Airports and the Canadian government can work together to supercharge the benefits of air connectivity

It’s fair to say that most people have an intuitive understanding of the importance that Canada’s airports play in driving the country’s economy, even if they don’t have the hard statistics at hand to back up their assertions. If you were to ask anyone on the street, you’d probably get a nebulous answer that mentions people flying for business, holidays, medical, and family reasons; tourism spending; and maybe even job creation. But what, exactly, do Canada’s airports do for the country’s economy? Neil Pakey is the president and CEO of Nieuport Aviation. Photograph courtesy of Neil Pakey Pre-pandemic research from the Canadian Airports Council indicates that Canada’s airports contribute $19-billion in GDP and support a whopping 355,000 jobs while contributing $6.9-billion in taxes to federal, provincial, and municipal governments, all the while maintaining a stellar safety record. In the case of Billy Bishop Toronto City Airport, we contribute $2.1-billion in GDP and support some 4,450 jobs. So, that’s what airports do, but a far more interesting thought to ponder is what more they could do if nurtured in the right way. I believe there is vast unrealized potential for Canada’s airports to amplify their already significant contribution to the country if industry and government can work together to help inject more private capital into the system. Billy Bishop Toronto City Airport is unique among Canada’s top 10 airports by passenger volume: PortsToronto—a self-financing, federal government business enterprise—owns and operates the airport, and Nieuport Aviation, owned by an institutional investor, the International Infrastructure Fund, owns and operates the passenger terminal. Under this public-private partnership (P3) model, I believe the airport has thrived, receiving accolades from industry bodies for its focus on customer service and having been recognized with the Most Outstanding Business Recovery award post-pandemic by the Ontario Chamber of Commerce. Billy Bishop Toronto City Airport has emerged as an industry leader in environmental sustainability, running on 100 per cent renewable energy, and featuring a 100 per cent electric ferry and a forthcoming fleet of electric shuttle buses. Further, it has developed a comprehensive community investment program that helps local community and charity organizations deliver a wide variety of much-needed programming. Billy Bishop Toronto City Airport has created robust art and music programs in-terminal, embracing diversity and cultivating a true sense of place. The airport has also received consistently high polling results from our community by virtue of the quick, convenient, comfortable, and safe service we offer to more than 20 destinations in the United States and Canada. The results we’ve seen here in downtown Toronto have been replicated in many parts of the globe. The International Civil Aviation Organization compiled case studies of P3 airport success stories, noting that the P3 model can “increase the quality, the efficiency and the competitiveness” of the services offered; “supplement limited public sector capacities and raise additional finance in an environment of budgetary restrictions”; and “speed up infrastructure development.” The results seen at the Billy Bishop Toronto City Airport have been replicated in many parts of the globe, writes Neil Pakey. Photograph courtesy of Nieuport Aviation The question becomes, then: how can Canada’s airports and the federal government work together to attract private-sector investors—distinct from full privatization—and thereby supercharge our competitiveness? The answer, to my mind, is threefold: 1. The airport is never a traveller’s final destination. Prioritizing transportation projects that enhance airports’ connectivity to intermodal hubs represents a valuable strategic investment; it improves the passenger experience, and increases the attractiveness of airport assets to private-sector investors. 2. Whether through investments or pilot projects, government agencies such as the Canadian Air Transport Security Authority and Canada Border Services Agency must be enabled to implement technologies to streamline the passenger experience as much as possible while still prioritizing safety and security. Two examples would be biometrics and self service. 3. Red tape must be removed and a permissive environment should be established to allow for more creative financing options for airports to support their capital and operations needs while catching up to many other countries where competitiveness is concerned. Closely related, government must understand that airports plan on 20-, 30-, 40-, and even 60-year timelines to meet projected demand. Given this, the proper policy, regulatory, and governance frameworks need to be in place to facilitate and foster growth and competitiveness in the industry. The importance of Canada’s airports to the economic, social, and cultural fabric of our nation are clear. Moreover, continued growth in passenger traffic since the pandemic suggests that airports’ significant contributions will only increase in the years to come. Industry and government have a golden opportunity to work more closely together to further amplify these benefits by attracting private-sector investment and giving industry the lift it needs to set a course for a bright future. Neil Pakey is the president and CEO of Nieuport Aviation, owner and operator of the passenger terminal at Billy Bishop Toronto City Airport. He has served as CEO of the Shannon Airport Group in Ireland, CEO of Peel Airports Group in the U.K., managing director of Liverpool John Lennon Airport, and the senior VP Network Marketing at the Vantage Airports Group. Pakey was a national expert to the European Commission, working on air transport policy, and currently chairs the U.K.’s Regional and Business Airports Group. The Hill Times

Airports and the Canadian government can work together to supercharge the benefits of air connectivity

Prioritizing connecting transportation projects, investing in tech that streamlines the passenger experience, and cutting red tape would give industry the lift it needs to set a course for a bright future.

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Airports and the Canadian government can work together to supercharge the benefits of air connectivity

Prioritizing connecting transportation projects, investing in tech that streamlines the passenger experience, and cutting red tape would give industry the lift it needs to set a course for a bright future.

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