No. H046/01
For release April 10, 2001

SIGNING OF A LETTER OF INTENT TO 
TRANSFER CONTROL OF PRINCE GEORGE 
AIRPORT TO A CANADIAN AIRPORT AUTHORITY

PRINCE GEORGE, B.C. — Transport Minister David Collenette, together with Jim Blake, chairman of the Prince George Airport Authority, and in the presence of Environment Minister and M.P. (Victoria), David Anderson, today participated in the signing of a Letter of Intent to enter into formal negotiations to transfer operational, managerial and developmental control of the Prince George Airport from Transport Canada to the Airport Authority. Prince George Airport will be the last of the designated National Airports System (NAS) airports to be transferred.

“The signing of this Letter of Intent represents the culmination of the very successful National Airports Policy, which shifted the cost of running Canada’s airports from taxpayers to those who actually use these facilities and enabled airports to improve infrastructure, expand their facilities and provide more responsive service to their clients and communities” said Mr. Collenette. “The better use of transportation infrastructure in this manner will ultimately provide a boost to trade, tourism and job creation.”

“I join Mr. Collenette in congratulating Prince George for taking part in a new era of airport management,” said Mr. Anderson. “The Prince George Airport Authority will be able to respond quickly to the needs of people in the area and tailor levels of service to local demands.”

“The Prince George Airport Authority, along with its partners, the City of Prince George and the surrounding communities, believe that a locally controlled airport will lead to substantial growth in passenger and cargo operations, better airport facilities and improved service,” said Mr. Blake. “It also opens the door to private sector development.”

The transfer of operational, managerial and developmental control at Prince George Airport will be negotiated on the basis of a long-term lease. Transport Canada will continue to regulate the safe provision of air navigation services across the country. The department will also continue to ensure safety and security at Canadian airports through aviation regulation and airport certification processes.

The interests of Transport Canada employees affected by the transfer will be protected through a comprehensive Airport Employee Transfer Plan. This will include an offer of employment to all Transport Canada site employees at the airport at the time of transfer.

Under the National Airports Policy, announced in July 1994, Prince George Airport is designated as part of the National Airports System (NAS) and an essential component of Canada’s air transportation network. The policy calls for the operation and management of NAS airports to be transferred to Canadian Airport Authorities made up of community interests. The authorities are to be incorporated consistent with a set of principles that will ensure a high degree of accountability to the public.

Canadian Airport Authorities are not-for-profit corporations headed by boards of directors nominated by federal, provincial and municipal governments, and by participating organizations such as chambers of commerce, boards of trade, and other interest groups.

The official transfer is scheduled to take place in late 2001, which allows for a transition period that will permit the government to meet employee notification requirements and the Authority to prepare for the takeover.

A backgrounder on the National Airports Policy is attached.

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Contact:

Anthony Polci, 
Director of Communications, 
Office of the Minister of Transport, Ottawa,
(613) 991-0700

Transport Canada is online at http://www.tc.gc.ca/. Subscribe to news releases and speeches at  apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.

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BACKGROUNDER

NATIONAL AIRPORTS POLICY

• The National Airports Policy (NAP) was announced in 1994 and calls for the commercialization of designated Canadian airports, through divestiture, to community interests. The policy enables communities to take greater advantage of their airports, reduce costs, tailor levels of service to local demand, and attract new and different types of business.
• As of March 1, 2001, 113 of the 131 airports across Canada have been transferred to community interests.
• Transport Canada will continue to be responsible for all aspects of aviation safety in Canada.

National Airports System

• The National Airports System (NAS) is composed of 26 airports deemed essential to Canada's air transportation system. These airports handle 94 per cent of all passenger traffic in Canada.
• The policy allows for the long-term lease of NAS airports to Canadian Airport Authorities (CAAs), not-for-profit corporations headed by boards of directors nominated by federal, provincial and municipal governments, and by other participating organizations such as chambers of commerce, boards of trade, and consumer and labour groups. Once the airports are transferred, these local operators will be responsible for their financial and operational management. The exception is the three arctic NAS airports (Whitehorse, Yellowknife and Iqualuit), which were transferred to the territorial governments. Transport Canada continues its role as policy maker and regulator for all NAS airports.
• As of March 1, 2001, 24 NAS airports have been transferred, leaving two under federal operation.

Regional/Local Airports

• Canada's 71 regional/local airports serve scheduled passenger traffic but handle less than 200,000 passengers each year. Under the policy, these airports are being offered to provincial and local governments, airport commissions, private businesses and other interests.
• Canada's Airport Capital Assistance Program (ACAP) will provide $190 million in financial assistance over the next five years to regional/local airports for projects related to safety, asset protection and operating-cost reduction. To be eligible, airports must receive regularly scheduled passenger service, meet airport certification requirements, and not be owned by the Government of Canada.
• ACAP eligibility has been expanded to accommodate the proposed Aircraft Emergency Intervention Services (AEIS) regulations. As a result, airports that will be required to provide AEIS - and providers of these services - will be eligible to apply for new funding under ACAP to help cover costs for initial capital for vehicles, on-going vehicle replacement and initial training.
• As of October 1, 2000, 60 regional/local airports have been divested, leaving 11 (Baie-Comeau, Havre-St-Pierre, Toronto Island, Mont-Joli, Natashquan, Penticton, Port Hardy, Sept-Iles, St. Anthony, Rimouski and Wabush) under federal operation.

Small Airports

• Historically, Transport Canada owned and operated 31 small airports that did not have scheduled passenger traffic. They are being offered to local interests to purchase and operate them according to community needs.
• As of October 1, 2000, 26 small airports have been divested, leaving five (Charlevoix, Forestville, Riviere-du-Loup, St. Jean and Saint-Hubert) under federal operation.

Remote Airports

• Transport Canada will continue to provide financial support to remote airports, which provide exclusive, reliable year-round access to isolated communities.

April 2001