Airports for Nunavummiut and Their Economy—An Investmant Strategy for Nunavut Executive Summary AIRPORTS FOR NUNAVUMMIUT AND THEIR ECONOMY: An Airport Investment Strategy for Nunavut presents a Vision for Airports in Nunavut, and a plan-of-action to achieve this Vision. Our Vision includes: S Implementation of the Iqaluit Master Plan including new Air Terminal Building S Cambridge Bay Runway paving and rehabilitation of graded areas S Relocation and construction of new Pangnirtung Airport S Apron expansion and improved Instrument Landing System (ILS) at Rankin Inlet Airport S Planning/engineering studies for other airport improvements The improvements to airports as envisaged in AIRPORTS FOR NUNAVUMMIUT AND THEIR ECONOMY: An Airport Investment Strategy for Nunavut are estimated to cost $97.6 million over a 4 year period beginning in 2005/06 (Table 1 next page). These improvements will provide Nunavummiut with a safer, more efficient and effective air transportation system. These improvements will also support Nunavummiut efforts to build a healthy and prosperous society and play their part in the day- to-day social and economic life of Canada. The proposed improvements to Nunavut airports will also enable many more Canadians to see and realize the potential of this vast land and its people. These improvements will also bring some demonstrable proof of Canada’s sovereignty and interest in Canada’s north. 1 Airports for Nunavummiut and Their Economy—An Investment Strategy for Nunavut Table 1 Investment Needs (million $) Project 2005/06 2006/07 2007/08 2008/09 Total Iqaluit Airport 10 10 10 10 40 Master Plan Cambridge Bay 4 6 6 2 18 Runway & Graded Areas New Pangnirtung 4.6 10 10 10 34.6 Airport Rankin Inlet ILS and 0 0 1.5 1.5 3 Apron Expansion Other 0.5 0.5 0.5 0.5 2 TOTAL 19.1 26.5 28 24 97.6 2 Airports for Nunavummiut and Their Economy—An Investment Strategy for Nunavut The Vision Our Vision for Airports in Nunavut is based upon providing good air system access to all communities to support the growth of healthy communities. Healthy communities require safe transportation services. Our Vision also recognizes that the state of infra- structure at certain airports (hubs) impacts on how the entire system can operate while at other airports the impact is more local- ized. Our Vision includes: S Implementation of the Iqaluit Master Plan including a new Air Terminal Building S Cambridge Bay Runway paving and rehabilitation of graded areas S Relocation and construction of new Pangnirtung Airport S Apron expansion and improved Instrument Landing System (ILS) at Rankin Inlet Airport S Planning/engineering studies for airport improvements This Vision will: S Provide reliable, safe and cost effective airports S Create opportunities for economic development S Make our air transportation system more integrated and efficient S Further the objectives of the Bathurst Mandate Our guiding principles in implementing this Vision are: S Compliance with International (ICAO) and National (Transport Canada) standards S Full observance of NNI - Nunavut’s Contracting/Business Incentive Policy S Ensure every project has a training budget for Nunavummiut S Environment impacts will be considered and minimized S Full consultations with affected communities and stakeholders 3 Airports for Nunavummiut and Their Economy—An Investment Strategy for Nunavut The Potential Nunavut is a beautiful and largely unspoiled land. The benefits of a negotiated land claim settlement and a new political system have poised this culturally and naturally rich territory ready to build a healthy and prosperous society. The establishment of Nunavut as the newest member of the Canadian Confederation has created new possibilities and new expec- tations – both for Nunavummiut and for all Canadians. Nunavummiut are anxious to play their part in the day-to-day social and economic life of Canada. Entry into the Canadian socio-economic mainstream will require the air transportation system and sup- porting airports to evolve and overcome many and varying factors, which currently limit this system’s efficiency and effectiveness. Overcoming these factors offer great potential to make the lives of Nunavummiut better now and in the future for their children. Lowering the Cost of Living Nunavummiut are generally dependent on air cargo during significant portions of the year and exclusively for their perishable goods year round. All “food mail” for communities is brought in via air cargo. The reliability and cost of this supply chain link is de- pendent on airports that can accommodate the aircraft used by Nunavut air carriers without penalty/weight restrictions due to run- way length, surface type or navaids. The absence of any weight penalties due to airport infrastructure also ensures that passenger airfares to and from a community are developed on the basis of full carrying capacity of the airplane versus a reduced or penalized capacity. Full loads may also re- duce the chances of passengers being stranded due to restricted loads. Economic Development The contribution of airports to the general economy of a city or region is well documented. Typically airport activity and related em- ployment and investment opportunities are derived from the air carriers themselves and their related passenger and cargo opera- tions, general aviation operators, aircraft maintenance, flight catering, air navigation services and airport commercial activities among others. A recent study conducted by LPS Aviation for a new Iqaluit Air Terminal Building found that air transportation is one of the largest private sector employers in Iqaluit and in Nunavut. It also established that the private sector could proceed with $10 million of addi- tional investment if the Iqaluit Master Plan was to proceed. 4 Alert Eureka Grise Fiord Resolute P o n d In le t A rc tic B a y Nanisivik Clyde River Q ikiqtarjuaq Ig lo o lik Cambridge Bay Taloyoak Hall Beach Pangnirtung Kugluktuk Pelly Bay Um ingmaktok Gjoa Haven B a th u rs t In le t Repulse Bay Iq a lu it Cape Coral Harbour Dorset Baker Lake Kimmirut Chesterfield Inlet R a n k in In le t W hale Cove Arviat Sanikiluaq 5 Airports for Nunavummiut and Their Economy—An Investment Strategy for Nunavut Sovereignty Sovereignty over an area is generally provided by the presence of a governance structure for people within the area, support infra- structure and typically some form of military presence or capability. Where one or more of these elements are missing, sovereignty over an area may be compromised. In Canada’s North, the issue of sovereignty has been and will be an important issue for both federal and territorial governments. In the past, World War II and the Cold War provided the impetus for the funding and establishment of new communities, airports and other facilities. Iqaluit Airport for instance has been used by Canadian and U.S. military operations since 1943. More recently the air- port has served as a technical stop for Canadian and American military aircraft enroute to DEW line sites and military bases further north, such as Thule and Alert, as well as NATO aircraft operating on North Atlantic and polar routes. The issue of sovereignty in the North in current times is largely focused on the possible greater use of the Northwest Passage by commercial shipping due to global warming and the availability of Search and Rescue services in the High Arctic that could be re- quired for new polar flights. The increasing development of northern resources such as diamonds, oil and gas adds to the impor- tance of this issue. Although the federal government has been demonstrating Canada’s sovereignty through continued scientific activities such as map- ping, climate monitoring and archaeological exploration, additional key components of sovereignty offered by improved airport infra- structure have not been added. Access and Equity Airports provide access for Nunavummiut and communities to the rest of Nunavut and Canada. Where current airport infrastructure or situate places restrictions on the type of aircraft, payload or schedule reliability, this effectively means some Nunavummiut or communities do not enjoy the same access to or equity using the air transportation system as other Nunavummiut. Airport improve- ments that minimize access and equity issues will help realize the objectives of the Bathurst Mandate. The issue of access and eq- uity is particularly important for (emergency) medevac and medical travel needs. With regards specifically to medevacs, Transport Canada estimates that in 1999 30,000 patients were moved by air ambulance in Canada. Of these, 10% or 3,000 trips were in Nun- avut. Polar and High Latitude Overflights The recent introduction of new Polar Routes, the continued growth of traffic using high latitude routes over the North Atlantic, and the changing nature of world aircraft fleets, present immediate economic development opportunities for Nunavut through an expanded role for Iqaluit Airport. 6 Airports for Nunavummiut and Their Economy—An Investment Strategy for Nunavut Based on a 2001 Aeronautical Market Study done for the Government of Nunavut 3,220 flights per year could potentially use polar routes near Iqaluit and over 2,000 flights per day could potentially use high latitude and North Atlantic routes near Iqaluit. Iqaluit Airport has traditionally served as a technical stop for aircraft crossing the North Atlantic. It continues this role today by re- ceiving wide-body traffic every week for technical or emergency medical reasons. During 2001, a number of the world’s largest in- ternational airlines expressed interest in potentially using Iqaluit as either a new alternate airport or as a technical stop due to its northerly geographic location and technical capability. The impact of an expanded role for Iqaluit on local companies would be significant. Increased investment and employment would occur in most airport businesses and aviation related activities now servicing Iqaluit.