CAPITAL FUNDING STABILITY FOR YXX (ABBOTSFORD INTERNATIONAL AIRPORT) (2007) YXX (Abbotsford International Airport) is rapidly evolving from a major a regional transportation hub into British Columbia’s second, large-scale, multi-modal, international airport. YXX currently serves the southern half of the province with full provincial penetration predicted in the near term.
Abbotsford International Airport currently serves ~700,000 residents in communities from Hope to Surrey and Mission to Coquitlam. As BC continues to grow, YXX will play an increasingly vital role in the economic growth of the province by providing the connectivity essential to keeping companies competitive in a global economy and by facilitating significant job creation within the direct economic zone of YXX and throughout BC.
Growth in the province will necessitate a need to reduce pressure on YVR and, as such, will drive significant growth in airport activity through to YXX on an annual basis. Increased access from the entire province, by road and air, will allow YXX to play a greater role in relieving the pressure on YVR’s already challenged air and ground access network. This will allow YVR to focus its attention on enhancing its role as a primary air gateway for Western North America while YXX continues as the secondary major aerodrome serving BC and Western Canada.
In growing to serve all of BC, YXX has developed a very aggressive and comprehensive 20-Year Master Plan. The entire YXX draft master plan, detailing future growth and requirements, can be found at www.abbotsfordairport.ca/pdf/draft_masterplan
Immediate and longer-term infrastructure needs have been identified across eight (8) projects including in the near term, widening of the apron, constructing new and rehabilitating existing taxiways; extending the main runway; and, over the longer term – to 2014 – constructing a new terminal complex and providing the associated infrastructure. These projects are estimated at $120 million (2006) dollars.
Infrastructure upgrades and improvements are required to support airport operations and airside land development. Current federal funding is provided through the Airport Capital Assistance Program (ACAP). ACAP is a line-budget item and, as such, is subject to changing governments, ministers, budget constraints and a capital funding burden shift between government priorities.
The 20-YMP contains a significant capital expenditure program relying on ACAP funding. YXX is forced to institute a business plan based on a wing and a prayer of capital funding to complete the plan. The objective of running YXX in a generally accepted free-enterprise business model becomes extremely onerous under this funding model.
This financial hurdle is commonplace among airports across Canada. It is significantly more pronounced at larger, rapidly expanding, provincially significant airports, like YXX.
THE CHAMBER RECOMMENDS
That the federal and provincial governments work together to identify and allocate a funding model for YXX (Abbotsford International Airport) to ensure consistent and predictable annual funding is allocated for airside and groundside infrastructure rehabilitation and expansion to ensure that YXX is able to provide the vital transportation link required by the province.
