Brief to NavCanada N..

Report
Brief to NavCanada Oil Patch Group
November, 2011
Scott Clements, President & CEO FMAA
Going Forward Together
We are responsible stewards of our airports,
achieving superior performance in the
conduct of safe, secure, effective and
efficient operations. Our airport businesses
contribute significantly to the economy of
both the Region and the Province.
Going Forward Together
We are Canada’s Premier Regional
Airport, connecting the World to the
People, Resources and Opportunities in the
Wood Buffalo Region
Going Forward Together
Board of Directors
 Peter Wallis - At Large – (ExDir Van Horne Institute) Interim Chair
 Mario Kulas – Oil Sands Development Group – (Shell – Mgr Scotford Plant)
 Sheldon Schroeder – Oil Sands Development Group – (VP CNRL)
 Jeff Fitzner – FM Chamber of Commerce – (CEO CASMAN Construction)
 Mildred Ralph – FM Chamber of Commerce – (SNC Lavalin, O&M Logistic Inc)
 Allan Kallal - RMWB –– (CFO RMWB Public School Board)
 Roy Williams – RMWB – (Stantec)
 Bernd Wehmeyer - RMWB – (Suncor – Manager Firebag Aerodrome)
 Ken Balkwill – CUPE – (Retired CUPE Executive/LAPP Board)
 Cheryl Alexander - At Large – (Consultant/Businesslady)
Board Committee Structure
 Governance Committee (Standing)
 Peter Wallis – Chair
 Cheryl Alexander
 Ken Balkwill
 Finance and Audit Committee (Standing)
 Jeff Fitzner – Chair
 Mildred Ralph
 Allan Kallal
 Capital Project Committee (Special)
 Sheldon Shroeder – Chair
 Bernd Wehmeyer
 Mario Kulas
Governance Principles
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Act as a Governance Board
Sole fiduciary responsibility to the Authority
Operate within defined Board Mandate
Committees do the detail work and considerations
Board Meetings well planned and prepared with major
issues brought through committee recommendations
 High expectations of Board Members (energy,
participation, attendance, decorum, conflict of interest)
 Focus on assisting Management to achieve Business Plan
Objectives
 Enjoy the honour and experience
Going Forward Together
Planning Cycle
Phase V:
Ongoing Measurement
Quarterly
Phase IV:
Communication
Phase I:
Preparation - Input
July
December
Aug-Oct
November
Phase II:
Planning
Phase III:
Approval
We are through Year One
And almost done Year Two
Going Forward Together
Key Success Drivers
1. To Optimize the Customer Experience
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Strategic Goals ---> Annual Corporate Objectives
2. To Lead a High Performing Airport Team

Strategic Goals ---> Annual Corporate Objectives
3. To Achieve Sustainable and Profitable Growth

Strategic Goals ---> Annual Corporate Objectives
4. To Foster Effective Stakeholder Relationships

Strategic Goals ---> Annual Corporate Objectives
Going Forward Together
Management Team
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President & CEO – Scott Clements
COO – Sally Warford
CFO – Ter Hamer
Legal Counsel/Corporate Secretary – Ron Odynski (Ogilvie LLP)
Business Development – Jim Meyer (LeighFisher)
Project Management – Bruce Ferguson (Stantec)
Engineering – Brad Pryde (PSMI)
Architects – Steve McFarlane (MGB)
Real Estate Management – Ken Williamson (Colliers)
Auditors – Deloitte’s
Bankers – RBC
Long Term Lenders – Alberta Capital Finance Authority
Bond Ratings – Standard & Poors
Civil Works Contractor – EConstruction
ATB Contractor – Ledcor Construction
May 13, 2011
800000
2011
2009
700000
2010
2008
600000
500000
2007
400000
2006
300000
2005
2004
200000
Jan
Feb
Mar
Apr
May
June
July
Aug
Rolling 12 Months Passenger Count
Sep
Oct
Nov
Dec
780,000
Rolling 12 Month Passenger Count - Emplanements and Deplanements
770,000
760,000
759,509
755,788
2011 Actual
750,973
750,000
746,465
743,634
740,000
739,205
735,331
2009
730,551
730,000
725,732
2011 Business Plan
720,684
720,000
710,000
2010
700,000
690,000
Jan
Feb
Mar
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
2011 First Eight Months over 2010 % Change in E/D Passengers
Going Forward Together
Growth Projection 2010
Actual
Moderate (CAPP)
Medium (AMC)
Low
High
1,600,000
High
1,400,000
We assume the Medium Line = 2.5% Annual
1,200,000
Medium
We assume the medium scenario in our Plan
Moderate
1,000,000
Low
800,000
600,000
400,000
200,000
0
1988
1991
1994
1997
2000
2003
2006
2009
2012
2015
2018
2021
2024
2027
2030
Going Forward Together
Whitehorse - 32 *
Airports < 1 Million Passengers
Kamloops - 31 *
The asterisks represent all airports with some form of
Customs at the Airport. Of the top 32 Airports in Canada
only two do not have any Customs – Fort McMurray (15)
and Grande Prairie (23)
Saint John - 30 *
Fredricton - 29 *
Deer Lake - 28 *
Charlottetown - 27 *
Comox - 26 *
Yellowknife - 25 *
2009
Victoria Harbour - 24 *
2008
Grande Prairie - 23
2007
Vancouver Harbour - 22 *
Prince George - 21 *
London - 20 *
Abbotsford - 19 *
Moncton - 18 *
Hamilton - 17 *
Thunder Bay - 16 *
Fort McMurray - 15
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Air Service Developments
 Working with Air Canada and Westjet
 Westjet Toronto Daily Service (Seasonal in 2011)
 Air Canada upgrading Toronto Service
 Considerations for Vancouver and International
 Working with Regional partners to improve
services
 Grande Prairie, Red Deer, Fort Chipewyan, Lethbridge
 Saskatoon, Regina, LaRonge
 Kelowna, Cranbrook
 Building the case for international services
 Las Vegas, Mexico, Denver (United Airlines)
 Case for AIR CARGO
Going Forward Together
Terminal Improvements
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Parking – 182 news stalls
Safety in the walking/parking area
Food and Beverage – Subway and Delaney’s
Counters – fully leased
Advertising/Information
Airport Team Visibility/Information
Cleanliness/Disease Mitigation
Security Area – Expanded hold room/customs
Offices – New Administration Building
Improvements to building utilities, appearance
Airport Development Plan
West Boundary
Road
East Boundary
Road
Major Capital Project
The right plan for the future
•Plan approved and in implementation
•Funding in place from ACFA albeit large debt
•Two Major Contracts awarded under budget
•Minimal taxation
•Public funding grant of $25M thus far
•Renewed Real Estate Policy/Opportunities
•International Airport Potential
Current
Terminal
New Parallel
Taxiway
2250 powered
parking stalls
Access Road
Taxi/Bus Waiting
Area
Challenges and Issues
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World economic challenges/uncertainty
Change in provincial leadership
Organization Development - Board and Management
Federal Taxation Issue
Refinancing Opportunity
Alberta Oilsands Inc (AOS)
International Airport Status
Air Cargo Opportunities
Real Estate Opportunities
Manage Fort Chip Airport
Regional Air Transportation Study
Provincial and Federal Funding Support
The Airport Team (FlyFortMac)
Union Negotiations in 2012
Summary – Things are going well
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Transition from Commission to Authority is complete
Robust Strategic Plan in place
YMM Passenger Traffic up – Leads the nation
Significantly ahead of budget
Strong Projections for Oil Sands Growth in Investment
Project financing in place (ACFA) - $198M @ 4.718% over 30 years – BBB Credit Rating
(S&P)
Both major contracts underway with full approved scope and overall under budget –
Contingencies and Escalation allocations in tact – Project ahead of schedule
Municipal taxation bylaw in place and very favourable
Municipal Grant of $25M approved to assist in civil works
Potential for material grant assistance from Province and Feds - CRISP
New Real Estate policies now in place and being implemented
Airlines onside - Good potential for international service in the near term (United)
Strong community support - Our Shared Bold Vision in tact and progressing well
 BUT............
Big Challenge on $$$$$$$$$
80,000
75,000
70,000
65,000
60,000
55,000
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
Sources: Historical: Fort McMurray Airport.
Projected: LeighFisher, November 2010.
Note: Individual cost categories are stacked so as to show net revenues versus total revenues.
20
30
20
28
20
26
20
24
20
22
20
20
20
18
20
16
20
14
20
12
20
10
Total Operating Revenues
OpEx
Debt service, capital costs and OpEx
20
08
20
06
Dollars (000's)
HISTORICAL AND PROJECTED FINANCIAL DATA
Medium Case
Proposal for Alberta Transportation
 Help FMAA and RMWB with the Roads
 West Boundary Road
 East Boundary Road
 Connections to Hwy 69
 Connection to Airport Road
 Some improvements to roads on airport
 Requesting $15M in grants for the work above
 Could be done in phases
 Could be part of CRISP Phase One
Proposal for Alberta Infrastructure
 Help FMAA and RMWB with Sewage and Crown Land
 Fund the Airport portion of the Trunk Sewage Line
 Fund the Airport portion of the Water Lines
 Fund the Acquisition of the Crown Land for Second
Runway
 Some infrastructure improvements on airport
 Requesting $20M in grants for the items above
 Could be done in phases
 Could be part of CRISP Phase One
Proposal for Federal Government
 Join the GOA, RMWB to support the special case for
funding FMAA and supporting its dramatic growth
 Include FMAA as a designated Airport Authority under
the Airport Transfer Miscellaneous Matters Act
 Assist FMAA to achieve international status with the
facilitation of full time CBSA services
 Fund the extension of the main runway to 9000 feet (as
was done for Prince George)
 Contribute to Civil Works required for the airport
expansion
 Requesting $25M for the items above
Nav Canada Issues
 Relocated Receiver Site
 Relocated Weather Station
 Construction Coordination
 ILS Replacement – No back course?
 Space Reservation for long term in Airport Master Plan
 Air Transportation Study for the Region
 Team FlyfortMac
Questions

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