Airport Authority Unveils its 10-year Vision for Airport Improvements

ST. JOHN’S, NL, February 2, 2011 – St. John’s International Airport Authority has announced its 10-year plan for the development and expansion of the international Airport in St. John’s, in response to unprecedented growth in passenger traffic and aircraft movements. This long term capital plan is designed to achieve three main objectives: to ensure the Airport’s facilities have sufficient capacity to meet the existing and the anticipated growth in passenger and aircraft traffic to the year 2020; to provide Airport facilities that meet the highest standards related to safety, security and environmental sustainability; and to enable the expansion of services that will deliver an outstanding Airport experience for all air travelers.

“As the principal gateway to our province, St. John’s International Airport plays a key role in facilitating the growth of our economy. Our primary responsibility as the Airport Authority is to provide safe, secure and efficient facilities that meet the growing needs and expectations of air travelers, as well as our airline partners. We are confident that this long term vision for our Airport’s development and expansion will meet these expectations and will continue to facilitate economic growth in the Avalon Region and the entire province,” said Fraser Edison, Chair of the Board of Directors for the St. John’s International Airport Authority.

The Authority’s long term capital plan, sized at approximately $150 million, will focus on resolving many of the operational constraints that have emerged as passenger traffic growth over the past decade has surpassed the levels for which the Airport was originally designed. This significant growth trend is expected to continue well into the future as the province’s economy continues to expand. Highlights of the improvements include the following:

• Expansion of the Airport Terminal Building – The present Airport Terminal Building is operating well above its original design capacity, and will be expanded in two phases to accommodate the existing demand and the anticipated growth in activity levels. Phase One will involve an extension on the Terminal Building’s east end, and will provide a new pre-board security area with a provision for optional full-body scanners, expanded departure lounge facilities, as well as enhanced passenger services. Detailed planning for Phase Onewill commence in 2011, with completion of this Phase slated for 2015. Phase Two will begin in 2016 with a focus on the west end of the Terminal Building, enabling new jet gates, an expanded baggage area, further expansion and improvements to the departure lounge and the international arrivals area.
• New Airport Access Road – Improved access to the expanded Terminal Building and public parking facilities will be accommodated through the construction of a new, 4-lane Airport access road off Portugal Road.
• Expanded Vehicle Parking Facilities – Parking facilities for both public parking as well as rental cars will be expanded to meet the increased demand. One option under consideration is the construction of a multi-level parking garage.
• Passenger-loading Jet Bridges - Additional passenger-loading jet bridges will be installed that can accommodate large jet aircraft as well as smaller, regional aircraft that are utilized for intra-provincial travel.
• Additional Apron Space - Expansion and rehabilitation of the Terminal Building Apron will facilitate operational safety and accommodate growth in aircraft movement and parking.
• Ramp Services and Cargo Building – A new building will be constructed to the west of the Terminal Apron that will improve cargo facilities and increase the efficiency of operations. It will also facilitate the growth in the number of companies operating at the Airport.
• Airfield Upgrades & Rehabilitation - Life-cycle replacement and rehabilitation of the airfield runways and taxiways, upgrades to the airfield lighting systems, as well as replacement and enhancement of the Authority’s fleet of vehicles are incorporated into the plan.
• Conversion to LED Lighting – All lighting fixtures in the Airport Terminal Building and on the airfield will be converted to LED lighting to reduce energy consumption, maintenance costs and landfill waste.

The 10-year capital plan does not currently include the Airport Accessibility Initiative as the Authority has yet to hear from the federal and provincial governments confirming their intentions for a financial partnership on this critical project.

This 10-year capital plan will be financed primarily with new credit facilities secured by the Authority, likely a combination of bond and bank financing. As is the case with other Canadian airports, these credit facilities will be serviced and repaid with revenues generated through an Airport Improvement Fee, or AIF, paid by all passengers boarding a commercial aircraft here in St. John’s. In light of the level of capital investment included in the long-term plan, the AIF at St. John’s International Airport will increase from $15 to $20 per enplaning passenger, effective April 1, 2011. This level of AIF is consistent with all other airports in Newfoundland and Labrador, and represents the standard fee level across the country, as illustrated by the attached Schedule.

“The long-term financial sustainability of our Airport is based on responsible and effective management of the Airport’s growth. The increase in AIF will allow the Authority to secure, service and repay the debt required to develop and expand our Airport, and to deliver the level of service demanded and expected at our province’s premier transportation gateway. I am confident that the community we serve, as well as all travelers using our Airport, will understand the benefits of the development we are commencing.” said Mr. Edison.

St. John’s International Airport Authority is a private, not-for-profit organization with the mandate to provide the region with a safe, cost-efficient transportation facility that is a catalyst for economic growth. Under the provisions of a long-term Ground Lease with the Federal Government of Canada, the Airport Authority is responsible for the airport’s operations on behalf of the community it serves.