Chair & CEO
A Message from the Chair & CEO
2017 was a milestone year for St. John’s International Airport as we recognized and celebrated the Airport’s 75th anniversary of commercial airline operations. Much has changed since our modest early beginnings as “Torbay Airport”, with many more transformations to come over the next few years.
Last year, we finalized our Master Plan and associated Land Use Plan that provides the framework to guide the development of the Airport until 2035. Consistent with this Plan, we have negotiated land leases with both aviation and non-aviation-related entities to expand and improve services at our Airport. In 2018, we will have two hotels, a service station with food and retail outlets, a new cargo facility and a new jet fuel farm. These new developments enhance the attractiveness of our Airport for visitors, employees and airlines, and increase the safety and efficiency of airline operations.
We also made significant progress on the numerous capital projects included in our $200 million Airport Improvement and Expansion Plan. Despite the substantial construction taking place in and around the Airport Terminal Building in 2017, we maintained an 83 per cent overall passenger satisfaction rating. By the end of the year, we were tracking on budget and on time to open the expanded departures area of the Airport Terminal Building prior to the peak summer travel season in 2018. We look forward to being able to offer our passengers many new and expanded services this summer that we believe will be well-received by all our passengers, and will result in an increase in our passenger satisfaction scores beyond 2017 levels.
Cat 3 ILS Project Results Exceed Expectations
One of the most transformational projects in our most recent history was the installation of Category III Instrument Landing Systems. We anticipated a significant reduction in the 1000 flights impacted annually due to low visibility conditions to approximately 300 flights annually. 2016 was the first full year of operation with the new technology. Only 40 flights were impacted as a result of low visibility in year one, and in 2017 only 16 flights were impacted. The success of this project has exceeded our expectations, thereby making an immense difference to reversing our reputation for being an inaccessible location due to fog.
Our position as the premier gateway to and from our province was reaffirmed through the Government of Newfoundland and Labrador’s 2016 Exit Survey. More than 70 per cent of all non-resident visitors to and from Newfoundland and Labrador that travel by air travelled through our Airport. It is another reminder of the important role our Airport plays in facilitating economic growth and in shaping people’s perceptions of our province.
With this in mind, we are continuing to pursue new airline routes and to increase overall airline seat capacity to ensure our community’s travel needs are being met. We have been very successful over the last 10 years in adding new routes and increasing frequency to and from our Airport. Since 2008, our Airport has experienced a 35 per cent increase in overall airline seats available for purchase. Annually, more than 1.5 million passengers are travelling through our gates. While we saw a slight decline in 2017, we predict passenger volumes will remain consistent year-over-year in 2018 as the economy continues to improve.
We continue to strengthen our relationship with our employees and expand our team to support our efforts in achieving our strategic goals. In 2017, the Public Service Alliance of Canada and the employees of the St. John’s International Airport Authority ratified a five-year Collective Agreement, which commenced on January 1, 2017. The agreement provides a 12 per cent wage increase for airport employees over the term of the agreement.
We also wish to thank our employees for their commitment to establishing a safe working environment. This past-year, the Airport Authority had zero lost-time incidents. This is a significant accomplishment given the nature of the work our employees perform and the often extreme weather conditions in which it is performed.
Airport Terminal Building Expansion Continues
The highly awaited opening of the expanded Airport Terminal Building in 2018 represents the first Phase of the entire Airport Terminal Building expansion project that focuses on the Departures Area. Once opened, attention will be placed on finalizing the design for the expanded Arrivals area of the Building (Phase Two) so that construction can commence in 2019. When the entire Airport Terminal Building expansion project is complete in 2022, the building will be more than double its existing size at almost 420,000 square feet, and will be a facility of which Newfoundlanders and Labradorians can be proud.
We believe the transformation of the Airport Terminal Building, especially the Departures Lounge that will more than double in size when it opens in 2018, will be well worth the wait. We appreciate and thank travellers, our airline partners, our Airport partners, and the general public for their continued support during the ongoing construction process. We’re not quite finished yet, but we’re getting closer, and the enhanced services on offer this summer for passengers will be notable.
The last 75 years have seen many changes and improvements at our Airport. However, it is evident from the anniversary marketing campaign that solicited Airport stories from the public that the Airport played and continues to play a significant role in people’s lives. We look forward to more memories being made at our Airport for many years to come.
Who We Are
St. John’s International Airport Authority
St. John’s International Airport Authority is a private, not-for-profit, non-share 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, Neil Pittman
Bottom Row (L-R): Holly Hicks, Jim Heale, Jerry Byrne, Mike Donovan, Cathy Farve, 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.
A total of $32 million was invested in 2017 for infrastructure improvements and expansion.
In 2017, a new Airport Master Plan was completed to provide the framework that guides the development of the Airport, and ensures future improvements are undertaken in a responsible manner with regard to operational efficiency, safety and security, environmental compliance and financial viability. At the same time, a new 10-Year Airport Improvement and Expansion Plan was announced that includes investments in the Airport’s facilities that are consistent with the long-term scope of the Airport Master Plan, and expands the Airport’s capacity to accommodate 2 million travellers annually by 2022.
Airport Terminal Building Expansion
The largest project in the new 10-Year Airport Improvement and Expansion Plan is the expansion of the Airport Terminal Building. This expansion is being conducted in two phases, and when complete in 2022 will more than double the building’s existing size to total approximately 420,000 square feet.
Construction on Phase One of the expanded building commenced in 2014 and will add 145,000 square feet to the Departures area of the Airport Terminal Building. By the end of 2017, the project was tracking on time and on budget, and the opening of this first phase of the expanded building is anticipated for June 2018. While the completion of this phase represents half of the building expansion project, significant improvements and enhancements will be realized by passengers, tenants and airline partners when it opens:
- Larger check-in area (40% increased space)
- Larger pre-board screening area (4 times existing size) with faster screening technology and a designated Nexus line
- Departures Lounge will more than double in size, almost tripling the seating capacity
- Additional washrooms in the Departures Lounge
- A new Concessions Program with greater choice of local and national brands, and a greater concentration of outlets located in the Departures Lounge, including a full-service restaurant
- Two new gate positions with passenger loading bridges
- A new children’s play area and a nursing mother’s area
Departures Lounge will more than double in size, almost tripling the seating capacity
In 2018, the design for the Phase Two expansion will be completed in preparation for construction to commence in 2019. This Phase will add an additional 100,000 square feet to the Arrivals Area of the Building, including an expanded area for customs activities; additional baggage carousels; and more aircraft gates with passenger loading bridges. The Departures Lounge will continue to see improvements with expanded space for additional seating, concessions, and washrooms facilities.
Airport Terminal Building 2022
Airport Terminal Building Arrivals Expansion 2022
Safety, Security and Life Cycle Replacements
There are a number of projects included in the Airport Expansion and Improvement Plan that are required to meet safety and security regulatory requirements. Last year, the Airport Authority completed the construction and installation of a new facility that provides security screening for all non-passenger vehicles entering the Airport Terminal Building apron, as required by Transport Canada.
Within the scope of the 10-year Plan, there will also be necessary lifecycle replacements and refurbishments of airfield aprons, taxiways and the Central De-icing Facility. Longer term, there is an anticipated requirement to widen the Airport’s access road (World Parkway) to accommodate increased vehicle traffic, as well as to expand airfield taxiways to improve aircraft movement safety and efficiency.
Exceptional Airport Experience
Objective: Provide an exceptional passenger experience at our Airport.
We take pride in our role as the premier transportation gateway to and from Newfoundland and Labrador, and we understand the lasting effect of a positive first and last impression. We’re committed to providing a positive experience for all visitors at our Airport and continue to seek ways to make improvements and enhancements, both big and small, to the level of service offered.
83% overall passenger satisfaction rating was achieved for 2017.
Business Plan Summary
2017 Capital Program
The Airport Improvement and Expansion Plan announced in 2014 is progressing as planned with the ATB East Expansion scheduled for opening in 2018. In 2017 there was significant advancement of the internal fit-up and finishing as well as progress on other related projects, including the new Hold Bag Screening System; the design and manufacture of two new passenger loading bridges which will be delivered in 2018; as well as the associated apron civil modifications.
2017 Actual vs. Business Plan
(in thousands of dollars)
|Revenue (Note 1)||$47,093||$49,669||($2,576)||Lower AIF revenues due to a three month delay in implementing the fee increase than planned.|
|Expenses (Note 2)||$28,716||$29,556||($840)||
Lower Ground Rate due to lower revenues than planned and lower fuel prices than forecasted.
|Capital (Note 3)||$32,074||$39,797||($7,723)||Certain projects were partially completed in 2017 and will be finished in 2018, including new Delivery Zone of the expanded Terminal Building and Phase 1 (East) Terminal Expansion Apron Grading. Also, some costs for the ATB Expansion shifted from 2017 to 2018.|
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 (2018-2022)
We have completed a long-term infrastructure plan to address capacity constraints and to accommodate the approximately 2 million annual passengers forecast by the year 2020. Over the next five years the Airport Terminal Building will be expanded in two phases – Phase One to be completed in 2018 and Phase Two to be completed in 2022. 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 2018-2022
(in thousands of dollars)
|Revenue (Note 1 & 2)||$49,959||$52,325||$54,033||$55,813||$57,668|
|Expenses (Note 3)||$30,947||$31,891||$33,236||$34,604||$35,995|
|Capital (Note 4)||$29,429||$14,252||$23,953||$21,077||$20,614|
Note 1. Assumes passenger growth will be 0% in 2018 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 and various taxiways.