halifax international airport authority presentation
DESCRIPTION
HGC Halifax Logistics Park Summit 2012TRANSCRIPT
November 2012
HALIFAX INTERNATIONAL AIRPORT AUTHORITY
Disclaimer
This presentation contains certain "forward-looking statements". These statements relate to future events or future performance and reflect management's expectations regarding the Authority’s growth, results of operations, performance, business prospects and opportunities and industry performance and trends. They reflect management's current internal projections, expectations or beliefs and are based on information currently available to management. Forward-looking statements are usually identified by words such as "may", "will", "should", "expect", "plan", “anticipate”, “believe”, “estimate”, "predict", "potential", "continue" or the negative of these terms or other comparable terminology. A number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, prospective investors should specifically consider various factors affecting the level of aviation activity including, but not limited to, terrorist attacks, war, pandemics or other health-related travel restrictions, natural disasters and economic or industry conditions affecting the demand for air travel. Actual results may differ materially from any forward-looking statement. Although management believes that the forward-looking statements contained in this presentation are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements.
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Overview of HIAA
HIAA: Non-share capital corporation that operates, maintains and develops the Halifax Stanfield International Airport (“HSIA” or the “Airport”)
The Airport: In 2011, HSIA was the 7th busiest airport in Canada by passenger volume (~3.6MM) Largest Canadian airport east of Montreal and primary hub for Atlantic Canada Handles over 50% of passenger traffic and cargo tonnage in the Maritime region Offers 24-hour operations without noise restrictions Recent runway extension 40,000 sq. ft. multi-tenant cargo facility with 7,000 sq. ft. of climate-controlled space
Awards: Over the past 9 years, HIAA has received 28 international awards for its outstanding customer service
Ground Lease: 60-year ground lease with the Government of Canada (effective February 1, 2000), which is in the process of being extended for an additional 20 years
Financial: Ability to set aeronautical charges and airport improvement fees (“AIF”)
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Overview of HIAA
Passenger Volume ~3.6 million (Dec 31, 2011)
Total Aircraft Movements ~87,000 (Dec 31, 2011)
Passenger Air Carriers 18Cargo Air Carriers 12Terminal Building 67,862 square metres
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Overview of HIAA
Air Service GrowthDeliver passenger and
air cargo growth.
Non-Aeronautical Revenue Growth
Accelerate revenue diversificationthrough commercial development
and concession growth.
Culture of Superior ServiceStrengthen our airportcommunity culture of
superior service.
Facilities & Service Improvements
Improve the infrastructure, services and processesto enhance the airport
experience.
Safety, Security &Environmental ExcellenceEmphasize our leadership role
in safety, security and environmental excellence.
Professional ExcellenceOptimize organizational
success through personal development, recognition, pride and best practices.
Great people creating the best airport community
in the world
6 Strategic Priorities
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Overview of HIAA
Located in the Halifax Regional Municipality Situated on 940 hectares of land, approximately 40 km north of Halifax 1 terminal 2 main runways and 10 taxiways Capacity for 225,000 takeoffs and landings annually US Customs preclearance facility Groundside and support facilities (including public parking, rental car agencies and air cargo facilities) 146 full time, 27 seasonal, and 4 term employees, as of December 31, 2011 In 2011, HIAA employees ratified a new collective agreement with its unionized staff (expires January 31,
2015) 24/7 operations with no noise restrictions
Airport Facilities
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OperationsCatchment Area
Largest Canadian airport east of Montreal and primary hub for Atlantic Canada
Handles over 52% of passenger traffic in Atlantic Canada
Catchment area of 1.5 million includes Nova Scotia, PEI and most of New Brunswick
Serves as connection point for smaller airports in the region
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OperationsPassenger Activity (2011)
7th busiest airport in Canada by passenger volume - Approximately 3.6 million passengers and 87,000 aircraft movements
Primarily an origin and destination airport (approximately 72% of total traffic)
Passenger traffic has increased 2.5% in 2011 versus 2010
3 yr CAGR = 2.6%
2011
2007 2008 2009 2010 20110
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
International
Transborder
Domestic
Tota
l Pas
seng
ers
(000
s)
9.1%
11.4%
79.5%
3,469 3,5793,417 3,508 3,594
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Operations
Scheduled and charter passenger destinations: - 15 domestic - 13 transborder- 15 international
Top O&D Passenger Markets (2011)(approximate # of passengers, 000’s)
Domestic Toronto 548Ottawa 339St. John’s 311Montreal 233Calgary 144
TransborderOrlando/Tampa 134New York 67Miami 54Boston 42Las Vegas 26
InternationalLondon, UK 48Cancun, Mexico 48Punta Cana, DR 44Varadero, Cuba 29Frankfurt, Germany 23
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OperationsPassenger Services – Air Carriers
Air Carrier Percentage
Air Canada 37.6%
WestJet 17.2%
Air Canada Jazz 10.5%
Porter 8.1%
United (1) 6.3%
US Airways 3.6%
Air Georgian 2.6%
Delta 1.8%
American Airlines 1.5%
Air Transat 1.4%
CanJet 1.2%
Others 8.2%
NOTE: The table outlines the top passenger air carriers for 2011 (by Landing/Terminal/Passenger Security Fees)
(1) Includes Continental Airlines
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Airport Improvement Plan (AIP)Overview of Capital Plan
Since acquiring the Airport in 2000, HIAA has been engaged in a multi-year Airport Improvement Plan
HIAA invested approximately $400 million in capital by the end of 2011
Major Accomplishments (2000 – 2012)
Updated and Expanded Air Terminal Building Expansion of international and domestic arrival areas and Airport Square US Preclearance Common Use Terminal Equipment IT Infrastructure Plan to upgrade and improve the corporate and operational systems Commencement of passenger processing and baggage system upgrades for both
domestic/international and transborder check-in halls
Improved Maintenance and Service Facilities Combined Services Complex (replaced aging fire hall and maintenance facility) Infrastructure development for Multi Tenant Cargo Facility Commencement of a phased development of terminal access roads
Improved Ground Transportation Groundside redevelopment program including a new 2,300 space parkade Roads and services enhancements
Airside Maintenance and Improvement Airfield Restoration Program Runway Extension in progress Snow Removal Equipment Fleet Replacement in progress Emergency Response Vehicle Replacement program in progress
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Cargo
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Cargo
13
Cargo
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25,000,00026,000,00027,000,00028,000,00029,000,00030,000,000
2009 2010 2011
Cargo Volumes In/Out Halifax (kgs.)
Cargo - Nova Scotia Live Lobster Exports Worldwide – 2007-2011 (all modes)
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2011 2010 2009 2008 2007 2011 2010 2009 2008 2007
United States $200,619,176 $185,048,390 $218,472,486 $204,744,290 $223,499,136 16,990,023 15,492,739 15,638,527 14,470,393 13,359,327
Belgium $20,539,079 $17,996,272 $17,791,648 $16,643,117 $20,248,694 1,191,847 1,126,017 1,110,924 965,272 1,077,572
China $19,435,498 $6,796,382 $2,740,295 $1,366,362 $789,140 1,117,337 398,098 147,127 81,563 42,200
South Korea $12,693,878 $10,769,954 $11,865,518 $11,220,313 $12,726,537 729,300 595,499 592,345 648,759 660,504
J apan $11,991,215 $9,707,155 $7,376,460 $9,785,462 $14,620,989 735,779 584,743 377,251 524,972 807,452
Hong Kong $9,868,860 $9,717,528 $6,629,420 $5,187,589 $5,208,985 549,565 545,140 418,562 281,078 281,683
Netherlands $5,992,304 $6,772,336 $6,557,784 $7,021,811 $8,076,341 436,918 507,231 456,166 456,849 435,834
United Kingdom $4,367,502 $3,625,756 $5,188,379 $4,492,009 $9,163,078 301,136 257,321 352,750 248,513 475,849
France $3,724,733 $4,667,181 $4,955,299 $1,174,600 $1,741,244 212,232 247,377 242,488 55,491 87,208
Germany $3,234,166 $1,639,170 $4,661,097 $9,363,342 $5,876,287 175,996 99,128 259,896 558,262 322,303
Italy $1,778,183 $2,169,711 $3,729,659 $4,631,159 $5,010,629 110,156 124,387 207,936 264,438 270,830
Taiwan $1,522,246 $649,395 $640,898 $680,614 $592,585 83,869 35,301 32,582 36,994 30,570
Sweden $1,379,643 $1,200,749 $1,597,753 $1,488,968 $2,451,970 88,053 74,390 89,174 85,225 131,862
United Arab Emirates$1,296,671 $1,326,895 $2,306,162 $1,208,335 $1,627,201 62,282 72,082 113,206 70,016 82,252
Thailand $1,279,305 $919,705 $883,790 $490,904 $554,598 73,137 54,486 45,723 29,111 28,280
COUNTRY Canadian Dollars Quantity kgs.
Approximately 17% air by value
Cargo - Historical Factors that contribute to Route Viability
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Cargo is trucked to the US to carriers destined for Europe at a volume of more than 80,000 kg per week.
In excess of 7,652 tonnes of live lobster is trucked to Logan Airport.
Another 902+ tonnes went to New York.
ABX Air/TNT Airways (up to 2X per week) and Asiana Airlines (1X per week) operated to Liege and Brussels/Seoul respectively.
FEDEX has grown and is 2nd only to Air Canada for volume handled at Halifax Stanfield.
Purolator and UPS are also increasing volumes by maximizing interline opportunities over Toronto with international carriers.
Cargojet, in addition to their domestic network have added weekly B767F Brussels and Cologne service.
Cargo – Air Gateway
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Cargo – Lobster Exports
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Source: NS Fisheries and Agriculture/Statistics Canada 2010
Cargo – Gateway Facilities
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Question & Answers