SAINT JOHN AIRPORT 2019 ANNUAL REPORT 1 ABOUT THE AIRPORT The Saint John Airport Inc. is a community-based, not-for-profit corporation serving the air travel needs of southwestern New Brunswick. In 2019, the Airport (YSJ) was a key element in the economic and social development of Greater Saint John, with an economic impact estimated at more than $90 million and more than 650 jobs created directly and indirectly. The Saint John Airport reinvests all profits back into the Airport and local communities. 3 OUR KEY VALUES STRATEGIES Our core values act as guideposts for 4 PILLARS OF GROWTH everything we do. These four goals must be reached in order to realize SAFETY the Mission and Vision of our Airport. Safety and security is our first priority. BROADEN AIR SERVICE OUR VISION AND ROUTES To be the preferred airport • Diversify airline carriers and routes 1 • 500,000 passengers by 2025 in New Brunswick. DIVERSIFY OUR REVENUE STREAM STANDARDS • Develop our land We meet or exceed • Expand our tenant base all environmental and 2 • Optimize concessions regulatory standards. OUR MISSION DRIVE COMMUNITY OWNERSHIP To maintain a safe, convenient • Enhance stakeholder engagement • Enhance social, environmental, and and modern airport that 3 economic impacts on the region SERVICE • Enhance community engagement connects Greater Saint John We strive to exceed passenger expectations. ENHANCE FACILITIES, with the rest of Canada and INFRASTRUCTURE, PROCESSES, AND PASSENGER EXPERIENCE the world. • Invest in ourselves: modernize and 4 beautify • Enhance business planning, processes, NEW BRUNSWICK and procedures We’re an active participant in • Enhance employee engagement Greater Saint John’s vibrant • Measure passenger experience community and a vital gateway • Enhance safety, cybersecurity, and to economic growth in compliance New Brunswick. SAINT JOHN AIRPORT ANNUAL REPORT 2019 5 MESSAGE MESSAGE FROM THE FROM THE CEO CHAIR Your Airport is relentlessly The airfield modernization committed to enhancing project is the largest capital our passenger experience. project in YSJ’s history. This year we demonstrated our commitment with capital Assessment Program. This federal investment recognizes It was a major undertaking for our management team and to report that we maintained a stable business. Our investments; increased safety, security, and climate the risk of climate change and will allow YSJ to conduct an partners, taking 18 months to complete. We now have one management team continued to work diligently on change measures; and improved community engagement. impact assessment of extreme climate change in 2020, of the most modern and safest airfields in the country. This broadening air service and routes. Attracting new carriers to Combined, these steps allowed YSJ to maintain its annual preventing possible future tolls on our infrastructure, project would not have been possible without a $10 million any airport is a long-term process, but YSJ has already made passenger base in the face of a tumultuous year for the productivity, and economy. Saint John Airport was the first investment from Transport Canada and $4 million from the one announcement in 2020 and we look forward to making aviation industry which saw a slowdown related to global airport in Canada to benefit from this newly created fund. Government of New Brunswick, combined with more than even more. economic conditions and changing aircraft capacity, with Air $6 million contributed by the Saint John Airport, for a total Canada’s grounding of its fleet of Boeing 737 Max planes. We continually strive to improve passenger experience. project cost of $20.4 million. This year we welcomed Nancy Creamer Ervin to our In 2019, in addition to the complete modernization of our hard-working and versatile board of directors. I’ve had The Saint John Airport was under construction through airfield, we made other improvements, like releasing a These vital improvements have allowed us to enhance the honour of working with this tremendous group as a much of 2019. We made significant investments—$20.4 new version of our FlySJ mobile app with added features navigation, visibility, and landing capability for pilots. There board member for six years, and as chair for the last two. million—to completely transform and modernize the like the ability to easily schedule a taxi to and from YSJ. are costs associated with diverting an aircraft, so arriving I’d like to take this opportunity to acknowledge that I’ll be Airport’s two runways, taxiways, and tarmac. Additionally, Improving communication with our passengers and the and departing from Saint John is now more attractive to our stepping down as Chair of the Board on June 30, 2020. It YSJ became the first Canadian airport in our size category local community is important to us, so we launched the new current and future airline partners. has been rewarding to see the transformational growth to have RESAs (Runway End Safety Areas), reducing the YSJ Dispatches quarterly email newsletter, a great way to and improvement our Airport has experienced over these risk of damage to airplanes in the event of an undershoot, stay informed about our plans, priorities, and progress. The growth of our Airport is good for Saint John and all of years. I want to thank the YSJ board and management for overshoot, or excursion from the runway. YSJ also became Southern New Brunswick. When and wherever possible, we all their support. With the airfield modernization project the third airport in Atlantic Canada to have centreline Soliciting customer feedback is essential to improving hired local companies and are happy to report the airfield now completed, the Airport is set for the next 20 years lighting on the primary runway, improving accessibility passenger experience. In 2019, we installed FEEDBACK modernization project alone has had an additional $21 of continued growth: diversifying our airline carriers, for aircraft. As a result of this major capital project, YSJ NOW Kiosks in the terminal that allow us to receive million in economic impact for the Saint John region. On expanding our routes, improving passenger experience, now meets the latest safety and technology standards, feedback in real time. The kiosks notify airport staff of behalf of our Board, I would like to thank everyone involved and increasing passenger traffic. resulting in improved navigation for pilots and fewer flight customer dissatisfaction, so that we can investigate and for their incredibly hard work and completing this major cancellations and delays. The Saint John Airport now has resolve the issue promptly. We also launched our inaugural capital project both on time and on budget. I would also Please feel free to contact any member of our board one of the safest airfields in Canada. I’d like to thank stakeholder survey to measure feedback from local like to thank our passengers for their patience and their with your concerns or ideas to help us improve the Saint our local community and all passengers for their patience community members and travellers. Of the 375 responses support. John Airport. It is your Airport, and we thank you for your during the construction. received, the vast majority described YSJ as “convenient”, continued support. “competitive”, and a “reliable” airport that meets their travel The Saint John Airport is committed to helping our local Safety and security is our first priority, so it was gratifying needs. and global environment. In 2019, we officially began our to have our efforts acknowledged when theSaint John journey to reduce YSJ’s carbon footprint. We received level Airport’s Biometric Digital ID project to enhance airport I thank our board, management team, staff, and community one certification from the Airport Carbon Accreditation security was presented at the third annual Global for their continued support as we strive to create an even (ACA), a voluntary global carbon management program Aviation Security Symposium held in Montreal. It’s exciting better airport in the year ahead. for airports that independently assesses and recognizes Larry Hachey when a small Canadian airport and an even smaller startup airports’ efforts to manage and reduce their CO2 emissions. Chair of the Board of Directors tech company, both from Atlantic Canada, can be the first to build a leading-edge security solution that surpasses world- This past year will go down in history as a particularly class standards found at the largest airports in the world. difficult one for the airline industry, but we are glad Derrick Stanford Our commitment to responsible and environmental President & CEO business practices was also acknowledged when the Saint Saint John Airport Inc. John Airport received an investment of $205,000 made through Transport Canada’s Transportation Asset Risks SAINT JOHN AIRPORT ANNUAL REPORT 2019 7 CORPORATE GOVERNANCE COMMITTEES OF THE BOARD YOUR BOARD OF DIRECTORS (AS OF DECEMBER 2019) FINANCE, AUDIT & and develop strategies for airline attraction. Chair: Larry Hachey Kevin Scott John Wheatley INVESTMENT COMMITTEE Committee members also seek and recruit Nominated by: Saint John Nominated by: City of Saint John Nominated by: Economic CHAIR–SUSAN HARLEY community support for airline attraction activities Airport Inc. Development Greater Saint John A committee of three directors and senior and expertise for presentation to potential airline Dwayne Stoddart management meet on a regular basis to review the partners, all in an effort to broaden our air service Vice Chair: Mark Bettle