing success with the community YMM’s planning is important as new development coupled with record passenger growth expands the airport’s impact as an economic generator for the Wood Buffalo region. The most recent YMM Economic Impact Study shows that YMM generated $412 million in GDP for the region and generated $910 million in total economic output. The expanding airport generated 1,700 jobs, with 746 direct full- time positions, and $114 million in wages. The grand opening of the new YMM terminal facility in 2014 was done in appropriate style and class, leaving a material legacy for the Wood Buffalo region. During the Fort McMurray Air Show and the Grand Opening Gala in May, YMM was able to raise $150,000 in community funding on top of regular charitable contributions, with the extra funds donated to the Kids Forever Foundation and the Wood Buffalo Food Bank. Our Community Investment Program continues to grow with Fort McMurray. We are dedicated to provide funding for community-building programs in Wood Buffalo geared to youth, aviation history and education, and the Canadian Armed Forces. YMM employees are also a vital community resource, donating their time and skills to community programs through our volunteer matching program. YMM | ANNUAL REPORT 2014 7 The main terminal building is a public space for all Wood Buffalo residents to enjoy. The recently opened observation deck is a historical interpretative and education centre for the public to learn about Wood Buffalo’s rich aviation history. YMM’s arts program expanded to feature more new works from local artists and artists from across Canada. YMM has transformed into a family-oriented venue and intends to host many holiday family events in the new terminal. Halloween at YMM in October 2014 was a hit with local families. Plans are under way for more such events in 2015. Plans for 2015 YMM has more infrastructure improvements on the agenda that will enhance the airport’s overall efficiency and capacity. A recent announcement by the Federal Government has created a new $75 million capital project that has several components to be built over the next few years: extending the main runway for larger aircraft, building an emergency crosswind runway, expanding the ramp on the North Terminal, extending the Main Terminal by two more bridges, and the building of two general aviation taxiways to open up the Golden Hawk Aviation Park. Further, YMM has over 512 hectares (1,267 acres) of land available for commercial development – divided among seven commercial business parks — for both aeronautical and non-aeronautical business and services. Through counsel from the business advisory committee, YMM is seeking new business partnerships to develop airport land with services that benefit the entire Wood Buffalo region. On the commercial passenger side of the business, YMM continues to work with Canadian, U.S. and international carriers to add new non-stop flight services for passengers to domestic and U.S. destinations. YMM is working with seasonal carriers like Sunwing and WestJet to add new vacation destinations. YMM has accomplished much since its inception five years ago. Even as we take pride in many accomplishments, we continue to strive for new ways to reach our ambitious Vision and full potential as “Canada’s Premier Regional Airport.” Sheldon Schroeder Scott Clements Chair, FMAA Board of Directors President and CEO EXPERIENCES SUCCESS COMMUNITY OPPORTUNITIES DISCOVER HISTORY ADVENTURE FLIGHTS BUSINESS YMM | ANNUAL REPORT 2014 9 DISCOVER NEW EXPERIENCES YMM passengers now enjoy a larger and more comfortable terminal, capable of serving up to 1.5 million passengers per year. Airlines offer more opportunities to fly to more destinations in Canada and beyond. Plus, passengers have more dining, shopping and service choices. YMM is your launching point to exciting adventures in Canada and around the world. 10
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