Tuesday, October 10, 2006

REGIONAL AND SMALL AIRPORTS STUDY 2004 Federal Government

Gov. of Canada Executive Summary
This 49 page report should be part of the Required reading for City Council deciding on any Airport Expansion. Of the sixty-six airports that provided information to Transport Canada, sufficient information to conduct a valuable analysis was gathered from forty-six of them. To simplify the text, the forty-six airports were categorized as either Category A: airports that cover their operating costs or Category B airports: airports that do not cover their operating costs.

From Page 16 of the Report:

Competition with surface transportation and other airports is a real challenge:
  • Most airports in a surplus situation are located more than 250 km from a NAS airport, while 85% of airports in a negative financial situation are within a 250 km radius.
  • Most airports with a surplus are located more than 250 km from an airport offering discount carrier service while airports in deficit are located closer than 250 km from such an airport.
  • Airports offering higher levels of scheduled passenger service than the closest competitor airport are in a surplus position. In addition, airports with discount carriers are in a better financial situation than others. Airports offering a lower level of service have a higher chance of being in deficit if the closest competitor airport is within a 90 minute drive.
  • Airports offering an equivalent level of service, but sharing a catchment area within a 100 km radius, are likely to have at least one airport, if not both, in a deficit position.

No comments: