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Transport Canada

No. P05/99
For release March 30, 1999

TERRACE AIRPORT OFFICIALLY TRANSFERS TO
LOCAL INTERESTS TOMORROW

TERRACE, B.C. — David Anderson, Minister of Fisheries and Oceans and MP (Victoria), on behalf of Transport Minister David Collenette, today announced the official transfer of the operation of Terrace Airport from the federal government to the Terrace-Kitimat Airport Society, effective March 31, 1999.

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

Terrace Airport is one of 70 Regional/Local Airports, defined as having a scheduled passenger service of fewer than 200,000 a year for three consecutive years, and operated with federal involvement. Under the National Airports Policy, announced in July 1994, local interests have the opportunity — during a five-year period ending March 31, 2000 — to assume ownership of Regional/Local Airports.

"The National Airports Policy enables communities to take greater advantage of their airports, reduce costs, and attract new and different types of business," said Mr. Collenette. "The better use of transportation infrastructure in this manner will ultimately provide a boost to trade, tourism and job creation."

Transport Canada employees at Terrace Airport have been offered positions with the Terrace-Kitimat Airport Society. It is anticipated that five employees will transfer to the Terrace-Kitimat Airport Society.

Negotiations to transfer Terrace Airport began June 23, 1995 following the signing of a Letter of Intent by the Terrace-Kitimat Airport Society and Transport Canada. On February 26, 1999, an agreement was reached to transfer the airport following a transition period. Once the Airport Society obtains land tenure from the Province of British Columbia, the airport will become eligible to apply for capital contributions under the Airports Capital Assistance Program (ACAP). ACAP assists eligible airports in financing capital projects related to safety, asset protection and operating cost reduction.

Transport Canada will continue to regulate the safe provision of air navigation services at Terrace Airport and across the country. The department will also continue to ensure safety and security at Canadian airports through aviation regulation and airport certification processes.

- 30 -

Contact:

Rod Nelson
Communications, Vancouver
(604) 666-1675

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