2019 ANNUAL REPORT FOUNDATION FOR TOMORROW www.nanaimoairport.com TABLE OF CONTENTS OVERVIEW AND EXECUTIVE REPORTS 2 - 7 2. Introduction 4. Message from Board Chair Nanaimo Airport (YCD) is a 10-minute drive south of 6. CEO Report downtown Nanaimo on 224 hectares (550 acres). The property includes the nearby Cottonwood Golf Course. THE YEAR IN REVIEW 8 - 17 We're a not-for-profit authority owned and operated by 8. A nnual Statistics the Nanaimo Airport Commission. 10. Air Service / Our Service Area Vancouver Island's second busiest airport is ideally 12. Air Terminal Building Expansion situated as the most convenient departure/arrival point 14. Land Development for customers from the mid-Island area. We are also an 16. Environmental Stewardship alternate airport for aircra unable to land on the West Coast. Our runway is 6,602 feet long. 17. Community Engagement Our commercial aviation includes scheduled and charter ORGANIZATIONAL LEADERSHIP 18 - 25 flights, air cargo and freight-courier services, aircra refueling and maintenance, flight training and sight- 18. Strategic Direction seeing tours as well as aircra parking and hangars. 20. Board of Directors 22. YCD Staff We also see occasional activities from air ambulance, BC 24. Our Volunteers Wildfire Service, corporate jets, Search & Rescue, Angel Flight service and military exercises. FINANCIAL REPORT 26 - 39 26. Report of the Independent Auditor “Aviation is critical to growing the B.C. economy — supporting jobs, 28. Financial Statements enabling investment, and facilitating trade” 32. Notes to the Financial Statements – Connecting with the World, B.C. government aviation stategy N A N A I M O A I R P O R T C O M M I S S I O N | F O U N D AT I O N F O R T O M O R R O W 1 S T INTRODUCTION Building our foundation UTIVE REPOR for tomorrow VIEW AND EXEC VER O In 2019 Nanaimo Airport (YCD) put in place the enhancements paid immediate dividends – and will cornerstones of its vision for the next generation of air continue to pay them well into the future by helping us service in Central Vancouver Island. keep up with the needs of the communities we serve. We also continued our investments in safety and service, by Major accomplishments included construction of a $14.2- adding new equipment and staff. OUR VISION million expansion of the Air Terminal Building, Your Island Gateway to the World. implementation of a five-year Strategic Plan, more Laying the foundation for tomorrow requires a investment in safety with the addition of a second fire commitment to continuous improvements as well as fiscal truck, additional parking, and leadership in climate change responsibility. Our innovative planning for the next 20 years action planning. of our Air Terminal Building illustrates how we're living up to those commitments. The 2019 expansion represents the The year's projects and planning were essential to meet the first of several modules in the overall plan for enlarging the OUR MISSION demands of operating one of B.C.’s fastest growing small terminal. We'll build the next modules according to airports. Some 490,000 people passed through our gates in demand and the availability of funding. To provide safe, financially sustainable, 2019, marking the 11th consecutive year we have set a friendly, high quality airport services and facilities record. We are seven years ahead of even our most The same innovative approach applies to our vision of that enhance economic prosperity and meet the conservative passenger forecasts. developing our available land. We've planned to develop it needs of the communities we serve. in sections, in-filling as we go. This will help ensure well- The addition of air service has driven much of our growth. managed and consistent construction that meets our 2019 saw the return of a seasonal direct flight to Toronto, standards. We took a major step in this direction in 2019 more flights to Vancouver and Calgary, and a new charter with the completion of Design Guidelines for future service linking workers on the Island to jobs in the interior development. and northern sections of the province. Another accomplishment with significance for tomorrow Our recreational and business travellers now enjoy access was the announcement in late 2019 of new regional bus to three major international hubs in Canada. From there service to the airport. It is due to start in 2020. they can connect to flights to hundreds of global destinations. Those connections deliver on our vision of Much of our foundation for tomorrow has been guided by Nanaimo Airport as “your gateway to the world,” both airport President and CEO Mike Hooper. In his 14-year today and -- as we continue to pursue new routes – tenure, he has overseen the greatest period of growth in tomorrow. our history. His work was recognized in 2019 by the B.C. Aviation Council. It honoured him with the Robert S. Day Our business growth required substantial investment. With Award for his contribution to the aviation and aerospace our own resources, and with contributions from our industry in the province. The award recognizes outstanding funding partners, we completed construction of the Air excellence, contribution and leadership in promoting and Terminal Building expansion and improved our runway developing aviation in B.C. apron and our parking lots. All of the infrastructure N A N A I M O A I R P O R T C O M M I S S I O N | F O U N D AT I O N F O R T O M O R R O W 3 S T MESSAGE FROM BOARD CHAIR Wendy Clifford UTIVE REPOR Today's work builds tomorrow's vision VIEW AND EXEC VER O Nanaimo Airport Commission's vision for the future was the prospective investors. We can now continue to implement focus of our work in 2019. We added more pieces to our our 20-year land development plan. It too will progress foundation through collaborative action, and set clear through stages. The plan was developed aer we reached direction as we strive to meet the needs of our out to several regional partners for input. communities today and tomorrow. We also partnered with local governments to continue to Driving all of our work was our new five-year Strategic Plan. fulfill our role as a major driver of the regional economy. We It identifies our core values and guiding principles while worked closely with the Regional District of Nanaimo, setting priorities and objectives. From protecting our Cowichan Valley Regional District, City of Nanaimo and airspace and diversifying the airport revenue base, to Town of Ladysmith on economic development. The improving infrastructure and enhancing route business, tourism and education sectors were also involved. development, the plan shows us a clear flight path to a The results helped drive our economic impact in the region sustainable future. to $486 million in 2019. Our most high-profile project was the $14.2-million build- Another partnership, with Nanaimo Transit, led to the out of our Air Terminal Building. Its bold design speaks to announcement of a new bus service that will connect the who we are. Its construction transformed our property and airport to downtown Nanaimo. It will start in 2020. It's part of enhanced our capacity, leaving us well positioned to not our strategic objective to improve ground transportation to only serve the travelling public but also to attract more air and from the airport. service. The Board's busy year also included the creation of a The expansion also proved the value of our innovative 20- climate change action plan and an enterprise risk year plan for the terminal. We started with the end in mind management strategy. Both of these plans lay groundwork and broke the project into modules that can be added as for our future, helping to ensure our long-term viability by demand arises and funding is available. All the modules protecting and enhancing our lands and operations. will fit seamlessly together, and we will save substantially 2019 was also the year in which we finished comprehensive on planning costs along the way. board policies. These guidelines are the backbone of corporate and finance self-governance. I'd like to recognize and thank airport CEO and President Mike We appreciate the support of the Building Fund Canada - Hooper, who has announced his retirement. His outstanding year of Small Communities Fund for the first module. I'd also like to thank my fellow Directors and staff for their achievement included earning the B.C. Aviation Council's Robert S. Day Award for his contribution to the aviation and aerospace Infrastructure Canada and the Ministry of Transportation diligence, dedication and time commitment. By working industry. It is a well-deserved honour. and Infrastructure each invested $2.5 million, and Nanaimo together we have made a long-lasting impact on the Airport Commission invested $9.2 million. Our careful communities we serve, and continue to develop airport – Wendy Clifford, Nanaimo Airport Commission, Board Chair management ensured the expansion came in under budget champions in all sectors. Our future has never looked better. and ahead of schedule. Sincerely, 2019 also saw the Board complete Design Guidelines for future construction on our available land. They incorporate key planning principles of adaptability, balance and hierarchy. The guidelines are an important step as they Wendy Clifford ensure consistency and quality, both for us and for NAC, Board Chair N A N A I M O A I R P O R T C O M M I S S I O N | F O U N D AT I O N F O R T O M O R R O W 5 S T MESSAGE FROM PRESIDENT AND CEO Michael Hooper UTIVE REPOR Safety and service are our foundation VIEW AND EXEC VER O Nanaimo Airport (YCD) maintained its commitment to minimizing disruptions due to construction.