Airport industry group calls for urgent aid
An industry group is sounding the alarm over the financial state of the country's airports as ongoing travel restrictions take a crippling toll on passenger traffic levels and revenues.
The Canadian Airports Council, which represents more than 100 airports nationwide, is asking the government to implement a COVID-19 testing program at airports to reduce or eliminate quarantine restrictions and provide interest-free loans or direct operational support for airports, among other measures.
“Frankly, the numbers are appalling,” said Daniel-Robert Gooch, president of the CAC, in a statement.
“Our best month — and I use that term very loosely — was September, when traffic was down by ‘only’ 85.2 per cent.”
The federal government has indicated its willingness to provide a sector-specific aid package for the airline industry, but has not shared any details about its plans. In March, Canada waived ground rents through the end of 2020 for airports that pay rent to the federal government, but the industry is awaiting more support.
James Bogusz, president and CEO of the Regina Airport Authority, said his airport is on track to run out of cash by the end of the year, even after laying off 30 per cent of the airport’s staff earlier this year.
The pandemic has crushed revenue streams like parking and landing fees, which the airport uses to meet its operating expenses.
“I’m faced with the reality: Do I have to dramatically increase fees? Because I can’t keep cutting my costs any further,” Bogusz said. “We see Ottawa being our option to hopefully have them provide some subsidy to get us by during these really tough times.”
Sam Samaddar, the airport director at Kelowna International Airport, said he was forced to lay off 40 per cent of the airport’s staff, and that he was looking at every opportunity to cut costs. Fees from freight that is still arriving at the airport haven’t been a big help, since the airport relies significantly on passenger expenditures to generate revenue, Samaddar said.