Annual Public General Meeting. Report from the President and CEO. May 10, 2018

Transcription

1 Annual Public General Meeting Report from the President and CEO May 10, 2018

2 Air Access is a Key Component of Economic Growth 15 Non-Stop Destinations 7,100 Seats Per Day

3 Economic Impact of Canada s Airports

4 YYJ Economic Impact Impact Employment Jobs FTEs Wages ($ millions) GDP ($ millions) Output ($ millions) Direct 2,800 2,500 $170 $230 $540 Indirect 1,100 1,000 $60 $100 $200 Induced $40 $90 $140 Total 4,700 4,200 $270 $420 $880 FTEs = Full Time Employees Induced = Direct and indirect employees spending in the economy

5 Direct Employment: 2,800 Jobs

6 2017 Baseline Community Noise Survey Purpose: To compare 2017 and 1999 baseline noise levels, document aircraft noise exposure levels and overall community noise exposure levels. Methodology: 12 locations monitored for a 24 hour period between August 19-24, 2017 Locations: Repeated monitoring at 6 of 7* sites from 1999 * The original 1999 measurement location in Arbutus Ridge could not be found; therefore, an alternative location was chosen. Added an additional 5 sites in order to have a baseline moving forward

7 2017 Baseline Community Noise Survey New Noise Monitor New Location for 1999 Monitor Same Location as 1999 Monitor

8 2017 Baseline Community Noise Survey Conclusions In general, community aircraft noise exposures were found to decrease relative to the 1999 survey results. Site # Location 1999 Ldn (dba) 2017 Ldn (dba) Increase (dba) 3 Iroquois Park Glenelg Ave <50 50 N/A 6 Carmanah Terrace Rathdown Park John Road Tapping Road <55 54 N/A Ldn = Day-Night Equivalent Sound Level the average noise level over a 24-hour period dba = A-weighted decibels the relative loudness of sounds in air as perceived by the human ear

9 Canadian Airport Traffic Canada Air Passenger Traffic Enplaned/Deplaned 140 Passengers (Millions) Domestic Transborder International

10 Existing Domestic Airlines are Evolving Swoop ULCC Rouge Expansion Link Regional Delta Joint Venture MAX Aircraft Int l Expansion WestJet AirCanada Efficiency MAXAircraft &CSeries Growth International Focus

11 New Airlines are Entering the Market Ultra Low Cost Carrier (ULCC) model proposed in order to generate incremental demand Currently Operating New ManagementTeam Launching June 2018 Separate from WestJet Targeting 40% Cheaper Fares Pursuing Financing

12 Scheduled Seat Capacity - Domestic Domestic Canada Scheduled Non-Stop Seats Annual Turboprop + Regional Jet Percentages 70 49% 30% 37% 41% 48% 60 Annual Seat Capacity (millions) Widebody Narrowbody Regional Jet Turboprop Source: Official Airline Guide Schedule Data, full year data for 1998; Diio Mi Schedule Data, full year data for 2004, 2008, 2013, 2017.

13 Passengers Per Aircraft Canada: Average Passengers per Aircraft 60 Passengers Source: InterVISTAS Calculations with data from: Aviation in Canada ( ) and Table , Statistics Canada and Air Carrier Traffic at Canadian Airports, Statistics Canada

14 YVR Hub

15 Credit: Port Of Seattle SeaTac International Expansion

16 Photo Credit: i.imgur.com Montreal

17 Photo Credit: ImagoBorealis.com Whitehorse

18 Photo Credit: Alberta Drone Pilots Flair Airlines Daily Edmonton Service

19 YYJ Demand Annual Passengers 3,500,000 3,250,000 3,309,236 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250, annual passengers 1,934,842 2,678,274 2,359,049 1,000, Master plan 3% 5% Actual

20 Financial Approach Maintain strong balance sheet Keep airline operating costs in lowest quartile Diversify revenue sources Non-aviation as a percentage of total (67%) Prudent staged capital investment Focus on the customer and quality

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22 Real Average Fares Indexed to 2016 Average Fare for Major Carriers $400 $350 Average Fares $300 $250 $200 $150 $100 $50 $ p Source: Statistics Canada Average Fare data, Cat X p = preliminary Major Air Carriers include Air Canada (mainline, AC Jazz & AC rouge beginning July 2013), WestJet, and Air Transat

23 Low Cost Focus Airport Q400 B A319 Victoria $363 $734 $784 Kelowna $390 $741 $768 Regina $486 $1,026 $1,097 Saskatoon $452 $878 $910 Quebec City $584 $1,230 $1,277 Vancouver $588 $1,240 $1,301 Calgary $518 $1,150 $1,230 Toronto $1,038 $2,077 $2,220 Montreal $1,121 $2,144 $2,297

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28 Lower Hold Room Expansion

29 Lower Hold Room Expansion

30 Lower Hold Room Expansion

31 Lower Hold Room Expansion

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38 Lower Hold Room Expansion

39 Lower Hold Room Expansion

40 Lower Hold Room Expansion

41 Lower Hold Room Expansion

42 Lower Hold Room Expansion

43 Parking Expansion 2018

44 Terminal Precinct Pavements

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46 Reay Creek Detention Pond

47 Robotic Mower Moe

48 Airport Service Quality 2017 Results YYJ Ranked First Overall of 15 Canadian Airports

49 Victoria International Airport offers a very high level of service. From bottle refill stations for folks who had to replenish water after dumping out their water going through security to having local outlets such as Spinnakers instead of global chains, it is a very high-quality airport. Airlines, meeting planners and leisure tour operators notice the difference. This makes a difference to customers, which in turn builds customer loyalty. Customer loyalty along with strong macro fundamentals, such as tourism growth, both contribute to growth. Paul Nursey President and Chief Executive Officer Tourism Victoria

50 Questions