Airport Operations
-Reviewed passenger counts to date for 2022.
-YTD 1,096,495 passengers to date.
- Projecting recovery in 2022 of 86% compared to pre-Covid.
-Forecasting 1,750,000 in 2022.
-Almost all services have reopened now. Security screening is operating at full capacity. Ambassador programs are now fully operational.
-Food and Beverage is still struggling with staffing. Groundside Whitespot remains closed.
-Health Protocols: masks are mandatory beyond the screening point and on aircraft. Vaccine mandate for passengers arriving internationally remains in place.
-All mandatory testing requirements for the travelling public have been paused.
-Maintained ACI-NA Health Accreditation.
-Reminded the Committee of the work on adopting the requirements for the airport in the 2040 Officlal Community Plan.
-Level 2 of Airport Carbon Accreditation is now achieved with the focus on the reduction of the airports carbon footprint.
-The airport has declared their carbon plan with carbon neutrality by 2030 and net zero by 2040.
-Reviewed YLW's future vision of frictionless travel including self service baggage drops, virtual queuing, self boarding and verifying credentials stored in your digital wallet.
-Outlined events still to come related to YLW's 75th Anniversary - three more events including the campus golf tournament and the winter travel show.
Staff responded to questions from the Committee.
-UBCo offer their support towards carbon neutrality initiatives.
-Opportunity to partner with private sector at the airport on transportation initiatives for employees was discussed.
-An update on the rail trail was provided. Discussion ensued regarding the opportunities connecting the region to the airport.
-Frictionless strategy will be completed by the end of the year with timelines available.
Development Update
-Design of the development of the Air Terminal Building (ATB) was reviewed. The enabling works are underway.
-A video was displayed showing what the Air Terminal Building will look like once it is expanded.
-Reviewed the grease interceptor for kitchens and the plan to move it to the outside of the terminal building.
-Phases of the enabling works were reviewed and providing drawings were provided showing the improvements planned.
-Airport Biosecurity Infrastructure was reviewed including baggage belts.
-The area for unscreened arrivals on Gate 4 are now complete.
-The terminal building roof replacement is underway with 50% federal funding via the ACIP Program.
-The self service bag drop design is in consultation and design stages.
-GHG emission reductions via roof top units, boilers and hot water tanks are underway.
-Runway End Safety Area - 150m structurally graded area to meet the specifications of the design aircraft with a 42m runway extensions with construction scheduled to end of October 2022. Received 50% federal funding via the ACIP Program.
-Airfield lighting and supporting infrastructure was reviewed. There are requests from airlines to convert the existing medium intensity approach lighting systems to high intensity. Received 50% federal funding via the ACIP Program.
-Operations Stands 5 is now complete for parking aircraft.
-Apron 3 rehabilitation being done due to pavement deterioration. Taxiway C rehabilitation also being completed due to pavement deterioration.
-Combine Operations building design is being validated in 2022 with 50% federal funding via the ACIP Program.
-The interconnectivity of the YLW Commercial Development Plan was highlighted.
-The YLW Child Care Facility was reviewed with $3 million from the Ministry of Education grant received for an 86 space daycare at YLW. YLW will be one of 3 airports in North America that has a daycare facility. The $800,000 shortfall in budget will be covered by the Ministry. The return on investment will be unquantifiable and its positive impact for employees that work at the airport and their children.
-The development of two destination retail and commercial lots both within the CD12 zone are currently being negotiated.
-Staff responded to questions from the Committee.
Air Service Development Update
-Passenger Statistic Comparision over last three years was reviewed. YTD is still in a decrease yest the numbers into Kelowna have been consistent over time.
-Believe people wanted the ability to come and go as they wanted if their was a bad fire season.
-September 2022 seat capacity - largest coming from YVR with 70,000+ in Vancouver and 69,000 from Calgary.
-December 2022 - total seat number increases from Vancouver and Calgary as well as other destinations.
-In a 4 hour connectivity time, meaning leaving Kelowna and you will connect in another airport to reach your final destination, we now have 42 domestic, 50 transborder, 24 international and 116 destinations.
-Air carrier flight schedules were reviewed. Seat capacity is at 108% recovery pre Covid.
-Federal grant funding was reviewed with a total of $21.6M being provided.
-Responded to questions from the Committee.
The meeting recessed at 10:32 a.m.
The meeting reconvened at 10:44 a.m.
Financial Update
-Financial forecasting - three scenarios were reviewed with emphasis on the medium growth or policy restricted forecast. Anticipating being cashflow positive with ending reserve being at $27M.
-Operating expenditures of $13.9M were reviewed
-A surplus of just over $3.5M is forecasted.
-Debt repayment was reviewed.
-Fees and charges were reviewed. YLW tries to have some of the lowest fees. The Aeronautical Revenues per landed Air Carrier Seat were reviewed with YLW being amongst the lowest for Tier 1 and Tier 2 airports across the country.
-Airport Improvement Fee (AIF) per passenger was reviewed.
-The review shows alignment with the YLW low cost business model. In 2023 there will be no AIF landing or terminal fees proposed. An increase to the parking fee is proposed with an inflationary base CPI increase each year moving forward.
Responded to questions from the Committee.
-Reviewed the status of other airports. There are no airports that are known currently that run the risk of being in default/failure, although debt loads have obviously increased significantly in recovering from Covid impacts on air flight.
Moved By Chad Elison /Leslie Cormak Seconded Carried
That the Airport Advisory receive for info and that the