HALIFAX INTERNATIONAL AIRPORT AUTHORITY
ANNUAL REPORT 0 9 OUR PEOPLE – Jamie Wilkins, Tom Murray, Delbert Geddry, Bill Crosman, Jerry Staples, Twila Grosse, Charles Clow, Melvin Dinney, Leigh Robinson, David Snow, Art Nowen, Rhonda Brassard, Kim Oakley, Carl Brown, Tom Antonio, Joanne Fabrizi, Joyce Carter, Paul Baxter, William Cowan, Andy Lyall, Reginald Beeler, Stephanie Gorman, Nicole Burchell-Isenor, Lee Nolter, Chris Collier, John Melbourne, Gary Christian, Timothy Fisher, Sherrie Clow, Joey Young, Donald Lajoie, James Moulton, Arnold Wood, Todd Hickey, Blair Christian, Michael Hartlen, Ivan Frame, Garry Parsons, Richard Garson, Matthew McDonald, Daniel Chandler, Rachael Robinson, Sean Dempsey, Michael Samson, Paul Hood, Joseph MacLean, Stephen Fudge, Dan Tanner, Marlene More, Vernon Myers, Reginald Verge, Leonard Brown, Shawn DeLong, Paul Tuttle, Joey MacPherson, Barry Woynar, Janet Menzies, Catherine Huddleston, Danny Chaplin, Kim Keeling, Todd Ball, Kristopher Stevens, Catherine Towers, Cecillia Anderson, Scott Roberts, Tony McMillen, Alex Skinner, Karen Harrie, Donna Anderson, Paula Cannon, Tara Wheaton, Sandi Nicholson, Marcia Connolly, Tonya McLellan, Clayton Maynard, Kevin Boutilier, Michael Healy, William D. Turple, Douglas Kinsman, James Tanswell, Kellie Hannam, Gordon Duke, Douglas Meek, Kelly Martin, Tim Leeman, Jack Weir, Judy Snair, Peter Khattar, Esther MacDonald, Kelly Zwicker, Peter Sworin, Peter Snair, Janet Ingraham, Leonard MacDonald, Jane Scott, Kenneth Bayers, Douglas Eisan, Paul Dalrymple, Lydia Bowie, Richard Wyatt, Tom Ruth, Allan Pace, Milly Hardwick, Drake Clarke, Robert Hewitt, Keith Conner, Troy Appleby, Robert Clarke, Cathy Walker, Gerry Rygiel, Peter Spurway, Wayne DeCoste, Ron Conway, William Wellwood, Clifford Gillie, Jonathan Heffernan, Bruce Gaudet, Deborah MacLeod, Jeff MacMillan, Gary Porter, Larry Naugle, Jennifer Delorey Lyon, Timothy Bull, Terry Hilchey, Alastair Cox, Howard Rose, Stephen Whalen, Harry McMullen, Ashley Barnes, Ruth Stoddard, Mark Bowser, David Dawe, Kim Porter, Stephen Bezanson, Donald Myers, Franklin Leavitt, Gregory Shackleton, Anita Chisholm, Michael Hat!eld, Marcel Laforest, Steven Hilchie, Brian Thomas, Dan Pride, Alan Carragher, Norman Ross, Roxanne Hilchie, David Brown, Edward Dempsey, Kevin Mosher, Jeremy Carrier, Thomas Maguire, Brian Gillette, Michael MacEwan, Dean Letto, Carol Mackie, Kenneth Champion, Mike Maxwell, Michael Walker, Malcolm Phippen, Shawn Hicks, Robert Silver, Nancy Fong, Peter Hilton, Robert Ettinger, Steven Nelson, Richard Boutilier, Alan O’Leary, Burton Wright, Joyce Hoskin, Derek
Forrest, Richard Gooding, Tim Zinck, William A. Turple, Mark Urquhart, Anil Mohan, Karen Sinclair ( AS OF DECEMBER 31, 2009). HALIFAX INTERNATIONAL AIRPORT AUTHORITY
Mission Strategic Priorities Connecting Nova Scotia to the Halifax International Airport Authority has identi!ed world through "ight. eight strategic goals that support its mission and vision.
Culture of Superior Service Aggressive Air Service Growth Create a culture in which all of our Aggressively pursue new passenger Vision employees and partners deliver and cargo air services with an superior service. emphasis on transborder and Great people delivering the best international routes. airport experience in the world. People Strategy Create opportunities for success Environmental Excellence through employee engagement, Take a leadership role in development and experience. environmental excellence.
Safety and Security Improved Facilities and Services Implement an enterprise risk Improve facilities and services to management plan, protecting and optimize the airport experience, enhancing corporate reputation, in capabilities and processes. a fully integrated culture of safety and security. Proactive Advocacy Strengthen the advocacy program Revenue Diversi!cation to in"uence public opinion and Accelerate revenue diversi!cation. government policy.
2009 ANNUAL REPORT 1 Message from the Chair
By effectively navigating the most profound global eco- And our new combined services complex – housing the nomic downturn in recent history, the Halifax International Airport Authority’s emergency response services and air- Airport Authority (Airport Authority) did more than prove !eld maintenance teams – will open as planned in 2010. its mettle in 2009. I am pleased to report that the Airport Authority ended Halifax International Airport Authority delivered. the year with a well-earned surplus, thanks to a culture While “delivering” is what we do every day at Atlantic of skilful and prudent !nancial management, where Canada’s gateway airport, doing so within the uncertain assumptions are carefully considered and progress and uncharted "ight path of 2009 made our achievements against strategy closely monitored. even more gratifying. By drawing on the Airport Authority’s These results were reaf!rmed by an independent core strengths – outstanding people, a measured performance review. As part of our ground lease with approach to !nancial management and a commitment Transport Canada, the Airport Authority is required to superior customer service – we set and successfully to undergo a management, operation and !nancial met an ambitious trajectory. assessment every !ve years. According to the report 2009’s achievements were driven by qualities that prepared by Chris Lowe Planning & Management consistently distinguish the Airport Authority both as an Group, the Airport Authority operates the airport in a outstanding organization and the keeper of a powerful safe and ef!cient manner, through effective !nancial economic engine for the region. and management controls, information systems and Qualities like conviction. Rather than delaying or pulling management practices. back on key capital and operational initiatives, in 2009 At the core of our successes in 2009 is a sense of the Airport Authority chose to stay the course. In so mutual respect and shared purpose demonstrated by doing, we delivered on eight major capital projects – Airport Authority employees and the 5,500 people who all of which came in on or under budget, and on time. make up the Halifax Stan!eld International Airport (HSIA) Today, our $82-million groundside redevelopment pro- community. Building this pride of accomplishment took gram, featuring one of the most technologically advanced on a new energy in 2009, driven by the Airport Authority’s parking structures in Canada, is complete. By year-end, vision of “Great people delivering the best airport experi- Nova Scotia seafood exporters were already taking ence in the world.” advantage of the airport’s new multi-tenant cargo facility. And deliver we did.
2 HALIFAX INTERNATIONAL AIRPORT AUTHORITY “ By drawing on the Airport Authority’s core strengths – outstanding people, a measured approach to !nancial management and a commitment to superior customer service – we set and successfully met an ambitious trajectory.”
In a time where the term “world class” is often an empty ing our organization. Their contribution and leadership is cliché, HSIA is setting global standards for airport cus- key to our success. tomer service. For the seventh year in a row, HSIA was In 2009, we welcomed two new members to our named the best airport for customer satisfaction in its Board of Directors: Marie Mullally, President and CEO of class (under !ve million passengers) in the 2009 Airport the Nova Scotia Gaming Corporation, and Robin Wilber, Service Quality passenger ratings. HSIA was also ranked President of Elmsdale Lumber Company Limited. by passengers as the second-best airport in North Together as partners, our Board of Directors and America, regardless of size, behind Austin, Texas. Executive Management Team helped pilot the Airport When you consider that HSIA contributes more than Authority through an often turbulent, although ultimately $1.27 billion to the Nova Scotia economy, our airport successful, 2009. Working with colleagues of this calibre is more than simply YHZ on a baggage tag. As a major – amazingly talented individuals committed to the values Bob Winters economic, !scal and employment generator, it’s a and vision of the Airport Authority – is a privilege, and I Chair of the Board of Directors powerful asset to Halifax, to the province and, indeed, to thank each of them. Atlantic Canada. Add to that our state-of-the-art facilities In the end, one word best describes 2009: excep- and infrastructure, growing international passenger and tional. Thanks to exceptional people from across the cargo connections, and features like U.S. preclearance airport community working as a team under exceptional and the new multi-tenant cargo facility, it’s clear: Halifax circumstances, we delivered positive results. For any Stan!eld International Airport is the region’s economic air business, that’s the securest of all foundations. For the gateway to the world. Airport Authority, that’s the strength we take forward As the Airport Authority goes about managing this vital into 2010. infrastructure, we are fortunate to have a group of dedi- cated men and women – our Board of Directors – steer-
2009 ANNUAL REPORT 3 Message from the President & CEO
“ Halifax Stan!eld International Airport’s In an unsettling and uncertain year, one marked by retrenching and recon!guring across the economy, the Air- impact reaches beyond the airport itself. port Authority countered the trend. Not only did we realize a As it succeeds, it creates opportunities respectable surplus and maintain our A+ credit rating, thanks to careful stewardship and collective perseverance, we: that bene!t the entire Atlantic region.” t Opened our new !ve-level, 2,300-space parkade in March, featuring an enclosed over-road pedway with In engineering, it’s called tensile strength: the ability to Nova Scotia’s !rst and only moving sidewalks stretch under pressure. In many respects, the global economic downturn that de!ned 2009 tested the tensile t Made capital improvements to the main and second strength of every business in every sector, including Hali- "oor levels of the terminal building, including a direct link fax International Airport Authority (Airport Authority). from the new pedway to U.S. preclearance check-in At the beginning of 2009, when the depth and breadth t Continued construction of our $27 million combined of the !nancial crisis became clear, the Airport Authority services complex and our portion of a joint project to Board of Directors and Executive Management Team build a new $15 million state-of-the-art, multi-tenant made a pivotal decision: to continue delivering on key cargo facility – both due to open of!cially in 2010 capital and operational initiatives. t Invested $11 million to complete the !fth year of our By adjusting our strategic plan and revising revenue six-year air!eld restoration program forecasts, the Airport Authority – with the active engage- ment of employees – stayed on vision and on strategy. In an industry especially sensitive to economic And we did so while maintaining our exemplary stan- fluctuation, Halifax Stanfield International Airport dards for safety, security and service. (HSIA) saw new passenger routes and increased inter- national cargo traf!c in 2009. After an initial drop of 11.5 per cent in the !rst quarter compared to 2008, overall passenger growth started to pick up late in the year – a positive trend we see continuing in 2010.
4 HALIFAX INTERNATIONAL AIRPORT AUTHORITY Porter Airlines and WestJet added new routes, Delivering a new kind of airport which helped contribute to a three per cent increase in domestic traf!c in the fourth quarter. Once !nalized, When your vision is to have “Great people delivering the Canada’s air transport agreement with the European best airport experience in the world,” everyone plays a Union negotiated this past year will create new non- role. That’s why over the course of 2009, we made build- stop flight options between Europe and the United ing commitment to this new vision a priority, especially States through Halifax. among our partners – the almost 5,500 airline, security, In a year when international air cargo activity was customs, retail, front-line, transportation, and food and down 10 per cent worldwide, HSIA bucked the global beverage personnel who work alongside our own 180 trend. In 2009, the airport welcomed new dedicated air Airport Authority employees and 100 volunteers. cargo services – both scheduled and charter wide-body Every day, partners and employees alike – directly and freighters – more than doubling the airport’s international indirectly – interact with thousands of people. By embrac- ing this vision and using it as our measure of success, we Tom Ruth air cargo business. President & CEO can create a new kind of airport experience – one that’s Driving economic success in Atlantic Canada less stressful and more comfortable for all passengers and guests, and brings the pleasure back into air travel. HSIA handles more than half of all air passengers and For the Airport Authority, 2009 will be remembered cargo in the region. That makes it more than just an air- as the year when, despite an unforgiving economy, we port. It’s the primary air gateway for Atlantic Canada. optimized results. And we did so thanks to the source of Whether you consider that each cargo shipment of our tensile strength: our people. As we look forward with lobster represents upwards of $500,000 of export value optimism to 2010, I want to recognize our employees, vol- or that the airport delivers $1.27 billion annually – or unteers, partners and members of our Board of Directors. over $100 million every month in economic bene!ts – Their determination, adaptability, creativity and commitment HSIA’s impact reaches beyond the airport itself. As it enabled Halifax International Airport Authority to succeed. succeeds, it creates opportunities that bene!t the entire Thanks to you, we delivered. Atlantic region.
2009 ANNUAL REPORT 5 In the airport business, infrastructure and traf!c are two sides of the same coin. Outstanding facilities – and the advantages they provide – are vital to growing new passenger and air cargo traf!c. Anticipating and accommodating the changing needs of our customers, from travellers to the airlines themselves, means we build with a focus on the future. Together, infrastructure and
5==2A traf!c are the “the goods” of an airport, and in 2009, the Halifax International Airport Authority delivered on both. Delivering the Goods Signed, Sealed and Delivered In 2009, Halifax International Airport Authority delivered on major capital commitments set In a year of global contraction, Halifax International out in its 2009 business plan, including: Airport Authority expanded. In a year of uncertainty, t$PNQMFUJPOPGUIFUISFFZFBSHSPVOETJEF redevelopment program and related projects, featuring: we stayed on strategy. - A 2,300-space parkade connected to the terminal building with an enclosed over-road pedway, includ- ing Nova Scotia’s !rst moving sidewalks The result? Despite the economic downturn, we worked with our - A direct link from the new pedway to U.S. preclear- ance check-in airline partners to add new routes and start new service, while - Terminal building modi!cations to accommodate the delivering $64 million in capital projects, on time and on budget. new pedway, as well as four new escalators, two elevators, and a two-storey glass curtain wall In 2009, we created new capacity, all designed with one purpose: - Separate upper and lower roads for picking up and to grow business by delivering superior customer service. dropping off passengers, doubling the capacity for traf!c in front of the terminal - Separate curbs on the upper road for U.S.-bound Today, our passengers and visitors enjoy the convenience and passengers and ground transportation services comfort of an inviting, fully renovated terminal, and new ground- - Glass canopies over the pick-up and drop-off areas side facilities, complete with a signature 2,300-space parkade. t4JUFJOGSBTUSVDUVSFEFWFMPQNFOU JODMVEJOHDPOTUSVDUJPO Atlantic Canadian exporters are delivering to the world, thanks of a parking apron, to support the 40,000 square foot multi-tenant cargo facility, due to of!cially open in 2010 to new international air cargo service. And our airline customers t$POTUSVDUJPOPGUIFNJMMJPODPNCJOFETFSWJDFT know that Halifax Stan!eld International Airport’s airside services complex, designed to house the Airport Authority’s emergency response services and air!eld maintenance and infrastructure meet the highest international standards of teams, and scheduled to open in early 2010 safety and quality. t$PNQMFUJPOPGUIFýGUIZFBSPGPVSTJYZFBSBJSýFME restoration program, including restoration of two-thirds That’s what we call delivering the goods. of the main taxiway and half of the apron in front of the terminal building, plus installation of centre-line lighting to meet international low-visibility operating standards
2009 ANNUAL REPORT 7 What a difference a year makes. Back in 2008, the inter- ered parking and easy access to the terminal – including national Airport Service Quality passenger ratings ranked a glassed-in pedway featuring Nova Scotia’s !rst moving Halifax Stan!eld International Airport (HSIA) 128th out of sidewalks and direct access to our U.S. preclearance 140 airports worldwide for availability of parking. facility. For maximum customer convenience, a state- Today, passengers rate HSIA third in the world. The of-the-art electronic toll collection system provides the reason? Our new !ve-level, 2,300-space parkade: the widest and most advanced choice of payment options centrepiece, and major component, of our groundside possible, including – in the !rst partnership of its kind for redevelopment program. Halifax Harbour Bridges – the popular MACPASS. Opened in March 2009, this showcase facility offers By any measure, the Airport Authority’s three-year, $82-mil- passengers and visitors the year-round comfort of cov- lion groundside redevelopment program rede!ned both the
In 2009, the Airport Authority completed the !fth year of its six-year air!eld restoration program, with two-thirds of the main taxiways and the apron in front of the terminal building having been restored.
New service contrib- uted to an increase of over 100 per cent in international cargo activity in 2009.
In March, the Airport Authority opened its 2,300-space parkade, featuring an enclosed over-road pedway with Nova Scotia’s !rst and only moving sidewalks.
8 HALIFAX INTERNATIONAL AIRPORT AUTHORITY The Airport Delivering from groundside to airside Authority’s new combined services The Airport Authority also delivered on its planned airside complex, due to open in early capital projects in 2009. While less visible to the public than 2010, will house its our groundside improvements, these initiatives are vital to emergency response maintaining the integrity – and ultimately, the safety – of this services and air!eld maintenance teams, critical infrastructure. and will be built to By the end of 2009, the !fth year of our six-year air!eld LEED* standards. restoration program was complete, with two-thirds of the main taxiway and half of the apron in front of the terminal public face and physical footprint of the airport. In 2009, building having been restored, and centre-line lighting we added the !nishing touches to this ambitious initiative, installed to meet international low-visibility operating standards. including separate upper and lower roads for passenger Construction of the new combined services complex pick-up and drop-off, plus another project to create a new also progressed on schedule. The project will replace two two-level corridor for the north end of terminal, complete aging facilities with one modern, LEED-standard* build- with a stunning "oor-to-ceiling glass curtain wall. ing that will house our emergency response services and air!eld maintenance teams together under one roof. For * LEED: Leadership As well, space was created in the terminal for new in Energy and retail shops and services. In November, the Airport our airline partners and passengers, the complex – due Environmental Authority issued a request for proposals to introduce to open in early 2010 – will bring these essential services Design new amenities for the airport’s 15,000 daily visitors. closer to where they’re most needed. New operators will soon join the Halifax Stan!eld Merchants Association, whose members strive to offer Airport Authority President & CEO, travellers and guests a wide range of !rst-rate prod- Tom Ruth meets with ucts, services, and food and beverage choices. Incheon International In the airport business, you build for the future. With Airport’s Mina Choi, Director-International the completion of our groundside redevelopment pro- (left) and C.W. Lee, gram, we have facilities to comfortably accommodate President & CEO another million passengers annually – enough capacity while on a trade mis- sion to Seoul, South to serve us well for years to come. Korea in November.
2009 ANNUAL REPORT 9 Flyglobespan introduced weekly summer seasonal service from Halifax to Glasgow, In 2009, Porter Scotland in May. Airlines expanded to a year-round operation, WestJet added new same-day service to Vancouver through London, Ontario, and Air Canada and Jazz continued to serve the region through their major hub in Halifax.
Putting down routes for the future London, Ontario. Porter Airlines expanded its summer season Ottawa-Toronto City Centre service to a year- When the global economy takes a downward swing, round operation and added daily service to St. John’s with so does airline travel – and the revenues they generate. four "ights per day. Flyglobespan introduced weekly sum- That’s why the Airport Authority took steps early on to mer seasonal service from Halifax to Glasgow, Scotland in mitigate the effects of the recession with an aggressive May, and Starlink Aviation operated service to Yarmouth strategy to grow both passenger and air cargo service. and Portland, Maine from February until November. And our efforts paid off. On the passenger side, West- Our largest airline partners, Air Canada and Jazz, Jet added a new same-day service to Vancouver through headquartered at HSIA, continued serving the region
10 HALIFAX INTERNATIONAL AIRPORT AUTHORITY through their major hub operations in Halifax. CanJet We took on a number of marketing initiatives in 2009. Airlines, owned by IMP Group International Inc. – one of For example, in October, the Airport Authority hosted Canada’s 50 Best Managed Companies – entered into Altitudes East – its !fth air access forum. Of!cials from a !ve-year partnership agreement with tour operator airlines, airports, and the aviation industry came together Transat Tours Canada to charter CanJet narrow-body in Halifax to network, learn and foster air service partner- Boeing 737-800 aircraft. ships. In November, Airport Authority President & CEO, Tom Ruth joined government and business leaders from
The Airport Author- the transportation and education sectors on a trade ity partnered with mission to Vietnam to promote the airport’s competitive Gateway Facilities advantages. From there, he travelled to South Korea to Inc. who constructed a 40,000 square foot build on newly established air cargo links. multi-tenant cargo For our region’s exporters, particularly in the high- facility – also the volume, high-value seafood business, easy access to new home for airport operations of anchor international markets is paramount. For the Airport Author- tenant FedEx. ity, ensuring this access by growing our cargo capacity is a strategic priority, and we were delighted to welcome two new air cargo carriers in 2009: Ohio-based ABX Air and Korea’s Asiana Cargo. Between them, ABX and Asiana offered regularly scheduled freighter service throughout the week to major European and Asian destinations – opening In 2009, HSIA processed 3,417,164 passengers. the world to Atlantic Canadian shippers. Although HSIA’s While this represents a 4.5 per cent drop in passenger 2009 total cargo activity of 26,910 metric tonnes was traf!c from our record in 2008, signs of recovery were down approximately 3.7 per cent compared to 2008, these evident by the end of the year. With each quarter, our new carriers helped increase our international air cargo by numbers steadily strengthened; by the fourth quarter, more than 100 per cent over the previous year’s numbers. traf!c was up 1.4 per cent compared to the last To further support air cargo growth, Gateway Facilities quarter of 2008. Based on these promising trends, Inc. is putting the !nishing touches on a 40,000 square we’re projecting a 2.6 per cent increase in passenger foot multi-tenant cargo facility. It’s one of largest and numbers for 2010. most advanced of its kind north of Miami, and will serve as a draw for new air cargo activity.
2009 ANNUAL REPORT 11 Air Service
Scheduled and Charter Passenger Services Scheduled and Charter Passenger Air Carriers
17 Domestic 12 Transborder 16 International 21 Passenger 11 Cargo Destinations (USA) Destinations Destinations Air Carriers Carriers
Calgary, AB Atlanta, Georgia Bermuda – Hamilton Air Canada ABX Air Charlottetown, PE Boston, Massachusetts Cuba – Cayo Coco, Holguin, Air Canada Jazz Air Canada Deer Lake, NL Chicago, Illinois Santa Clara, Varadero Air Georgian Asiana Airlines Edmonton, AB Detroit, Michigan Dominican Republic – Air St. Pierre CargoJet Fredericton, NB Ft. Lauderdale, Florida Puerto Plata, Punta Cana Air Transat Challenge Air Cargo Gander, NL Newark, New Jersey France – Paris American Airlines Icelandair Goose Bay, NL New York (JFK), New York Germany – Frankfurt CanJet Airlines Kelowna Flightcraft (Purolator) Hamilton, ON New York (LGA), New York Iceland – Reykjavik Condor Flugdienst Korean Air Cargo London, ON Orlando, Florida Jamaica – Montego Bay Continental Airlines Morningstar Express (FedEx) Moncton, NB Portland, Maine Mexico – Cancun Corsair Prince Edward Air Montréal, QC St. Petersburg, Florida St. Pierre et Miquelon Delta Air Lines Worldwide Perishables Canada Ottawa, ON Washington (IAD), DC United Kingdom – Glasgow, Flyglobespan Saint John, NB London (Gatwick), Icelandair St. John’s, NL London (Heathrow) Northwest Airlines Sydney, NS Porter Airlines Toronto, ON SkyService Airlines Yarmouth, NS Starlink Aviation Sunwing Airlines Thomas Cook (UK) United Airlines WestJet
12 HALIFAX INTERNATIONAL AIRPORT AUTHORITY Five-Year Forecast
A C T U A L F I V E - Y E A R F O R E C A S T *
YEAR 2007 2008 2009 2010 2011 2012 2013 2014
Passenger Volume 3,469,062 3,578,931 3,417,164 3,505,185 3,656,790 3,799,185 3,925,597 4,055,453
Per cent Change 2.7 % 3.2 % -4.5 % 2.6 % 4.3 % 3.9 % 3.3 % 3.3 %
Total Aircraft Movements 89,251 89,033 88,477 90,335 93,316 96,302 98,902 101,375
Per cent Change 3.6 % -0.2 % -0.6 % 2.1 % 3.3 % 3.2 % 2.7 % 2.5 %
Capital Expenditures $ 20,542 $ 78,211 $ 63,659 $ 28,900 $ 13,243 $ 10,127 $ 11,970 $ 11,596 ($ 000’s)
Rent Payable to $ 4,093 $ 3,825 $ 3,290 $ 4,220 $ 4,411 $ 4,608 $ 4,811 $ 5,022 Transport Canada ($ 000’s)
* The forecast !gures indicated are subject to change pending completion of the ongoing development of an updated Master Plan and 10-Year Capital Plan.
2009 ANNUAL REPORT 13 >@=;7A3 That’s our promise. commitment to delivering excellence in customer service. we continue to set the global standard, driven by our Halifax Stan!eld International Airport. Year after year, airports in the world measure themselves against When it comes to superior customer service, the best Delivering on a Promise
Want to know the secret of Halifax Stan!eld Delivering the world’s best customer service International Airport’s world-recognized cus- tomer service? It’s in the positive approach: Once again, Halifax Stan!eld International Airport (HSIA) is setting the world standard from the moment you step into the building to for airport customer service. In the 2009 Airport Service Quality (ASQ) passenger the time you reach your gate, you’re met by ratings, our airport earned two awards: friendly, courteous people, each one willing to -VY[OLZL]LU[OZ[YHPNO[`LHY!-PYZ[PUV]LYHSSWHZ ZLUNLYZH[PZMHJ[PVUMVYHPYWVY[Z^VYSK^PKLPUP[Z answer a question or lend a hand. JSHZZ\UKLYÄ]LTPSSPVUWHZZLUNLYZ :LJVUKPU[OL)LZ[(PYWVY[5VY[O(TLYPJHJH[LNVY` It’s all in the comforting details: a blanket and a cup of tea for :PUJLP[ÄYZ[Z[HY[LKWHY[PJPWH[PUNPU[OL(:8 a weary, storm-stayed traveller, or the ease of booking a "ight WYVNYHTPU/:0(OHZLHYULKH[V[HSVM through the airport’s new web site. H^HYKZ! ÄYZ[WSHJLZL]LUZLJVUKWSHJLHUK[^V [OPYKWSHJLÄUPZOLZ
Most of all, it’s in the obvious pride of purpose shared by every ;OLYPNVYV\Z(:8YH[PUNZWYVNYHTHUPUP[PH[P]LVM member of the airport community. From Halifax International (PYWVY[Z*V\UJPS0U[LYUH[PVUHSTLHZ\YLZZLWHYH[L LSLTLU[ZVMWHZZLUNLYHPYWVY[L_WLYPLUJL\ZPUN Airport Authority’s employees and volunteers to retail partners, KH[HNLULYH[LK[OYV\NOJ\Z[VTLYZ\Y]L`Z0U airline employees to service staff, together we’re one team, HPYWVY[Z^VYSK^PKLWHY[PJPWH[LKPU[OLZ\Y]L` embodying one vision: “Great people delivering the best airport PUJS\KPUN(TZ[LYKHT:JOPWOVS)LPQPUN+HSSHZ +LU]LY/VUN2VUN:LV\S0UJOLVUHUK:PUNHWVYL experience in the world.” HUK*HUHKPHUHPYWVY[ZPU*HSNHY`,KTVU[VU 4VU[YtHS6[[H^H8\LILJ*P[`;VYVU[V=HUJV\]LY HUK>PUUPWLN
2009 ANNUAL REPORT 15 “Let’s face it: air travel can be stressful sometimes,” says there, coordinating responses and following them through Kelly Martin, Customer Relations Manager for Halifax Inter- to completion. national Airport Authority (Airport Authority). “Flight delays, Thanks to our HSIA advisory council, established in In July, Hudson Group opened a Travel + missed connections, or heavy traf!c on the way to the 2009, we can stay attuned to travellers’ needs. In essence Leisure store featuring airport can make even the most seasoned traveller a little a virtual focus group, the 150-member council – made up luggage and travel anxious. However, if you can put a smile on someone’s of airport customers – provides us with valuable and topi- accessories, maps and travel guides. face, it changes the whole experience.” cal feedback through regular e-mail surveys. At Halifax Stan!eld International Airport (HSIA), that’s the Planning air travel was made even easier in 2009 with essence of our promise. For the thousands of people who the launch of the Airport Authority’s new web site. Visitors pass through our doors every day, from all over the world – can check "ight availability to any destination, compare whether arriving, departing or en route to somewhere else, prices on multiple sites, and book their "ight online from our goal is simple: To make their time with us as relaxing, the comfort and convenience of their home, of!ce or any- enjoyable and stress-free as possible. where they have Internet access.
Building on a promise In December, the Air- port Authority launched With completion of the groundside redevelopment pro- its new "yhalifax.com web site. gram, we transformed the public face of the airport. Every element of our wonderful new facility, from the design and features of the parkade to the "ow of passengers through the spacious, bright terminal building, is designed to enhance visitor convenience, comfort and ease. In an operation as complex as an airport, all sorts of operational issues – big and small – crop up every day. Resolving them quickly and ef!ciently is paramount. Our new airport service centre, opened in 2009, provides a Travellers and visitors centralized system for doing just that. From “There’s a stay connected and productive at HSIA light bulb burned out” to “At what gate should we park with free Wi-Fi service. this aircraft?” our airlines and partners need only call one Airport Authority air!eld and terminal maintenance crews keep airport number, once. Our airport service centre takes it from vehicles and infrastructure running in top notch shape.
16 HALIFAX INTERNATIONAL AIRPORT AUTHORITY Airport Volunteers Meeting the needs of our Francophone customers is a are the heart and priority for the Airport Authority. So, we appointed an soul of our customer Of!cial Languages Act champion to move us closer to full service team, helping the airport achieve compliance under the Act. In 2009, the Of!ce of the Com- world’s best in overall missioner of Of!cial Languages completed an audit – the passenger satisfaction !rst such audit of an airport authority in Canada. We look in its class for seven straight years. forward to receiving the report and its recommendations, which we expect will set the standard for the delivery of French-language services in airports across Canada. Without doubt, HSIA’s treasured volunteer hosts – who Setting the standard for the world celebrated their ninth anniversary in 2009 – are the heart and soul of our customer service team. Dubbed the Every year, the prestigious Airport Service Quality ratings “Tartan Team” for their distinctive Nova Scotia tartan vests, de!ne service delivery excellence in our industry world- these dedicated ambassadors are at the airport every day, wide. The results are based on passenger surveys and are offering a warm, friendly welcome and a helping hand to independently managed. travellers and visitors alike. For an amazing seventh straight year, HSIA was ranked the world’s best in overall passenger satisfaction for air- Delivering the Halifax Stan!eld ports under !ve million passengers. How does a relatively small airport like HSIA emerge International Airport difference as a global leader in customer service? “The answer We believe an airport can be more than simply a transi- is simple: it’s our people. They are our greatest asset tion point for passengers on their way to or home from In 2009, the Airport and the reason why we continue to achieve worldwide somewhere else. Thanks to our signature strengths – out- Authority opened recognition,” says Tom Ruth, Airport Authority President its airport service standing people, services and facilities – we’re constantly & CEO. “Year after year, these awards are a testament to centre to centralize recreating our airport as something more: a calming oasis operational calls and the genuine pride of purpose shared by everyone, in every for both travellers and visitors. As Kelly Martin says, “We deal ef!ciently with role, across the entire airport community – a pride built on their resolution. want people to look forward to arriving at our airport. We a foundation of ongoing training, feedback, motivation and want to deliver a positive and enjoyable travel experience.” recognition for exceptional service.” That’s the Halifax Stan!eld International Airport difference.
2009 ANNUAL REPORT 17 D/:C3A compass and clear direction. Halifax International Airport Authority stayed true to this through the economic uncertainty that de!ned 2009, strategic direction and frame our decisions. Even as a base, our values guide our thinking, shape our to safety, security and service. Using this commitment Inherent in all of our corporate values is a commitment Think of values as the compass of an organization. Delivering on Our Values
Our corporate values and culture de!ne The nature of our business is complex and inherently risky, so anticipating and managing all manner of risk is para- who we are and how we operate – from our mount. Several years ago, the Airport Authority embarked industry leadership in risk management to our on a comprehensive initiative to identify, assess and put in place the means to manage the full range of potential commitment to environmental excellence. hazards across our entire operation. The result? In 2009, the Airport Authority became a Our values guide how we approach our relationships, with Halifax leader in implementing an enterprise risk management International Airport Authority (Airport Authority) colleagues, with policy. This means we’re fully aware of the risks, and have our airline and retail partners and beyond – as leaders in building a clear systems in place to deal – effectively, quickly and better community. decisively – with any possible situation. On the aviation side of our operations, our Safety Our values drive the Airport Authority’s vision: “Great people deliv- Management System (SMS) identi!es and reduces those ering the best airport experience in the world.” hazards that could cause an accident or damage an aircraft – from birds or wildlife on the air!eld to debris being Delivering safety !rst swept up into an aircraft engine. A Transport Canada program implemented by the Airport Authority, SMS complements the broader enterprise risk Safety and security: In airport operations, these are top priority. For management initiative, as both focus on reducing risk the Airport Authority, ensuring the safety of everyone we encounter, through corrective action. In 2009, the Airport Authority suc- in any way, under any circumstance, is a core value that in"uences cessfully completed Phase Two of the four-phase SMS pro- every decision and every action. gram, and is preparing to move on to Phase Three in 2010. In the process, we’re creating one of the safest and most secure Our culture of safety means the Airport Authority looks airports anywhere. for ways to deliver more than what’s required. For exam- ple, our new !re hall – due to open in 2010 as part of the combined services complex – will meet the International Civil Aviation Organization’s standard for crash response, the highest such standard in the world. 2009 ANNUAL REPORT 19 Delivering environmental excellence signed in 2008, the actual service started in 2009. Not only is the terminal building now heated with natural gas, many of the airport’s hangar line tenants have also converted. Achieving environmental excellence is a cumulative The Airport Authority goes green – from process: the combination of hundreds of thousands of its award winning actions – large and small – every day, by everyone across Delivering on our falconry program to the airport community. commitment to the community its new environmental management system. In 2009, the Airport Authority continued building on its green momentum. For example, we took steps to develop The Airport Authority believes a great airport is more than a comprehensive Environmental Management System a physical asset. Delivering the best airport experience (EMS) for the airport, which will be phased in over the next in the world takes engaged, committed people, from our two to three years. Similar to SMS, EMS identi!es activi- ties that could have a negative impact on the environment and develops processes to better manage these activities, striving for continual improvement. As well, we teamed up
The Airport Authority with Clean Nova Scotia to encourage drivers to reduce started using natural idling and we continued working with our airline partners gas in 2009 to heat the terminal building. to replace hydrocarbon-fuelled ground equipment with battery powered vehicles. Then there’s our combined services complex – a state- of-the-art, energy ef!cient facility that will be home to the airport’s emergency response services and air!eld main- tenance teams. The complex will be built to Leadership in Energy and Environmental Design (LEED) speci!cations, marking the !rst building of its kind for the airport. LEED
Airport Authority Canada identi!es six categories of environmental sustain- employees give back ability that need to be followed for certi!cation. as they present Feed Nova Scotia with a One of our biggest environmental accomplishments donation cheque in came with the change-over from oil to natural gas. While December. A top priority – the Airport Authority’s safety management system focuses the Airport Authority’s agreement with Heritage Gas was on reducing risk through corrective action.
20 HALIFAX INTERNATIONAL AIRPORT AUTHORITY Committed to build- employees to our partners across the airport community. ing strong, open and In 2009, we continued nurturing and building these core productive relations relationships. between union and management per- On the employee side, changes from the new col- sonnel, the Airport lective agreement, rati!ed in 2008 and signed in 2009, Authority undertook were implemented. As part of this agreement, a new job several initiatives, including an Active evaluation process was introduced, replacing the previous Leadership Program. federal government model. This new process better aligns job descriptions with the type of work being done today in our organization. Building a strong, open and productive relationship with all employees is a shared priority at the Airport Authority. In Merchants Association and developing a new marketing 2009, we continued working towards this goal through sev- plan for our retailers – all designed to help build productive eral initiatives, including a two-day session in April where, and mutually bene!cial relationships between the Airport with the assistance of skilled negotiators from Human Authority and our business partners. Resources and Skills Development Canada, both parties Year after year, Airport Authority employees distinguish explored alternatives to a more productive relationship. themselves as passionate, caring community builders. For the Airport Authority, developing the leadership Whether as volunteers or fundraisers, our committed team potential of our managers and supervisors throughout the of employees pulls together, time after time, to make a organization is more than a “nice to do.” It’s a strategic difference. For example, despite the economic downturn In 2009, the Airport imperative. That’s why we partnered with a leading learn- in 2009, our United Way workplace campaign raised over Authority signed ing organization and introduced our Active Leadership $22,200, while our team in the annual Manulife dragon boat a new collective agreement with Program. Designed for employees in leadership or super- festival raised $5,400 for amateur sport in Nova Scotia – the its unionized staff, visory positions, this program will be cascaded through third highest amount from across the corporate community. and introduced a the organization over the next several years. Whether supporting community organizations through new job evaluation process. For travellers and visitors, our retail partners are on the our union-management sponsored Humanities Fund, part- front lines of delivering the airport experience. That’s why nering with Air Canada on its annual Dreams Take Flight it’s important we ensure our tenants are provided with initiative for disadvantaged children, or donating funds to every chance to be successful. In 2009, we undertook Feed Nova Scotia, Airport Authority employees take pride several initiatives, including revitalizing the Halifax Stan!eld in giving back to their community.
2009 ANNUAL REPORT 21 @3AC:BA deliver results. committed people who know what needs to be done to strengths: prudent planning supported by engaged, And we accomplished this by drawing on our trademark business, and ending the year with a !nancial surplus. delivering on all major capital projects, growing our Airport Authority stayed on strategy, successfully In the face of a turbulent 2009, Halifax International Delivering Results Delivering economic growth in Nova Scotia When you consider that Halifax Stan!eld International Airport contributes more than $1.27 billion to the Nova Scotia When the full impact of the global !nancial economy, it’s more than an airport. As a major economic, !s- cal and employment generator, the airport is a powerful asset downturn became clear in early 2009, Halifax to Halifax, to the province and, indeed, to the Atlantic region. International Airport Authority took action. Instead Looking at the entire airport community – airlines, air freight !rms, the Airport Authority, retailers, aviation service providers, of waiting out the recession, we immediately and other companies supporting the air transportation industry – the cumulative economic impact of Halifax Stan!eld Interna- responded by revising our revenue forecasts and tional Airport is similar to that of a town: adjusting our business plan, without compromising Total Provincial Bene!t t$1.27 billion in gross output safety, security and service. t$340 million (since 2000) in renovation and new construction tMajor tourism gateway to Nova Scotia With the support of our employees, Halifax International Airport Wages and Salaries Authority (Airport Authority) successfully navigated the economic t$455.8 million in total wages and salaries t $199 million direct (airport-related activity) downturn – and its impact on air traf!c – with an aggressive air t $109.5 million indirect (generated by a sector that supplies service growth strategy and a review of every aspect of our raw materials associated with direct economic activity) t $147.3 million induced (generated by individuals employed business to reduce expenses from plan and optimize revenues. in direct or indirect sectors)
Fiscal Impact And it worked. While passenger numbers may have taken tAirport community employees pay $55 million in personal a hit at the beginning of 2009, we managed the impact, ending income tax to the province of Nova Scotia tAirport community employees spend almost $21 million in a challenging year with a respectable $3.3 million surplus and retail sales tax looking forward with optimism to 2010. Employment (full-time equivalent) t12,575 jobs attributable to the airport – equal to 2.8% of Nova Scotia’s total employment t 5,490 direct t 3,020 indirect Source: HSIA 2008 Economic Impact Report, prepared by Chris Lowe Planning t 4,065 induced & Management Group, September 2009 2009 ANNUAL REPORT 23 Early in 2009, it became clear the revenue and expenditure forecasts, we then revised the 2009 business plan. From assumptions upon which the Airport Authority had originally the outset, we chose to protect key strategic initiatives and built the year’s business plan would not hold. The deepen- continue delivering on major capital projects. ing recession, including record-high oil prices and the credit To do so, we engaged our employees to identify and crisis, was already taking its toll. By the end of the !rst help realize operational cost savings, without compromis- quarter of 2009, passenger traf!c through Halifax Stan!eld ing our industry-leading standards of safety, security and International Airport (HSIA) had fallen by 11.5 per cent. service – and without resorting to mandated targets. The Airport Authority took immediate action. We re-fore- Our objective in 2009 was simple, although ambitious: cast our budget early in 2009, making further adjustments To get through the year with a positive bottom line. And we mid-way through the year. Based on these new revenue succeeded. In 2009, the Airport Authority earned revenues
Standard & Poor’s once again af!rmed the Airport Author- ity’s A+ credit rating.
Following the opening of the parkade in March, the vehicle rental companies relocated to their convenient new home on the lower level.
Halifax Stan!eld International Airport is a major economic, !scal and employment generator contributing more than $1.27 billion to the Nova Scotia economy.
24 HALIFAX INTERNATIONAL AIRPORT AUTHORITY of $62.1 million, up from $54.4 million in 2008. The opening operating new infrastructure such as the parkade. These of the airport’s 2,300-space parkade in March 2009, includ- increases are offset by expense reductions in general and ing a newly-constructed vehicle rental concession within the administrative due to cost-cutting initiatives. Ground lease parkade, provided an enhanced level of service to custom- rent, payable to the federal government, was reduced by ers and helped contribute positively to the Airport Authority’s $0.5 million from 2008; however effective January 2010, 2009 !nancial results. Revenues from Airport Improvement under a revised rent formula which is tied to gross revenue, Fees (AIF), collected from airline passengers travelling ground lease rent is expected to increase by roughly In 2009, revenues through HSIA and used to support capital improvements $1 million year over year. Overall, revenues exceeded exceeded expenses at the airport, totalled $18.2 million in 2009, up from $13.2 expenses by $3.3 million. This surplus will be retained and by $3.3 million – this million in 2008. The AIF is an important source of revenue to reinvested in airport operations and development. surplus is retained and reinvested in airport the Airport Authority which, along with debt and operational We worked cooperatively with Halifax Regional Munici- operations and devel- surpluses, allows us to provide the infrastructure needed to pality (HRM) to renew our development grant agreement, opment by the Airport grow the airport for the economic well-being of the region. which determines how our property taxes will be calculated Authority. On March 1, 2009, to support enhanced infrastructure for the next !ve years. Under the agreement, HRM taxation requirements, we increased the AIF from $10 to $15 per revenue will grow while we enjoy stability and predictability departing passenger. At $15, HSIA’s AIF is still among the in our property tax expense. lowest of the international airports in Canada. We are pleased to report that Standard & Poor’s, our credit After a disappointing !rst quarter, passenger traf!c rating agency, once again af!rmed our A+ credit rating. In numbers steadily strengthened over the course of the year. its report, the agency complimented the Airport Authority on While 2009 ended with 3,417,164 passengers, down 4.5 being an organization with its !nger on the pulse, one that per cent from the record in 2008, these results were better reacts quickly to changing circumstances and is prepared to than the average Canadian decline. More signi!cantly, in do what needs to be done to minimize losses. the fourth quarter of 2009, passenger numbers were up Ultimately, the Airport Authority’s successful navigation of Following a weak !rst quarter, passenger 1.4 per cent over the last quarter of 2008, suggesting that a challenging year is a testament to the power of teamwork. numbers strengthened the worst of the recession was behind us. Based on these Throughout the organization, our people pulled together over the course of trends, the Airport Authority currently forecasts passenger strategically and creatively to reduce expenses and optimize the year, ending with 3,417,164 passengers, traf!c to increase by 2.6 per cent in 2010. revenues. Thanks to their diligence and collective commit- down 4.5 per cent Total expenses in 2009 were $58.8 million, compared ment, Halifax International Airport Authority is well-positioned from the record in to $54.8 million in 2008. Several increases over the previ- at the leading edge of the coming economic recovery. 2008. ous year are tied to strategic initiatives and the cost of Together, we delivered results.
2009 ANNUAL REPORT 25 AUDITORS’ REPORT
To the Directors of the Halifax International Airport Authority
We have audited the balance sheet of the Halifax In our opinion, these !nancial statements present fairly, International Airport Authority [the “Authority”] as at in all material respects, the !nancial position of the December 31, 2009 and the statements of operations Authority as at December 31, 2009 and the results and changes in net assets and cash "ows for the of its operations and its cash "ows for the year then year then ended. These !nancial statements are the ended in accordance with Canadian generally accepted responsibility of the Authority’s management. Our accounting principles. Financial Statements responsibility is to express an opinion on these !nancial statements based on our audit.
We conducted our audit in accordance with Canadian Halifax, Canada generally accepted auditing standards. Those standards February 22, 2010 Chartered Accountants require that we plan and perform an audit to obtain reasonable assurance whether the !nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the !nancial statements. An audit also includes assessing the accounting principles used and signi!cant estimates made by management, as well as evaluating the overall !nancial statement presentation.
26 HALIFAX INTERNATIONAL AIRPORT AUTHORITY FINANCIAL STATEMENTS 2009 2008 [in thousands of dollars] $ $
Balance Sheet ASSETS Current As at December 31 Cash 3,130 445 Accounts receivable 5,650 4,959 Inventories 716 594 Prepaid expenses 781 765 10,277 6,763 Capital assets, net [note 3] 305,089 253,774 Debt Service Reserve Fund [note 4] 4,127 4,127 Accrued bene!t asset [note 7] 1,406 829
320,899 265,493
LIABILITIES AND NET ASSETS Current Bank overdraft – 1,202 Accounts payable and accrued liabilities 20,014 22,259 Deferred revenue 1,546 1,540 Current portion of long-term debt [note 4] 56,080 80 77,640 25,081 Long-term debt [note 4] 149,357 149,426 Security deposits 1,439 1,882 228,436 176,389 Net assets Commitments [note 6] Equity in capital assets [note 5] 92,463 89,104 Contingencies [note 10] See accompanying notes 320,899 265,493
On behalf of the Board:
Director Director 2009 ANNUAL REPORT 27 FINANCIAL STATEMENTS 2009 2008 [in thousands of dollars] $ $
Statement of REVENUES Terminal and passenger security fees 14,327 13,605 Operations and Concessions 9,785 8,733 Changes in Net Landing Fees 9,003 9,154 Assets Parking 8,496 6,224 Rental 1,992 1,948 Year ended December 31 Other 235 146 Interest 67 1,378 43,905 41,188 Airport improvement fees [note 5] 18,219 13,167 62,124 54,355
EXPENSES Salaries, wages and bene!ts 15,386 14,229 Materials, services and supplies 14,921 13,825 Amortization 12,436 10,379 Interest on long-term debt [note 4] 7,727 6,969 General and administrative 3,714 4,225 Ground lease rent 3,290 3,825 Property taxes 1,371 1,350 58,845 54,802
Excess of revenues over expenses (expenses over revenues) for the year 3,279 (447) Net assets, beginning of year 89,104 89,471 Net assets 92,383 89,024 Amortization of deferred !nancing costs 80 80 Net assets, end of year [note 5] 92,463 89,104
See accompanying notes
28 HALIFAX INTERNATIONAL AIRPORT AUTHORITY FINANCIAL STATEMENTS 2009 2008 [in thousands of dollars] $ $
Statement of OPERATING ACTIVITIES Excess of revenues over expenses Cash Flows (expenses over revenues) for the year 3,279 (447) Year ended December 31 Items not affecting cash: Amortization 12,436 10,379 Accrued bene!t asset (577) (454) Net change in non-cash working capital balances related to operations (3,511) 7,140 Cash provided by operating activities 11,627 16,618
INVESTING ACTIVITIES Expenditures on capital assets (63,659) (78,211) Cash used in investing activities (63,659) (78,211)
FINANCING ACTIVITIES Proceeds of long-term debt 56,000 – (Repayment of) increase in bank overdraft (1,202) 1,202 Decrease in deferred rent (81) (81) Cash provided by !nancing activities 54,717 1,121
Net change in cash during the year 2,685 (60,472) Cash, beginning of year 445 60,917 Cash, end of year 3,130 445
See accompanying notes
2009 ANNUAL REPORT 29 NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
1. GENERAL 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Halifax International Airport Authority [the “Authority”] The Authority’s !nancial statements have been prepared in was incorporated on November 23, 1995 as a corporation accordance with Canadian generally accepted accounting without share capital under Part II of the Canada principles. The preparation of !nancial statements requires Corporations Act. On February 1, 2000, the Authority management to make estimates and assumptions that signed a 60-year ground lease with Transport Canada and affect the reported amounts of certain assets and liabilities assumed responsibility for the management, operation at the date of the !nancial statements and the reported and development of the Halifax Robert L. Stan!eld amounts of certain revenues and expenses during the International Airport [the “Airport”]. Excess revenues over year. Actual results could differ from those estimates. expenses are retained and reinvested in airport operations and development. Inventories The Authority is a dynamic and multi-faceted aviation Inventories consist of materials, parts and supplies and are enterprise connecting Nova Scotia to the world through stated at the lower of cost, determined on an average cost "ight. The Halifax Robert L. Stan!eld International Airport basis, and net realizable value. is the largest airport in Atlantic Canada, and the region’s gateway to the world. Ground lease The Authority is governed by a Board of Directors The ground lease with Transport Canada is accounted for whose members are nominated by the Halifax Regional as an operating lease. Municipality, the Province of Nova Scotia and the federal Government, as well as the Halifax Chamber of Commerce. The nominated members can also appoint additional members who represent the interests of the community. The Authority is exempt from federal and provincial income tax, federal large corporations tax, and Nova Scotia capital tax.
30 HALIFAX INTERNATIONAL AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES leases, licenses and permits. Airport improvement (CONTINUED) fees [“AIF”] are recognized when originating departing passengers board their aircraft as reported by the airlines. Capital assets Deferred revenue consists primarily of a portion of the Capital assets are recorded at cost including interest on common-use terminal equipment fees required for future funds borrowed for capital purposes, net of contributions capital acquisitions. These revenues are recognized as and government assistance, and are amortized over the related capital acquisitions are in use. their estimated useful lives on a straight-line basis at the following rates: Employee bene!t plans The Authority sponsors a pension plan on behalf of Computer hardware and software 20% - 33% its employees which has de!ned bene!t and de!ned Leasehold improvements 2.5% - 10% contribution components. In valuing pension obligations Machinery, equipment, furniture and !xtures 5% - 20% for its de!ned bene!t component, the Authority uses the Vehicles 5% - 17% accrued bene!t actuarial method prorated on services Construction in progress is recorded at cost and is and best estimate assumptions. Pension plan assets transferred to leasehold improvements when the projects are valued at current market values. The excess of the are complete and the assets are placed into service. accumulated net actuarial gain or loss over 10% of the greater of the accrued bene!t obligation and the fair value Revenue recognition of the plan assets is amortized over the average remaining Landing fees, terminal fees, parking revenues and service life of employees. De!ned contribution component passenger security fees are recognized as the airport amounts are expensed as incurred. facilities are utilized. Concession revenues are recognized on the accrual basis and calculated using agreed percentages of reported concessionaire sales, with speci!ed minimum guarantees where applicable. Rental revenues are recognized over the terms of the respective
2009 ANNUAL REPORT 31 NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The effective portion of the change in the fair value (CONTINUED) of hedging derivatives is recorded in accumulated unrealized changes in net assets and reclassi!ed to Financial instruments earnings in the same period the related hedged item The Authority’s !nancial instruments consist of cash, is realized. Any ineffective portion of the change in fair Debt Service Reserve Fund, accounts receivable, value of hedging derivatives is recognized in net earnings accounts payable and accrued liabilities and long-term in the reporting period. debt. Accounts receivable are classi!ed as loans and Derivative !nancial instruments that are not designated receivables and are accounted for at amortized cost. by the Authority to be in an effective hedging relationship Cash and the Debt Service Reserve Fund are classi!ed as or where documentation and effectiveness requirements held-for-trading and are recorded at fair value with realized are not met, will be carried at fair value with the changes and unrealized gains and losses reported in earnings in in fair value, including any payments and receipts made or the period during which they arise. Accounts payable and received, being recorded in interest and !nancing costs in accrued liabilities and long-term debt are classi!ed as the reporting period. other liabilities and are accounted for at amortized cost Realized and unrealized gains or losses associated with gains and losses reported in earnings in the period with derivative !nancial instruments, which have been during which they arise. The Authority has no held-to- terminated, de-designated from a hedging relationship maturity or available-for-sale !nancial assets. or cease to be effective prior to maturity, will be deferred Transaction costs are capitalized and added to the cost of in net assets and recognized in the period in which the !nancial assets and liabilities not classi!ed as held-for-trading. underlying hedged item is realized. Derivative !nancial instruments and hedges In the event a designated hedged item is sold, Derivative !nancial instruments, including interest rate extinguished or matures prior to the termination of the swaps, may be used from time to time to reduce exposure related derivative !nancial instrument, any realized to "uctuations in interest rates. Hedging relationships that or unrealized gain or loss on such derivative !nancial meet stringent documentation requirements, and can be instrument will be recognized in the statement of proven to be effective both at the inception and over the operations. term of the relationship qualify for hedge accounting.
32 HALIFAX INTERNATIONAL AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES EIC-173, Credit risk and the fair value of !nancial (CONTINUED) assets and !nancial liabilities On January 20, 2009 the Emerging Issues Committee Derivative !nancial instruments and hedges (continued) [“EIC”] issued EIC 173 Credit risk and the fair value of Deferred !nancing costs amounting to $2.761 million !nancial assets and !nancial liabilities. The abstract relate to a cash "ow hedge, which was discontinued concludes that an entity’s own credit risk and the credit before the end of the original hedge term. The balance risk of the counterparty should be taken into account when of these costs was allocated to net assets on January 1, determining the fair value of !nancial assets and !nancial 2007, the date the hedge was discontinued. liabilities, including derivative instruments. This abstract is The deferred costs are being amortized over the to apply to all !nancial assets and liabilities measured at fair remaining term of the previously hedged instruments. value in annual !nancial statements for periods ending on The amortization related to the current year is $80,000 or after January 20, 2009. The adoption of this abstract did [2008 – $80,000] and cumulative amortization to date not impact the Authority’s !nancial results. is $240,000. Financial instruments – disclosures Accounting Policies Adopted in 2009 In June 2009, the CICA Handbook amendments to Capital disclosures Standard 3862: Financial Instruments – Disclosures were Effective January 1, 2009, the Authority adopted the adopted to include additional disclosure requirements about Canadian Institute of Chartered Accountants [“CICA”] the fair value measurement of !nancial instruments and Handbook Section 1535: Capital Disclosures. This standard to enhance liquidity risk disclosures. The adoption of this requires an entity to disclose their objectives, policies and amendment did not impact the Authority’s !nancial results. processes for managing capital, including quantitative data about what it regards as capital; whether it has complied with any externally imposed capital requirements and, if not, the consequences of such non-compliance. The adoption of this Section did not have an impact on the !nancial results other than the inclusion of additional disclosure in note 8.
2009 ANNUAL REPORT 33 NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
3. CAPITAL ASSETS
Capital assets consist of the following:
2009 2008 Accumulated Net book Net book Cost amortization value value $ $ $ $
Computer hardware and software 6,466 5,756 710 1,120 Leasehold improvements 299,065 33,261 265,804 180,701 Machinery, equipment, furniture and !xtures 9,190 4,285 4,905 3,597 Vehicles 8,620 4,801 3,819 4,496 Construction in progress 29,851 – 29,851 63,860
353,192 48,103 305,089 253,774
34 HALIFAX INTERNATIONAL AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
4. LONG-TERM DEBT
Long-term debt consists of the following: 2009 2008 $ $
5.503%, non-amortizing Series A Revenue Bonds due July 19, 2041. Interest payable semi-annually in arrears on January 19 and July 19 of each year until maturity, which commenced on January 19, 2007. 150,000 150,000
Term credit facility, bearing interest at the quoted bankers’ 56,000 – acceptance rate plus 27.5 bps on the !rst $30 million and at the quoted bankers’ acceptance rate plus 100 bps on the remaining $50 million, convertible to a term loan on or prior to October 31, 2011.
Transport Canada deferred rent, non-interest bearing, repayment in monthly installments of $6,700 which commenced in 2006. 482 563 206,482 150,563 Less current portion 56,080 80 Less transaction costs net of accumulated amortization 1,045 1,057
149,357 149,426
2009 ANNUAL REPORT 35 NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
4. LONG-TERM DEBT (CONTINUED) Reserve funds Pursuant to the terms of the Master Trust Indenture, Bond issue the Authority is required to establish and maintain with a In July 2006, the Authority completed a $150 million trustee a Debt Service Reserve Fund. The balance within Revenue Bond issue. The $150 million 5.503% Series this fund must be equal to at least 50% of annual bond A Revenue Bonds are due on July 19, 2041. The net debt service costs. As at December 31, 2009, the Debt proceeds from this offering were used to !nance the Service Reserve Fund included $4.1 million [2008 – $4.1 Capital Plan and for general corporate purposes. The million] in interest-bearing deposits held in trust. These trust bonds are direct obligations of the Authority ranking pari funds are held for the bene!t of bondholders for use in passu with all other indebtedness issued under the accordance with the terms of the Master Trust Indenture. Master Trust Indenture. The Authority is also required to maintain an Operating and Maintenance Reserve Fund of approximately $8.1 Credit facilities million. The balance in the Operating and Maintenance The Authority has authorized credit facilities with the Reserve Fund must be equal to at least 25% of certain Canadian Imperial Bank of Commerce, which provide the de!ned operating and maintenance expenses for the Authority with a $4.3 million revolving operating facility, a previous !scal year. Approximately $8.5 million will be $80 million revolving term credit facility, and a $10.2 million required to fund the Operating and Maintenance Reserve letter of credit facility. These facilities are secured under Fund in 2010. The Operating and Maintenance Reserve the Master Trust Indenture and are available by way of Fund may be satis!ed by cash, letters of credit, or the overdraft, prime rates loans, or bankers’ acceptances. undrawn availability under a committed credit facility. As at December 31, 2009, $10.2 million of the letter of credit facility had been committed, with $8.1 million Capitalized interest designated to the Operating and Maintenance Reserve Interest on long-term debt amounting to $908,000 Fund, and $2.1 million designated to pension plan funding [2008 – $1,345,000] was capitalized as part of regulations. construction in progress during the year.
36 HALIFAX INTERNATIONAL AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
5. AIRPORT IMPROVEMENT FEES A summary of the AIF collected and capital and related !nancing expenditures are as follows: The AIF is used to fund the cost of the Authority’s capital program and 2009 2008 related !nancing costs, along with $ $ debt and operational surpluses. Operational surpluses consist of AIF revenue (net): excess revenue over expenses before AIF revenue 19,385 14,029 depreciation and interest. On January AIF collection costs (1,166) (862) 1, 2001, the Authority implemented 18,219 13,167 Interest on surplus funds 67 1,378 an AIF of $10 per local boarded Net funds received 18,286 14,545 passenger. On March 1, 2009, this fee was changed from $10 to $15 per Capital expenditures funded by AIF 63,659 78,222 passenger. The AIF is collected by the Interest expense funded by AIF 7,727 6,921 air carriers for a fee of 6% under an 71,386 85,143 agreement between the Authority, the Air Transport Association of Canada, Excess of expenditures over AIF revenue 53,100 70,598 and the air carriers serving the Halifax Excess of expenditures over AIF revenue, Robert L. Stan!eld International beginning of year 204,033 133,435 Airport. Under the agreement, AIF Excess of expenditures over AIF revenue, end of year 257,133 204,033 revenue may only be used to pay for the capital and related !nancing costs as jointly agreed with air carriers operating at the Halifax Robert L. Stan!eld International Airport.
2009 ANNUAL REPORT 37 NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
5. AIRPORT IMPROVEMENT FEES (CONTINUED) 6. COMMITMENTS
From January 1, 2001 to December 31, 2009, Transfer agreement the cumulative capital expenditures funded by AIF Effective February 1, 2000, the Authority signed a 60- totalled $371,203,000 [2008 – $299,817,000] and year ground lease with Transport Canada which provides exceeded the cumulative AIF revenue by $257,133,000 for the Authority to lease the Halifax Robert L. Stan!eld [2008 – $204,033,000]. International Airport. A 20-year renewal option may be exercised, but at the end of the term, unless otherwise Net assets of the Authority as at December 31 are as extended, the Authority is obligated to return control follows: of the Halifax Robert L. Stan!eld International Airport 2009 2008 to Transport Canada. Lease payments are based on a $ $ percentage of gross revenues on a progressive scale. On May 9, 2005, the Government of Canada Net assets provided by AIF 49,951 51,827 Net assets provided by announced the adoption of a new rent policy which other operations 45,033 39,878 resulted in reduced rent over the long term for Canadian Opening adjustment to net assets (2,521) (2,601) airport authorities, including the Authority. In 2006, this new rent policy began to be phased in. The new formula Net assets, end of year 92,463 89,104 will achieve its full impact in 2010. The estimated lease obligations over the next !ve years are approximately as follows: $ 2010 4,220 2011 4,411 2012 4,608 2013 4,811 2014 5,022
38 HALIFAX INTERNATIONAL AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
6. COMMITMENTS (CONTINUED) 7. PENSION PLAN
Long-term debt – bond issue The Authority sponsors a pension plan [the “Plan”] on The $150 million Series A Revenue Bonds yield interest behalf of its employees, which has de!ned bene!t and of 5.503% per annum, payable on January 19 and July de!ned contribution components. The de!ned bene!t 19 of each year until maturity. The interest due over the component is for former Transport Canada continuing next !ve years is as follows: full-time employees who were employed by the Authority $ on February 1, 2000 and previously participated under 2010 8,255 the Public Service Superannuation Act [“PSSA”] Plan. 2011 8,255 These employees had the option to elect to become 2012 8,255 members of the de!ned contribution component 2013 8,255 in lieu of the de!ned bene!t component. All other 2014 8,255 employees became members of the de!ned contribution component. An actuarial valuation has been prepared Construction in progress as of January 1, 2009 for purposes of funding the Plan. At December 31, 2009, the Authority had outstanding A measurement date of December 31, 2009 has been contractual construction commitments amounting to used for the purposes of the !nancial statements. approximately $5.8 million [2008 – $22.6 million]. The existing Government of Canada pension plan assets and accrued bene!t obligations for certain employees have been transferred to the Authority. The pension transfer agreement between Transport Canada and the Authority was !nalized during 2004 and the total pension liability has been transferred, fully funded, to the Authority.
2009 ANNUAL REPORT 39 NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
2009 2008 7. PENSION PLAN (CONTINUED) $ $ Plan assets 24,175 20,990 The following table provides Accrued bene!t obligation (24,897) (19,224) information concerning the Funded status – plan (de!cit) surplus (722) 1,766 plan assets, accrued bene!t Unamortized net actuarial gain (loss) 2,128 (937) Accrued bene!t asset 1,406 829 obligation, funded status and prepaid (accrued) pension costs The signi!cant actuarial assumptions adopted in measuring the Authority’s accrued of the Plan as at December 31: pension bene!ts are as follows: 2009 2008 % % Discount rate 6.25 7.50 Expected long-term rate of return on plan assets 6.75 6.75 Rate of compensation increase 4.00 4.00 Other information related to the Authority’s de!ned bene!t component is as follows: 2009 2008 $ $ Employer’s contribution 1,030 830 Employees’ contributions 182 176 Bene!ts paid 556 600
2009 2008 % % Equity securities 51 42 Fixed income securities 39 47 Real estate securities 10 11 100 100
Pension expense for 2009 amounted to $378,000 [2008 – $301,000] for the de!ned contribution component and $436,000 [2008 – $375,000] for the de!ned bene!t component.
40 HALIFAX INTERNATIONAL AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
8. CAPITAL RISK MANAGEMENT the revenue account balance at the beginning of the year, must at least cover operating expenses, including The Authority is a corporation without share capital interest and principal payments. The debt service and, accordingly, is funded through operating revenues, covenant states that the net revenues for that speci!c AIF revenue, reserve funds, the debt capital markets year must be at least 1.25 times the total interest and and its bank credit facility. Aeronautical charges are set principal payments for that year. As at December 31, each year to cover the projected operating costs, after 2009, the Authority was in compliance with all covenants consideration of the projected air traf!c and passenger outlined in the Master Trust Indenture. activity and non-aeronautical revenues. Any funds In accordance with the Master Trust Indenture, two generated by the Authority are used to cover costs reserve funds must also be maintained: a Debt Service within its mandate. Reserve Fund and an Operating and Maintenance The Authority’s objective for managing capital is Reserve Fund. As at December 31, 2009, the Authority to acquire and maintain suf!cient capital to safely satis!ed the requirements of both of these reserve funds. and effectively manage the Airport’s operations. The Authority aims to manage capital to deliver world- 9. FINANCIAL INSTRUMENTS class facilities and services to the travelling public. The capital managed by the Authority is composed Fair value of long-term debt. As at the December 31, 2009, the The Authority’s !nancial instruments consist of cash, balance outstanding, excluding any current portion, was Debt Service Reserve Fund, accounts receivable, $149,357,000 [2008 – $149,426,000]. accounts payable and accrued liabilities and long-term The Authority’s indebtedness is secured under the debt. The difference between the carrying values and the Master Trust Indenture, and supplemented from time fair market values of the !nancial instruments, excluding to time with established common security and a set long-term debt, are not material due to their short-term of common covenants by the Authority for the bene!t maturities. The carrying amount of the current portion of its lenders. The covenants that the Authority must of long-term debt approximates its fair value given its meet include two speci!c coverage tests for operating nature and mix of "oating interest rates and short-term expenses and debt service payments. The gross debt nature. The fair value of the bonds was calculated to be service covenant states that the total revenue, including $146,276,000.
2009 ANNUAL REPORT 41 NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
9. FINANCIAL INSTRUMENTS (CONTINUED) Program, is subject to "oating interest rates. Management believes that the impact of interest rate "uctuations on Risk management construction costs is not material. The Authority is exposed to a number of risks as a The Authority’s Debt Service Reserve Fund is subject result of the !nancial instruments on its balance sheet to changes in interest rates. Management believes that that can affect its operating performance. These risks the impact of interest rate "uctuations on the Debt Service include interest rate risk, liquidity risk, credit risk, and Reserve Fund is not representative of the Authority’s expo- concentration risk. The Authority’s !nancial instruments are sure as interest income is not essential to the Authority’s not subject to foreign exchange risk or other price risk. operations. These funds are intended for reinvestment in airport operations and development, and not for purposes Interest rate risk of generating interest income. Interest rate risk is the risk that the fair value or future cash If interest rates had been 50 basis points [0.50%] higher/ "ows of a !nancial instrument will "uctuate because of lower and all other variables were held constant, including changes in market interest rates. The Authority is subject to timing of expenditures related to the Authority’s capital interest rate risk relating to its Debt Service Reserve Fund, expenditure programs, the Authority’s earnings for the year and term credit facility. The Authority manages its interest rate would not have been signi!cantly impacted. risk through the use of !xed-rate !nancing where applicable. The Authority has entered into !xed rate long-term debt, Liquidity risk and accordingly, the impact of interest rate "uctuations The Authority manages its liquidity risk by maintaining ad- has no effect on interest payments until such time as this equate cash and credit facilities, by updating and reviewing debt is to be re!nanced. However, changes in prevailing multi-year cash "ow projections on a regular and as-needed benchmark interest rates and credit spreads may impact basis, and by matching its long-term !nancing arrange- the fair value of this debt. ments with its cash "ow needs. The Authority has ready The Authority’s most signi!cant exposure to interest access to suf!cient !nancing as well as committed lines of rate risk relates to its term credit facility. The Authority’s credit through credit facilities with a major Canadian bank. term credit facility, which is in place for the !nancing of The future annual payment requirements of the Authority’s construction costs related to the Authority’s Capital obligations under its long-term debt are described in note 6.
42 HALIFAX INTERNATIONAL AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2009
[all amounts listed in tables are in thousands of dollars]
9. FINANCIAL INSTRUMENTS (CONTINUED) 10. CONTINGENCIES
Credit and concentration risks The Authority may, from time to time, be involved in The Authority is subject to credit risk through its legal proceedings, claims and litigation that arise in the accounts receivable, which consist primarily of current ordinary course of business which the Authority believes aeronautical fees and AIF owing from air carriers. The would not reasonably be expected to have a material Authority performs ongoing credit valuations of receivable adverse effect on its !nancial condition. balances and maintains an allowance for potential credit losses. The Authority’s right under the Airport Transfer (Miscellaneous Matters) Act to seize and detain aircraft until outstanding aeronautical fees are paid mitigates the risk of credit losses. The majority of the Authority’s accounts receivable are paid when they are due. A signi!cant portion of the Authority’s revenues, and resulting receivable balances, are derived from air carriers. The Authority derives approximately 54% [2008 – 55%] of its landing fee and terminal fee revenue from Air Canada and its af!liates. Management believes, however, that the Authority’s long-term exposure to any single airline is mitigated by the fact that approximately 80% of the passenger traf!c through the airport is origin and destination traf!c and therefore other carriers are likely to absorb the traf!c of any carrier that ceases operations. In addition, the Authority’s unfettered ability to increase its rates and charges mitigates the impact of these risks.
2009 ANNUAL REPORT 43 Corporate Governance
Halifax International Airport Authority (Airport Authority) meets as often as is required to carry out its responsibili- is governed by a Board consisting of a maximum of 14 ties and maintains three standing committees that make directors nominated by the following entities: recommendations to the Board with respect to matters within their jurisdiction: the Governance Committee, Federal Government 2 chaired by Ken Streatch; the Audit Committee, chaired by Provincial Government 1 Jamie Baillie; and the Capital Projects Committee, chaired Halifax Regional Municipality 4 by Wadih Fares. The Airport Authority has adopted con"ict of interest Halifax Chamber of Commerce 3 guidelines to govern the conduct of, and the disclosure Airport Authority Board of Directors 4 and avoidance of con"icts of interest for, all of!cers and directors. These disclosures are updated as required. Generally, a director may serve no more than a total of nine During 2009, the Governance Committee of the Board years from the date of transfer, February 1, 2000. Collec- reported that there were no breaches of the con"ict of tively, directors are expected to possess knowledge relat- interest guidelines by any of!cer or director of Halifax Inter- ing to the aviation industry, air transportation, business, national Airport Authority. !nance, administration, law, government, engineering, Compensation of the senior of!cers and directors of the labour organizations, and the interests of consumers. Airport Authority is reviewed annually. Amounts paid to The Board oversees the conduct and operation of the Airport Authority of!cers and directors during 2009 follow. Airport Authority; reviews and approves corporate strate- gies, plans and !nancial objectives; appoints the Chief Executive Of!cer; assesses the performance of the Board and the Chief Executive Of!cer; ensures effective com- munication with the nominators and the community; and ensures the effectiveness of the Airport Authority’s internal controls and systems in preserving and enhancing the Air- port Authority’s assets and pursuing its mission. The Board
44 HALIFAX INTERNATIONAL AIRPORT AUTHORITY Board of Directors Total Compensation Executive Compensation The salary range for the President & CEO and for the Chair: J.R. Winters $ 60,450 Vice Presidents of the Airport Authority during 2009 Vice Chair: P. McDonough $ 31,750 was $107,400 to $250,000. In addition to base salaries, Secretary: J. S. Cowan $ 29,313 annual bonus payments totalling $232,048 were paid during the year. Bonus payments are contingent on indi- DIRECTORS: vidual and corporate achievements. J. Baillie $ 21,050 Contracts in excess of $98,725 W. Fares $ 20,250 Halifax International Airport Authority, in accordance with its lease with Transport Canada, is required to report all P. Gurr* $ 2,400 contracts in excess of $98,725 ($75,000 in 1994 dollars J. Hunt $ 14,050 adjusted by the Consumer Price Index) that were entered F. Matheson** $ 2,726 into during the year and that were not awarded on the basis of a public competitive tendering process. M. Mullally*** $ 7,425 C. Newcombe $ 16,450 During 2009, the Airport Authority did not enter into any contracts of this type. R. Rideout** $ 4,326 R. J. Scott $ 14,450
F. Smithers** $ 3,526 K. Streatch $ 21,450 R. Wilber*** $ 6,625 M. Wood-Tweel $ 14,913
* Mr. Gurr resigned from the Board effective December 2008. The compensation represents fees incurred in 2008 and paid in 2009 according to the Airport Authority’s quarterly payment schedule. ** Mr. Matheson, Mr. Rideout and Mr. Smithers terms ended January 2009. *** Ms. Mullally and Mr. Wilber joined the Board effective April 2009.
2009 ANNUAL REPORT 45 Board of Directors
J. Robert Winters, QC – Chair James S. Cowan, QC – Robert is counsel to Burchell Secretary to the Board MacDougall, Barristers & Solicitors Jim is a member of the Senate of Truro and Chair of Napwick of Canada where he serves as the Holdings Limited, a private holding Leader of the Opposition. He is also company. He is past Chair of the a partner of the law !rm Stewart Board of Regents of Mount Allison McKelvey. He was the Chair of the University, and currently serves as a Board of Governors of Dalhousie member of a number of corporate University from 2000 to 2008 and advisory boards. past Chair of the Atlantic Provinces Transportation Commission. Upon Peter McDonough, QC – Vice Chair his appointment to the Senate Peter is a Senior Partner at McInnes in March of 2005, Jim resigned Cooper, and has been in practice for from the Board but continues as over 30 years in the areas of property Secretary, a position that he has development and real property held since 1995. (commercial and residential). He has served on the Board of Governors of Dalhousie University, Nova Scotia College of Art & Design, Nova Scotia Special Olympics, and the YMCA. As well, he has been the Vice Chair of the Halifax Industrial Commission and President of the Dalhousie Alumni Association, and is the founding President of the Dalhousie Black & Gold Club.
46 HALIFAX INTERNATIONAL AIRPORT AUTHORITY Board of Directors (continued)
Jamie Baillie – Director Wadih M. Fares P. Eng. – Director Jamie is President & CEO of With over 25 years of experience, Credit Union Atlantic. Prior to Wadih currently serves as President joining the Credit Union, he held and CEO of W.M. Fares Group, various leadership roles in Nova a building design, project Scotia business and government, management development !rm. including three years as Chief He has led his team of professional of Staff to the Premier, and as a engineers, architects, planners and Partner with Robertson Surrette. supporting staff to the successful He holds a Bachelor of Commerce completion of many major projects, from Dalhousie University as well including hospitality, multi-unit as a Chartered Accountant (CA) residential and commercial projects designation. Jamie’s leadership in throughout Canada. both the public and private sectors In addition to his work, Wadih is has been recognized in each of the very committed to giving back to past three years as one of Atlantic the community through a variety of Canada’s Top 50 CEO’s. He is a roles, including Honourary Consul of member of the Board of Governors Lebanon for the Maritime Provinces of Dalhousie University and of the for the past 12 years, Capital Junior Achievement Nova Scotia Campaign Chair for the Bella Rose Business Hall of Fame. He currently Theatre Project, and founder and sits on the Board of Directors of honourary member of the Canadian Neptune Theatre, Equifax Canada Lebanese Chamber of Commerce. and the Public Service Pension Wadih currently sits on the Board Investment Board, and is co-chair of of Directors for the Waterfront the 2008 Metro Halifax United Way Campaign.
2009 ANNUAL REPORT 47 Board of Directors (continued)
Wadih M. Fares P. Eng. – Director Jeffrey R. Hunt – Director (continued) Jeff is a Partner with the Truro of!ce Development Corporation Limited, of Patterson Law. He is Chair of The Atlantic Institute for Market the !rm’s Litigation Group, with Studies, Pier 21 Society, and is also a practice in areas of insurance, a member of the Dalhousie University employment and general litigation. Board of Governors and the Minister’s He has been with Patterson Law Immigration Advisory Council. since 1992 and a Partner since Wadih has been recognized for 1997. Jeff is the Past Division Chair his many achievements over the of the United Way of Colchester years. In 2009, he was awarded an County Campaign Cabinet, Past Honorary Doctorate in Commerce Member of the Parish Council and from St. Mary’s University; was Finance Committee for St. John’s presented with the Order of St. Anglican Church, Board Member Gregory by his Excellency Archbishop and Past Chair of the Bridges Youseff Khoury, an honour conferred Program for Family Counselling, upon him by Pope Benedict XVI; and a Board Member of the received Atlantic Business Magazine’s Honourable G. I. Smith Memorial Top 50 CEO Award; and was the Trust. In 2009, Jeff was appointed Champion in The Salvation Army to the Election Commission of Nova Great Stocking Stuffer campaign. Scotia. Wadih holds a Bachelor of Engineering degree from the Technical University of Nova Scotia and a Diploma of Engineering from Dalhousie University.
48 HALIFAX INTERNATIONAL AIRPORT AUTHORITY Board of Directors (continued)
Marie Mullally, FCA, MBA – Director Robert J. Scott – Director Marie Mullally, FCA, MBA, in her nine- Bob is Executive Vice President of year tenure as President and CEO of Glenora Distillers International Ltd. the Nova Scotia Gaming Corporation and is a former Director of the Small (NSGC), has led NSGC in providing Business Development Corporation more than $1 billion to the Nova for the province of Nova Scotia. He Scotia government and becoming is also a member of the Advisory recognized as a world leader in Board for the proposed Aros Na responsible gambling programming. Mara Marine Science Centre in Iona, Ms. Mullally has served as a Cape Breton. member of a number of private, not- for-pro!t and public sector boards. Ken Streatch – Director In 2007, she received a Fellow Char- Ken has over 30 years of senior tered Accountants designation and in management experience in both 2008 was named CA of the Year. Ms. business and government. He is Mullally has also been named one of the President and CEO of Sunberry Atlantic Canada’s Top 50 CEO’s. Cranberry Producers Inc., and Chairman of the Board of Atlantic Cheryl Newcombe – Director Canada Cranberries Inc. and Cheryl joined the HIAA Board in Atlantic Mist Cranberry Inc. Ken July 2005. She is the Controller has held a number of portfolios with of Canadian Gold Seafood in the government of Nova Scotia, En!eld. Cheryl is also on the Halifax including Minister of Transportation Regional Plan Advisory Board, the and Communications and Minister Board of Beacon House, and is the of Economic Development. past Chair of the Halifax Regional Water Commission.
2009 ANNUAL REPORT 49 Board of Directors (continued)
Robin Wilber – Director Michele A. Wood-Tweel, Robin is President of Elmsdale FCA, CFP, TEP – Director Lumber Company Limited, a position Michele is CEO and Executive he has held for over 30 years. He Director of the Institute of Chartered is responsible for the management Accountants of Nova Scotia of day to day operations of the (ICANS). Before joining ICANS, she sawmill, and provides leadership practiced with KPMG LLP for over and direction to upwards of 60 20 years in the areas of personal staff. Robin is also Partner in Wilber taxation and !nancial planning. & Fenton, a housing development Michele is Chair of Saint Mary’s company and Corridor Developments, University Board of Governors and a residential rental development. He of the University’s Executive and is Executive Director of the Maritime Governance Committees. She is a Lumber Bureau, lumber grading member of the Board of Trustees of committee and Chairman of the the IWK Health Centre Foundation national and international promotional and a Director of Ef!ciency Nova committee, and a founding member Scotia Corporation. Michele has of the East Hants & District Chamber previously served on the Boards of Commerce. of the Halifax-Dartmouth Bridge Commission, The Royal Nova Scotia International Tattoo Society and the Halifax Chamber of Commerce.
50 HALIFAX INTERNATIONAL AIRPORT AUTHORITY DELIVERING online annual report: www.hiaa.ca/annualreport/2009
1 Bell Boulevard, Enfield, N.S. B2T 1K2 Tel: 902.873.4422 Fax: 902.873.4750 www.flyhalifax.com