Airport to focus on cargo growth
Managing director Rob Robichaud says 2007 was a difficult year but airport will rebound in 2008
A full year without CanJet and a snowstorm-filled winter created headaches for the Greater Moncton International Airport in 2007.
According to the authority's 2007 annual report, passenger numbers were down by 30,000 to 40,000 for a total of 519,000 and operational revenues fell by about five per cent ($378,000). But airport managing director Rob Robichaud says things could have been much worse.
"We could have lost, theoretically, 100,000 seats," said Robichaud, at the airport's annual general meeting yesterday. He said the addition of some Air Canada flights helped off-set the loss of CanJet, which ended scheduled passenger service in September 2006.
The severe weather increased operational costs in areas such as snow clearing and also kept planes from landing here during the many storms.
Robichaud said 2008 will be a rebound year for the airport. Operational revenues are expected to return to 2006 levels, as well as passenger numbers.
The airport also plans to focus its efforts on cargo, which is an area that grew in 2007. Cargo volumes were up by 0.8 per cent in 2007, with 24,527 tonnes transported through the Moncton airport.
Robichaud says the focus on cargo doesn't mean they won't be working on adding new routes and passenger airlines and the annual report lists a direct flight from Moncton to St. John's as a priority in 2008.
"I think we're going to see moderate traffic growth on a yearly basis," he said. "My impression after being in this job for 10 years is that we can quite comfortably reach the 750,000 to 800,000 (passenger) mark and after that grow with the rate of growth of the region."
But in these days of failing airlines and with ticket prices increasing because of fuel costs, Robichaud said the revenue stream from passenger airlines is "unpredictable and unstable."
With studies showing the global cargo industry is expected to experience six per cent annual growth over the next two decades, Moncton wants to cash in on that opportunity.
Robichaud said if the airport can expand its cargo business, that will increase revenue. That extra revenue can then be used to offer incentives to passenger airlines to come to Moncton, thus increasing that side of the revenue.
Yesterday's meeting was held in the Purolator cargo warehouse at the airport in Dieppe, as a symbolic gesture to the new importance of cargo.
Airport authority chairman George Cooper told those in attendance Moncton is just behind Halifax as the leader in Atlantic Canada for cargo.
"We have a geographic advantage that really doesn't exist anywhere else," he said.
The authority has certain priorities set for 2008 that will help attract more cargo business. That includes working to have a full overpass linking Route 15 to the airport completed in the next two or three years and working to increase the Canada Border Services Agency resources so customs staff are working at the airport around the clock.
The customs staff issue is one Robichaud has long championed. He pointed out yesterday that most cargo moves at night, so this is essential.
Robichaud said so far Moncton and other similar sized communities have had their request for increased custom staff rejected by Ottawa.
"It makes it very difficult for small communities to try to compete on a level playing field," he said.
"Even though we're growing, they don't seem to want to be here."
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