Pedestrian tunnel lowers Ports Toronto profit

One-time costs also include jet studies, paying back-taxes

Ports Toronto, the agency that manages the island airport and port, says its 2015 profits were down 60 per cent compared with the year before, which it blamed on one-time costs, including studies to allow jets.

It reported a profit of $5.9 million last year, down from $14.9 million in 2014, on increased revenues from the airport as well as the port and outer harbour marina.

Chief financial officer Alan Paul told a small group gathered for Ports Toronto’s annual general meeting that much of the drop could be explained by three items, including the operating cost and debt servicing for the new pedestrian tunnel, a settlement with the city over payments related to back property taxes, and costs to study the Porter Airlines expansion proposal.

In 2013, Porter said it wanted to fly Bombardier’s CSeries planes from the island airport.

But such a plan would require the lifting of a jet ban and extending the runway — and sign-off from the agency, the federal government and the city of Toronto.

Studies were under way last November, when new Transport Minister Marc Garneau announced the Liberals would block any expansion plans at the island airport — and so Ports Toronto abandoned its studies.

Porter, which wants to grow beyond regional flying with its Q400 turboprops, has not said yet what it plans to do with its conditional order of CSeries jets.

The agency wrote down $2.5 million related to studies on whether to extend the runway to permit jets and $3.5 million related to taxes for prior years, both nonrecurring items.

It also took a $4.8-million charge for operating costs and debt servicing related to the tunnel, which opened last July.

CEO Geoff Wilson said he expects profits to return to 2014 levels going forward.

“This airport has proven its value. The airport will continue to invest in itself,” he said, citing $35 million planned for a runway and airfield repairs and building a ground run-up enclosure — a three-sided open top facility to reduce noise when airplane engines are tested.

One resident who lives in the area at the meeting complained about noise, saying she can’t sit outside her unit.

“I understand where you are coming from in terms of aircraft noise. But Toronto is a big noisy city,” said Wilson, who added his own house is in the flight path for planes headed to Pearson airport.

Bill Freeman, a member of Com- -munity-Air, questioned whether ground-up testing should even take place at the island airport, arguing that airlines like Porter could do it elsewhere.

Wilson responded that 50 per cent of flights at Billy Bishop Toronto City Airport do not involve Porter or Air Canada, noting they are small plane traffic.

By building the enclosure, which still needs city of Toronto approval, the airport is making a “huge commitment” to make sure the community is protected, he said.

“It costs a lot of money to do it — and we are prepared to do it.”

The current tripartite agreement that governs the airport expires in 2033, but Ports Toronto has made it clear it would like to see it extended.

Ports Toronto CEO Geoff Wilson said he expects profits to return to 2014 levels going forward