Clear Full Forecast

YXS Plans Still Full Steam Ahead

By 250 News

Monday, September 28, 2009 09:53 AM

Prince George, B.C.- Patience is the key word when talking about cargo flights landing at Prince George Airport.
Speaking on the Meisner program this morning on CFISFM, Airport President and CEO John Gibson says it is possible to have some cargo flights landing at the airport within the next 3 to 6 months for tech stops, those would be “ad hoc” landings, “I think it will be 12 to 18 months before we have scheduled landings.” Gibson says YXS is also offering a marketing package to carriers to help the carrier build their business.
Back from the Open Skies summit that was held on Friday in Vancouver, Chair of the Airport Authority Board, Jim Blake says Canada is “out of sync” with the rest of the world when it comes to opening up airports for competition. “Canada has 8 open skies agreements, compared to the U.S. which has 100. Canada was the 77th country to sign an agreement with the U.S. and you would have thought we would have been at the head of the pack and not so far down the list.” An open skies agreement opens up the ability for competing carriers to land in the country. In Canada, it is the federal government which decides if there is any need for an international carrier to land.
“Let the market determine what is or isn’t going to work” says Gibson. “Open skies for cargo isn’t going to hurt Air Canada” says Gibson who says open skies for Prince George  isn't so much about  passengers, but will open the door for cargo operations and will create industry. Gibson says there  have been talks with  European  carriers for  tourism, but  that  is further down the road as  the  economy will have to improve to a  point where travellers  are ready to spend those vacation dollars.
Jim Blake is aware that people are anxious to see something happen now that the runway extension and refuelling apron are complete “We would like to see something that is well planned, on an ongoing basis.” Blake says Prince George has strong support from all over North America. “First of all no one is going to look at you until you get all the infrastructure in place, secondly, when you’re talking about the Asian market, you have to build relationships and that takes time.”
Gibson says the competition with Anchorage is fierce as that Alaskan airport reduced it’s rates in June, but Prince George is still a better deal for cargo carriers “Even though they’ve reduced their rates, they went right after us in June, they lowered their rates, signed 26 carriers to contracts. So we’ve since retooled our dollars and cents into the marketing incentive program so we’re going right back after them. On top of that, we’re targeting carriers with the best routing where they can save air and ground time over Anchorage.” 
The long term picture says Gibson is that 5 to 7 years down the road, 200 full time jobs will be available through the cargo  servicing business.

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Comments

It seems that the US deals with open skies the same way as they deal with free trade. If it is in their favour, they act on it. If it isn't they stop it. Seems to me that is the case with the recent situation with setting up the NHL flights from City to City in the US using Air Canada.
Seems to me if you read between the lines you will see that they are not projecting anything significant for the forseeable future. Using statements like.

Some landings in the next 3 to 6 months on an Ad Hoc basis.

I THINK it will be 12 to 18 months before we have scheduled landings.

5 to 7 years down the road 200 full time jobs will be available through the Cargo Servicing Business.

I presume he means servicing Cargo Jets doing tech stops.

My understanding is that they will need just under 30 tech stops per week over a 20 year period to make this a money making venture. They had better get started soon.

The reality is that they borrowed $11 Million from the Northern Trust Initiative in 2007 that was supposedly to be paid back within 5 years with interest at the rate of inflation, and they borrowed additional money from the Airport Improvement Fee money for marketing etc; which was to be paid back by the money generated from landing and take off fees from Cargo planes, and they owe something in the area of $5 Million to CIBC. So it appears that they have a huge debt, and no way to increase their income for the next 5 to 7 years except the possibility of landing some Cargo Jet tech stops.

In addition they are supposed to start paying the Federal Government lease payments for all the infrastructure, buildings, etc; at the Airport, these payments are supposed to commence in 2011. I doubt that they have any money to pay the lease.

I think that the Airport Authority is broke, and they will have to restructure and get some Federal Government money to continue to operate. The alternative is to return the Airport to the Federal Government.

It is beginning to look like the whole concept of turning this Airport into an Airport Authority was a bad idea. Maybe we should have left it to be run by the Federal Government.






Doesn't sound like anybody is sure of anything, which is a different tone than was pitched prior to the expansion.

I'll just be quiet and keep paying those sky high Airport Improvement Fees.
I, for one am quite proud of our "little" airport, and its achievements to date, and if that costs me ten or 15 bucks a couple times a year when I fly somewhere, I'd say that's quite the bargain.

Nice to have a decent facility to welcome folks coming to Prince George for the first time too.

If the Feds were still in charge, they'd hardly know where to find us even if they had a map in front of them, unless of course they thought we were in Quebec -- then they'd pay more attention !

We hvan't got enough votes up here to amount to spit in the big picture.



What exactly has YVR achieved to date? We have amongst the highest AIF rates anywhere in Canada, no gift shop, a Customs facility that is rarely used and a $36M runway expansion which has generated nothing concrete so far and may not for the foreseeable future just to name a few items.
Dont forget that you cant get a coffee or donut after 6pm and the Airport closes at 11pm (No flights between 11pm and 6am)

Palomino. The Feds are still in charge. Who do you think owns the Airport???? Who does the Airort Authority lease the buildings from??? Who gave the Airport $11 Million for their share of he Airport Runway Expansion??? Who gave the Airport Authority the first 5 years of operation free of any lease charges???

And lastly. Who do you think will bail the Airort Autority out of debt.???

The answer to all questions is the Federal Government.
YVR = YXS in my post above. (Where's that edit button?)
Yeah, yeah, -- and once we fire all those big spenders up there, and its run solely as a "Government business", we'll have gift shops, coffee and donuts all night, lounges, customs officers standing around 24/7, huge sculptures in the hallways, no more of those pesky "improvement" fees, yadda, yadda, you name it.

Nice, -- when you don't have to show a profit to keep your job, and have an endless supply of money to pay the bills with.

Anyway -- unlike some, I support the efforts of the folks with the vision, and the foresight to forge ahead with this project, and their attempts to bring us out of the "bush league" in the eyes of the business world. As they say " you've come a long way, baby"!

Wasting time trying to convince everyone interested in investing in Prince George, and especially our airport and its industrial park, that this is a "foolish" venture, is counterproductive for all of us IMO. I'll leave that descision up to those who are willing to put their money where their mouth is, -- like the folks who make up our Airport Authority.

I wish them every success.

Palomino. You are full of it. Firstly the people at the Airport Authority havent put a red cent into the Airport, all they have done is draw a salary, and to date have spent approx $50 Million dollars of taxpayers money, and they havent made a penny. Futhermore they are broke.

These people are no more than Government Employees paid by a different revenue stream.

Also Private Business have not put one red cent into the Airport as yet. Once we pay another $22 Million to build them a road and put in the infrastructure they might start to build something. But to date they havent spent a cent.

So if you would take a few minutes and think about the whole project out there, you would come the conclusion that everything from the Terminal Expansion, Parking Lot Expansion, and Runway Expansion, was paid for with tax dollars, and Airport Improvement Fees. (Which is just another tax)

Our hot shot business people, and the people who run the Airport Authority havent put in a bloody nickel.

If you want to give credit where it is due, then you should give it to the taxpayers as they are footing the bills for this extravaganza.
Wherever did you get the idea I think the airport authority and their employees are paying the bills up there out of their own pockets Palopu? Heh -- that'd be the day!! Virtually every taxpayer in Canada knows who's forking over the money to pay for everything "government" has its fingers in!

As for your disgust at some "private" business(s) getting some benefit from our taxpayer dollars, as with the boundary road extension, I suggest there isn't a private business ANYWHERE that dosen't benefit from the taxpayer dollar, in some way or another, even if its just from their customers using public roads to get to their "place" of business!

That also would include all the private businesses up at the airport, that pay rent to the airport authority, such as car rental outlets, taxi, helicopter suppliers, remote location air services, hanger leases, ---- even our local flying club and their members are using "your" tax dollars to benefit "their" hobby.

I am not a pilot, nor do I have a business related to revenue from the airport in any way, but I do fly back and forth occaisionally on the commercial carriers, (Westjet preffered) from time to time, and am very glad at least some of my tax dollars have been used to make our airport what it is today.

I'd like to see as many of "my" tax dollars spent right here in good 'ol Prince George as possible, and help provide jobs for as many Prince George families as possible too -- and, if those dollars are spent wisely, providing benefits to those families and their children through developing infrastructure that will ensure employment for my grandchildren & great-grandchildren too, for literally decades to come, as well as myself and my family right now, then I feel this is money very, very well spent, and this is exactly what is happening up at the airport today.

Yeah, they may run short of money before it's self sustaining, and need to be bailed out for awhile by "you and me", but eventually this will pay off big time for all of us and I stand firm in my support for this project, and approve the use of "my" tax dollars to help it along if need be. The boundary road project, which is also part of this plan, will one day become part of the "ring road" around Prince George, and will be the dangerous goods route for decades to come as well.

More money well spent when that's up and running in my opinion too.

palomino