ONWARD and UPWARD HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT ONWARD and UPWARD HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT CONTENTS Left and Cover: Architectural renderings Message From the Chair 4 of Arrivals area upon completion of U.S. pre-clearance facility. Message From the President & CEO 6 Improving Facilities and Services 9 Leveraging Technology 10 Enhancing Customer Service 13 Increasing Air Service 15 Strengthening Community Partnerships 19 Sustaining Financial Stability 20 Financial Statements 22 2005 Board of Directors 29 Corporate Governance 32 Five-Year Forecast 34 ONWARD and UPWARD HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT 4 ‘Onward and Upward’ is a Message phrase most often heard when From the Chair transitioning from the completion of one phase to the next. In the case of Halifax International In keeping with tradition, this annual report will look Vice President Operations, Peter Clarke. From February to Airport Authority, the organization back over the past 12 months and recount the year’s many August, Peter held both positions, demonstrating leadership has moved onward from activities. We believe this year’s theme ‘onward and upward’ during that time, and assisting Eleanor as she immersed expansion, technology and is fitting – it not only acknowledges where we’ve come herself in her new role. runway upgrades completed in from, but also aptly describes our desire to continue striving 2005 and upward in anticipation In 2005 there were changes to the Board of Directors. for excellence. of U.S. pre-clearance, in-transit In June, we welcomed new member Cheryl Newcombe. facility, and common use During 2005 we laid the foundation for significant terminal Cheryl is Comptroller of Lighthouse Lumber Wholesalers technology in 2006. expansion, as well as new leadership, welcoming Eleanor Limited, and replaces Bernie Miller as the Board nominee Humphries as President & CEO in August. from the Halifax Regional Municipality. Construction has brought its own challenges but the results are Prior to joining Halifax International Airport Authority The year marked the end of Bernie’s term as Chair of the worth it. Necessary infrastructure (HIAA), Eleanor was the President & CEO of Credit Union Board, a position he held for 10 years. The entire Board and runway safety improvements, Atlantic (CUA). She holds her Bachelor of Science and her extends their sincerest gratitude to Bernie for his tireless new common use technology, Masters in Business Administration degrees, both from dedication to the Authority over his distinguished and and the south-end commuter Dalhousie University. She has also obtained the Executive prolific tenure as Chair. As well, a special thanks to Bernie expansion have served to further Management designation from McGill University and her for stepping in, once again, on an operational level as solidify us as a world-class, FICB (Honours). She has been honoured on three occasions interim Chief Executive Officer from February to August. passenger-focused airport. These as one of the Top 50 CEOs in Atlantic Canada and received a Bernie remains on the Board as a nominee of the Board itself, are just a few of the milestones Distinguished Alumni Award from Armbrae Academy in 2004. the position vacated by Jim Cowan when he was appointed that will help the Airport continue to the Senate in March. Congratulations to Jim on this We would also like to recognize the tremendous efforts of upward momentum in 2006. well-deserved accomplishment, and our kindest thanks our interim President & Chief Operating Officer, and current HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT 5 for his exemplary service to the Board since its inception States announced amendments to the 1995 Open Skies in 1995. We truly appreciate his decision to continue his Agreement. These amendments, to take effect in association with us as Secretary to the Board. September 2006, will provide greater access and pricing flexibility for carriers in both countries. This is an exciting We also thank and acknowledge retiring Board members development for our industry and one that will result in Stephen Wallace, another one of our original members, and increased traffic at airports nation wide. Carole Cushing, who joined the Board in 2004, for their respective service and contributions to HIAA. In early 2006, the election of a new federal government has led to the appointment of a new Minister of Transport, Throughout 2005 and early in 2006, a number of issues Infrastructure and Communities, the Honourable Lawrence arose that the Board will watch closely over the coming Cannon. We have also seen several changes on the year, and will no doubt have an impact on our industry provincial front with the Honourable Rodney MacDonald in the future. In May, the federal government announced becoming Premier and the appointment of new cabinet a new rent policy for federally-owned airports effective ministers. We will continue to work with officials at all levels January 1, 2006. While we have always promoted, and of government to keep them well informed, garner their will continue to promote, the elimination of airport rent, support, and together, achieve our vision for our Airport the new policy gives us a reasonable long-term solution and our community. and methodology that can be applied across the country. This reduction in airport rent is a compromise solution, but I am pleased to have been a part of the Airport community Frank Matheson one that will mean a reduction in rent for HIAA. during the past year, and look forward to my new role as Chair, as we journey onward and upward together. In November, the governments of Canada and the United Message HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT 6 From the President & CEO My arrival in August 2005 coincided with major renovations the traveling public and our airline partners with improved both within the air terminal building and to airport runways. and more efficient facilities. And while my first six months have been memorable, I can But in 2005 we also faced challenges. already see that these changes made in 2005 have set the stage for an exciting future. In July, at a critical phase in our runway reconstruction project, when the Airport’s instrument landing system was The theme of this year’s annual report ‘onward and unavailable to pilots, we experienced weather conditions upward‘ is particularly fitting as we look back on 2005 – a that caused major inconvenience for visitors. year that was defined by changes inside and outside the air terminal building in preparation for the arrival of U.S. During the first two weekends of July, the Airport was pre-clearance in Halifax. engulfed by dense fog for upwards of 14 hours. Flights were delayed. Passengers were impacted. Travel plans were affected. U.S. pre-clearance is one of the most significant announcements for the Airport, and is slated to open in We learned a lot in 2005 about our responsibilities to the 2006. The addition of U.S. pre-clearance provides an traveling public, and these lessons have been taken to heart opportunity to increase routes to and from the United as we prepare for the 2006 phase of runway rehabilitation and States. The ability for more direct and efficient travel will complete the air terminal building renovations. benefit both tourism and business, and will positively impact economic growth in both Nova Scotia and the What sets our Airport apart is the commitment of the Atlantic region. whole Airport community to address challenges, as much Eleanor Humphries as we celebrate achievements. I would like to thank our To facilitate the opening of U.S. pre-clearance we have management team and all our employees and volunteers expanded the north-end of the terminal and constructed who worked hard during the summer of 2005, and who a new wing to the south-end of the building. We have put customers first throughout the year. added more departure gates and implemented new technology and tools throughout the Airport to provide Everything we do at the Airport is geared toward ensuring HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT that airline passengers – our guests – have the best Halifax International Airport was rated as the best airport experience possible while they are in our terminal. in the Americas of any size for overall satisfaction, the best domestic airport in the world, and placed first worldwide We also know that when visitors to our province arrive with under five million passengers. at the Airport, it is often the first impression they have of Nova Scotia. We take this responsibility very seriously. One of the milestones of 2005 was the celebration of the renamed Robert L. Stanfield Terminal Building in honour And to make this happen, every day we look at new of one of Nova Scotia’s most distinguished native sons, ways to leverage the best available technology. Every day the Right Honourable Robert L. Stanfield, who passed we explore new ways to partner with other businesses, away on December 16, 2003. An official ceremony unveiling our community, stakeholders and retailers. Every day the new name was held in the Airport’s Observation we look for new ways to improve customer service for Flight Deck on September 9, 2005. While Stanfield never passengers. The Airport community is working together to sought honours or such recognition during his lifetime, the build a transportation facility that goes beyond service to Robert L. Stanfield Terminal Building at Halifax International travelers, by offering amenities and services that appeal Airport serves as a fitting tribute to his integrity and to the surrounding community and make the Airport a principles that made our province and country stronger. destination itself for all to visit and enjoy. Very significant strides were taken in 2005 to prepare for the next stage I’m proud to have joined the Halifax International Airport of our evolution.