Annual Report 2008
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Annual Report 2008 GREATER FREDERICTON AIRPORT AUTHORITY INC. Your Fredericton Connection We chose “Your Fredericton Connection” as our “Your Fredericton Connection” represents the com- theme this year as it represents the new direction munities that we serve. This is your airport and we that we are taking the Fredericton International work hard to provide the services that you need. Airport. People always ask us what YFC (our airport We connect people to…new business prospects, identifier) means, so as part of our new branding families and friends, military training, relaxing vaca- we decided to give it a meaning – Your Fredericton tions, exhilarating adventures and the list goes on! Connection. We are a key component to New Brunswick’s econ- omy by providing jobs, bringing in tourists, and connecting our businesses to the world! ts Message from the Chairman and President & CEO ............................................4 en t on 2008 Year in Review..............................................6 Corporate..................................................................10 Financial Statements ........................................13 2 2008 Annual Report table of c Vision Statement The Greater Fredericton Airport Authority Inc. administers a world-class aviation facili- ty that provides a welcoming travel experi- ence for residents and visitors, and gener- ates sustained economic benefits contribut- ing to the prosperity of the communities in the Greater Fredericton Region. Mission Statement Fredericton International Airport provides safe, environmentally sound, efficient, and friendly customer-focused services that meet the social, business, government, and military air travel needs of the capital region and the province of New Brunswick. “The goal of the airport has always been to meet the needs of the community.” – David Innes, President & CEO, Greater Fredericton Airport Authority Inc. 2008 Annual Report 3 MESSAGE FROM THE CHAIRMAN AND PRESIDENT & CEO “The progress that we The Fredericton International Airport provides a We continued through 2008 without direct US vital link to the world for the business community, service. the people and the military in central and western New Brunswick. Since 2001, we have learned that Traffic growth occurred for most of the year, but as have made in 2008 the business of operating a relatively small airport the year drew to a close, signs of the impact on in the context of Canada’s National Airport System business travel associated with the global econom- is an experience rich in its rewards and its chal- ic slowdown were beginning to show. At year’s lenges. We have seen that all manner of social and end, traffic had grown a modest 1%, but a new was due to the economic perturbations can significantly impact air record was set in passenger numbers. travel and aviation business. There have been many such perturbations over the years and as While financial reports and traffic statistics are a 2008 drew to a close, the world’s financial system reasonable measure of the current state of the combined effort and was showing serious cracks in its heretofore seem- organization, we must be as concerned with our ingly robust structure. We will wait to see the sig- long-term outlook. Much of our work focuses on nificance of the impacts created by these most strengthening ourselves for the future through recent events. long term planning and actions to ensure our via- dedication of many” bility and relevance. From that perspective, 2008 Overall, 2008 was quite positive at the Fredericton was a very good year and progress was made on several fronts. International Airport. Increases in domestic capaci- ty were made available by Air Canada and more The Board of Directors of the Greater Fredericton traffic resulted. Internationally, seasonal services to Airport Authority Inc. (GFAA) adopted a number of the Caribbean provided by Sunwing and Air governance related changes to strengthen itself as Transat were increased over 2007 and the traffic a corporate board and better align itself with grew accordingly. In the summer of 2008, a very accepted board practice. This included revising significant improvement in air service in New and strengthening committees and adopting for- Brunswick was launched as Canadian Affair initiat- mal protocols to ensure its ed weekly direct air service between Fredericton effectiveness. and the United Kingdom. Within the organization, a number of personnel The daily flights to Boston from Fredericton were related changes were also made. These included lost at the end of 2007 when Big Sky Airlines sus- the addition of a new position on the manage- pended its services across North America. ment team entitled Manager of Projects and 4 2008 Annual Report David Innes Pat Bird President & CEO Chairman of the Board Properties. As well, the Airport Operations our operations was very significant. Specialists component of our staff was broadened A major improvement in the overall capability at and integrated into the ranks of our field supervi- the airport was achieved during the summer of sors. Much time and effort has been spent in 2008 with the announcement of expanded hours recent years in the development of formal systems of service by Canada Customs. Customs service is and protocols related to our work and our training. now available from 0800 to 2400 hours each day. Significant improvements in the operation are now This eliminated a major stumbling block in the being realized as a result of these initiatives. attraction of international traffic at the airport. In terms of achieving long-term sustainability, it is The progress that we have made in 2008 was due also important to maintain steady investments in to the combined effort and dedication of many, facilities and equipment. Over the year, an excess including our Board of Directors, our management of one million dollars was spent on improvements team and our employees. In order to provide the to our plant and equipment. This included a major services at the airport, it also requires the efforts refit of the vehicle circulation and parking areas at and skills of our tenants and service providers and the airport. The most significant equipment pur- their respective teams. We are all committed to chase was a new plow truck for the airport. providing the highest possible levels of service to our joint customers. Initiatives were also undertaken on a number of important future issues such as the impending Finally, we acknowledge with gratitude the contin- refurbishment of Runway 15/33, the Aerospace and uing support of our community, the people, busi- Defence Business Park project as well as a profes- nesses and military in central and Western New sional assessment of the water and sewer capabili- Brunswick and their governments. We will work to ties at the airport. continue to deserve your ongoing support. There were significant achievements made by our tenants and operators at the airport. The most noteworthy of these was the expansion of the Canlink–Moncton Flight College Flight School at the Fredericton International Airport. By the end of David Innes Pat Bird 2008, the school had 160 students enrolled and the President & CEO Chairman of the Board impact on the number of aircraft movements and 2008 Annual Report 5 “The airport is a key economic catalyst for the community. Changes at the airport over the last several years have enhanced its image.” – Anthony Knight, CEO, Fredericton Chamber of Commerce With skyrocketing fuel prices in the summer and the emer- gence of a possible recession before the year ended, 2008 was not an easy year for the aviation industry. However, the econ- omy in the Fredericton Region remained strong and the 2008 Fredericton International Airport continued to grow, experi- encing its fifth consecutive year of increased passenger traffic YEAR IN REVIEW and seeing a significant rise in aircraft movements. New @ YFC The new brand of the Fredericton International Airport was officially launched in October of 2008. It includes a redesigned logo, “Your Fredericton Connection” slogan, and a new and improved website. It will be incorporated into every- thing that we do. This new brand builds on the relationship we have with the surrounding communities and represents our role as an economic engine connecting people to the Fredericton Region and the province of New Brunswick and connecting Fredericton to the world. New services were added at the Fredericton International Airport this year, including the addition of a taxi agent to help arrange transportation for passengers arriving at the airport. The taxi agent assigns passengers to a taxi and calls for more as needed. In partnership with Air Canada, two self-service kiosks were installed in the Air Terminal Building near the Air Canada counter. These kiosks allow passengers to check-in, change their seat, request an earlier departure, or request an upgrade. Also, a reconfiguration of the parking and traffic areas at the airport was completed. The new layout increases the number of spaces in the short-term and rental car parking lots and allows for a better flow of traffic with designated drop-off, pick-up and taxi zones. 6 2008 Annual Report Air Service and Fredericton International Airport Passenger Traffic Year Passenger Traffic 2008 In 2008, the Fredericton International Airport had a 2007 record-breaking 270,435 passengers pass through its facility. Air service was mainly provided by Air 2006 Canada Jazz with seasonal service provided 2005 through Sunwing Vacations, Transat Holidays, Sunquest and Air Transat/Canadian Affair. 2004 0 50,000 100,000 150,000 200,000 250,000 300,000 The Government of Canada extended border serv- Number of Passengers ices at Fredericton International Airport to 16 hours a day from 0800 to 2400, seven days a week. Previously, publicly funded customs service was only offered from 0800 to 1700, five days a week. This provides greater flexibility with airlines flying in Seasonal Air Service to YFC. Both Transat Holidays and Sunwing Vacations returned in 2008 with direct weekly flights to sun Scheduled Air Service destinations.