Re: MOU Signed
O-Train Airport Planning
Airport CEO talks details as expanison takes flight
By Kristin Harold, Ottawa Business Journal Staff
Wed, Apr 12, 2006 2:00 PM EST
Artist's rendering of expanded terminal. (Image courtesy Ottawa Airport Authority)
Last week, the Ottawa International Airport Authority held a press conference to announce the $95-million second phase of its expansion program. Local politicians gathered at the event to praise the airport's board of directors and its president and CEO Paul Benoit for all of their hard work, skill and dedication. After opening the new terminal three years ago, the airport has received rave reviews and Mayor Bob Chiarelli cited the airport's recent award from the airline industry as second in the world for customer satisfaction to highlight the team's important accomplishments.
The OBJ sat down with Mr. Benoit to discuss a number of issues, including the impact of the expansion, travel expectations and passport worries, as well as the airport's eventual link to the O-Train.
OTTAWA BUSINESS JOURNAL: What type of feedback are you receiving from the business community about the new terminal and the announcement about the proposed expansion?
Benoit: The other night I was at a function for Air Transat, who is announcing a new service out of Ottawa to Paris this summer, and it was mainly travel agents who were there. They were very complimentary and we've got a good track record, so that really helps.
OBJ: Will the expansion bring more business to Ottawa?
Benoit: Well, not really because people tend to think that because you have a bigger airport that you'll get bigger airplanes, but just look at Mirabel. If the market isn't there, it's not going to happen. The fact we're getting more planes and we've got record levels of passengers is a testimonial to the region and both sides of the river. How many people come to a city to visit an airport? You come to or leave the city for business and for pleasure and things of that nature. This airport used to be an impediment of growth. Before when we had the old terminal, and remember that was just three years ago, we couldn't accept more airplanes at certain times during the day so somebody would come and say "I'd like to start a flight from a to b," and we'd say "Well, geez, you can't go at such and such a time," and they'd say "Well, that's when the market is." We'd say "Well, if you want to go at one o'clock in the morning, I've got lots of time." So, we've built a facility that doesn't become an impediment and the airport doesn't become a bottleneck to constraint growth
OBJ: You're seeing record travel numbers, so what are your expectations for the summer months?
Benoit: The summer months are looking good and again we're seeing more charters than in previous years. We are very much, like most airports, capacity-restrained. Air Canada and WestJet are basically running at full capacity, so until they start bringing more airplanes online, it's going to be difficult to see sustained growth because the demand is such that there's very little opportunity to increase capacity.
OBJ: Are you worried about traffic falling off with the new U.S. passport regulations?
Benoit: I think that, not from a security aspect, but from a tourist and business aspect, it's going to be negative and an adjustment. I think the number is that less than 40 per cent of Canadians have passports. In terms of air travel, I think the impact will be substantial, but it'll be less here than it will be at border cities and border points. I'm not trying to mitigate the impact on aviation, but often a good percentage of people that fly have official travel documents.
OBJ: Are you expecting the new Conservative government to address the federal airport leasing costs?
Benoit: Transport Canada and the previous government did adjust it to the point where our annual public meetings might be dull this time because for the first time in nine years I'm not going to be able to dump on anybody because of my rent. Look, would I prefer to pay no rent? Absolutely, who wouldn't? Would you rather not pay your apartment or your mortgage? Absolutely, but do we have today a deal that I can live with? Yes. Is it a good deal? I'd say yes. In 2010, our rent was going to go to roughly $13-14 million and now it will be in the $4-5 million range, so that's a substantial reduction. If the Conservatives want to do better, then that's great, I'd love to see it. As far as I'm concerned, we're looking at other things.
OBJ: I noticed the inclusion of the O-Train track on the expansion plans. Are you hoping the city will move up the timetable to add an airport link sooner?
Benoit: We've been working very closely with the city and quite honestly, I want to compliment the city administration for how they have handled the airport portion of it. In our relations and the deal we've made with them, it's been extremely professional and extremely good. Regarding bringing it to the airport earlier, I don't believe in building for the sake of building and we've shown that in how we've developed the airport here. The demand isn't there, so don't waste your money. Today we agree with Mayor Chiarelli and his people who have said "Look, right now the airport doesn't have enough demand to justify bringing it out to the airport."
The design for the expansion has a reserved path for the O-Train for if and when the city is prepared to bring it out the airport, but I defy you or anyone – and God knows there are a lot of experts out there – to find me any airport in Canada that has less than $4 million and has a train. You can't sustain it, so if you've got a finite amount of money, why spend $10-15 million to bring something to the airport until the demand warrants it. We've got very good city transportation out here, OC Transpo is doing a great job. The advantage we'd have with the O-Train is that it'll bring a lot of people off the airport parkway and that's something we're looking forward to. When the city is ready, we've already told them that we're going to reserve the right-of-way for them.
One of the things we've done is grant the O-Train access through the airport lands basically at no charge and we're also giving them an option of putting a rail maintenance yard on the airport lands. The city is giving us in return additional sanitary capacity that we need at the airport and we've also got in the agreement that we've got with the city is to say that we're committed to the O-Train and we've reserved the corridor for you and it'll be at no charge to the city.
