Ottawa, Ontario | May 1, 2020– Joyce Carter, Canadian Airports Council chair and president and CEO of Halifax Stanfield International Airport, and CAC Vice Chair and Fort McMurray International Airport president and CEO RJ Steenstra, appeared before the House of Commons Standing Committee on Finance today. They were there to address the current state of Canada’s airports and urge further government action on relief measures that include permanent rent relief, loan or bond guarantees and funding for small airports.
In front of a video background showing her airport’s empty departures hall, Ms. Carter clearly articulated the dramatic impact of the nation-wide travel restrictions, telling the committee, “We expect to see just 200 travellers today, compared to a daily average of 11,000.”
Since the onset of COVID-19, there has been precipitous decline in Canadian air traffic –and revenues. Overall passenger traffic declined by 90 percent in April, and it is expected to continue at this low level until travel restrictions are lifted, with revenue losses estimated at more than $2 billion.
Ms. Carter thanked the government for their early assistance in the crisis by providing ground lease rent relief, which is helping preserve some cash flow in 2020, particularly for Canada’s eight busiest airports that pay 97 percent of the rent.
Her address to the Committee emphasized that rent relief in itself is not a total solution and more support is required for the short and long term viability of Canada’s airports. Throughout this crisis, airports have remained open to repatriate Canadians, safely move goods and essential workers, and facilitate medevac and other important services.
“Airports have moved quickly to reduce operating expenses – including closing sections of our facilities and cutting wages and staff – but many of our costs are fixed,” she explained. “Costs related to safety, security, and runway maintenance cannot be cut in proportion to reduced traffic.”
While maintaining day-to-day operations, airports are also challenged to meet their capital debt obligations and comply with new and costly regulatory requirements related to runway safety and accessible air travel.
“We do not oppose these requirements but wonder how we’ll pay for them based on our current financial situation,” she said.
Over the past several weeks, the CAC and member airports have been in discussions with government officials on a series of measures that will help airports of all sizes sustain operations in the coming months, which were outlined by Ms. Carter to the Committee.
The first would be to permanently eliminate airport ground lease rent, preserve cash, focus on operations during the recovery, and to pay off incremental debt acquired during the pandemic.
The second recommends loan or bond guarantees and preferred payment designation for airport lenders to relieve the cash pressures caused by current debt obligations and allow airports to continue to borrow at favorable rates.
The final recommendation addresses the needs of rural and remote communities by providing a funding stream for airports with a smaller number of passengers, to cover essential operating expenses so they can continue to connect their communities to much needed goods, workers, medical supplies, and emergency services.
“Pre-COVID, Canada’s airports supported nearly 200,000 jobs, resulting in $13 billion in wages and $7 billion in taxes to all levels of government,” said Ms. Carter. “The health of the entire air transport system is not only essential to serving communities and Canadians through this crisis, but also key to our economic recovery once we begin to reopen the economy.”
Purchasers and multipliers from Canada to get to know aerospace companies on an infor- mation trip to northern Germany as part of the BMWi Market Entry Programme for SMEs
Hamburg, Germany | January 8, 2019– The German aerospace industry has been working closely together with Canadian aviation companies and research institutions for several years al- ready. Now, sponsored by the Federal Ministry for Economic Affairs and Energy (BMWi), representatives from Canada are coming to northern Germany. SMEs from all over Ger- many are invited by the Hamburg Aviation cluster and the German Chamber of Commerce & Industry Toronto to come to Hamburg. At the leading global trade fair, Aircraft Interi- ors Expo, from 1 – 4 April 2019, they can get to know Canadian partners, with a promise of follow-up support for cooperative projects that result.
Various event formats including information sessions, idea pitches, trade fair tours, company site visits and B2B conversations will provide SMEs with opportunities to make contact with North American Partners from 1 – 4 April. Company site visits in Schleswig-Holstein and Lower Sax- ony are also planned.
The target region is attractive. In Canada, around 87,000 people are employed in aviation, and the Montréal Metropolitan Region’s aerospace cluster, with members including such major OEMs as Bombardier and Pratt & Whitney, makes the area one of the most important aviation centres worldwide. Many companies in the western provinces and Ontario are also active on an international scale. The infrastructure, the personnel qualification level, and the Canadian busi- ness culture provide an ideal basis for definite SME market entry. The aviation networks of the German states of Hamburg, Saxony, Rhineland-Palatinate, Baden-Wuerttemberg, Bavaria and Brandenburg have already been working closely with companies from Canada for several years. Hamburg has nurtured a close partnership with Montréal since 2008 and has already supported delegations and research projects.
Support en route to Canada
Support for companies in the establishment of German-Canadian partnerships extends beyond the expo week. They can draw on the expertise of the German Chamber of Commerce & Industry Toronto (AHK Toronto), which has been supporting small and medium-sized companies as they enter the Canadian market for more than 50 years now. Within the framework of the federal Supply Chain Excellence Initiative (SCE), several regional aviation clusters are working to achieve an increased internationalisation of the supplier business. Hamburg Aviation, as a mem- ber of SCE, has been successfully partnering with Canadian organisations for several years, sup- porting delegations, initiating business contact, and coordinating projects.
Broomfield, CO | April 1, 2014– Gogo Inc. (NASDAQ: GOGO), announces that its business aviation group, Aircell, has launched Gogo Biz in-flight Internet and voice service to business aircraft in Canada. Business aviation customers can now use the service anywhere it’s available in the Continental U.S., Alaska and Canada.
Today’s addition of Canadian coverage is the largest geographical expansion for Gogo Biz since the service was introduced to the business aviation market in 2009. Alaskan coverage was added in 2010.
John Wade, Aircell’s Executive Vice President and General Manager, said, “The debut of Gogo Biz service in Canada culminates a multi-year development program and we’re pleased to see it go live. With today’s expansion, business aircraft can now connect everywhere Gogo Biz is available in the Continental U.S., Alaska and Canada – all with a single monthly service plan and no extra fees.”
Overview of Gogo Biz Service
Gogo Biz allows business aircraft passengers and flight crews to enjoy Internet access above 10,000 feet, using their own Wi-Fi enabled laptops, tablets, smartphones, electronic flight bags and other mobile devices. As a “two-in-one” service, it also offers voice service via cabin handsets and/or personal smartphones. More info is available at www.aircell.com/gogobiz.
Canadian coverage is included with all Gogo Biz monthly service plans. No additional roaming or registration fees are required. Service coverage is now available in Canada’s most populous regions and flight routes, with seamless service on cross-border flights.
- Canadian coverage map: http://www.aircell.com/maps/canada
- Complete North American coverage map: http://www.aircell.com/maps/northamerica