Airport Consultative Committee Meeting Report from the President and - - PowerPoint PPT Presentation

Airport Consultative Committee Meeting

Report from the President and CEO

October 23, 2018

Strategic Goals

Be a Leader in Environmental Protection Operate in a Financially Responsible Manner Provide a Safe and Secure Airport Retain and Attract Talented and Motivated Employees Provide Exceptional Airport Facilities Attract and Maintain Air Service

Strategic Goals

Notable Achievements

• Airports Council International: Best Regional Airport in North America
• CNN Travel - World’s Ten Most-Loved Airports
• BC Aviation Council: Silver Wings Environmental Award
• EcoStar Award Winner
• 3rd airport in North America to achieve Airport Carbon Accreditation
• Most Financially Efficient Airport in Canada
• GVCC Business Awards: ‘Business of the Year’
• SPCC Crystal Awards: ‘Business Excellence’
• Excellence Canada: Healthy Workplace
• Passenger Traffic up 25%

Airport Service Quality

2017 Results

YYJ Ranked First Overall of 15 Canadian Airports

From: Terry Sent: August-24-18 11:39 AM To: Geoff Dickson Subject: Assistance for my son Chris My son, who is handicapped, flew to Victoria from Kelowna arriving Wednesday around 11am. We drove from Parkville to pick him up and were caught in that unfortunate accident on the Malahat. We drove to the ferry at Mill bay but would have had to wait for hours to cross. Unable to contact Westjet, I called your office and spoke to Erin who immediately said she would either find Chris herself or have someone else meet him. She arranged to get him a taxi to Brentwood bay and he met us as a foot

• passenger. We are so appreciative of Erin's help.

World Rowing Coastal Championships

Cops For Cancer

Tour de Rock Fundraising

Albert Head Cadet Graduation

BC Aviation Council

Silver Wings 2018 Environmental Award

Reay Creek Detention Pond

2017 Baseline Community Noise Survey

Purpose: To compare 2017 and 1999 baseline noise levels, document aircraft noise exposure levels and

• verall community noise exposure levels.

Methodology: 12 locations monitored for a 24 hour period between August 19 - 24, 2017 Locations: Repeated monitoring at 6 of 7* sites from 1999

* The original 1999 measurement location in Arbutus Ridge could not be found; therefore, an alternative location was chosen.

 Added an additional 5 sites in order to have a baseline moving forward

2017 Baseline Community Noise Survey

New Noise Monitor New Location for 1999 Monitor Same Location as 1999 Monitor

2017 Baseline Community Noise Survey Conclusions

In general, community aircraft noise exposures were found to decrease relative to the 1999 survey results.

Site # Location 1999 Ldn

(dBA)

2017 Ldn

(dBA)

Increase

(dBA)

3 Iroquois Park 66 65

• 1

5 Glenelg Ave <50 50 N/A 6 Carmanah Terrace 49 48

• 1

8 Rathdown Park 57 52

• 5

9 John Road 57 50

• 7

11 Tapping Road <55 54 N/A

Ldn = Day-Night Equivalent Sound Level – the average noise level over a 24-hour period dBA = A-weighted decibels – the relative loudness of sounds in air as perceived by the human ear

Air Access is a Key Component of Economic Growth

15

Non-Stop Destinations

7,100

Seats Per Day

YYJ Economic Impact

Impact Employment Jobs FTEs Wages ($ millions) GDP ($ millions) Output ($ millions) Direct 2,800 2,500 $170 $230 $540 Indirect 1,100 1,000 $60 $100 $200 Induced 800 700 $40 $90 $140

Total

4,700 4,200 $270 $420 $880

FTEs = Full Time Employees Induced = Direct and indirect employees spending in the economy

• 20

40 60 80 100 120 140 160 1988 1993 1999 2004 2009 2014

Passengers (Millions)

Canada Air Passenger Traffic Enplaned/Deplaned

Domestic Transborder International

Canadian Airport Traffic

1988 - 2016

YYJ Demand

Annual Passengers

1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Master plan 3% 5% Actual

2,678,274 3,309,236 2017 annual passengers 1,934,842 2,359,049

$- $50 $100 $150 $200 $250 $300 $350 $400 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016p Average Fares

Average Fare for Major Carriers

Source: Statistics Canada Average Fare data, Cat. 51 -004-X p = preliminary Major Air Carriers include Air Canada (mainline, AC Jazz & AC rouge beginning July 2013), WestJet, and Air Transat

Real Average Fares

Indexed to 2016

Domestic Turnaround Fees for Q400 By Airport

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600

$382

Photo Credit: Maiden Voyage Travel

United Airlines

Ending San Francisco Service

• Maintain strong balance sheet
• Keep airline operating costs in lowest quartile
• Diversify revenue sources
• Non-aviation as a percentage of total (67%)
• Prudent staged capital investment
• Focus on the customer and quality

Financial Approach

10 20 30 40 50 60 70

1998 2004 2008 2013 2017

Annual Seat Capacity (millions)

Domestic Canada Scheduled Non-Stop Seats

Widebody Narrowbody Regional Jet Turboprop

Annual Turboprop + Regional Jet Percentages 49% 30% 37% 41% 48%

Scheduled Seat Capacity - Domestic

Source: Official Airline Guide Schedule Data, full year data for 1998; Diio Mi Schedule Data, full year data for 2004, 2008, 2013, 2017.

10 20 30 40 50 60 70 80 1980 1985 1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Passengers

Average Passengers per Aircraft

Passengers Per Aircraft

Canada: 1980 - 2016

Source: InterVISTAS Calculations with data from: Aviation in Canada (1980-1990) and Table 401-0009, Statistics Canada and Air Carrier Traffic at Canadian Airports, Statistics Canada

WestJet

Fleet Expansion Has Been Focused on Encore

105 107 114 115 113 111 8 15 24 34 41 45 4 4 4 2013 2014 2015 2016 2017 2018

Committed Fleet to YE 2018

(number of aircraft) 737 Q400 767 105 107 114 115 109 100 74 4 11 44 6 9 26 2013 2014 2015 2016 2017 2018 2023

737 Fleet Evolution

(number of aircraft) 737 NG 737 MAX Lease Options

Source: WestJet annual reporting, investor presentations.

• In recent years, unit fleet growth has been driven by Encore expansion:

this continues in 2018 but is now ending

Air Canada Regional Shift to Higher Capacity Aircraft

• 50

100 150 2012 2015 2016 2017 2018 Fleet Count

Air Canada Regional Fleet 2012-18

Note: Median fleet count taken for years where AC gave it a range. Source: Air Canada investor Presentation (02Jun2015), updated for 2015/16 actual data.

• Beginning to retire Dash 8-100 and CRJ100/200 aircraft

Replacing with larger Q400 (76 seats) and CRJ705 (76 seats)

• In pursuing new and expanded regional service from Air Canada, airports will

need to focus on opportunities that can support the 70+ seat capacity threshold

50 seats or less: –39% greater than 50 seats: +417%

Currently Operating New ManagementTeam Started June 2018 Separate from WestJet Targeting 40% CheaperFares PursuingFinancing Ultra Low Cost Carrier (ULCC) model proposed in order to generate incremental demand

New Airlines are Entering the Market

Q400

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Roadworks

Parking Expansion

Parking – Long Term

Improved Public Transit

Photo Credit: Times Colonist

• Currently 32 departures to and

from YYJ and the McTavish Transit Exchange

• Ten additional BC Transit bus

frequencies starting September 2018

• Improvements to routes 83/88

Robotic Mower – “Moe”

• Ease. Always, always making it easier

Sidney Crossing