Future of Niagara’s airports up in the air
Region mulls viability of uploading facilities to boost growth
Any decision on the future ownership of Niagara’s airports will be turbulent based on the views of regional councillors, who will make the final call.
Regional staff is in the process of preparing a report researching the costs and consequences of uploading Niagara District Airport and Niagara Central Dorothy Rungeling Airport, which are run by their surrounding municipalities.
Niagara District Airport, owned jointly by Niagara-on-theLake, St. Catharines and Niagara Falls, needs investment if it is to reach its potential, said Robin Garrett, chair of the Niagara District Airport commission.
The capital budget is expected to average $1.6 million over the next three years. Projected out to 2037, it will require $20.7 million in capital expenditures.
The bone of contention is the communities that own the airports are subsidizing them. St. Catharines is paying $245,000 this year for the airport while Niagara Falls is coughing up $162,000 and Niagara-on-the-Lake $32,000. The airport will generate
$334,000 in revenue this year or about 43 per cent of total revenue.
Chris Nowrouzi, chief executive officer of FLYGTA, has been running daily service to Toronto’s Billy Bishop Airport. That sustained success is touted by airport supporters as the wave of the future if the proper investments are made.
A flight out of Niagara District takes 12 minutes to reach Toronto on one of FLYGTA’s planes that seats eight passengers. The same trip by car on the QEW can take hours.
“It’s been a challenging road certainly,” Nowrouzi said. “We strive for commercial viability of building different types of air services in Niagara region. It’s challenging with the lack of impactful public funding to the airport and support for the evolution of the location into a flowing transportation facility. FLYGTA continues to be the only one at risk and under pressure with the capability to stimulate the infrastructure for air service possibilities. It’s a fragile opportunity.”
Nowrouzi said the airline started with one round-trip flight from each destination. FLYGTA is now running 12 flights daily and looking at using bigger planes.
“True that Niagara is only one of our destinations, but we have more flights here than any other airport,” Nowrouzi said. “Our project is still in its infancy state and transporting only several hundred passengers every month, but it’s growing, and we expect to add and improve as times allows.”
Lincoln regional Coun. Rob Foster said he can’t see a business case for uploading either airport.
“We are $350 million in debt, and will spend $1.3 billion on other transportation in the coming decades,” he said. “Zero airports in the hands of the Region is the way to go.”
Fort Erie Mayor Wayne Redekop said a takeover project is “pure politics.” With bigger and busier airports in Hamilton and Buffalo, he can’t see a market for air services here.
Redekop said the Region has more pressing needs. A recent report to council said Niagara would have to spend billions on infrastructure over the next 14 years.
“We can’t spend money on everything and still say we are an affordable Niagara,” Redekop said.
Niagara Falls Mayor Jim Diodati brushed off the naysayers.
He believes Niagara District Airport has a huge upside, but the individual municipalities don’t have the resources to take the facility to the next level.
“As a region we can do this,” he said.
“Make no mistake, we will sell it,” he said. “We could sell this airport today if we have to.”
In private hands, the airport lands could very well end up in the hands of developers and be subdivided.
Diodati said the airports aren’t eligible for federal funding grants — those are only available to facilities designated as regional airports.
An upload of the service would remedy that.
“Yes, the airports currently do not make money, but neither do arenas, soccer pitches, ball diamonds, buses,” he said. “We are not in the business of making money. We are in the business of creating services and economic development. Pearson Airport in 2029 will be at capacity. Buttonville Airport is closing in three years. Porter Airlines is in discussions about moving, potentially here to Niagara.
“The key here is economic development. As the QEW gets busier, you will have a two-and-ahalf hour option or a 12-minute option,” Diodati said.
At last week’s regional council meeting, Niagara Falls Coun. Bob Gale said a takeover of the central Niagara airport was added into the equation solely to garner votes for the project from the south end of Niagara.
He also tried to stoke fears of an environmental catastrophe hiding in the soil.
The issue came up in 2016, and regional council would make any upload contingent on environmental studies of the airport lands, which might be contaminated.
Acting regional chief administrative officer Ron Tripp said the environmental studies are complete.
“The results are not in any way surprising for a transportation facility that has been operating for decades,” he said.
Rino Mostacci, the Region’s commissioner of planning, said the soil sample testing doesn’t meet the threshold that would trigger additional testing and eventual remediation.
West Lincoln Coun. Albert Witteveen wonders why the airports haven’t attracted private investment, especially from Toronto, if the future is as bright as predicted.
“The only benefit is to the people who are running it,” he said. “If the opportunity was there, someone would have taken it.”
Todd Harrison, the Region’s treasurer and commissioner of enterprise and resource management services, said the reason the airports haven’t been more successful is a lack of resources. The smaller, lower-tier governments haven’t had the money to invest in improvements.
Welland Mayor Frank Campion said both airport facilities are valuable assets that require investment.
“If we get into airport business, we should do it as one system,” he said. “There is a need to protect these assets. If we lose an airport, we won’t be able to assemble the land for a new one. We have to be smart and think 25 years down the road.”
Wainfleet Mayor Kevin Gibson said he wanted his town to get some return for its investment in Niagara Central Airport over the years.
He said Wainfleet has been subsidizing the Pelham-based airport for 40 years — along with Welland, Port Colborne and Pelham. This year’s bill for Wainfleet was for $12,000.
“That’s a lot for Wainfleet,” he said. “We don’t want to give it away for nothing. It would be nice to recover our money. How will the sale price be set?”
Harrison said there would be a change of ownership if the airports were uploaded, but “historical sunk costs are not something that would be reimbursed.”
St. Catharines Coun. Tim Rigby said transportation is part of the Region’s responsibilities and airports need to be part of the long-range plan.
He said it isn’t fair that communities — three in the north, and four in the south — are underwriting the costs of the facilities.