2002 - ATAC

Transcription

2002 - ATAC

AIR TRANSPORT ASSOCIATION OF CANADA
ANNUAL
REPORT
2002
In Service to Commercial Aviation
TABLE OF CONTENTS
MISSION STATEMENT AND OBJECTIVES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . iii
ATAC BOARD OF DIRECTORS 2001-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
MESSAGE FROM THE CHAIR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
MESSAGE FROM THE PRESIDENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ATAC COMMITTEES, SUBCOMMITTEES AND THEIR CHAIRPERSONS
[ATAC OFFICER RESPONSIBLE] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
MEMBERSHIP LIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
HONORARY LIFE MEMBERS (REVISED OCTOBER 2002) . . . . . . . . . . . . . . . . . . 25
ATAC STAFF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
[ II ]
ATAC ANNUAL REPORT 2002
MISSION STATEMENT AND OBJECTIVES
MISSION:
To support our members in their pursuit of a safe, world-leading
and competitive Canadian air transport industry.
OBJECTIVES: Promote safe and reliable air transportation of people and goods to the benefit
of Canadian society.
•
•
•
•
•
•
•
Consult and cooperate with all Government and regulatory authorities seeking
the advancement or improvement of commercial aviation.
Promote and advocate for the commercial air transport industry.
Promote and support a regulatory framework that recognizes enterprise and
imagination in providing safe and competitive air transport services.
Provide excellent and cost-effective services to our members.
Promote professional operational standards and business practices by the membership.
Inform the public about the industry and its views in an open and factual manner.
Communicate matters of interest to our members in a timely and clear manner.
[ III ]
ATAC BOARD OF DIRECTORS 2001-2002
CHAIRMAN OF THE BOARD Patricia KENNEDY, Chief Operating Officer,
Pacific Flying Club, Delta, British Columbia
PRESIDENT & CHIEF EXECUTIVE OFFICER: J. Clifford MACKAY,
ATAC, Ottawa, Ontario
1ST VICE CHAIRMAN: Russell PAYSON, President
Skyservice, Toronto, Ontario
2ND VICE CHAIRMAN: Joseph D. RANDELL, President
Air Canada Jazz, Enfield, N.S.
HONORARY TREASURER: T. Al KAPTY, General Manager,
Trans North Helicopters, Whitehorse, Yukon.
HONORARY SECRETARY: Barry LAPOINTE, President,
Kelowna Flightcraft Ltd., Kelowna, British Columbia
PAST CHAIRMAN OF THE BOARD: Douglas PORT, Senior Vice President,
Customer Service
Air Canada, Toronto, Ontario
[1]
DIRECTORS: Dennis COOPER, Chief Executive Officer,
Sky Wings Aviation Academy Ltd., Penhold, Alberta
Bob DAVIS, President,
First Air, Carp, Ontario
Harvey J. FRIESEN, President,
Bearskin Airlines, Sioux Lookout, Ontario
Jim GLASS, Managing Partner,
Transwest Air, Prince Albert, Saskatchewan
Allen B. GRAHAM, President & CEO,
Air Transat, Mirabel, Quebec
Mark HILL, Vice President of Strategic Planning
WestJet, Calgary, Alberta
John D. ISSENMAN, President,
PROAV International Aviation Services Corporation,
Gloucester, Ontario.
Stephen MARKEY, Vice President,
Government Relations & Regulatory Affairs
Air Canada, Ottawa, Ontario
Dan MUNRO, President,
National Helicopters Inc., Kleinburg, Ontario
John M. SCHOLEFIELD, President,
Laurentide Aviation, Les Cedres, Quebec
Tim VAILLANCOURT, Vice President, Operations,
Provincial Airlines, St. John’s, Newfoundland
Rick WYNOTT, Director of Flight Operations,
Brampton Flying Club, Cheltenham, Ontario
[2]
MESSAGE FROM THE CHAIR
PATRICIA KENNEDY
Chief Operating Officer
Pacific Flying Club
It has been an honour and a
privilege to serve as Chair of
the Air Transport Association
of Canada's Board of Directors for 2002. Looking back
at the events and experiences
of the past year, it seems as
though we were confronted with new and enormous
challenges nearly every day. And our industry has
been changed by them.
Change, in the aviation sector, is nothing new – we
have been through a decade and more of change.
Regulatory change, economic change, structural
change, we have seen it all, and, as an industry, we
have survived and been bettered by it.
We have seen our members make the difficult transition from being a predominantly closed domestic
industry, operating under the tight control of government, to a much more open industry, operating
under the pressures of international competition and
feeling the effects of global events. And of course, no
global event has affected Canada's air transport
sector more than September 11th and its fallout.
The effects of September 11th on national, regional and
large charter carriers have been thoroughly reported in
the media. But for smaller operators and flight training
facilities, such as the one I am associated with, the year
has had its own particular challenges.
Smaller operators also have been hit. Hit with
insurance increases, unpredictable fuel prices, and
innumerable hassles in training new pilots and with
getting people in and out of the country – particularly if they go anywhere near the United States. These
problems have been compounded by the general
economic uncertainty we are currently experiencing in
Canada, the United States and around the world.
Fortunately, our industry has also managed to
accomplish a lot over the past year, and ATAC has
been a critical part of that. As an organization,
ATAC has dealt very effectively with the fallout of
September 11th:
We helped develop tighter security standards for the
industry. We persuaded the government to introduce
an industry compensation program. We played a
critical role in improving the government's implementation of the aviation security tax, and particularly in winning an exemption from the fee for many
segments of the industry. And perhaps most significantly, we finally convinced the government to review
airport rents.
[3]
While there are still many challenges before us,
many others have already been dealt with. Now, more
than ever, it is important for all commercial operations, large and small, to fully participate in the future
of our industry.
Canada's air transport industry has been through
many changes and upheavals, but what has not
changed is our ongoing commitment to Canadian
aviation, and to serving the people, businesses and
communities in which we live and operate.
I am proud to be part of Canada's historic aviation
industry and to have had the opportunity to work
with the many outstanding people serving on the
Board and the Committees of the Association, and
with our excellent staff. My experience this year has
given me optimism about the future of our industry.
I would like to thank my fellow Board members for
their support and counsel throughout the year. And
on behalf of the Board, I want to express our gratitude to Cliff Mackay and the entire ATAC staff for a
job well done. Finally, I want to pass my best wishes
on to next year's Chair and Board Members.
I have no doubt that the next year will be as interesting and challenging as the past year, but with your
commitment and hard work, I am certain that our
industry will survive and ultimately grow. Good Luck.
Patricia Kennedy
Chief Operating Officer
Pacific Flying Club
[4]
MESSAGE FROM THE PRESIDENT
J. CLIFFORD MACKAY
President & Chief Executive Officer
Air Transport Association of Canada
Throughout 2002, ATAC has
continued coping with the
host of issues flowing from the
aftermath of last year’s September 11th terrorist attacks.
Confronting the challenges of
the post 9/11 world has brought out the best in our
industry; but it also has tested us, challenged our
business models, and pushed many companies to
the limits of endurance.
So far, the industry has weathered the storm, but we
are not yet out of it, and many of the most fundamental decisions confronting us are still to be made.
MORE QUESTIONS THAN ANSWERS
The events of the past year have left us with more
questions than answers.
Industry attention in the months following September
11th inevitably focused on managing the crisis –
increasing security, containing costs, and adapting
to the dramatic slowdown of the Canadian and U.S.
economies. But many issues going to the heart of
our industry remain.
Clearly, the global aviation sector will be fundamentally changed over the next few years. Presidents of
major carriers around the world – including our own
Air Canada – have said that the existing business
models for major network airlines no longer work
and must be rethought.
Similarly, business models for regional, lower-cost,
carriers also came under pressure after September
11th as uncontrollable business costs began to climb.
While a few expenses have been contained many
others have not, and it remains to be seen how they
will be accommodated by the marketplace.
The impact of these industry changes will be felt
throughout the country. For example, markets that
have traditionally generated only very modest
returns – even before September 11th – are likely to
become increasingly uneconomical.
[5]
For its part, the federal government must soon recognize that major changes are underway in the
global aviation sector, many of which will inevitably
lead to changes in the government’s stewardship of
Canadian aviation.
Over the next year, ATAC will continue working to
clarify these questions and to better understand
what they might mean for our industry, for our
customers and for Canada, in general.
Even in the face of uncertainty, ATAC had some
notable achievements this year.
Another by-product of September 11th was the
requirement to increase the security of aircraft flight
decks. In addition to helping Federal officials develop
and consult on the regulations supporting these
safeguards, the Association also managed to
convince the government to contribute $35 million
to help the industry defray the costs of implementing
these security enhancements.
Similarly, ATAC also played a major role in helping
start up and frame the responsibilities of the
Canadian Air Transport Security Authority (CATSA).
ATAC, on behalf of the industry, makes two appointments to the CATSA board and continues to be
involved in key issues such as the introduction of
performance measures and cost containment.
INSURANCE
Clearly, one of the most critical issues confronting
the industry was the sudden loss of a key portion of
the insurance coverage our fleets need to continue
operating. In response to an intervention by ATAC,
the federal government agreed to provide the
indemnification the industry needed to stay in the
air. We also have continued pressing the government
to maintain this indemnification until a more permanent solution becomes available.
SECURITY
INDUSTRY COMPENSATION
Security has become one of the dominant issues of
our time. Over the past year, the Association and its
members have worked closely with Transport
Canada to clarify security standards, improve the
flow of information and effectively deal with
changing international issues and procedures.
This year, ATAC members also saw the benefits of the
industry compensation program negotiated with the
federal government in the weeks following September
11th. So far, this program has provided $90 million in
relief to operators all segments of the industry.
AIRPORT RENTS
One of the most important security issues we faced
was the implementation of the government’s new
Air Transport Security Tax (ATST). ATAC worked
closely with the Department of Finance to make the
security tax as sensible as possible. More recently,
we also met with Parliamentarians, Ministerial staff
and other key decision-makers in preparation for the
government’s promised review of the tax and its
impacts on the industry.
[6]
Significant progress also has been made in the area
of airport rents.
As many members know, ATAC has been a persistent
critic of the federal government’s airport rent formula, which we feel is incoherent and effectively
works against the government’s overall objectives
for the transportation industry. We also are extremely
concerned that at a time when consumer costs have
risen in so many other ways, the government has
indicated that it plans to further increase the rent
burden by an additional $23 million in January 2002.
Working in cooperation with other industry organizations, ATAC has finally received a commitment
from the Minister of Transport that his department
will undertake a full review of airport rents. Over the
next year, we will continue pressuring the government to move ahead with this review and will press
the industry’s concerns on rent burden once the
review gets underway.
SAFETY
ATAC continues to put a high priority on improving
our first class record for safety. The Association was
very active in a number of international efforts such
as FAST and CAST. In addition, ATAC was very active
in promoting safety management systems approaches
with our members.
You will hear more about this during our AGM and
in the months to follow.
OTHER INITIATIVES
The normal business of the Association also has
continued. We conceived and implemented a new
member magazine called ‘Flightplan’, the second
issue of which has just been provided to our members.
The introduction of flight plan improves our communications with members while reducing our costs.
Accessibility issues have been dealt with, progress
has been made on a variety of training issues, and
we have continued working to clarify and improve a
variety of government regulations.
THE WORK AHEAD
The work completed by the Association this year, will
lead to much more work in the future. While many
important advances have been made in the areas of
air security, industry economics and airport relations,
much remains to be done.
[7]
More than ever before, the Canadian aviation sector
needs the active partnership of our government
regulators and infrastructure providers to ensure the
industry can successfully meet the challenges of a
changing global industry.
More than ever before, the federal government
needs to develop and implement a more robust
policy agenda for commercial aviation. And they
need to back up that policy agenda with concrete
action, a flexible attitude, and a commitment to
ensuring that Canadian aviation continues to have a
meaningful presence in the skies of the world.
THANK YOU
In closing, I wish to acknowledge and thank the
extremely hard working and dedicated ATAC officers
and staff who handled a difficult year with class and
commitment. I also want to thank the Board and, in
particular our Chair, for the support and guidance
that they have provided over the past year.
I look forward to meeting the challenges of the coming
year and building on foundations already established.
J. Clifford Mackay
[8]
ATAC COMMITTEES, SUBCOMMITTEES
AND
THEIR CHAIRPERSONS
[ATAC officer responsible]
ACCESSIBLE TRANSPORTATION
Barb Boudreau, Air Canada Jazz
[Warren Everson]
AEROMEDICAL ADVISORY
Claude Thibeault, Air Canada
[Fred Jones]
CARGO
John MacKenzie, All Canada Express
[Warren Everson]
DANGEROUS GOODS
Rob Morphew, Air Canada Jazz
[Glenn Priestley]
AFFILIATE MEMBERS' LIAISON
Glenn Priestley, ATAC
[Glenn Priestley]
ENGINEERING AND MAINTENANCE
Vic Lukawitski, WestJet
[Les Aalders]
AIRCRAFT FUEL HANDLING
Terry Delong, PLH Aviation Services Inc.
[Glenn Priestley]
ENGINEERING AND MAINTENANCE
STEERING COMMITTEE
Vic Lukawitski, WestJet
[Les Aalders]
AIRPORT AFFAIRS
Dave Robinson, Air Canada
[Michael Skrobica]
AIRSIDE SAFETY
Glenn Priestley, ATAC
[Glenn Priestley]
Engineering
Les Aalders, ATAC
[Les Aalders]
Maintenance & Quality Assurance
Les Aalders, ATAC
[Les Aalders]
[9]
ENVIRONMENTAL AFFAIRS
Don McLeay, Air Canada
[Les Aalders]
LABOUR LEGISLATION
Pat Heinke, Air Canada
[Warren Everson]
FACILITATION
Warren Everson, ATAC
[Warren Everson]
Employment Equity
Appointment Pending
[Warren Everson]
FIXED-WING CHARTER
Bob Lamoureux, Centennial Flight Centre Ltd.
[Glenn Priestley]
FLIGHT OPERATIONS
David Lyon, Air Canada
[Fred Jones]
Cabin Operations
Todd Brazeau, First Air
[Fred Jones]
FLIGHT TRAINING
Dennis Cooper, Skywings Aviation Academy Ltd.
[Glenn Priestley]
GROUND SAFETY
David Byers, Air Canada Jazz
[Glenn Priestley]
HELICOPTER
Appointment Pending
[Fred Jones]
Helicopter Executive Committee
Appointment Pending
[Fred Jones]
Occupational Safety & Health
Appointment Pending
[Warren Everson]
LEGAL
George Petsikas, Air Transat
[Warren Everson]
LOCAL SERVICES OPERATORS GROUP
Dennis Cooper, Skywings Aviation Academy Ltd.
[Glenn Priestley]
SAFETY ADVISORY
Greg Joseph, Air Canada Jazz
[Fred Jones]
SECURITY
Carol Clark, First Air
[Michael Skrobica]
TAX
Martina Krummen & Nhan Le, Air Canada
[Warren Everson]
TRAFFIC CONFERENCE
Appointment Pending
[Michael Skrobica]
USER CHARGES
David Robinson, Air Canada
[Michael Skrobica]
Subcommittees
[ 10 ]
AIR TRANSPORT ASSOCIATION OF CANADA, FINANCIAL STATEMENTS, For the year ended September 30, 2002
STATEMENT
2002
2001
$
$
Cash and cash equivalents
119,815
241,390
Short-term investments
564,180
546,845
ASSETS
OF FINANCIAL
POSITION
For the year ended
September 30, 2002
CURRENT ASSETS
Restricted cash
Accounts receivable
Deposits and prepaid expenses
CAPITAL ASSETS (note 3)
DEFERRED COSTS
–
300,550
6,415
359,696
19,307
20,241
1,003,852
1,174,587
132,240
171,259
24,977
37,465
1,161,069
1,383,311
LIABILITIES, DEFERRED AMOUNTS AND NET ASSETS
CURRENT LIABILITIES
Accounts payable and accrued liabilities
Fees received in advance
Current portion of capital lease obligation
CAPITAL LEASE OBLIGATION (note 4)
DEFERRED LEASE INDUCEMENT
271,191
374,950
84,543
106,849
11,447
10,670
367,181
492,469
9,130
20,577
56,333
69,333
154,000
164,300
586,644
746,679
Unrestricted
200,335
196,620
Invested in capital assets
111,663
140,012
Internally restricted for special projects (note 11)
262,427
300,000
PENSION LIABILITY (note 5)
NET ASSETS
[ 12 ]
574,425
636,632
1,161,069
1,383,311
Internally
restricted for
STATEMENT
OF CHANGES
IN NET ASSETS
For the year ended
September 30, 2002
STATEMENT
OF OPERATIONS For
the year ended
September 30, 2002
BALANCE – BEGINNING OF YEAR
Invested in cap-
special projects
Total
Total
Unrestricted
ital assets
(note 11)
2002
2001
$
$
$
$
$
196,620
140,012
300,000
636,632
572,688
Excess (deficiency) of revenue over expenses for the year
32,387
(57,021)
(37,573)
(62,207)
63,944
Investment in capital assets
(18,002)
18,002
–
–
–
Repayment of capital lease obligation
(10,670)
10,670
–
–
–
BALANCE – END OF YEAR
200,335
111,663
262,427
574,425
636,632
2002
2001
$
$
1,143,753
1,323,194
Association meetings (note 7)
92,707
72,557
Interest on investments
22,439
52,721
International marketing program
15,509
26,873
Miscellaneous
20,523
8,364
REVENUE
Membership fees
Airport Improvement Fees administration fee
99,615
105,929
357,485
672,611
1,752,031
2,262,249
Airport Improvement Fees administration
16,465
13,525
Bad debts
16,400
9,832
Communications and annual report
18,426
20,607
General
51,047
69,271
International marketing program
10,214
28,666
Special projects
EXPENSES
Occupancy cost
105,114
97,499
Postage
12,250
7,747
Printing and stationary
14,651
18,955
Professional fees
43,990
67,892
Publications
3,711
8,662
Salaries and benefits
932,948
976,655
Special projects
395,058
681,011
Telecommunications
64,676
65,701
Travel
72,267
77,038
Amortization of capital assets
57,021
55,244
1,814,238
2,198,305
(62,207)
63,944
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSES FOR THE YEAR
[ 13 ]
STATEMENT
2002
2001
$
$
(62,207)
63,944
Amortization of capital assets
57,021
55,244
Amortization of deferred costs
12,488
12,489
Amortization of deferred lease inducement
(13,000)
(13,000)
Difference between pension expense and amount funded
(10,300)
15,400
CASH FLOWS FROM (USED IN)
OF CASH FLOWS
For the year ended
September 30, 2002
OPERATING ACTIVITIES
Items not involving cash -
Net change in operating components of working capital
(59,570)
47,944
(75,568)
182,021
Purchase of capital assets
(18,002)
(33,922)
Purchase of short term investments
357,281
31,889
Redemption of short term investments
(374,616)
INVESTING ACTIVITIES
–
(35,337)
(2,033)
(10,670)
(9,946)
NET CHANGE IN CASH FOR THE YEAR
(121,575)
170,042
CASH AND CASH EQUIVALENTS – BEGINNING OF YEAR
241,390
71,348
CASH AND CASH EQUIVALENTS – END OF YEAR
119,815
241,390
6,415
97,885
59,146
(21,819)
934
(12,218)
(103,759)
(71,383)
(22,306)
55,479
(59,570)
47,944
FINANCING ACTIVITY
Repayment of capital lease obligation
NET CHANGE IN OPERATING COMPONENTS OF WORKING CAPITAL CONSISTS OF:
Restricted cash
Accounts receivable
Deposits and prepaid expenses
Accounts payable and accrued liabilities
Fees received in advance
[ 14 ]
NOTES TO
1 ORGANIZATION
FINANCIAL
Air Transport Association of Canada is incorporated without share capital under Part II of the Canada Corporations Act. Under subsection 149(1)(l) of
STATEMENTS
the Income Tax Act, the Association is a non-profit organization, not subject to income taxes. Its purpose is to act as the national service organization
For the year ended
for Canada’s commercial air transport industry.
September 30, 2002
2 SIGNIFICANT ACCOUNTING POLICIES
Cash equivalents
Deposits with financial institutions that can be withdrawn without prior notice or penalty and short-term deposits with an original term to maturity of
ninety days or less are considered cash equivalents as they are highly liquid, readily convertible to cash and not subject to significant changes in value.
Investments
Short-term investments are carried at the lower of cost plus accrued interest and market value.
Capital assets
Capital assets are recorded at cost and are amortized, over their estimated useful lives, on a straight-line basis using the following annual rates:
Office equipment
10%
Computer equipment
20%
Leasehold improvements
10%
Software
33%
Marketing equipment
33%
Deferred costs
Deferred costs comprise expenses incurred in the successful arrangement of a Memorandum of Agreement on Airport Improvement Fees that was executed between airlines, airports and the Association. The Agreement provides for an administrative fee to be paid to the Association. The deferred costs
are being amortized over five years.
[ 15 ]
NOTES TO
FINANCIAL
STATEMENTS
DEFERRED LEASE INDUCEMENTS
Lease inducements are deferred and then amortized on a straight-line basis over the term of the lease, which is the ten years beginning February 1, 1997.
Amortization of the deferred lease inducements is applied to reduce occupancy cost.
For the year ended
September 30, 2002
PENSION PLAN
The Association accrues its obligations under an employee benefit plan and the related costs, net of changes in plan assets, as follows:
• The cost of pensions and other retirement benefits earned by employees is actuarially determined using the projected benefit method pro rated on
service and management’s best estimate of expected plan investment performance, salary escalation, retirement ages of employees and expected
health care costs.
• For the purpose of calculating the expected return on plan assets, those assets are valued at fair value.
• The net transitional asset is amortized over the average remaining service period of active employees covered by the pension plan, which is 11 years.
The amount contributed to the plan by the Association is established using accepted actuarial procedures. The difference between the amount expensed and
the amount contributed by the Association is recorded as a deferred charge or credit.
REVENUE RECOGNITION
The Association follows the deferral method of accounting for revenue.
Membership fees are recognized as revenue in the period to which they relate. Revenue from Association meetings and programs is recognized as revenue
when the services are provided.
Revenue from special assessments is recognized in the year in which the related expenses are incurred.
USE OF ESTIMATES
The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.
[ 16 ]
NOTES TO FINANCIAL
3 CAPITAL ASSETS
STATEMENTS
For the year ended
September 30, 2002
2002
2001
Accumulated
Cost
amortization
Net
Net
$
$
$
$
Office equipment
109,778
87,708
22,070
26,052
Computer equipment
147,371
136,679
10,692
23,629
Leasehold improvements
127,070
72,000
55,070
67,777
Software
40,485
24,845
15,640
24,827
Marketing equipment
12,396
2,066
10,330
Equipment under capital lease
52,680
34,242
18,438
28,974
489,780
357,540
132,240
171,259
-
4 CAPITAL LEASE OBLIGATION
Future minimum lease payments under a capital lease for equipment are as follows:
$
Year ending September 30,
2003
12,607
2004
9,455
22,062
Amount representing interest
1,485
Balance of obligation at September 30, 2002
20,577
Current portion of capital lease obligation
11,447
9,130
The imputed interest rate with respect to the capital lease obligation is approximately 7%.
5 PENSION PLAN AND OTHER TERMINATION ARRANGEMENTS
Pension plan
The Association provides retirement benefits for its employees under a defined benefit pension plan. The plan provided benefits that are based on a
combination of years of service and a percentage of the participant’s plan earnings. The cumulative difference between the provision for pension and
costs and funding contributions is shown as a deferred charge on the balance sheet.
[ 17 ]
NOTES TO
Information about the Association’s defined benefit plan based on an extrapolation of a valuation dated 2000, is as follows:
FINANCIAL
STATEMENTS
September 30, 2002
For the year ended
$
September 30, 2002
ACCRUED BENEFIT OBLIGATION
(1,058,300)
FAIR VALUE OF PLAN ASSETS
1,002,900
PLAN DEFICIT
(55,400)
The significant actuarial assumptions adopted in measuring the Association’s accrued benefit obligation are as follows:
Expected long-term rate of return on plan assets
7.00%
Discount rate
6.75%
Rate of compensation increase
4.00%
The Association’s pension expense for the year is as follows:
2002
$
Accrual for service
82,600
Interest on benefit obligation
70,800
Expected return on plan assets
(69,200)
Amortization of transitional asset
(11,400)
Pension expense
72,800
Less: employee contributions
28,300
Employer pension expense
44,500
OTHER TERMINATION ARRANGEMENTS
The Association provides various benefits for employees with 5 or more years of continuous service. These benefits are paid on retirement or resignation.
The value of accrued benefits included in accounts payable and accrued liabilities as at September 30, 2002 is $22,689 (2000 – $24,989).
[ 18 ]
NOTES TO
FINANCIAL
STATEMENTS
6 SPECIAL PROGRAMS
The Association manages a number of special programs that will benefit the industry. Total receipts and disbursements of these programs are
as follows:
For the year ended
September 30, 2002
2002
2001
$
$
1,428,790
1,256,367
–
145,784
RECEIPTS
Air Cadets Training Program
Human Resources Study of Commercial Pilots
Traffic Conference
Canadian Aviation Security Awareness Committee
–
–
125,247
30,500
1,554,037
1,432,651
1,413,265
1,251,667
–
193,315
DISBURSEMENTS
Air Cadets Training Program
Human Resources Study of Commercial Pilots
Traffic Conference
Canadian Aviation Security Awareness Committee
16,649
7,018
129,942
1,559,856
906
1,452,906
The Association administers training programs for training air cadets. The Association contracts for the services of flight training schools and receives
reimbursement for the costs of the air cadet training from the Department of National Defence and the Air Cadet League. The Association received
$15,525 (2000 – $4,700) in fees for the administration of the programs.
The Association has received funding from Human Resources Development Canada to perform a study of human resource issues facing commercial
pilots in Canada. The study is being performed by an outside consulting firm. The Association acts as an administrator of the program by obtaining the
appropriate funding and disbursing the funds in accordance with the approved expenditures.
The Traffic Conference is a separate Committee within the Association that develops interline rules for connecting domestic flights. The Association
contracts out the administration of these rules. The Association charges members to cover the cost of administering the interline rules.
The Canadian Aviation Security Awareness Committee was formed in 1998 to ensure and promote proactive security measures at airports in areas
such as security pass usage and access to secure areas in airports. A Committee, made up of key players in the industry, was formed to ensure that the
program goals were met. The Association acts as an administrator of the program by collecting fees and disbursing these funds in accordance with the
Committee approved expenditures.
[ 19 ]
NOTES TO
FINANCIAL
STATEMENTS
Receipts and disbursements of these programs are not included in the statements of operations of the Association. The excess of receipts and disbursements
for the year is included in accounts payable as excess contributions must be returned to the funding source. At September 30, 2002, there is a balance of
$30,406 (2001 – $51,750) included in accounts payable for these special programs.
For the year ended
September 30, 2002
7 ASSOCIATION MEETINGS
During the year, the Association held an annual general meeting and a spring reception. Gross revenue and expenditures related to these
events were as follows:
2002
2001
$
$
REVENUE
256,083
204,199
EXPENDITURE
163,376
131,642
92,707
72,557
8 CONTROLLED CORPORATION
The Association is the sole member of the Air Transport Security Corporation (“ATSC”), a company incorporated without share capital March 3, 1997
under Part II of the Canada Corporations Act. ATSC has assumed ownership, operates and manages certain security related equipment situated at
Canadian airports.
ATSC issues separate, audited financial statements and their results are not consolidated with the Association’s. Selected financial information as
reported by ATSC for its last two years is as follows:
Year ended
Year ended
December 31,
December 31,
2001
2000
$
$
Total revenue
3,099,567
3,131,342
Total expenses
3,293,192
2,794,944
(193,625)
336,398
December 31,
December 31,
2001
2000
$
$
Total assets
4,730,176
3,268,072
Total liabilities
3,415,529
1,759,800
Net assets
1,314,647
1,508,272
RESULTS OF OPERATIONS
FINANCIAL POSITION
[ 20 ]
NOTES TO
Year ended
Year ended
FINANCIAL
December 31,
December 31,
STATEMENTS
2001
2000
$
$
Cash flows from operations
288,290
351,346
Cash flows used in investing and financing activities
(792,001)
(38,915)
Net change in cash for the year
(503,711)
312,431
For the year ended
September 30, 2002
CASH FLOWS
Subsequent to ATSC’s corporate year end, the Government of Canada negotiated the transfer of equipment, programs and staff from ATSC to the new
Canadian Air Transport Security Authority. This was a result of the privatization policy as it relates to aviation security. It is management’s intention to wind-up
ATSC in the coming fiscal year. The surplus funds, if any, will be used or distributed to the users of ATSC, as determined by the Association’s Board of Directors.
9 COMMITMENTS
The Association leases premises under a long-term operating lease which expires in 2007. The future minimum lease payments are
approximately as follows:
$
Year ending September 30,
2003
55,000
2004
55,000
2005
55,000
2006
55,000
Thereafter
18,000
10 CONTINGENCY
The Association has been named as a co-defendant in a lawsuit with unspecified damages, alleging a failure to pay travel agency commissions.
Management estimates costs arising from the lawsuit to be immaterial.
11 NET ASSETS
A portion of members’ capital is restricted for special projects critical to the interest of the Association’s members but not part of the ongoing functions
of the Association. The balance is adjusted annually to a targeted amount determined by the Association’s Board of Directors.
12 FINANCIAL INSTRUMENTS
Short-term investments
The Association holds two fixed income securities yielding approximately 3.3% per annum.
Accounts receivable
Accounts receivable consists of amounts due from members.
[ 21 ]
MEMBERSHIP LIST
OPERATORS
1370916 Ontario Ltd. coba Goderich &
Confederation College
Wingham Flight Centres
Brampton Flying Club
Cooking Lake Aviation Academy Inc.
Advanced Air Ambulance Inc.
Brandon Flying Club
Cornwall Aviation (1979) Ltd.
Aero Academy Inc.
British Columbia Helicopters Ltd.
Corporate Express Airlines
Aeroclub de Montreal
Buffalo Airways Ltd.
Courtenay Flight Center, Inc.
Air Canada
Calgary Flight Training Centre
Debert Flight Centre
Air Canada Jazz
Calgary Flying Club
Delta Helicopters Ltd.-Training
Air Creebec Inc.
Calm Air International Ltd.
Diamond Flight Centre
Air Georgian Limited
Camrose Flight Center
Durham Flight Centre Inc.
Air NorTerra Inc. dba Canadian North
Canadian Flight Academy Ltd.
Eagle Flight Centre
Air Optima
Canadian Flight Centre
Edmonton Flying Club
Air Tindi
Canadian Flyers International
Empire Aviation
Air Transat
Canjet Airlines a Division of I.M.P. Group
Evans Aviation
Airline Training International Ltd.
Limited
E-Z Air
Airmac Flight Centre
Capital Airways Inc.
Fighter Combat International Inc.
Algonquin Flight Centre Inc.
Carson Air Ltd.-Southern Interior Flight Centre
First Air
AllCanada Express Limited
Centennial Flight Centre Ltd.
First Nations Technical Institute
Atlantic Aviation Academy
Centre Quebecois de Formation Aeronautique-
Forest Protection Limited
Atlantic Flight Centre
[ 22 ]
Bearskin Airlines
CEGEP de Chicoutimi
Fredericton Aviation Inc.
Aviation Commercial Aviation
Chinook Helicopters
Gander Flight Training
Aviation International (Canada) Inc.
Cloud Air Service Ltd.
Gateway Helicopters Ltd.
Bar XH Air Inc/Alberta Citylink
Coastal Pacific Aviation
General Aviation Inc.O/A Flying Colors Pilot
Training
Okanagan Aviation Services Ltd.
Waterloo Wellington Flight Centre
Grand Falls Aviation Services Ltd.
Orillia Aviation Limited
Welland Aero Center
Great International Flight Training
Ottawa Aviation Services
WestJet
Greatwest Aviation/Spring Aviation Ltd.
Ottawa Flying Club
Windsor Flying Club
Greenwood Flight Centre
P.A.L. Helicopters Inc.
Winnipeg Flying Club
Grimsby Aviation
Pacific Coastal Airlines Limited
Winnport
Hamilton Flying Club
Pacific Flying Club
Hartley Aviation Inc.
Pacific Professional Visual Flight Training Ltd.
ASSOCIATES
Harv's Air Service
Parallel Aviation Inc.
A&VM Business Development Ltd.
Helicopter Training Corporation
Peninsulair Limited
Accelerated Aviation Training
Helicopters Canada Flight Training School and
Peterborough Flying Club Inc.
Aerodevco Consultants Ltd.
Pincher Creek Flight Services Ltd. O/A Red Aero
Aeroports de Montreal
Charter
High Alpine Air Services Inc.
Aviation
Aerospace Welding Inc.
Huron Flight Centre Inc.
Prairie Bible College
AIG Aviation (Canada), Inc.
Int'l Express Air Charter Ltd. Known As Regency
Prince Edward Air Ltd.
Air Transport Security Corporation
Principal Air
Airbus
Island Air Flight School and Charters Inc.
Pro Aviation Inc.
Airport Group Canada Inc.
Jackson Air Services Ltd.
Pro Wings Aviation Ltd.
Alexander Holburn Beaudin & Lang
Juan Air (1979) Ltd.
Provincial Airlines
Algonquin College
Kapuskasing Flying Club Inc.
Regina Flying Club
America West Airlines, Inc.
Kawartha Lakes Flight Centre Ltd.
Rockcliffe Flying Club (1961)
American Airlines
Keewatin Air Limited
Scotia Flight Centre (1994) Incorporated
Aon Group Limited Aviation
Kelowna Flightcraft Ltd.
Selkirk College Professional Aviation
Aon Reed Stenhouse Inc. Aviation Specialty
Express
Kenn Borek Air Ltd.
Department
Group
Kingston Flying Club
Seneca College of Applied Arts & Technology
ATCO Frontec Corp.
KnightHawk Air Express, 2734141 Canada Inc.
Sharp Wings
ATR Marketing, Inc.
Laurentide Aviation
Shearwater Flight Centre
Avia Marketing Consultants Inc.
Lawrence Aviation
Sky Wings Aviation Academy Ltd.
Aviation Canada Media Inc.
LFC Flight Centre (2000) Inc.
Skylink Express Inc.
Aviation Publishers Co. Limited
Linvic Flying Club
Skyservice
AvPlan Inc.
Lloyd Air 2000
Sontair Limited
Axia Net Media
Midland Flight Centre Ltd.
Springdale Aviation Ltd.
BAE Systems Regional Aircraft
Mitchinson Flying Service Limited
St. Catharines Flying Club
BC Ministry of Transport
Modak Aviation Inc.
St. Thomas Flight Centre
Boeing Aerospace Ltd.
Moncton Flight College Inc.
Stage Air Southern
Bombardier Aerospace Regional Aircraft
Morgan Air Services Co. Ltd.
Stratford Air Services Ltd.
Borden Ladner Gervais LLP
Morningstar Air Express Inc.
Sunwest Home Aviation Ltd.
British Airways
Mount Royal College (Aviation Program)
T-Byrd Flight Training
Bryan & Company
Namao Flying Club
The University of Western Ontario
C.T. AeroProjects Inc.
National Flyers Academy
TK Air Charters Ltd.
Calgary Airport Authority
National Helicopters Inc.
Toronto Airways Ltd.
Campney & Murphy
Niagara Air Tours Ltd.
Trans North Helicopters
Canadian Aviation Insurance Managers Ltd.
Niagara Helicopters Limited
Transwest Air
Cara Operations Limited
NorAir Flight Inc.
Victoria Flying Club
Cassels Brock & Blackwell LLP
North Cariboo Flying Service Ltd. dba
Vital Aviation Ltd.
Centennial College-Aerospace Dept.
Voyageur Airways Ltd.
Cessna Aircraft Company
North Cariboo Air
[ 23 ]
CHC Composites Inc.
Northwest Airlines, Inc.
Training Crue Graphics Inc.
CitiCapital Limited
Ogilvy Renault
Transport Canada
Clark+ Company, Barristers & Solicitors
Ontario Ministry of Transportation
Transportation Partners International
Commuter Air Technology, Inc.
Osler, Hoskin & Harcourt LLP
United Airlines, Inc.
Consolidated Aviation Services
Ottawa International Airport Authority
United Parcel Service Canada Ltd.
Corp Air Inc.
Paterson, MacDougall
University of Toronto
Corvus Publishing Group Ltd.
Piedmont Aviation Services, Inc.
Vector Training Systems, Inc.
Cryotech Deicing Technology
PLH Aviation Services Inc.
Vista Cargo International Inc.
Delta Air Lines, Inc.
Policyshop.com, Aeronavigatsia Consulting Inc.
Wagner International Insurance Brokers
Department of National Defence
Pratt & Whitney Canada Corp.
Willis Global Aviation
Diamond Aircraft Industries Inc.
PricewaterhouseCoopers LLP
Willis Lease Finance Corporation
Donahue Wells
PROAV International Aviation Services
Wilson Aircraft, Div. of 913661
Dow Chemical Canada Inc.
Winnipeg Airports Authority Inc.
Dulude, Taylor Inc.
PSA Insurance Services Ltd.
Edmonton Regional Airports Authority
Purolator Courier Ltd
Edwards, Kenny & Bray
Rapid Aircraft Repair Inc.
AFFILIATES
Embraer Aircraft Corporation
Rohmer & Fenn
Alberta Aviation Council
Emond Harnden
Saab Aircraft Leasing
British Columbia Aviation Council
ExelTech
Samsonite Canada Inc.
Canadian Business Aviation Association
Federal Express
Saskatchewan Institute of Applied Science and
Canadian Owners and Pilots Association
Field Aviation West Ltd.
Technology
Wood Group Turbopower, Inc.
Federation of Canadian Municipalities
FlightSafety Canada
Shell Canada Products Limited
Flight Safety Foundation
Fraser Milner Casgrain LLP
Smart Approach Limited
Helicopter Association International
GE Aircraft Engines
Standard Aero Limited
Manitoba Aviation Council
Gerling Canada Insurance Company
Stephenville Airport Corporation
National Air Transportation Association
Global Aerospace Underwriting Managers
Sypher: Mueller International Inc.
Northern Air Transport Association
Temple Scott Associates Inc.
Saskatchewan Aviation Council
(Canada) Limited
GlobeGround North America, Inc.
Goodrich Corporation, Landing Gear Division
Gowling Lafleur Henderson LLP
Group 4 Falck (Canada) Ltd.
Halldale Publishing & Media Ltd.
Harper Grey Easton
Hydro-Quebec
Imperial Oil
Interactive Solutions New Media Inc.
ITA Software, Inc.
Lavery, de Billy
LPS Aviation Inc.
Lyondell Chemical Company
Marsh Canada Limited
Mechtronix Systems Inc.
N.W.O. Claims Services Inc.
NAV CANADA
Nobbs, Woods, Kavanagh & Bateman
Northrop Grumman Canada Corporation
[ 24 ]
Corporation
The Van Horne Institute
HONORARY LIFE MEMBERS
1976 – D.N. (Don) Watson, Retired President
Pacific Western Airlines
1977 – Al Smith, President
Smith Airways Limited
1978 – Jack Fleming, President
Dominion Pegasus Helicopters
1978 – Max Ward, President
Wardair Canada (1975) Limited
1979 – H.D. (Don) Cameron
Senior Vice President
Administration & Public Affairs, CP Air
1980 – Jack Scholefield, President
Laurentide Aviation Limited
1981 – Claude Taylor
Air Canada
1982 – Dave Jacox, Vice President
Pacific Western Airlines
1983 – Ian Gray, Retired President
CP Air
1984 – T.L. (Tom) Spalding,
Executive Vice President,
Wardair International Ltd.
1985 – A.C. (Angus) Morrison,
President & Chief Executive Officer,
1987 – Rhys Eyton,
Chairman & Chief Executive Officer,
Canadian Airlines International Ltd.
1988 – Pierre J. Jeanniot,
Air Canada
1988 – Stanley M. Deluce,
Chairman of the Board,
Air Ontario
1989 – Donald S. McClure,
Moncton Flight Centre
1994 – Charles H. Simpson,
(REVISED OCTOBER 2002)
1997 – Jean-Jacques Bourgeault, Senior
Executive Vice-President, Air Canada
1999 – C.A.L. (Arnold) Morberg, President,
Calm Air International Ltd.
1999 – Harry Steele, Chairman and
Chief Executive Officer,
Newfoundland Capital
Corporation Limited
2000 – Barry Lapointe, President,
Kelowna Flightcraft Ltd.
2001 – Dennis Cooper, Chief Executive Officer,
Sky Wings Aviation Academy
2001 – John W. Crichton,
NAV CANADA
2001 – Darrel G. Smith,
Retired Vice President,
Airline Operations, AirBC
Retired Executive Vice President,
Operations, Air Canada
1995 – T.A. (Al) Kapty, General Manager,
Trans North Helicopters
[ 25 ]
ATAC STAFF
OFFICER
Les Aalders
VP – Engineering & Maintenance
EXT.
308
ASSISTANT
Pamela McGann
EXT.
317
Warren Everson
VP – Policy & Strategic Planning
314
Pamela McGann
317
Fred Jones
VP – Flight Operations
307
Jeanie Peppy
304
Cliff Mackay
President & CEO
313
Debbie Simpson
312
Glenn Priestley
VP – Fixed Wing Air Taxi and Flight Training
309
Jeanie Peppy
304
Michael Skrobica
VP – Industry Monetary Affairs
310
Pamela McGann
Linda Watson – Accountant
317
311
For more information on ATAC, or to speak with an ATAC officer, please contact:
AIR TRANSPORT ASSOCIATION OF CANADA
255 Albert Street, Suite 1100
Ottawa, Ontario K1P 6A9
Tel: (613) 233-7727
Fax: (613) 230-8648
Internet: http://www.atac.ca
Email: atac@atac.ca
[ 26 ]

2002 - ATAC

Transcription

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