Annual Public General Meeting Report from the President and CEO May - - PowerPoint PPT Presentation

Annual Public General Meeting Report from the President and CEO

May 10, 2018

Air Access is a Key Component of Economic Growth

15

Non-Stop Destinations

7,100

Seats Per Day

Economic Impact of Canada’s Airports

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

Direct Employment: 2,800 Jobs

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

• 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

Swoop

ULCC Link

Regional

WestJet

Delta

Joint Venture

MAX Aircraft

Int’l Expansion

AirCanada

Rouge

Expansion

Growth

International Focus

Efficiency

MAXAircraft &CSeries

Existing Domestic Airlines are Evolving

Currently Operating New ManagementTeam Launching 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

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

YVR Hub

Credit: Port Of Seattle

SeaTac International Expansion

Photo Credit: i.Imgur.com

Montreal

Photo Credit: ImagoBorealis.com

Whitehorse

Photo Credit: Alberta Drone Pilots

Flair Airlines

Daily Edmonton Service

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

• 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

$- $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

Low Cost Focus

Airport Q400 B737-700 A319 Victoria $363 $734 $784 Kelowna $390 $741 $768 Regina $486 $1,026 $1,097 Saskatoon $452 $878 $910 Quebec City $584 $1,230 $1,277 Vancouver $588 $1,240 $1,301 Calgary $518 $1,150 $1,230 Toronto $1,038 $2,077 $2,220 Montreal $1,121 $2,144 $2,297

Q400

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Parking Expansion 2018

Terminal Precinct Pavements

Reay Creek Detention Pond

Robotic Mower – “Moe”

Airport Service Quality

2017 Results

YYJ Ranked First Overall of 15 Canadian Airports

“Victoria International Airport offers a very high level of service. From bottle refill stations for folks who had to replenish water after dumping out their water going through security to having local outlets such as Spinnakers instead of global chains, it is a very high-quality airport. Airlines, meeting planners and leisure tour operators notice the difference.” “This makes a difference to customers, which in turn builds customer loyalty. Customer loyalty along with strong macro fundamentals, such as tourism growth, both contribute to growth.”

Paul Nursey President and Chief Executive Officer Tourism Victoria

Questions