Chair & CEO
A Message from the Chair & CEO
St. John’s International Airport has come a long way since its humble beginnings as Torbay Airport, when it opened in 1941 as a military installation. It has developed into a world-class transportation facility that accommodates more than 4,000 passengers travelling through its gates each day; a far cry from the five passengers who travelled on Trans-Canada Airlines (now Air Canada) on the first commercial landing in 1942.
Airport Terminal Building Expansion
Through its evolution in becoming our province’s premier transportation gateway, St. John’s International Airport has undergone many changes to its infrastructure and facilities throughout the years. The most recent milestone is the completion of the first phase of the Airport Terminal Building expansion project, the largest capital project in the Airport Authority’s 20-year history. This first phase opened for business in July 2018 and was completed on time and on budget. After four years of construction, the much anticipated opening of the expanded Departures Lounge and the new departure processing area in 2018, added many new amenities and services that have been roundly welcomed by airlines and passengers. At the same time, a concerted effort was made to highlight our maritime heritage and create a sense of place, which is evident in the design of the building; the added local artwork, and the creation of a Concessions Program that features local products. For those passengers travelling through our Airport, there is no question that they are in Newfoundland and Labrador. The expanded Departures area, while significantly enhancing airline operations and passenger experiences, only solved half of our capacity constraint issue. In 2019, we’ll begin construction on Phase Two of this project that is focused on expanding the Arrivals area of the Terminal Building. The completion of this final phase in 2022 will remove the existing bottleneck in the Arrivals processing area and enable us to efficiently welcome as many as two million passengers annually.
The improvements and the many new services and amenities offered at our Airport have had a positive impact on passenger satisfaction, according to the Airport Service Quality index survey results provided by Airports Council International – North America (ACI-NA). We’re happy to report a substantial increase in both our overall passenger satisfaction rating and our ranking compared to other airports following the opening of the expanded Terminal Building. It’s a true testament of our efforts, and that the work we’ve done is recognized and valued by the travelling public. With continuous improvements being made, we expect these to continue to be appreciated by our passengers.
Business Growth and Air Service Development
The one daily arrival and departure flight in 1942 has grown to approximately 80 daily flights in 2018, serving destinations across Canada, the US and Europe. Over the last 20 years as an Airport Authority, passenger traffic has more than doubled and our passenger volume has grown to over 1.5 million passengers annually. We are committed to continuing to work with our airline partners and to pursue new destinations and greater frequency where a strong business case exists. At the same time, we are pleased that 54 per cent of all revenue earned is generated from non-aeronautical revenue sources, including land development, concessions revenue and advertising. This is a planned strategy as it enables us to financially cushion against the impact of airline decisions that are often outside our control. We would like to take this opportunity to welcome those who recently joined our airport community as part of the new Concessions Program, as well as the new Best Western Plus hotel, Tim Hortons and North Atlantic’s service station. We would also like to thank Air Canada for the investment in the development of the new Maple Leaf Lounge that opened December 2018. These investments by external parties reflect the confidence in our Airport and add services to enhance the airport experience.
Communication with our stakeholders and community was key throughout the expansion process and our Airport has been recognized nationally by ACI-NA. The Airport Authority received an award for best Overall Public Relations Programs for small airports in North America. We’re very honoured to have received this recognition, and are committed to continued communication throughout Phase Two. None of the significant accomplishments achieved in 2018 would have been possible without the commitment, dedication and support of our Airport Authority staff, stakeholder groups, and Airport partners. As we continue to build a better gateway, we never lose sight of the impact these enhancements have on our partners and stakeholders. In enhancing the accessibility of our community and creating positive and lasting impressions at the premier gateway to and from our province, we are facilitating local trade and improving the attractiveness of the region for investment. We understand this role, and will continue to make improvements that have the added benefit of contributing significantly to our local and national economies.
Who We Are
St. John’s International Airport Authority
St. John’s International Airport Authority is a private, non-for-profit, non-share capital corporation that exists to provide a safe and efficient transportation facility at Newfoundland and Labrador’s premier transportation gateway.
We generate our own revenue, raise our own capital, pay municipal taxes, and pay rent to the Federal Government on an annual basis to operate the Airport on behalf of the community we serve. We are committed to offering an outstanding airport experience for our passengers and enhancing the economic and social well-being of our community.
We will create an
exceptional airport experience at
Newfoundland & Labrador’s premier gateway
community leader | enabling prosperity
Board of Directors:
Top Row (L-R): Art Cheeseman, Tom Williams, Gail Carroll, Darren Martin, Roger Butt, Larry Pittman
Bottom Row (L-R): Holly Hicks, Jim Heale, Jerry Byrne, Mike Donovan, Cathy Fauvre, Robert Gosse
The Airport Authority’s 2015-2019 Strategic Business Plan defines the Authority’s ideal future and includes objectives and strategic initiatives that will serve as our guiding framework that will lead to our vision of providing an exceptional airport experience at our province’s premier transportation gateway. This report provides an update on our progress associated with the seven strategic objectives: Outstanding Facilities; Exceptional Passenger Experience; Focused Business and Air Service Development; Culture of Engagement; Enhanced Community Partnerships and Collaboration; Organizational Effectiveness; and Financial Stability.
Objective: Deliver new, improved, and expanded Airport Terminal Building and related Airport facilities to meet 2020 demand.
Phase One of the Airport Terminal Building Expansion was on time and on budget.
Airport Terminal Building Expansion
The largest capital project in the Airport Authority’s 20-year history is the Airport Terminal Building Expansion project, which is being constructed in two phases:
- Phase One (2014-2018) – now open with an additional 145,000 square feet added to the Airport Terminal Building focussing on the Departures process.
- Phase Two (2019-2022) – an additional 100,000 square feet will be added to the Airport Terminal Building and will focus on the Arrivals process.
In July 2018, Phase One of the Airport Terminal Building expansion opened on time and on budget. It boasts an additional 145,000 square feet to the building bringing it to almost 315,000 square feet to facilitate airport operations, while keeping passenger comfort and convenience top of mind.
When Phase Two commences which focuses on the Arrivals area, work will begin on the construction of additional space for international customs operations for the Canadian Border Services Agency; additional space for baggage handling operations, and an expanded Ground Transportation area to assist with taxi and shuttle bus queuing. The Departures Lounge will also be expanded with more seating and two additional gates and passenger loading bridges.
Once complete, the total size of the Airport Terminal Building will be close to 420,000 square feet. It’s expanding to add capacity; to accommodate new security requirements; to enable the province’s economic growth and to address the changing expectations of today’s traveller.
Airport Terminal Building Improvements
In addition to the expansion, there were numerous enhancements and improvements made in 2018 to improve passenger experience and increase passenger satisfaction. In 2019, and throughout the second phase of the expansion, general upgrades and improvements will continue.
|2018||Improvements made to the existing washrooms including: kids step-ups; stainless steel partitions; tile repair and replacement; new hand dryers and lighting upgrades|
|Carpet and tiles were replaced in older section of the terminal building|
|Interactive information screens were installed in the Departures Lounge to highlight new components and help with wayfinding|
|New Breach Control was installed – a one-way exit corridor that guides the flow of arriving passengers from the Departures Lounge to the Arrivals Area|
|Reversed direction of centre court escalator to promote an alternative exit for those without checked baggage|
|New wayfinding signage installed to highlight the new components|
|Relay renovated its store and opened JellyBean Harbour on Level 1 which provides all travel essentials|
|New concrete pad for bridging aircraft|
|2019||New check-in counters for airline operations|
|Replacement of the lighting in the older section of the terminal building|
|Two new Tim Hortons opening on Level 1 (pre-security) and Level 2 (post-security)|
|LED lighting upgrades inside and outside Terminal Building to improve efficiency|
Exceptional Passenger Experience
Objective: Provide an exceptional passenger experience at our Airport.
In order to measure passengers’ level of satisfaction at the Airport, the Airport Authority participates in a year-round Airport Service Quality index survey. This global research tool provides quantitative feedback on all aspects of the Airport experience and provides benchmark data from other airports worldwide. Despite continuous construction and transition period leading up to the opening of the first phase of the Airport Terminal Building expansion, the passenger satisfaction rating increased by two per cent to 85 per cent for 2018 overall, largely as a result of high ratings (88 per cent) received in the final quarter results which reflect many of the new enhancements experienced by passengers.
The significant increase in passenger satisfaction levels can be partially attributed to the many new offerings at the Airport.
88% passenger satisfaction rating achieved after the opening of the expanded Terminal Building.
A new Concessions Program with retail and food and beverage options featuring local and national brands, including the first full-service family restaurant past security
A new Children’s Play Area with equipment that are iconic symbols of Newfoundland and Labrador – a 7 ft. lighthouse with a tunnel and slide; an iceberg slide with a puffin sitting on top and a humpback whale climbing play structure
A new Nursing Mother’s Area (adjacent to the Children’s Play Area) with ample space for stroller parking and comfortable furniture suitable for breastfeeding
A new family washroom and female and male washrooms – all equipped with change tables
Business Plan Summary
2018 Capital Program
The ATB East Expansion and associated projects were successfully completed in 2018 on time and on budget. Related projects include the installation of two new passenger loading bridges, the associated concrete apron gates, completion of the east end loading zone and the purchase of an automated secure area exit (Breach Control) unit. A second unit will be delivered in 2019. Finally, there was significant progress made towards the manufacturing and installation of a sophisticated new Hold Bag Screening System which is scheduled to be fully operational in 2019.
2018 Actual vs. Business Plan
(Shown in thousands of dollars)
|Revenue (Note 1)||$49,802||$49,959||($157)||Modestly lower operating revenues offset by higher airport improvement fees than planned..|
|Expenses (Note 2)||$29,629||$30,947||($1,318)||
A mild winter resulted in lower winter operating costs as well as lower interest on borrowed funds.
|Capital||$24,179||$29,429||($5,250)||Delivery of heavy equipment was deferred until 2019. Certain projects were partially completed in 2018 and will be finished in 2019 including the new Hold Bag Screening system.|
Note 1. Revenue includes net AIF and operating revenue.
Note 2. Expenses include interest and exclude the non-cash items of depreciation and amortization.
Planning for Growth (2019-2023)
We have completed a long-term infrastructure plan to address capacity constraints and to accommodate projected passenger traffic. The two-phased Airport Terminal Building expansion is well underway with the first phase completed in 2018, and the second phase scheduled to be completed early in 2023. A long-term Financial Plan was also prepared in order to support the investment in infrastructure improvements, and includes future borrowings in the form of a private placement bond and credit facilities.
Business Plan Forecast 2019-2023
(Shown in thousands of dollars)
|Revenue (Note 1 & 2)||$49,876||$50,919||$52,003||$55,483||$55,013|
|Expenses (Note 3)||$28,806||$31,704||$32,752||$33,736||$34,696|
|Capital (Note 4)||$19,358||$20,574||$24,210||$19,283||$18,918|
Note 1. Assumes passenger growth will be 0% in 2019, 2020 and 2021 and 1.5% each year thereafter..
Note 2. Revenue includes net AIF and operating revenue.
Note 3.Expenses include interest and exclude the non-cash items of depreciation and amortization.
Note 4. Capital includes the expansion of the Airport Terminal Building, additional passenger loading bridges, the expansion of the hold bag screening system and the rehabilitation of apron II.