Airport fees to go up
By Abby Cameron
Flights departing from Halifax will once again cost more.
As part of its planning for the next phase of improvements to Halifax Stanfield International Airport (HSIA), the airport authority is developing its next 10-year capital plan (2011-2020), which it says will improve passenger safety, help reduce flight delays, develop new revenue streams, and continue to upgrade its facilities to expand current services and enhance the passenger/visitor experience.
To do this, the Halifax International Airport Authority (HIAA) is raising airport improvement fees (AIF). Rate increases vary from airport to airport, but none are more than $10. Improvement fees could be as low as $15 on a ticket to Vancouver or Charlottetown, or as high $25 to Toronto or Montreal.
The projects, which include upgraded equipment for snow and ice control, will add efficiency in the long run, which officials said are important for the Maritimes’ largest transportation hub.
“HSIA is one of the most critical pieces of transportation infrastructure in Atlantic Canada,” says Tom Ruth, president and CEO of the HIAA. “(More than) half of all the air passengers and air cargo that move in our region pass through our airport. We’ve accomplished a lot since the airport was transferred from the federal government 10 years ago, but there is more to be done to ensure HSIA continues to be a key driver in regional economic growth.”
There are three ways major Canadian airports like HSIA can fund necessary capital improvements: reinvest operating surpluses, borrow, and use the AIF. Like other airports, HIAA uses all three. Operating surpluses will continue to be reinvested; a bond issue is planned for later this year; and the AIF is being changed. This change will be reflected on airline tickets sold on or after Oct. 1, 2010, for Halifax passengers whose flight departs on or after Jan. 1, 2011.
Like 50 other Canadian airports, HIAA uses the revenue from the AIF to help fund its airport improvement program. Projects at HSIA to be funded by the AIF are determined through a consultation process with the airlines that serve Halifax. The AIF, which is added to the price of each originating airline ticket, is collected by the airlines.
HIAA’s comprehensive new 10-year capital plan will be finalized this fall, although its development has already identified several major infrastructure improvements. HIAA President of Corporate Communications Peter Spurway said these are much needed upgrades.
“Our equipment we have now was made in the 70s,” he said. “We realize we need to make an investment. This equipment will be newer, faster, and more efficient.”
Ruth agreed the upgrades will improve efficiencies and open the HIAA up to new markets.
“These improvements are required to meet the needs of our current and future passengers and visitors, allowing us to compete effectively for new business anticipated from Canada’s Blue Sky initiative with the European Union, and to adapt to the long-term needs of our airline partners.”
Other investments will include upgrades and building expansions within the domestic and international check-in area of the airport and development of commercial lots between the airport terminal and Highway 102.
“We want to start at the terminal and work our way out,” said Spurway.
He said the HIAA is hoping to attract a more full-service gas station complete with a convenience store, restaurants, and more.
“We would like to create a destination,” he said. “Not only for travelers, but for the 5,500 employees of the airport and those in the area as well.”
The new 10-year business plan will finalized this fall.
