City, County agree to joint airport governance model
City to continue to seek capital grants available for airport
Two heads are better than one. Which is why the City of Lethbridge and Lethbridge County have agreed to pursue a new joint governance model for the Countyowned Lethbridge Airport.
On Monday, Lethbridge City Council approved a resolution to move forward in principle to pursue the implementation of an airport commission governance model. City administration was also directed to continue seeking any capital grants available for the Lethbridge Airport.
The recommendation comes from the 2016 Airport Financial Assessment and Governance Update, a report prepared by an independent consultant. Lethbridge County Council approved a similar resolution at their regular meeting on May 18.
“We embrace the opportunity to pursue a joint governance model with the City,” said Lethbridge County Reeve Lorne Hickey. “We appreciate the feedback we received, and look forward to making further improvements to the airport to best serve its customers and to ensure it remains a strong economic asset to the area.”
Last year, the Airport Committees of Lethbridge County and the City of Lethbridge commissioned MMM Group to update the 2011 Financial Assessment and Governance Strategy for the Lethbridge Airport.
The study is intended to help the Airport Committee gain a better understanding of current and future airport activity and assist with strategic decisions.
Airport stakeholders were interviewed to discuss their opinions relating to airport development, passenger air service and airport governance. Two web-based surveys were also developed to gather input from the community — the first targeted the general public and the second focused on local businesses.
There were 327 respondents to the survey targeting local businesses, of which 75 per cent said they travel by air at least once to 12 times per year. The majority of those flights typically originate in Calgary. Their responses indicated that adding more airlines and providing more direct destinations would better serve the business community.
Of the 1,480 Lethbridge residents who responded to the public survey, 80 per cent have booked a flight originating in or departing from Lethbridge Airport. Those who do not use the Lethbridge Airport said the high costs and difficulty connecting in Calgary and Edmonton were factors.
“The community and stakeholder input was very important to this process,” said Mayor Chris Spearman. “The airport is a vital economic asset for Lethbridge, and we’re glad to pursue this new joint governance model that would provide the City with an ongoing stake in the future operation of the airport.”
A high-level review of airport facilities was undertaken to update the conditions, deficiencies and future requirements for critical infrastructure.
In the capital needs summary, the total capital expenditure required over a 20-year planning period to maintain the current level of operations, as well as four augmented growth scenarios, was identified. These projected longterm capital investments range from $27.3 million to $32.4 million.
The report also recommended the preparation of an airport master plan to guide development and infrastructure for a 20-year planning period. The County recently was awarded a provincial grant to fund this Airport Master Plan project.
An airport comparison was conducted between four airports (Nanaimo, B.C.; Kamloops, B.C.; Fredericton, N.B.; and London, Ont.) and the Lethbridge Airport based on criteria which included community population, passenger traffic, governance model, airport facilities and financial performance.
Through this comparison it was learned that attracting new passenger services will require long-term investment, that Lethbridge Airport’s competitive position could be improved by investing in Airport terminal building expansion and upgrades, and that airports have significant economic value beyond facilitating passenger services.
A market study is recommended to investigate the demand for air travel in Lethbridge to be used in discussions with potential carriers regarding future flights from Lethbridge.