Region’s airport on the way up
Yet another airline has given the Region of Waterloo International Airport the thumbs-down. But don’t worry. Our local airport is actually on the way up, and will soon become a major contributor to economic growth in Waterloo Region. Do I sound deluded? Hear me out.
It’s true that the number of passengers flying in and out of the airport fell by 17 per cent in just one year.
After American Airlines stopped its direct flights to and from Chicago a year ago, there were 127,824 passengers using the airport in 2016, down from 153,963 in 2015.
The only regular service for passengers now is WestJet to Calgary year-round, plus winter flights to the Dominican Republic by Sunwing Airlines.
It sounds sad. But times are changing, and there are two big developments that will make us glad we hung in there.
First, Toronto’s Pearson International Airport is bursting at the seams. At peak times, it already can’t fit in one more takeoff or landing.
And yet despite this packed schedule, there is more demand coming. The number of Torontoarea passengers is expected to rise from 41 million in 2015 to 65 million or more by 2035.
Where are they going to go? Well, London’s Heathrow has its Gatwick. New York City has Newark. And Toronto has Waterloo Region International.
The big cities need these nearby airports for the extra capacity they provide.
So why is Waterloo Region still relatively empty, you ask?
It’s because there are still two airlines that rule the skies in Canada; WestJet and Air Canada. Unlike the United States and Europe, Canada doesn’t have airlines that offer super-cheap flights. (That’s why so many of us drive to airports in Buffalo, Niagara Falls and even Detroit for cheap travel.)
“Canada needs more competition in the airline industry,” said Waterloo Region chair Ken Seiling. “Until low-cost airlines are able to establish themselves, we won’t have the kind of competition to increase choices in flying.”
Right now, it’s hard for those low-cost airlines to succeed in Canada. The competition from the Big Two is formidable. Startup costs are high and Canadian investors are conservative.
But that environment will soon change. The federal government is dramatically loosening the rules restricting foreign investment in Canadian airlines. Low-cost carriers will have access to investors in the United States and Europe.
This is “an opportunity for the airport” in Waterloo Region, said Rod Regier, the region’s commissioner for planning and development.
Several low-cost carriers are already emerging, and our airport is a natural fit for them. It is inexpensive to operate, so the new airlines will be attracted here instead of pricey Pearson, said Regier. And also, Waterloo Region, Guelph and Wellington County represent an affluent and significant market that’s the most underserved in the country, said Regier and airport manager Chris Wood.
Our airport has already helped us attract and keep industries like Linamar and Toyota, which need just-in-time cargo flights. Soon, it will be full of passenger planes too. Just wait and see.