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Ottawa International Airport maintains solid position

Release date: 
11 March 2002 :00am

Ottawa – Ottawa International Airport Authority (OIAA) today released its financial results for the year 2001. President and CEO Paul Benoit said last year was “our most challenging year yet” for Ottawa Airport.

“Overall, Ottawa Airport Authority maintained its solid financial position in 2001, said Mr. Benoit. “Immediately following the events of September 11, we successfully implemented cost-constraint measures which positively impacted our bottom line and helped to ensure our corporation’s continued financial stability.”

Financial review
For the year ended December 31, 2001, revenues exceeded expenses by $18.2 million as compared to $21.5 million for the year ended December 31, 2000. Notwithstanding the impacts of September 11 on the aviation industry in general and the economic slowdown in the second half of the year, ground rent payable to the Crown had the most significant impact on the operating results of the Ottawa International Airport Authority. Ground rent increased by $2.7 million (44%) from 2000.

Revenues
In 2001, the Authority generated $53.0 million in total revenues, compared to $53.1 million in 2000, despite the global impacts on the aviation industry in the aftermath of September 11.

Aeronautical revenues represent the largest source of revenues for the Authority. At $20.4 million in 2001, total aeronautical revenues, which include terminal fees, loading bridge charges, and landing fees charged to air carriers, remained virtually unchanged from $20.6 million in 2000.

Airport improvement fees decreased from $14.9 million in 2000 to $14.1 million in 2001 in part due to a decrease in passenger volumes after September 11.

Expenses
Total expenses increased by $3.1 million from $31.7 million in 2000 to $34.8 million in 2001 with ground rent accounting for $2.7 million (87%) of the increase.

Capital resources
In accordance with the Authority’s mandate, all earnings will be retained and reinvested in airport operations and development, including investment in capital expenditures to meet ongoing operating requirements.

During 2001, the Authority invested $56.8 million in capital expenditures, including $53.5 million related to its Airport Expansion Program (AEP). In order to meet built-up and growing demand for capacity and facilities, in October 2000 the Board of Directors of the Authority
announced a decision to proceed with a major expansion of the Ottawa Airport. The expansion includes the construction of a new passenger terminal building alongside the airport’s current 40-year-old building. The project also includes a parking structure and extensive airside and groundside infrastructure to support the new terminal and parking structure.


Passenger traffic
“The airport’s passenger-traffic growth had, by June 2001, exceeded 10 percent compared to the first six months of 2000,” said Mr. Benoit. “Following September 11th, and the subsequent bankruptcy of Canada 3000, passenger-traffic patterns at the airport changed noticeably.”

While domestic passenger traffic increased 2.5% to 2,625,630 (2000: 2,562,282), the Airport’s transborder sector (Canada-U.S.) declined to 618,694 (2000: 719,200). International traffic also dropped, with a total of 146,971 (2000: 152,863).

Overall passenger traffic for 2001 decreased by 1.25% compared to 2000 traffic.

Since the Ottawa Airport Authority took over management and operations of the airport, passenger traffic has grown by 19%. The 2000 record growth rate (6.94%) amounted to more than double that of 1999. For the first time in the Airport’s history, passengers enjoyed a choice of 28 direct destinations in 2001.

OMCIAA operates Ottawa International Airport without tax dollars under a 60-year lease transfer agreement with Transport Canada. The Authority’s mandate is to manage, operate and develop Airport facilities and lands in support of the economic growth of the National Capital Region. Its 40-year old terminal building was last expanded in 1987. Since that time, passenger traffic has increased over 40%.

The Ottawa International Airport Authority will hold its Annual General Meeting on May 1, 2002, at 4:00 PM at the Holiday Inn, Plaza La Chaudière in Gatineau.


For additional information, please contact:
Laurent Benoit, (613) 248-2050
Director of Communications and Public Affairs