2014 Annual Report PDF - Fort McMurray International Airport

Transcription

DISCOVER
FORT McMURRAY AIRPORT AUTHORITY ANNUAL REPORT 2014
DISCOVER WHAT’S INSIDE
TABLE OF CONTENTS
Message from the Board Chair and President & CEO....................................5
Passengers................................................................................................................11
Business.....................................................................................................................21
People........................................................................................................................27
Community...............................................................................................................31
Governance and Accountability & Board of Directors....................................38
Management Discussion & Analysis....................................................................41
Financial Statements..............................................................................................49
Mission
We are responsible stewards of our airports, achieving
superior performance in the conduct of safe, secure, effective
and efficient operations. Our airport businesses contribute
significantly to the economy of the Region, Alberta and Canada.
Corporate Values
We are Canada’s
Premier Regional
Airport
»» Excellence in Safety, Security and
Environment Performance
»» Commercially Focused, Fiscally Responsible
Business Sustainability
»» Exemplary Customer Experience
»» Leadership
»» Teamwork
Key Success Drivers
1. To optimize the customer experience by leading a high
performing airport team that provides superior facilities
and services.
2. To be financially sustainable and environmentally
responsible.
3. To foster effective stakeholder relations.
YMM | ANNUAL REPORT 2014
MESSAGE FROM THE BOARD
Joint Message from the Board Chair, Sheldon Schroeder;
President and CEO, Scott Clements
2014: A year to discover
Discover more space, more comfort and more destinations at the new
Fort McMurray International Airport (YMM). Opened on June 9, 2014,
the new YMM redefines and elevates the airport experience for passengers.
YMM in the new era
The new YMM features a 15,000-square-metre (161,458-square-foot) air terminal
that can serve up to 1.5 million passengers. Now passengers have more lounge
space to relax in, and more dining and shopping choices to enjoy.
The new terminal embodies YMM’s approach to serving the Wood Buffalo region.
YMM has more businesses and employees trained to provide service that puts the
customer front and centre. YMM has more space for larger aircraft, encouraging
airlines to establish new flights to more destinations. The terminal’s striking,
one-of-a-kind design and look reflects the Wood Buffalo region’s vast boreal
forests and dynamic aura borealis that fill its nighttime skies. Also, its built-in
energy-saving features underscore YMM’s commitment to sustainable practices
financially, logistically and environmentally.
As for the original terminal on the north side of the airfield, YMM renovated and
reopened the facility to exclusively serve workforce charters, corporate fliers and
air cargo.
Record numbers
In 2014, YMM saw its total passenger count ascend to a new record: 1.3 million,
a 9.5 per cent increase from 2013. YMM broke into the Top 15 busiest airports in
Canada and continued to lead Canadian airports in annual passenger growth.
These large passenger numbers reinforce how necessary it was to expand services
with a new terminal facility.
Forging new air services
Success is often driven by collaboration. YMM seeks out strategic relationships
with airlines, business and municipal organizations and other stakeholders to
establish new air services.
These relationships with Air Canada and WestJet are strong, with Air Canada
increasing the number of non-stop flights to established domestic destinations,
including Edmonton, Calgary, Vancouver and Toronto. WestJet has added a
second non-stop flight to Vancouver and a new non-stop to Kelowna. Sunwing
has established a seasonal non-stop flight to Cancun.
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MESSAGE | FROM THE BOARD CHAIR AND PRESIDENT & CEO
The Kelowna non-stop service was secured through collaboration with WestJet,
Kelowna International Airport and the Greater Westside Board of Trade for
the Thompson-Okanagan region in British Columbia. The collaborative work
continues between all parties to advance economic and tourism partnership
between Wood Buffalo and central B.C.
Business relationships with local businesses and major companies are critical
to YMM’s success. The larger terminal enables YMM to expand its concessions
program to be one of the best in class. In fact, our concession program has won a
prestigious award from Airports Council North America as the number one airport
of our size in North America. In adding to bragging rights, this gives passengers
more choice in shopping, dining and services, while increasing revenue for the
airport. New revenue streams provide YMM opportunities to invest in further
improvements beyond the new terminal —
such as expanded air cargo services —
without increasing airport fees.
Meeting new challenges
SHARING
with the
community
With uncertain economic conditions, YMM will closely monitor fiscal performance
and adjust its short- and medium-term planning accordingly. Presently,
conservative forecasts show continued moderate passenger growth over the next
four years. As many experts have acknowledged, we believe that the energy sector
will continue to invest long-term in the oil sands. As such, with a brand new Master
Plan in place, YMM’s long-term plan remains in lock-step with overall growth over
the next 20 years.
Sharing success with the community
YMM’s planning is important as new development coupled with record passenger
growth expands the airport’s impact as an economic generator for the Wood
Buffalo region. The most recent YMM Economic Impact Study shows that YMM
generated $412 million in GDP for the region and generated $910 million in total
economic output. The expanding airport generated 1,700 jobs, with 746 direct fulltime positions, and $114 million in wages.
The grand opening of the new YMM terminal facility in 2014 was done in
appropriate style and class, leaving a material legacy for the Wood Buffalo region.
During the Fort McMurray Air Show and the Grand Opening Gala in May, YMM
was able to raise $150,000 in community funding on top of regular charitable
contributions, with the extra funds donated to the Kids Forever Foundation and
the Wood Buffalo Food Bank.
Our Community Investment Program continues to grow with Fort McMurray.
We are dedicated to provide funding for community-building programs in Wood
Buffalo geared to youth, aviation history and education, and the Canadian Armed
Forces. YMM employees are also a vital community resource, donating their time
and skills to community programs through our volunteer matching program.
The main terminal building is a public space for all Wood Buffalo residents to enjoy.
The recently opened observation deck is a historical interpretative and education
centre for the public to learn about Wood Buffalo’s rich aviation history. YMM’s arts
program expanded to feature more new works from local artists and artists from
across Canada.
YMM has transformed into a family-oriented venue and intends to host many holiday
family events in the new terminal. Halloween at YMM in October 2014 was a hit with
local families. Plans are under way for more such events in 2015.
Plans for 2015
YMM has more infrastructure improvements on the agenda that will enhance the
airport’s overall efficiency and capacity. A recent announcement by the Federal
Government has created a new $75 million capital project that has several components
to be built over the next few years: extending the main runway for larger aircraft,
building an emergency crosswind runway, expanding the ramp on the North
Terminal, extending the Main Terminal by two more bridges, and the building of two
general aviation taxiways to open up the Golden Hawk Aviation Park.
Further, YMM has over 512 hectares (1,267 acres) of land available for commercial
development – divided among seven commercial business parks — for both
aeronautical and non-aeronautical business and services. Through counsel from the
business advisory committee, YMM is seeking new business partnerships to develop
airport land with services that benefit the entire Wood Buffalo region.
On the commercial passenger side of the business, YMM continues to work with
Canadian, U.S. and international carriers to add new non-stop flight services for
passengers to domestic and U.S. destinations. YMM is working with seasonal carriers
like Sunwing and WestJet to add new vacation destinations.
YMM has accomplished much since its inception five years ago. Even as we take pride
in many accomplishments, we continue to strive for new ways to reach our ambitious
Vision and full potential as “Canada’s Premier Regional Airport.”
Sheldon Schroeder
Scott Clements
Chair, FMAA Board of Directors
President and CEO
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EXPERIENCES
SUCCESS
COMMUNITY
OPPORTUNITIES
DISCOVER
HISTORY
ADVENTURE
FLIGHTS
BUSINESS
DISCOVER NEW EXPERIENCES
YMM passengers now enjoy a larger and more
comfortable terminal, capable of serving up to
1.5 million passengers per year. Airlines offer more
opportunities to fly to more destinations in Canada
and beyond. Plus, passengers have more dining,
shopping and service choices.
YMM is your launching point to exciting adventures
in Canada and around the world.
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PASSENGERS | EXPECT MORE FROM YMM
Quick Facts
PASSENGER GROWTH
YMM has one of the highest passenger growth
rates among Canadian airports at 9.5 per cent
(over the national average of 5.5 per cent).
YMM moved from 16th to 15th busiest Canadian
airport in 2014, overtaking Regina.
Total passenger growth ballooned from 2006 to 2014,
from 442,745 passengers to 1,308,416 — a whopping
195 per cent.
YMM continues to
serve over a million
passengers a year.
EXPECT MORE FROM YMM
In 2014, YMM served over 1.3 million passengers, a 9.5 per cent
increase from 2013. With that performance, YMM remains the
fastest-growing airport in Canada, and the 15th busiest airport
in the country.
In total, 1,308,416 commercial and charter passengers travelled into and out of
YMM, with July being the busiest month with 117,354 passengers. With larger
numbers, YMM was able to expand air service in co-operation with its airline
partners. WestJet added two new non-stop destinations from Fort McMurray
to Kelowna and Vancouver while increasing the number of non-stop flights
from Fort McMurray to Calgary.
Air Canada also increased the number of non-stop flights to its existing
destinations, including Edmonton, Calgary, Toronto and Vancouver.
Seasonal service also returned with Sunwing launching a flight to Cancun,
Mexico as a sun destination for the winter months.
Currently, YMM has six non-stop domestic destinations and one seasonal
international destination:
»» Calgary
»» Toronto
»» Edmonton
»» Vancouver
»» Fort Chipewyan
»» Cancun (seasonal)
»» Kelowna
YMM is forecasting growth for the next five years to be comparable with other
Canadian airports. YMM is expecting moderate growth in 2015, taking into
account recent economic uncertainty caused by volatile oil prices.
However, oil companies tend to work on a 30-year horizon when planning major
capital construction projects and are less concerned with short-term market
fluctuations in the price of oil. This means passenger traffic — particularly for the
workforce air transportation demand to the oil sands — is expected to be constant
for the next five years.
Major Airlines Operating at YMM
»» Air Canada
»» Sunwing Airlines (seasonal)
»» Air Canada Express
»» WestJet
»» McMurray Aviation
»» WestJet Encore
»» Northwestern Air
Quick Facts
AIRCRAFT AT YMM
The Bombardier Q400 Next Generation
airliner is the most common aircraft seen
at YMM, flying passengers to Edmonton,
Calgary, Kelowna and Vancouver.
Seasonal fliers to Cancun use the largest
aircraft at YMM, a 189-seat Boeing 737
Next Generation 800 series airliner.
The smallest daily passenger aircraft at
YMM is the Cessna 208 Caravan turboprop
airplane, which flies three to four times daily
to Fort Chipewyan.
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PASSENGERS | EXPLORE THE WORLD WITH YMM
EXPLORE THE
WORLD WITH YMM
Escape to the sun-drenched beaches of Cancun. Savour fine
wine from a vineyard in Kelowna. See if it’s really possible to
ski and swim all in the same day in Vancouver. Whether it’s
cheering on chuck wagon drivers at the Calgary Stampede,
or looking over Toronto high above from the CN Tower,
YMM is the connection to your next adventure.
YLW
Kelowna
»» Explore Kelowna, named after the Interior Salish word “Grizzly Bear.”
»» Bask in the 2,000 hours of sun Kelowna receives annually.
YVR
»» Sample merlots and pinots from the 25 wineries in the Kelowna area.
»» Take advantage of the longest, driest golf season in Canada and tee off
at 19 golf courses.
Vancouver
»» Ski, golf, bike, sail and kayak in Vancouver – all on the same day.
»» Ride in the Sea to Sky Gondola in Squamish (one hour drive from downtown
Vancouver) to a new skiing or hiking adventure 855 metres (2,805 feet) above
sea level.
»» Walk, run, cycle or rollerblade the nine-kilometre (5.5-mile) seawall around
Stanley Park, a 405-hectare (1,001-acre) city park that is 10 per cent bigger than
New York City’s Central Park.
YYC
»» Visit the beluga whales and other sea creatures at the Vancouver Aquarium,
ranked as one of the Top 5 aquariums in the world.
Calgary
»» Cycle Calgary’s 550-kilometre (341-mile) bike trail network.
»» Go fly-fishing in the Bow River, one of the top three trout streams in the world.
»» Learn how to ride a bobsled or a luge at Canada Olympic Park.
»» Cheer on bronco riders and chuck wagon drivers at the Calgary Stampede;
the “Greatest Outdoor Show on Earth” draws over a million visitors each year.
YEG
Edmonton
»» Explore the largest urban parkland in North America – Edmonton’s North
Saskatchewan River Valley, a traditional Aboriginal meeting place for nearly
2,000 years.
»» Attend one (or all) of Edmonton’s 30 annual festivals, such as the Edmonton Fringe
Theatre Festival — the second largest theatre festival in the world (after Edinburgh).
»» Visit the Art Gallery of Alberta, the oldest cultural institution in Alberta
(founded in 1924) that maintains a collection of over 6,000 objects.
»» Cross the famous High Level Bridge, spanning 777 metres (2,549 feet) and watch
it light up at night with 60,000 LED lights for holidays and special events.
YYZ
Toronto
»» Dine at any of more than 8,000 restaurants in Toronto.
»» Attend Caribana, the largest single day parade in North America and admire
the dazzling, colourful costumes worn by 10,000 parade participants.
»» Visit the Toronto Zoo — the largest in Canada, with over 16,000 animals
representing 461 species.
»» Stand on the deck of the CN Tower, which stands 553 metres (1,814 feet) and retains
the title as world’s tallest tower and tallest structure in the Western Hemisphere.
Cancun
CUN
»» Sun tan on Cancun’s famous white beaches, where the sand stays cool because
it is made from crushed coral.
»» Crash any of the approximately 46,000 weddings held in Cancun each year.
»» Explore one of the three of the world’s largest underwater cave systems in the
area, including the Ox Bel Ha which is 146.7 kilometres (91 miles) long.
»» Scuba dive one of the world’s largest coral reefs — the Great Mayan Barrier Reef,
second only to Australia’s Great Barrier Reef.
»» Check out Mayan ruins right in the hotel resort district, including the El Ray
ruins located near the Hilton Cancun Beach & Golf Resort.
»» Tee off at one of 17 golf courses on the Yucatán peninsula.
Fort Chipewyan
YPY
»» Established by Peter Pond as a trading post in 1788, Fort Chipewyan is the oldest
permanent European settlement in Alberta.
»» The hamlet hosts the entrance to Wood Buffalo National Park, the largest in Canada
and the second largest in the world. At 44,807 square kilometres (27,842 square
miles), the entire country of Switzerland could easily fit inside the park’s borders.
»» The Royal Astronomical Society of Canada designated the park as the world’s
largest Dark Sky preserve in 2013.
»» The world’s largest beaver dam — about 850 metres (2,790 feet) in length — was
discovered in the park using satellite imagery. The dam was usually spotted from
the air or satellite, until an American amateur explorer hiked to the dam in 2014.
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PASSENGERS | DISCOVER THE YMM WELCOME
DISCOVER THE “YMM WELCOME”
YMM has a new way to welcome people, capturing the eyes of visitors the
moment they turn off Highway 69 and drive toward the new terminal.
Welcoming visitors to Fort McMurray
A trident of light towers greet passengers at the roundabout located on the Saline
Creek Parkway. After sunset, these three towers glow with the colours of the aurora
borealis that naturally blaze across the nighttime skies over the Wood Buffalo region.
On Snowbird Way, a famous Canadian Forces Snowbirds aircraft is mounted over
two nine-metre (30-foot) illuminated welcome signs, adding a unique depth of
meaning to the signs welcoming visitors and serving as a landmark for the airport.
The new airport terminal: yours to explore
WELCOME
to your new YMM
experience.
Opening to great fanfare in June 2014, the new YMM airport terminal is a one-ofa-kind structure of long-span spaces and high windows and ceilings that allow for
natural daylight to stream in. The simple shifting of levels appeal to the eyes and
help orient passengers.
YMM’s unique look stems from the laminated pine wood beams used to support
the roof, the largest wood-framed roof in North America. The exposed mass timber
structure complements the other refined yet durable materials in the terminal’s
exterior, including triple-glazed windows, terrazzo flooring and acoustic wood panels.
On the outside, the terminal is designed to withstand the harsh, northern winter
climate, with robust exterior steel and pre-cast panelling.
Sustainable features built into the airport design help reduce the building’s carbon
footprint, with sophisticated heat recovery and passive ventilation systems, in-floor
radiant heat, thick, airtight exterior insulation and extensive natural day lighting.
The overall architecture — designed by mcfarlane biggar architects + designers
inc (OMB), managed by Stantec and built by the Ledcor Group — received a 2013
Canadian Architect Award of Excellence for embodying qualities of innovation
and overall design excellence. SNC-Lavalin managed the commercial programs,
including retail, food and beverage and advertising.
Quick Facts
YMM TOWERS
Designer: F&D Scene Changes Ltd.
Height:
First: Second: Third: 5 metres, 15 cm (18 feet, 6 inches)
6 metres, 7 cm (21 feet, 3 inches)
7 metres (25 feet)
Material: Steel and acrylic panels
Lighting: Red, green, blue, white
(RGBW), internal
Concept: Lighting (aurora borealis)
Structure (jet engines)
YMM has a new
way to welcome
its passengers
Quick Facts
WELCOME SIGNS
Designer: F&D Scene Changes Ltd.
Length: 9 metres (30 feet)
Material: Concrete, steel, aluminum
Lighting: Waves of light through steel plates
behind lettering
Concept: Boreal forest, aviation history
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Enjoy new shopping and dining experiences
YMM customers have many shopping and dining choices before and after
security. Passengers needing some small travel gear they didn’t pack can buy
it at Nicholby’s Convenience.
A visitor outside of Wood Buffalo can get a gift pack for a local relative at
Fort McMurray’s own Chocolates & Candlelight. Those on the go may only have
time for a quick meal at Mary Brown’s, while a vacationing group may have time
for a leisurely dinner at Famoso before their flight.
YMM Concessions
»» Best Buy Express
»» Famoso Neapolitan Pizzeria
»» Burger King
»» Jugo Juice
»» Chocolates & Candlelight
»» Cloud Zero
»» Mary Brown’s Famous Chicken
& Taters
»» Earls Grab and Go
»» Nicholby’s Convenience (2 outlets)
»» Earls Kitchen + Bar
»» Starbucks
»» Elements
»» Subway
»» Tim Hortons (opening in 2015)
There are six major car rental brands as well as shuttle, taxi/limo services and
public transit for getting passengers to and from the airport. Plans are underway to
build and open a Quick Turnaround Facility for car rental operations near the main
terminal building.
Car Rental Services
»» Avis
»» Enterprise
»» Budget
»» Hertz
»» Driving Force
»» National
For those seeking overnight stays near the airport, the Chateau Nova has first-class
accommodations close to the terminal. There are also future plans to build a hotel
that would connect directly with the main terminal.
“We are pleased to see the excellence of Fort McMurray
International Airport’s food and beverage program
recognized by our peers,” said Scott Clements, President
and CEO of the Fort McMurray Airport Authority. “We’re
always striving to offer diverse, appealing dining options
for our travellers to enjoy.”
10,312
JUICY
SMOOTHIES
SOLD
4,901
BIG MARY
SANDWICHES
SOLD
25,000
NEAPOLITAN
PIZZAS SOLD
1ST PLACE
STATS
BEST FOOD
& BEVERAGE
PROGRAM
54,204
5,473
MANGO
PRAWN ROLLS
SOLD
4,381
WHOPPERS
SOLD
STARBUCKS
ESPRESSO’S
SOLD
15,863
2,544
BRONX
BURGERS
SOLD
BOTTLES OF
WATER SOLD
All stats are from June 9, 2014 – Dec 31, 2014
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Discover new comforts
YMM believes the airport experience should be relaxing and enjoyable.
From the time they plan their trip from home to when they board their
flight, YMM is focused on providing first-class service to passengers.
Passenger Services
»» Customer Service and Visitor
Information Centre
»» Free luggage carts
»» Barrier-free access for persons
with disabilities
»» Lost and found services
»» Large south-facing courtyard
providing outdoor landscaped
area for passengers
Digital Services
»» YMM website and social media
»» Free high-speed wireless Internet
»» Electrical and USB outlets
in every seat
Transit and Parking Services
»» Parking shuttle
»» Taxi and limo services
»» Transit service
»» Powered parking stalls
Family and Children’s Services
»» Children’s play area
»» Family washroom with infant
changing stations
»» Interactive airfield
observation area
Pet Services
»» Pet relief area
Passengers have the option to get fresh air before their flight. YMM has an outdoor,
landscaped courtyard that faces south, providing passengers an outdoor meeting
area away from regular activity inside the main terminal.
Passengers who have a travelling pet can give their animals a break too. The
courtyard is designated as a travelling pet relief area, with plastic bag dispensaries
and waste collection depots. The courtyard’s landscaping is designed to complement
the different seasons.
Discover Wood Buffalo
YMM is often the first impression newcomers have of the region. A warm, friendly
welcome and helpful advice upfront makes for a more positive airport experience
and creates a strong first and lasting impression of Fort McMurray and the entire
Wood Buffalo region.
New visitors to YMM receive friendly service at the Customer Service and Visitor
Information Centre located in the arrivals hall. Provided in partnership with Fort
McMurray Tourism and the Regional Municipality of Wood Buffalo, the centre
helps visitors find accommodations, secure transportation, or plan their stay while
they are in Fort McMurray and the Wood Buffalo region.
Quick Facts
WOOD BUFFALO REGION
The Regional Municipality of Wood Buffalo is
the largest municipality in terms of area in
all of North America.
Five rivers flow through Fort McMurray:
Athabasca, Clearwater, Christina, Hangingstone
and Horse.
The original “runway” was not made of concrete
or gravel; it was a waterway called the Snye
used by float planes.
Fort McMurray has Canada’s largest outdoor
gym — 53 units of exercise equipment located
on the Birchwood Trail system.
MacDonald Island Park and Suncor Community
Leisure Centre is Canada’s largest community,
recreation, leisure and social centre.
YMM’s Ride &
Fly Shuttle offers
passengers a lift in
comfort and style.
Fort McMurray
has five rivers
flowing through it.
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BUSINESS | DISCOVER NEW OPPORTUNITIES
YMM continually
cultivates new
business partnerships.
Quick Facts
CONCESSIONS
YMM is the first airport in Canada to have
concessions from Earls Kitchen + Bar, Famoso
Neapolitan Pizzeria and Mary Brown’s Famous
Chicken & Taters.
DISCOVER NEW
OPPORTUNITIES
YMM’s new airport terminal and other facilities have opened
up business partnerships and opportunities. These business
partnerships include major airlines, workforce charter carriers,
shopping and dining, air cargo, general and corporate aviation
services and commercial development.
Discover new business partnerships
YMM has cultivated many business partnerships to develop an expanded,
fresh concession program for the new main terminal. The program contributes
to a more enjoyable passenger experience at YMM and helps it realize its full
revenue potential.
Promoting concessions is a large part of YMM communications. Concessions
promotions such as product or menu offerings, coupons and special deal
promotions are featured on www.FlyYMM.com, YMM’s Facebook and Twitter
accounts, and YMM’s newsletter Aurora InFlight.
Air Cargo
YMM’s air cargo facilities provide crucial links in the supply chain and logistics
for the oil and gas industry, as well as other economic activity in the region.
Dedicated cargo flights handle over half the cargo at YMM, while Air Canada
and WestJet carry the remainder on scheduled passenger flights. In 2015,
cargo operators are expected to begin air freight service at YMM.
The air cargo facility in the short-term will operate out of the original
airport terminal building on the north side of the main runway, now called
the North Terminal.
A new third-party air cargo building with an expanded apron is planned for
the east of the North Terminal. The planned facility will concentrate cargo
operations in one area and accommodate larger freight aircraft.
Quick Facts
AIR CARGO
Expanded daily courier service is
expected to handle 900 tonnes,
a 50 per cent increase from 600 tonnes
recorded in 2012 (SNC-Lavalin, 2014).
Freight service is expected to handle
1,500 tonnes, a 150 per cent increase
from 600 tonnes recorded in 2012
(SNC-Lavalin, 2014).
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Workforce Charters
The airport hosts over 25 workforce charter carriers, with several fixed-base
operators for aircraft handling, refuelling and executive flight lounges.
Work Charter Carriers
YMM HOSTS
25+ workforce
charter carriers
»» Air Georgian Limited
»» Kenn Borek Air
»» Air North Charter
»» Morningstar Partners
»» Air Tindi
»» North Cariboo Air
»» Airco Aircraft Charters
»» Northern Air Charter
»» Alberta Central Airways
»» Pentastar Air
»» Alta Flights (Charters)
»» Perimeter Aviation
»» Arctic Sunwest Charters
»» Regional 1 Airlines
»» Bar Xh Air (Integra)
»» Shell Canada
»» Bearskin Lake Air Services
»» Skyservice Business Aviation
»» Canadian North
»» Suncor
»» Central Mountain Air
»» Sunwest Aviation
»» Flair Airlines
»» Syncrude
»» Jazz Charter
»» West Wind Aviation
Aviation Services
There are 10 essential aviation services offered at YMM, including avionics,
aircraft maintenance and air ambulance services.
Aviation Services
Quick Facts
WORK CHARTERS
Suncor and Syncrude handle a large portion of
all work charter flights, with 54,277 passengers
flown in and out in 2014.
Other work and corporate charters combined
totaled 178,457 in 2014.
YMM has two fixed-base operators – Universal
Aviation and Executive Flight Centre.
»» Private and recreational flying
»» Helicopter activity
»» Flight schools and training
»» Corporate services
»» Charter services
»» Private charters
»» Search and rescue
»» Aircraft maintenance
»» Avionics
»» Air ambulance services
Over the next 10 years, YMM plans to concentrate general aviation
activities into three areas:
»» North field area within Snow Eagle
West Commercial Park
»» South field west area within Snowbird
Commercial Park
»» South field east area within
Golden Hawk Aviation Park
Air Support Facilities
YMM has plans to upgrade its airport facilities including:
»» Relocating the control tower from the
North Terminal to a location south of
the existing runway and east of the
Main Terminal
»» Replacing the existing Airport Rescue
and Fire Fighting (ARFF)service
building with a larger facility
»» Relocating the current airport
maintenance compound to a shared
location with ARFF
»» Adding a new fuelling station at
Golden Hawk Commercial Park
The Government of Canada — through the Infrastructure Canada New Building
Fund — is funding one-third of a $75 million capital project for the airport. Over the
next few years, the main runway will be extended from 2,287 metres to 2,743 metres
(7,500 feet to 9,000 feet) in order to accommodate larger aircraft. As well, YMM will
build an emergency crosswind runway, expand the ramp on the North Terminal,
extend the Main Terminal by two more bridges, and build two general aviation
taxiways to open up the Golden Hawk Commercial Park.
Commercial Land
Airport land use has broadened in recent years, with many airports encouraging
a wide range of business and services to operate alongside core aeronautical
infrastructure and services. YMM has 1,267 acres (512 hectares) of land available for
prime commercial development. This land is divided into seven commercial parks:
»» Snow Eagle Commercial Park West
»» Snowbird Commercial Park
»» Snow Eagle Commercial Park East
»» Golden Hawk Aviation Park
»» Snow Eagle Aviation Park
»» Golden Hawk Commercial Park
»» Snowbird Prestige Aviation Park
This helps provide more commercial land for growing businesses in the Wood Buffalo
region, while creating new forms of revenue for YMM to use to offset operational costs
instead of increasing user fees.
Some of the proposed uses for land include:
»» Offices
»» Retail sales
»» Gas stations
»» Distribution centres
»» Car washes
»» Warehouses
»» Car rental facilities
»» Hotels
»» Transportation services
and facilities
»» Food and beverage
»» Public utilities
»» Light manufacturing
»» Apartments
»» Outdoor storage
Quick Facts
COMMERCIAL SPACE
A total 1,267 acres (512 hectares) are
available for development.
There are seven commercial parks set aside
for development.
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Business Advisory Committee
YMM works closely with the Wood Buffalo business community through its
Business Advisory Council. The council includes 22 local business leaders that
provide YMM direction on air service and airport improvements that will benefit
the region economically.
The North Terminal: Making the old new again
The original YMM terminal on the north side of the airfield is now a repurposed
facility exclusively for workforce charters, corporate fliers and cargo. The original
building was built in 1985 and operated as the airport main terminal for 29 years
before the opening of the new main terminal in 2014. YMM renovated the original
building and reopened it as the North Terminal in October.
The facility supports about 250,000 workers a year, or 20 per cent of all YMM
passengers annually. It accommodates the fixed-base operations for charter carriers,
including Enerjet, North Caribou, Canadian North and Flair Air.
The terminal continues to provide retail, food and beverage and car rental services.
It also supports air cargo operations such as a dedicated cargo depot, storage and
sorting space, as a well as ramp space for cargo freighters.
Discover how YMM helps drive the Wood Buffalo Region
YMM continues to be a major economic generator in the region. Positive benefits to
the regional’s economy in 2013 exceeded every measurement compared to previous
years. Highlights of the 2013 YMM Economic Impact Study are listed below.
2013 Summary of Economic Impacts
ACTIVITY CATEGORY
Direct
Indirect
TOTAL
CHANGE***
Employment
746
954
1,700
19%
Wages*
$58.5
$55.5
$114
23%
Output**
$483.8
$426.2
$910
N/A
GDP*
$177.7
$234.3
$412
14%
(*millions) (**new metric) (***2011-2013)
Quick Facts
NORTH TERMINAL
Originally open in 1986
Size of North Terminal: 3,000 square metres
(32,293 square feet)
Houses current control tower,
commissioned in 1981
YMM – Making the
old new again
Employment directly and
indirectly increased
19 per cent with the
opening of the new terminal.
26
PEOPLE | DISCOVER NEW FACES AT YMM
Quick Facts
YMM STAFF
Total number of workers at the airport: 746
Total number of workers employed by companies
associated with YMM: 954
Total number of people employed: 1,700
YMM is focused on a
positive employment
experience for its staff.
DISCOVER NEW FACES AT YMM
The opening of the new terminal has changed the way
YMM offers services. From security to concessions, a larger
airport with more passengers demands a larger workforce.
YMM’s many partner organizations ramped up to meet the demands of a larger
terminal and overall business growth across the airport. Partners include
concessions, airlines, Canadian Air Transport Security Authority, Canada Border
Services Agency, aviation services, air cargo, workforce charter and corporate
carriers and non-aeronautical services.
The airport authority’s goal is to be one of the top desired places to work.
The commitment is to creating a safe, well-managed workplace that encourages
innovation and creative customer service practices.
The plan to achieve this hinges on the following:
»» Clear job descriptions and performance expectations
»» Extensive employee training
»» New leader recruitment and succession planning
»» Widespread employee participation in organizational planning
An environmental health and safety strategy and wellness program
ensures employee health and wellness needs are met in the following areas:
»» Illness prevention
»» Stress management
»» Exercise and healthy living
»» Overall well-being
The positive employment experience offers:
»» Stimulating work
»» Workplace rewards
»» Training and development
»» Corporate social responsibility and ethics
»» Opportunities to advance
27
Achieving airport
service that exceeds
customer expectations.
Team YMM delivers
customer-centred
service, every time.
Discovering new ways to work together
Team YMM is a customer service concept that brings together YMM employees and
those employed with 40 other companies located on the airport campus that serve
passengers on a regular basis. The concept’s main goal is to achieve airport service
that exceeds customer expectations, by sharing resources, skills and expertise.
The objectives of YMM include:
»» Maintaining customer-centred service with frontline staff trained to deliver
consistent, high-level passenger service every time
»» Maintaining 24/7 airport operations
»» Providing superior customer service through the Customer Service and
Visitor Information Centre
Meeting and exceeding standards set by:
»» Transport Canada
»» Airport Council International (ACI) Airport Service Quality Program (ASQ)
»» Airport Authority Executive Team
YMM is offering specially-trained pet therapy dogs
in the terminal in 2015.
29
30
COMMUNITY | DISCOVER YMM’S COMMITMENT TO HELPING THE COMMUNITY
YMM donated over
$200,000 to the
community in 2014.
Quick Facts
COMMUNITY INVESTMENT
Some of the community groups
YMM has supported include:
»» Wood Buffalo Food Bank
»» Royal Canadian Air Cadets
»» YMCA of Wood Buffalo
»» Royal Canadian Legion
McMurray Branch No. 165
»» Kids Forever Foundation
DISCOVER YMM’S
COMMITMENT TO HELPING
THE COMMUNITY
YMM invests in local organizations that strengthen our
community and enhance our region’s quality of life.
Celebrating a new beginning by giving
The opening of the new airport terminal in June, 2014 provided the perfect
venue for YMM to give back to the community.
Funds were raised from both the Fort McMurray Air Show in May and the Grand
Opening Gala in June, providing an additional $150,000 in community funding
on top of regular charitable contributions.
Organizations that benefited from this funding included the Wood Buffalo
Food Bank and the Kids Forever Foundation.
The Wood Buffalo Food Bank saw a 43 per cent increase in use in 2013 over the
previous year, and stocks were depleting 30 per cent faster than anticipated.
YMM’s donation allows for nearly a full year of base-cost funding for the food
bank, including monthly $5,000 purchases for perishable food items.
The Kids Forever Foundation saw 2014 as the last year of operations to help sick
and disabled children in the Wood Buffalo region, but it wanted to go out with a
bang by setting a goal to raise $1 million. Since 1998, the organization has helped
over 200 families with medical care costs for their children.
YMM was proud to support Kids Forever during its final year with a $50,000
donation, and is heartened that other organizations will continue to carry the
torch of the foundation once its final fundraising goal is achieved.
31
32
COMMUNITY | INVESTING IN THE COMMUNITY, BUILDING A FUTURE
INVESTING IN THE
COMMUNITY, BUILDING
A FUTURE
Community Investment Program
YMM’s Community Investment Program continues its mission to support
organizations that build communities and help those in need. In 2014, the program
received a $50,000 boost from the $150,000 total raised at the Grand Opening Gala
and Fort McMurray Air Show.
Information on the program with a corresponding downloadable application form
is posted on www.FlyYMM.ca/about-ymm/community.
The Community Investment Program focuses on three core areas:
»» Youth – programs that opens up new educational opportunities for youth
»» Aviation Education and History – programs that preserve and educate the
people of Fort McMurray on the region’s rich aviation history
»» Canada’s Military – programs that support the men and women who serve
in the Canadian Armed Forces
YMM’s focus on youth includes the YMCA’s Youth Leadership program. YMCA of
Wood Buffalo received $10,000 from the airport authority for its 10-week course,
offered three times a year, that teaches youth ages 13-15 about volunteering in the
community and developing leadership skills in a hands-on environment.
YMM’s focus on the Canadian Armed Forced includes support for the 868
YMM Rotary Northstar Royal Canadian Air Cadet Squadron. Two annual
$5,000-scholarships were awarded in February 2014 to cadet graduates entering
post-secondary education. YMM also has a partnership with the Royal Canadian
Legion – McMurray Branch No. 165.
Oils Sands Banquet
YMM was honoured at the 2014 Oil Sands Banquet in October, a premier formal
event to honour leaders in business, industry, government, education, community
building and First Nations in the Wood Buffalo region, Alberta and around
the world.
Scott Clements, President and CEO of the Fort McMurray Airport Authority,
was one of the keynote speakers along with Mayor Melissa Blake of the Regional
Municipality of Wood Buffalo and Gregg Saretsky, President and CEO of WestJet.
CELEBRATE
AT YMM
Family celebrations
A larger main terminal allows YMM to welcome the community to the airport
for celebrations.
The main terminal hosted the first Halloween party for over 140 guests. Many
attendees participated in a costume contest while others competed in a pumpkincarving contest. Many businesses donated $50 gift certificates, gift baskets and
candy bags as prizes for contest winners.
With much of the Wood Buffalo demographic being young and starting families,
holiday family events are a hit. YMM plans to hold more in 2015.
Western Canada Summer Games
In August 2015, the Wood Buffalo region will host the 2015 Western Canada
Summer Games. This multi-sport event gives amateur athletes opportunities to
advance their skills in a competitive, but friendly environment. Over 14,000 athletes,
their families, trainers, supporters and other guests are expected to attend the nineday event.
YMM has been involved with helping the Western Canada Summer Games Wood
Buffalo organization prepare for the Games and will be the first to greet the athletes
when they arrive this summer to the Wood Buffalo region.
Helping people beyond the work day
YMM employees offer a helping hand to the community after their workday.
Encouraged through the YMM employee volunteer matching program, many on
staff provide their time and skills on a multitude of community projects.
YMM staff and their partners through Team YMM are big supporters of the Wood
Buffalo Food Bank, and have raised $13,610 at the 2014 Team YMM Christmas Party.
INVESTED IN
COMMUNITY
The Western Canada Summer Games will bring in
over 2,500 athletes to compete in 18 sport categories.
33
34
COMMUNITY | DISCOVER WOOD BUFFALO’S HISTORY AND CHARACTER
DISCOVER WOOD
BUFFALO’S HISTORY
AND CHARACTER
Art in a public space gives people a strong sense of place. YMM’s iconic arts
program shows the passion and energy of the Wood Buffalo region, thanks to
works by artists in Fort McMurray and Western Canada.
DISCOVER
our iconic
arts program
At the opening of the new airport terminal in June 2014, four art pieces
were unveiled:
»» David Robinson, Vancouver – Daedalist
»» Liz Ingram, Edmonton – Water Ways, Sensing Connection
»» Lucas Seaward, Fort McMurray – Sky Explorer
»» Northern Lights Wall
Recently, YMM expanded the public arts program with new pieces in the
terminal and in the new public observation area:
»» Lucas Seaward, Fort McMurray – Lasting Impression
»» Jane Ash Poitras, Fort Chipewyan – Utopia Series
»» Amy Keller-Rempp, Fort McMurray – Sky Dance Series
In addition to the artwork, YMM developed the Aviation Heritage and Education
program, revealing to visitors and residents of Wood Buffalo the rich history of
aviation exploration and innovation in Northern Alberta.
The interactive exhibits were developed by StudioOne Architecture and the
historical artifacts on display are on loan from the Fort McMurray Historical
Society, Canada’s Aviation Museum and the Alberta Aviation Museum.
Some of these features include:
Quick Facts
HISTORICAL AVIATION
ARTIFACTS ON DISPLAY
Canadian Pacific Airlines cap worn by
Archibald “Archie” McMullen
Trans-Canada (McKee) Trophy award to
Wilfrid “Wop” May
Model of a DeHavilland Canada DHC-2
Beaver bush plane
»» Wall of Fort McMurray Pilots – a mural of pioneer bush pilots in the
Wood Buffalo region
»» Historical Aviation Artifacts – rotating exhibits featuring equipment and
heirlooms from Alberta’s aviation pioneers
»» Aviation Education – interactive video screens that showcase Northern
Alberta’s aviation history
YMM’s Observation
Deck features an
interactive aviation
education.
36
COMMUNITY | DISCOVER WOOD BUFFALO’S HISTORY AND CHARACTER
A new way of seeing
The newly outfitted observation area on the third floor of the new airport terminal
building satisfies the ageless delight of watching aircraft take off and land. This
captivating space, located on the top floor of the main airport terminal before
security, provides a spectacular view of the runway and the airport campus.
To further enhance passengers’ travel experience, the observation deck is
outfitted with videos displays, art pieces and historical artifact displays:
»» Three state-of-the-art interactive video screens that educate visitors about
YMM and its history
»» New art pieces by Alberta artists Jane Ash Poitras and Amy Keller-Rempp
YMM CONNECTS
online with
passengers and
the community
»» Three display cases featuring historical aviation artifacts
»» Telescopes and interpretive reader rails for visitors of all ages to learn
about aviation in the Wood Buffalo region
Keep the conversation going online
YMM launched www.FlyYMM.com in May with a new look and format that made
it quicker and easier for passengers to navigate on mobile and tablet devices,
while providing a fuller range of travel and airport service information.
The new website promotes the concessions program, including posting store
hours, advertising special offers and coupons, posting job openings and providing
links to view a restaurant menu or see new product offerings.
More and more people are talking to YMM through social media. Both the
Fort McMurray International Airport – YMM Facebook page and Twitter account
(@FlyYMM) have larger audiences in 2014, with 2,189 likes for the YMM
Facebook page and 2,534 followers for @FlyYMM at the start of 2015.
Much of YMM’s social media focuses on promoting the concession program
through images and discussion of product offerings, coupons and special deal
promotions, and reaching passengers who are engaging with concessionaires.
While Twitter and Facebook both offer real-time updates, Twitter is particularly
time-sensitive. Because of this, YMM is diligent in responding in a timely way to
passengers’ comments, inquiries and other interactions.
Quick Facts
SOCIAL MEDIA
2014 HIGHLIGHTS
Over 76,000 comments, shares, messages,
likes, retweets
Over 23 million website visits or ad views
(direct or indirect)
Over 1,300 new followers on Twitter
Over 1,700 new fans on Facebook
Quick Facts
OBSERVATION DECK
A total 72,224 aircraft moved through
YMM in 2014.
The wall of Fort McMurray Pilots tells the
stories of 8 of our community’s pioneering
Bush pilots.
3 state-of-the-art interactive video
screens take visitors through the history
of aviation in Northern Alberta.
Delight in watching
aircraft take off
and land.
FlyYMM.com launched in
May 2014 with a new look
and format that makes
it easier for passengers to
navigate on mobile and
tablet devices.
38
GOVERNANCE & ACCOUNTABILITY
GOVERNANCE & ACCOUNTABILITY
REGIONAL
MUNICIPALITY
OF WOOD BUFFALO
FORT MCMURRAY
CHAMBER OF
COMMERCE
OIL SANDS
COMMUNITY
ALLIANCE
FORT McMURRAY
AIRPORT
AUTHORITY
CUPE,
LOCAL 1505
3 Directors
2 Directors
2 Directors
2 Directors
1 Director
ACCOUNTABILITY FRAMEWORK
FORT MCMURRAY AIRPORT
BOARD OF DIRECTORS
Airport Master Plan
Strategic Plan
Risk Management Plan
Five Year Reviews
Financial Audit
Bond Rating
Variance Reports
CEO Performance Review
Transport Canada Compliance
Appointer Meetings
Project Implementation Plan
Airport Area Structure Plan
BOARD SECRETARY
Sheldon Schroeder, Chair
Cheryl Alexander
Ken Balkwill
Allan Kallal
Manuel Ortiz
Trent Obrigewitsch
Mildred Ralph
Colin Solbak
Bernd Wehmeyer
Roy Williams
Lynn Berry
STANDING COMMITTEES
Governance
Finance and Audit
Capital Project
PRESIDENT AND CEO
BUSINESS ADVISORY COUNCIL
Scott Clements
Team YMM
LEGAL Ogilvie LLP
PROJECT MANAGER
VP CORPORATE SERVICES/CFO
VP OPERATIONS
BUSINESS DEVELOPMENT
Stantec
Marlene Kowalski
Bill Werny
SNC-Lavalin
BOARD OF DIRECTORS
BOARD OF DIRECTORS
Top Row (from left to right):
Mildred Ralph Appointed by: Fort McMurray Chamber of Commerce, Colin Solbak Appointed by: Fort McMurray Chamber of Commerce,
Bernd Wehmeyer Appointed by: Regional Municipality of Wood Buffalo, Sheldon Schroeder (Board Chair) Appointed by: Canadian Association of Petroleum
Producers, Allan Kallal Appointed by Regional Municipality of Wood Buffalo, Roy Williams Appointed by: Fort McMurray Airport Authority,
Cheryl Alexander Appointed by: Fort McMurray Airport Authority
Bottom Row (from left to right):
Manuel Ortiz Appointed by: Canadian Association of Petroleum Producers, Ken Balkwill Appointed by: CUPE, Local 1505, Bill Werny Vice-President, Operations,
Scott Clements Presidents and Chief Executive Officer, Marlene Kowalski Vice-President, Corporate Services and Chief Financial Officer,
Trent Obrigewitsch Appointed by: Regional Municipality of Wood Buffalo
MANAGEMENT TEAM
Scott Clements
President and Chief Executive Officer
Bill Werny
Vice-President, Operations
Marlene Kowalski
Vice-President, Corporate Services and CFO
Jesse Meyer
Manager, Commercial
Barry Hansen
Manager, North Terminal,
Airside Operations & Training
Bruce Ehmann
Manager, Security and Terminal Operations
Lanner Khan
Manager, Facilities
Mike MacNeil
Manager, Airfield Maintenance
Roxanne LeBlanc
Financial Controller
Veronica Wakeham
Manager, Human Resources and Administration
Natasha Robichaud
Manager, Human Resources
39
Fort McMurray Airport
Authority is positioned
to manage economic
fluctuations and prepare
for long-term growth.
FORT McMURRAY AIRPORT
AUTHORITY MANAGEMENT
DISCUSSION & ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2014
TABLE OF CONTENTS
Performance Highlights ...............................................................................42
Financial Performance...................................................................................43
Revenue...........................................................................................................44
Operating Expenses......................................................................................46
Capital Investment.........................................................................................47
Five-Year Performance Review ...................................................................47
41
42
FORT McMURRAY AIRPORT AUTHORITY | MANAGEMENT DISCUSSION & ANALYSIS
MANAGEMENT DISCUSSION & ANALYSIS FOR THE YEAR ENDED DECEMBER 31, 2014
Performance Highlights
Passenger traffic activity
YMM continued to lead the nation in terms of market growth in 2014, with 1.31 million passengers served.
Achievements during the year included air service expansion, increased frequency of flights to the top four
destinations (Calgary, Edmonton, Toronto and Vancouver), and the North Terminal was repurposed for
workforce charters.
Commercial passenger traffic increased by 12.5%; however, due to the impact of declining oil prices YMM
saw a decrease of 2.8% in workforce charter passengers. The overall increase for the year was 9.5% compared
to prior year, continuing to outpace other Canadian airports in terms of growth.
Passenger Traffic — Year Ended December 31
The following chart and graph illustrates the growth trend in enplaned and deplaned passengers for the year
compared to prior years:
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total Passengers
443,687
595,671
735,987
704,362
714,659
763,708
958,072
1,195,437
1,308,416
Commercial
415,965
559,009
639,765
667,404
671,427
710,768
828,701
956,035
1,075,682
Workforce
28,722
36,662
42,222
36,958
43,232
52,940
129,371
239,402
232,734
Total Passengers
Commercial
Workforce
1400000
1200000
1000000
800000
600000
400000
200000
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
Financial Performance
The following table presents the revenue and expenditures for the Authority with comparison to prior year.
Statement of Operations – Year Ended December 31 ($000s)
Passengers
2014
2013
Change
% Change
1,308,416
1,195,437
112,979
9.5%
$
$
$
REVENUE
Airport improvement fee
Airport improvement fee - equivalent
15,911
14,293
1,618
11.3%
3,311
3,392
(81)
-2.4%
Other airfield
7,881
6,729
1,152
17.1%
Terminal
4,179
2,650
1,529
57.7%
Parking
4,108
3,659
449
12.3%
Other
1,476
346
1,130
326.4%
Ground transportation
2,739
2,393
346
14.5%
Land lease
2,354
2,273
81
3.6%
Concession
1,452
380
1,072
281.7%
Interest
1,324
148
1,176
796.0%
Special events
1,374
-
1,374
-
46,109
36,263
9,846
27.2%
Salaries and wages
14,811
8,047
6,764
84.1%
General and administrative
5,333
3,898
1,435
36.8%
Operating
3,977
2,461
1,516
61.6%
Airport improvement fee handling
1,125
1,012
113
11.1%
1,687
-
1,687
-
26,933
15,418
11,515
74.7%
19,176
20,845
(1,669)
-8.0%
Amortization Expense
14,284
11,078
3,206
Interest
5,209
-
5,209
19,493
11,078
8,415
76.0%
(317)
9,767
(10,084)
-103.2%
EXPENSES
Special events
Earnings before interest and amortization
Interest and Amortization
NET (LOSS) INCOME
43
44
Revenue
In 2014, revenue increased by $9.8 million to $46.1 million from $36.2 million in 2013. The Airport
Improvement Fee (AIF), collected by the commercial air carriers, and the Airport Improvement Fee
Equivalent (AIF-E) collected from charter aircraft, together are the largest component of revenue for
the Airport Authority. The AIF and AIF-E are used to fund the costs of new airport infrastructure, major
improvements to existing facilities at the Airport, as well as related financing costs, debt repayment and
the collection fee retained by the airlines.
With the expanded concession program in the new terminal, revenue has increased $1.1 million over the
prior year. Also included in 2014, was one-time sponsorship and special events revenue of $1.4 million that
was related to the airport terminal opening gala and airshow.
The following charts illustrate 2014 revenue compared to prior year ($000s).
$1,452
$1,324
$1,374
$2,273
$380 $148
Airport Improvement Fee
$2,393
Airport Improvement Fee - Equivalent
$346
$2,354
Other Airfield Revenue
Terminal Revenue
$2,739
$15,911
$1,476
$3,659
$14,293
Parking Revenue
Other Revenue
$4,108
$2,650
Ground Transportation
Land Lease Revenue
$4,179
$3,311
$7,881
$6,726
$3,392
Concession Revenue
Interest
Special Events
Revenue (000s)
2014 Total: $46.1M
Revenue (000s)
2013 Total: $36.3M
YMM earns revenue from non-aeronautical commercial operations, such as parking, concessions,
buildings and land leases. The following table shows the breakdown between aeronautical and nonaeronautical revenue. Non-Aeronautical does not include one-time special events revenue related to
the new terminal opening.
Aeronautical vs. Non-Aeronautical Revenue ($000s) - Year Ended December 31, 2014
2014
AERONAUTICAL REVENUE
2013
Change
$
$
15,911
14,293
1,618
Airport improvement fee - equivalent
3,311
3,392
(81)
Other airfield revenue
7,881
6,729
1,152
27,103
24,414
2,689
1,125
1,012
113
Total aeronautical revenue - net fee handling
25,978
23,402
2,576
Aeronautical revenue % of total revenue
59.6%
66.4%
Parking revenue
4,108
3,659
449
Ground transportation revenue
2,739
2,393
346
Land lease revenue
2,354
2,273
81
Terminal revenue
4,179
2,650
1,529
Concession revenue
1,451
381
1,070
2,800
494
2,306
Tota non-aeroncautical revenue
17,631
11,850
5,781
Non-aeronautical revenue % of total revenue
40.4%
33.6%
Airport improvement fee
NON-AERONAUTICAL REVENUE
Other revenue
45
46
Operating Expenses
Operating expenses increased by $11.5 million over the prior year for a total of $26.9 million before
amortization and interest. The increase in expenses is attributed to the opening of the new main airport
terminal building and the higher cost structure associated with operating a much larger facility.
Included in 2014, was $1.7 million in costs associated with the gala and airshow celebration for the opening
of the new terminal building. The majority of the costs were offset by sponsorship and revenue generated
through the special events.
The following charts present the 2014 expenses compared to prior year ($000s):
$1,687
$1,012
$1,125
$2,461
$3,977
$8,047
$14,811
$5,333
Salaries and Wages
General and Administrative
Operating
$3,898
Airport Improvement Fee Handling
Special Events
Operating Expenses (000s)
2014: $26.9M
Operating Expenses (000s)
2013: $15.4M
Financing
The Authority secured $198 million in long-term financing for the construction of the new airport terminal
building, through the Alberta Capital Finance Authority (ACFA). The interest rate is fixed at 4.719% for thirty
years. The Authority made interest only payments up to June 2014, with the first principal payment of
$1.8 million made in September 2014. The Authority has met all the covenants under the terms of the
ACFA credit facility.
Grants from RMWB
The Authority has received $25 million in funding grants from the RMWB to be used for civil works to
support the development of the new airport terminal and related projects. The final $6.2 million instalment
of the grant was received in January 2014.
Capital Investment
New Airport Terminal Building
In the year, $38 million was spent towards the completion of the airport terminal building and related
projects and $3.4 million in sustaining capital. Total funds invested to date total $228 million. Amortization
of the new terminal building commenced as of June 9, 2014. The following table shows the breakdown of
capital and sustaining maintenance capital invested for the year.
Capital Investment
$
CAPITAL
New main airport terminal project
37,960,680
37,960,680
SUSTAINING MAINTENANCE CAPITAL
Mobile Equipment
92,078
Light Vehicles
215,166
Airside
191,753
Building and Plant
1,505,254
Terminal Expansion Projects
12,232
Airfield Expansion Projects
1,232,461
Commercial Development
138,990
Sustaining Capital Investment
Total Capital Investment
3,387,934
41,348,614
Five-Year Performance Review
The Regional Airports Authorities Act (the Act) and the Regional Airports Authorities Regulation
(the Regulation) require that at least once every five years the Fort McMurray Airport Authority (FMAA)
commission an independent review of the extent to which the FMAA operates a safe and efficient service to
the public, and an efficiently run undertaking in accordance with its business plans. In 2014, Rideau Consultants
Inc. was retained by the Authority to perform the five-year performance review. Rideau concluded that FMAA
does operate a safe and secure aerodrome, run in accordance with its business plans.
Key Findings
»» Concluded that the FMAA is in compliance with the Act and the Corporate Objects expressed in the
FMAA Articles.
»» That FMAA has demonstrated during the period of review its willingness to support the necessary
enhanced safety and security requirements and responsibilities that come with local FMAA management.
»» That FMAA has demonstrated, during the period of review, a commitment to regional economic
development through its adoption of an active strategy to directly invest in the local economy.
»» That FMAA has demonstrated an exemplary commitment to its management, during the period of review,
of the airport environment. It consistently demonstrates its awareness and concern about its environmental
responsibilities, and is open in conducting its environmental program.
»» On a day-to-day operation basis, the FMAA operates effectively and efficiently, covering operating
expenses with operating revenue.
»» That the FMAA Board has developed and implemented governance policies and practices consistent with
the good governance best practices used by other Canadian airport authorities. The Board uses these
policies and practices effectively in offering guidance to FMAA management.
»» That FMAA has continued to demonstrate its commitment to consistent, high- quality, strategic and business
planning. It has evolved a structure that is well understood, well documented and effective in guiding the
FMAA as an effective not-for-profit corporation, managed with due regard for its stakeholder communities.
47
All earnings from
operations are
reinvested in YMM.
FORT McMURRAY AIRPORT
AUTHORITY FINANCIAL
STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
TABLE OF CONTENTS
Statement of Management Accountability .............................................50
Independent Auditor’s Report.....................................................................51
Statement of Financial Position..................................................................52
Statement of Operations and Net Assets.................................................53
Statement of Cash Flows..............................................................................54
Notes to the Financial Statements.............................................................55
49
50
FORT McMURRAY AIRPORT AUTHORITY | FINANCIAL STATEMENTS
STATEMENT OF MANAGEMENT ACCOUNTABILITY
Statement Of Management Accountability
The audited financial statements of the Fort McMurray Airport Authority (“the Authority”) for the year
ended December 31, 2014 have been prepared by and are the responsibility of the Authority’s management.
The Authority’s financial statements include disclosures necessary for a fair presentation of the statements
of financial position, results of operations and net assets and cash flows of the Authority and have been
prepared in accordance with Canadian accounting standards for not for profit organizations (“ASNPO”),
and disclosure otherwise required by the laws and regulations to which the Authority is subject.
The Finance and Audit Committee of the Board of Directors meets periodically with management and
independent auditors to review significant accounting, internal controls, and auditing matters. They also
review and recommend the annual financial statements of the Authority to the Board of Directors.
Scott Clements
President and
Chief Executive Officer
Marlene Kowalski
Vice-President Corporate Services
and Chief Financial Officer
INDEPENDENT AUDITOR’S REPORT
Independent Auditor’s Report
Deloitte LLP
2000 Manulife Place
10180 - 101 Street
Edmonton AB T5J 4E4
Canada
To the Board of Directors of Fort McMurray Airport Authority
We have audited the accompanying financial statements of Fort McMurray Airport Authority, which
comprise the statement of financial position as at December 31, 2014, and the statements of operations
and net assets and cash flows for the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with Canadian accounting standards for not-for-profit organizations, and for such internal
control as management determines is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with Canadian generally accepted auditing standards. Those standards require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of
Fort McMurray Airport Authority as at December 31, 2014, and the results of its operations and its cash flows
for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
Chartered Accountants
April 28, 2015
Tel: 780-421-3611
Fax: 780-421-3782
www.deloitte.ca
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STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2014
2014
2013
$
$
Cash and cash equivalents
6,097,049
7,131,058
Accounts receivable
6,260,207
4,212,716
ASSETS
CURRENT
Inventory
Investments (note 3)
Prepaid expenses
178,498
278,753
-
146,668
259,579
199,665
12,795,333
11,968,860
325,392,499
298,183,543
34,993
3,580
52,412,807
82,307,451
390,635,632
392,463,434
9,522,671
15,873,810
NON-CURRENT
Tangible capital assets (note 4)
Intangible assets (note 5)
Investments and restricted cash (note 3)
LIABILITIES AND NET ASSETS
CURRENT
Accounts payable and accrued liabilities
Deferred revenue
1,695,461
1,253,516
Current portion of long-term debt (note 6)
3,835,384
1,851,642
15,053,516
18,978,968
Long-term debt (note 6)
192,312,974
196,148,358
Deferred capital contributions (note 7)
24,000,000
17,750,000
231,366,490
232,877,326
158,269,142
159,586,108
1,000,000
-
159,269,142
159,586,108
390,635,632
392,463,434
NON-CURRENT
Contingencies (note 13)
NET ASSETS
Unrestricted net assets
Internally restricted net assets (note 14)
See accompanying notes to financial statements.
APPROVED BY THE BOARD
Director
Director
STATEMENT OF OPERATIONS & NET ASSETS YEAR ENDED DECEMBER 31, 2014
2014
2013
$
$
Airport improvement fee (note 9)
15,911,040
14,292,880
Airport improvement fee - equivalent (note 10)
3,310,593
3,392,070
Other airfield
7,881,330
6,728,940
Terminal
4,179,482
2,650,007
Parking
4,107,888
3,658,798
Other
1,476,137
346,152
Ground transportation
2,739,329
2,392,500
Land lease
2,354,459
2,273,015
Concession
1,451,223
381,438
REVENUE
Interest
1,324,327
147,697
1,373,490
-
46,109,298
36,263,497
Salaries and wages
14,810,845
8,047,069
Amortization expense
14,283,521
11,077,667
General and administrative
5,332,841
3,897,767
Interest
5,209,492
-
Operating
3,977,264
2,461,185
1,125,205
1,012,497
Special events
1,687,096
-
46,426,264
26,496,185
(316,966)
9,767,312
NET ASSETS, BEGINNING OF YEAR
159,586,108
149,818,796
NET ASSETS, END OF YEAR
159,269,142
159,586,108
Special events
EXPENSES
NET (LOSS) INCOME
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STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2014
2014
2013
$
$
(316,966)
9,767,312
CASH PROVIDED BY (USED IN)
OPERATIONS
Net (loss) income
Items not affecting cash
Gain on disposal of tangible capital assets
-
(290,209)
14,267,404
11,038,630
Amortization of intangible assets
12,083
35,003
Amortization of non-current investment
4,034
4,034
-
(2,735)
13,966,555
20,552,035
(2,047,491)
(610,222)
Inventory
100,255
(91,385)
Prepaid expenses
(59,914)
(129,754)
(6,351,139)
(254,428)
(16,636)
21,167
5,591,630
19,487,413
30,037,278
37,465,555
Amortization of tangible capital assets
Non-cash investment income
Change in non-cash working capital items
Accounts receivable
Account payable and accrued liabilities
Deferred revenue
INVESTING
Net change in investments and restricted cash
Repayment of mortgage receivable
-
548,115
Purchase of new airport terminal assets
(34,479,416)
(64,587,000)
Purchase of tangible capital assets
(6,996,944)
(2,059,801)
(43,496)
(4,079)
(11,482,578)
(28,637,210)
6,250,000
6,250,000
458,581
481,866
(1,851,642)
-
4,856,939
6,731,866
(1,034,009)
(2,417,931)
7,131,058
9,548,989
6,097,049
7,131,058
Purchase of intangible assets
FINANCING
Contribution from Regional Municipality of Wood Buffalo
Increase in deferred revenue - QTA
Repayment of long-term debt
Decrease in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2014
1. Nature of operations
The Fort McMurray Airport Authority (The “Authority”) was incorporated in December 1, 2009 under
the Regional Airports Authorities Act (Alberta) (the “Act”) as a non-share capital corporation. Under the
provisions of the Act, the mandate of the Authority is to manage the Fort McMurray International Airport
(the “Airport”) in a safe, secure and efficient manner, and to advance economic and community development
by promoting improved airline and transportation service and an expanded aviation industry; for the general
benefit of the public in the region.
The Authority has operated the Airport since January 1, 2010 when the Regional Municipality of Wood
Buffalo (“RMWB”) transferred the assets and operations of the Fort McMurray Regional Airport Commission
(the “Commission”) to the Authority. The tangible capital assets of the Commission were transferred to the
Authority and recorded at the carrying amount of the Commission.
In accordance with the provisions of the Act, the Authority operates as a not-for-profit corporation, and
as such earnings from operations are used towards promoting its purposes and reinvestment in airport
development. Under section 149 of the Income Tax Act (Canada) the Authority is exempt from payment of
income tax.
2. Significant accounting policies
a) Basis of accounting
The financial statements have been prepared in accordance with Canadian accounting standards for not-forprofit organizations (“ASNPO”) and reflect the following significant accounting policies:
b) Controlled entities
The Authority has elected not to consolidate controlled entities as allowed under ASNPO. The investment
controlled by these entities is recorded at cost in the statement of financial position and prescribed
disclosure is presented in the notes to the financial statements. The Authority has incorporated a wholly
owned subsidiary, YMM Inc., which is currently dormant and had no activity in the year.
c) Cash and cash equivalents
Cash and cash equivalents include unrestricted cash on deposit with financial institutions and short-term
investments with maturities of three months or less from the date of acquisition. Cash and cash equivalents
also include bank indebtedness consisting of overdrawn bank accounts. Bank indebtedness is included in
cash and cash equivalents as it regularly fluctuates from being positive to overdrawn.
d) Accounts receivable
Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for
doubtful accounts where considered necessary.
e) Inventory
Inventory is valued at the lower of cost and the net realizable value with the cost being determined on a first
in, first out basis.
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f) Tangible capital assets
Tangible capital assets exclude the cost of facilities constructed on airport lands which are owned by tenants.
Tangible capital assets are recorded at cost less accumulated amortization and impairment losses. Interest
directly attributable to the acquisition, construction or development of tangible capital assets is capitalized.
Amortization is based on their estimated useful life at the following rates using the straight line method:
Asset
Rate
Buildings
15 - 40 years
Apron expansion
11 years
Maintenance equipment
10 years
Roadways and airside/groundside paving structures
10 years
Airside lighting structures
10 years
Parking lots
6 - 20 years
Fire trucks and equipment
5 - 10 years
Light vehicle fleet
4 - 5 years
Furniture, fixtures and equipment
5 years
Computer hardware
3 years
g) Intangible assets
Intangible assets with a finite life are accounted for at cost less accumulated amortization. Amortization is
based on their estimated useful life using the straight-line method over two years.
h) Investments
Investments are recorded at amortized cost. Earnings from these investments are recognized only to the
extent received or receivable. The Authority recognizes an impairment loss in net earnings, if any, when
it determines that a significant adverse change has occurred during the period in the expected timing or
amount of future cash flows. When the extent of impairment of a previously written-down asset decreases
and the decrease can be related to an event occurring after the impairment was recognized, the previously
recognized impairment loss shall be reversed in net earnings in the period the reversal occurs.
i) Impairment of long-lived assets
When a long-lived asset no longer has any long-term service potential to the Authority, the excess of its net
carrying amount over any residual value is recognized as an impairment loss and expensed in the statement
of operations and net assets. No impairment loss was recorded for the year ended December 31, 2014.
j) Revenue recognition
The Authority recognizes revenue when persuasive evidence of an arrangement exists, delivery has
occurred, the price to the user is fixed or determinable and collection is reasonably assured. Specifically,
revenue generated from airport improvement fees, airfield revenues, fees charged for parking, car rental
agencies, land lease, building lease and other revenues are recognized as the airport facilities are utilized.
Concession revenues are charged on a monthly basis and are recognized on a percentage of sales or
specified minimum rent basis. Other rentals are recognized over the term of the respective agreements.
The Authority follows the deferral method of revenue recognition for externally restricted revenues.
The Authority has retained substantially all of the benefits and risks of ownership of its rental assets;
therefore, it accounts for leases as operating leases. Rental revenue from operating leases is recognized as
income over the term of the lease as it becomes due.
k) Use of estimates
The preparation of financial statements in conformity with ASNPO requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements, and the reported amounts of revenues and
expenses during the year.
Key components of the financial statements require management to make estimates that include the
provision for doubtful accounts in respect of accounts receivables, the cost and net realizable value of
inventory, the useful life of long-lived assets, the fair value of certain financial instruments, and liabilities
under legal contingencies. Actual results could differ from these estimates.
l) Financial instruments
Financial assets and financial liabilities are initially recognized at fair value when the Authority becomes a
party to the contractual provisions of the financial instrument. Subsequently, all financial instruments are
measured at amortized cost except for the following instruments:
Investments in unlisted shares are measured at cost less any reduction for impairment.
Transaction costs related to financial instruments measured at fair value are expensed as incurred.
Transaction costs related to the other financial instruments are added to the carrying value of the asset
or netted against the carrying value of the liability and are then recognized over the expected life of the
instrument using the straight-line method. Any premium or discount related to an instrument measured at
amortized cost is amortized over the expected life of the item using the straight-line method and recognized
in net earnings as interest income or expense.
With respect to financial assets measured at cost or amortized cost, the Authority recognizes in operations
an impairment loss, if any, when it determines that a significant adverse change has occurred during the
period in the expected timing or amount of future cash flows. When the extent of impairment of a previously
written-down asset decreases and the decrease can be related to an event occurring after the impairment
was recognized, the previously recognized impairment loss shall be reversed in operations in the period the
reversal occurs.
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3. Investments and restricted cash
2014
2013
CURRENT
$
$
Bank GIC - 1.9% annual interest matured July 15, 2014
-
146,668
2014
2013
NON-CURRENT INVESTMENTS
$
$
Bank GICs - 1.63% and 1.56% annual interest matured September 17, 2014
and October 3, 2014
-
40,071,366
25,619,684
-
High interest bank account - 1.23% annual interest
Bank account - airport terminal building project
-
938,709
Bank GIC - 1.75 % annual interest matures July 15, 2019
148,144
-
Other investments
175,188
182,228
25,943,016
41,192,303
-
39,928,634
RESTRICTED CASH
Bank GICs - 1.63% and 1.56% annual interest matured September 17, 2014
and October 3, 2014
High interest bank account - 1.23% annual interest (notes 7 & 14)
Bank account - quick-turn-around (QTA) project
Non-current investments and restricted cash
25,000,000
-
1,469,791
1,186,514
26,469,791
41,115,148
52,412,807
82,307,451
The Authority received proceeds from term debt (note 6), as well as contributions from the RMWB
(note 7) in advance for the new airport terminal building. In the prior year, the Authority invested excess
cash received into GIC’s designated for use in the new airport terminal project and related capital projects.
Upon maturity funds were reinvested in a high interest investment bank account. This amount qualifies
as cash and cash equivalents but is classified as a non-current investment as it will be used for future
infrastructure development.
Bank account – quick-turn-around project
This cash is received from the car rental agencies (the “agencies”) operating from the Airport. The money is
to be applied for the purposes of developing a quick turn-around facility (“QTA”) at the Airport which will
include car wash and refueling station. As per the rental agreement between the Authority and agencies,
the agencies are required to charge customers a customer facility charge which in turn is remitted to the
Authority to finance the QTA project.
Other investments
The Authority incurred costs associated with real estate development leases for hotels. The carrying costs
will be amortized over the life of the lease.
4. Tangible capital assets
Cost
Accumulated
amortization
$
Land
2014
2013
Net book
value
Net book
value
$
$
$
25,037,536
-
25,037,536
24,690,500
253,689,367
8,104,724
245,584,643
213,551,250
Maintenance equipment
5,944,141
3,185,239
2,758,902
3,158,374
Roadways and groundside paving structure
2,127,152
4,359
2,122,793
6,293
Airside paving structure
45,190,542
22,078,167
23,112,375
26,528,590
Airside lighting structures
2,412,939
1,176,420
1,236,519
1,467,842
Parking lots
2,580,216
1,783,517
796,699
1,226,735
Apron expansion
41,535,313
18,879,689
22,655,624
26,431,562
Light vehicle fleet
932,506
641,512
290,994
211,280
Buildings
Fire trucks and equipment
Furniture, fixtures and equipment
Computer hardware
1,396,462
717,831
678,631
822,197
409,138
165,499
243,639
68,224
1,411,694
537,550
874,144
20,696
382,667,006
57,274,507
325,392,499
298,183,543
The new airport terminal building was substantially completed during the year and became operational
on June 9, 2014 as such, there were no costs (2013 - $190,943,863) related to assets under construction.
Amortization of the new building commenced as of the operational date whereas assets under construction
are not subject to amortization. Net interest of $4,108,512 (2013 - $9,292,422) in respect of borrowings for the
project under the long-term debt facility was also capitalized.
5. Intangible assets
Computer software
2014
2013
Cost
Accumulated
amortization
Net book
value
Net book
value
$
$
$
$
172,387
137,394
34,993
3,580
Intangible assets with a finite life are accounted for at cost less accumulated amortization and impairment
losses. Amortization is based on their estimated useful life using the straight-line method over two years.
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6. Long term debt
Alberta Capital Finance Authority (“ACFA”)
On March 7, 2011, the Authority secured $198,000,000 in long-term financing for construction of the new
Airport Terminal Building that opened in June 2014, at a fixed rate of 4.719% for thirty years, due March 15,
2041. Interest only payments commenced September 2011 with principal and interest payments starting
in September 2014 in the amount of $13,046,904 annually. The debenture is secured by a first charge on
all Authority assets. A Letter of Guarantee for an amount of up to $10,000,000 in support of the debenture
issued by the ACFA has been arranged by the RBC, pari passu with ACFA.
Long term debt relating to the Authority at year-end is $192,645,974 (2013 - $196,148,358) and the current
portion is $3,835,384 (2013 - $1,851,642). Under the terms of the ACFA facility, when debentures are
outstanding, the Authority is required to maintain an Interest Coverage Ratio of not less than 1.25:1 and
net cash flows greater than zero as of the end of any fiscal quarter on a rolling four fiscal quarter basis.
All covenants have been met.
Principal payments required in the next five years and thereafter are as follows:
$
2015
3,835,384
2016
4,018,511
2017
4,210,382
2018
4,411,413
2019
4,622,044
Thereafter
175,050,624
196,148,358
7. Grants and deferred capital contributions
Regional Municipality of Wood Buffalo (RMWB)
On May 24, 2011, the Council of the RMWB approved a matching funding grant of $25,000,000 to
the Authority. $24,000,000 of the grant is to provide support for airport infrastructure development.
The Authority received the final $6,250,000 instalment of the grant in 2014.
Per the grant agreement $1,000,000 of the total funding is to be used at the discretion of the Authority
for the purpose of providing customs and immigration facilities within the existing airport terminal.
Due to the discretionary and unrestricted nature of this funding it was recorded as revenue in 2012.
The remaining $24,000,000 received has been recorded in deferred capital contributions on the statement
of financial position. The amount will be reclassed to unamortized deferred capital contributions when the
funds have been utilized as intended. This balance will be amortized over the life of the assets to which it
relates and will commence as and when the related assets are available for use.
In 2010, the RMWB approved a bylaw which waives the RMWB portion of property taxes while leaving the
Authority responsible for only that portion of the property taxes that are paid to the Provincial Government,
as well as that portion of the property taxes used for senior citizen support.
The RMWB is an appointee of three directors to the Board of Directors of the Authority.
8. Related party transactions
Staff housing
The Authority owns seven staff housing units all of which are rented to current employees. The rental charge
is based on the housing policy of the RMWB. The rents for 2014 totaled $148,312 (2013 - $148,120) and the
direct expenses associated with these totaled $65,288 (2013 - $45,584).
These transactions are measured at the exchange amount, which is the amount of consideration established
and agreed to by the related parties.
9. Airport improvement fee
The Authority derives revenue from the Airport Improvement Fee (“AIF”), which is collected by air carriers
pursuant to an agreement among various airports in Canada, the Air Transport Association of Canada and
air carriers serving airports that are signatories to the agreement (the “AIF Agreement”). Pursuant to the
AIF Agreement, signatory airlines receive a 7% collection fee. AIF revenue is used to fund the costs of new
airport infrastructure, major improvements to existing facilities at the Airport, as well as related financing
costs, debt repayment and the collection fee retained by the signatory airlines. The AIF as at December 31,
2014 was $30 (2013 - $30) for each originating passenger departing from the Airport.
10. Airport improvement fee – equivalent
Effective March 1, 2011, the Authority derives revenue from the Airport Improvement Fee – Equivalent
(“AIF-E”) for charter aircraft exceeding ten seats at the same rates as for the AIF.
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11. Employee future benefits
Pension and retirement plans
Employees of the Authority participate in the Local Authorities Pension Plan (“LAPP”), which is a multiemployer contributory defined pension plan covered by the Public Sector Pension Plans Act of Alberta.
At December 31, 2013, the LAPP reported an actuarial deficiency of $4.86 billion (2012 - $4.98 billion
deficiency). An actuarial valuation is carried out every year. Any differences between the actuarial valuation
results and extrapolated results will next be reported as at December 31, 2014. Total service contributions by
the Authority to the LAPP for 2014 were $733,143 (2013 - $465,585).
The Authority had a defined contribution supplementary retirement plan for two senior executives in 2014
and three senior executives in 2013. The expense recorded in the statement of operations and net assets for
2014 totaled $45,178 (2013 - $61,310). The Authority requires members to contribute to the plan at a rate equal
to that required by LAPP.
12. Financial instruments
The financial assets of the Authority, which consist of cash and cash equivalents, accounts receivable,
investments, and investments and restricted cash are measured at amortized cost. Accounts receivable
presented in the statement of financial position is presented net of an allowance for doubtful accounts of
$17,762 (2013 - $17,762).
a) Credit risk
The Authority is exposed to credit risk as it provides credit to a large number of customers in the normal
course of its operations. This risk is minimized through the Authority’s diverse customer base and
assessment of potential customer’s financial condition prior to extending credit.
b) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change
in the interest rates. Changes in market interest rates may have an effect on the cash flows associated with
some financial assets and liabilities, known as cash flow risk. In seeking to minimize the risk from interest
rate fluctuations, the Authority manages exposure through its normal operating and financing activities.
The Authority is exposed to interest rate risk with respect to investments in guaranteed investment
certificates, investments and restricted cash and term loans subject to refinancing. Changes in market
interest rates could impact investments to the extent that the investments mature and are reinvested at
current market interest rates. There is no impact on the ACFA project financing as the note bears interest
at a fixed rate of 4.719% for the 30-year term.
c) Liquidity risk
The Authority actively maintains its credit facilities to ensure it has sufficient available funds to meet current
and foreseeable financial requirements at a reasonable cost.
Management believes that cash flows from operations, along with available credit under existing banking
facilities, will be adequate to support the payment of the Authority’s financial liabilities. Further, management
also believes that the financing secured from ACFA for the new Airport Terminal project will be adequately
serviced by the AIF paid by departing passengers.
13. Contingencies
In the normal course of operations, there may be claims against the Authority or assumed from the
predecessor Commission. Litigation is subject to many uncertainties, and the outcome of individual matters
is not predictable with assurance. In the opinion of management, it is not possible to predict the ultimate
outcome of these claims, if any, which may result.
As part of the new terminal building development, the Authority requires supporting infrastructure such
as water, sewer and upgraded road access which are offsite airport lands to be provided for the new airport
terminal. The estimated total costs of such supporting infrastructure cannot be determined at this time.
The costs that may be borne by the Authority will be based on construction undertaken and paid at that time.
14. Internally restricted net assets
In 2014, the Authority restricted $1,000,000 of net assets for the purpose of infrastructure development
related to the RMWB funding grant (note 7). The funds will be utilized for capital expenditures related to the
construction or improvement of the airport infrastructure. Cash of $1,000,000 is similarly restricted to fund
the internally restricted net assets (note 3).
15. Economic dependence
Revenue generated from major airlines such as Air Canada/Air Canada Express and WestJet/Encore
account for approximately one-half of total revenues on a recurring basis. In addition, passengers flying
with these airlines generate a significant portion of remaining revenue amounts. The Authority’s ability
to continue variable operations is dependent on Air Canada/Air Canada Express and WestJet/Encore
continuing to fly to and from the Airport. As of the financial statement date, the Authority believes that their
relationship with these airlines will continue into the foreseeable future.
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16. Directors’ and Officers’ remuneration
This information is provided pursuant to The Regulations of the Not-for-profit Corporations Act (S.C. 2009,
c. 23) and represents the total compensation paid and expenses reimbursed to each director for the year end
December 31, 2014.
Gross Pay
Director Remuneration and Expenses
Travel
Training &
Development
2014
2013
Total
Total
$
$
$
$
$
Alexander, Cheryl
17,184
657
-
17,841
18,122
Balkwill, Kenneth
21,083
4,992
-
26,075
17,978
Cox, Matthew
8,733
3,401
-
12,134
-
Fitzner, Jeff
3,158
-
-
3,158
17,467
Kallal, Allan
23,116
875
-
23,991
20,043
Kulas, Mario
-
-
-
-
1,542
Obrigewitsch, Trent
3,550
397
-
3,947
13,950
Ralph, Mildred
19,584
683
-
20,267
17,720
Schroeder, Sheldon
45,000
1,370
-
46,370
49,816
Sigler, Murray
17,400
5,586
-
22,986
16,987
Solbak, Colin
11,700
1,372
-
13,072
-
Wehmeyer, Bernd
27,016
2,531
-
29,547
19,527
Williams, Roy
3,200
589
-
3,789
-
Gross Pay
Travel
Authority Officers’ Remuneration
and Expenses
Training &
Development
Total
Total
$
$
$
$
$
President & CEO
338,447
46,526
-
384,973
375,687
VP Operations
272,953
42,839
-
315,792
269,625
VP Corporate Services & CFO (a)
249,833
14,588
3,694
268,115
320,462
Officer compensation includes base salary, bonus, pension, employer paid contributions and taxable benefits.
(a) 2013 includes the retirement of the VP Corporate Services & CFO in December 2013 and their replacement started in August 2013
17. Comparative figures
Certain December 31, 2013 figures have been reclassified to conform to the current year presentation.
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2014 Annual Report PDF - Fort McMurray International Airport

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