Airport told to Prepare Plan

Friday, February 16, 2007 09:58 PM

Premier Gordon Campbell says if the Prince George Airport Authority wants $11 million dollars, it had better prepare an application and submission, so the province can see the business plan for the runway extension.

The Northern Trust has already committed $11 million to the project, in addition to the federal government’s $11 million dollar commitment.

Premier Campbell says, "Boys, you had better get your application in right now, because before we move we want to see a business plan."

"Prince George," he says, "Is going to become a transportation hub, I believe it will, I have been pushing for the Port of Prince Rupert and Inland container ports, but we have got to know were the business for the airport will come from."

"If they don’t step up with an application they will be left behind in the dust," he concludes.

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Posted on Friday, February 16, 2007 09:58 PM in News by 250 News

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Comments

Posted by: owl on February 17 2007 12:18 AM

We have heard this before. I assume the airport has as well and not via the media.

Interesting to note that they have not setn the business plan. Do they not have one? The feds have promised (not yet given) them money without a business plan?

Ditto the NDI .... no business plan for them either...??

Posted by: trusted on February 17 2007 8:49 AM

Well, what can I say?
Everyone screaming-no money-time to divvy up-need 33 million-and lo and behold-we now hear they have obviously not even applied for that 11 million from the Campbell government.
No business plan even available, as I am sure it would have been submitted to all 3.
Now, that is performance-yeah-like hell it is!
So carry on folks-talk's cheap!
I sometimes think there are not too many sharp knives in the drawer.
I am not always right-but I am never wrong!
Now, that ought to draw some stinging remarks!

Posted by: giterdun on February 17 2007 10:00 AM

HEY GORDO , PAT, SHIRLEY , JOHN....CARRY ON WITH YOUR B.S. WE IN THE NORTH WILL SURVIVE WITHOUT YOU. THIS EVENT WAS THE MOST DISCOURAGING DISPLAY OF NOTHING WE IN P.G. HAVE EVER SEEN. MONEY TALKS B.S. WALKS

Posted by: diplomat on February 17 2007 11:53 AM

Well, if they don't have a business plan and they did not bother to submit a proper application - what is the anti-Campbell screaming all about?

Reminds me of the mayor claiming he made an application for beetle money and it couldn't be found anywhere...

Surreal and somewhat scary, imho.

Posted by: Chadermando on February 17 2007 4:40 PM

I agree that is a real problem if we are being asked to pay for something that does not have a business plan in place. I had assumed that that was already in place?

Posted by: Palopu on February 17 2007 5:59 PM

This is what you have to date;

(1) The Northern Trust has loaned 11 Million to the Airport Authority that will be paid back with interest based on inflation. The Airport Authority will get the money to pay back the loan from Aiport Improvement Fees. They collect $1,600,000.00 per year in improvement fees.

(2) The Federal Government gave the Airport Authority 11 Million to be used for the Airport Runway Expansion. Now if you would think for a moment you would remember that this Airport is owned by the Federal Government and leased to the Airport Authority. So in effect the Federal Government is improving its own Airport through the Airport Authority. If for some reason the Airport Authy goes broke, all the assets return to the Feds, and therefore they cannot lose on this proposition.

(3) The last 11 Million is to come from the BC Government who you may remember already gave 4 Million to the Authority to build the new terminal building. The Provincial Government wants to see a business plan before they give the money.

Whats the problem??
(A) All money collected from Airport Improvement Fees $1,600,000.00 per year must be put into Airport improvements or you have to reduce the fee or cancel it all together. What this means is that the Airport Authority had to come up with some ideas on spending this money. After the new Termnal Building and the Parking Lot Expansion, they came up with the Runway Expansion. If this goes forward it allows them to continue to collect the improvement fee for 20 years.

(B) They have no business plan that could withstand any real scrutiny. In effect they are saying that if they expand the Runway from 7,400 ft to 11,400 ft they could take advantage of their geographic location and 24/7 operatons and step into the international fueling forum servicing transpacific flights to and from North America, Europe and China. Studies have indicated that with an extended runway, Prince George Airport could attract 1,560 cargo flightss a year or about four every day. This combined with additional tourism could generate over 370 person years of employment with a payroll of $15.8 Million.

(C) The problem is that this International Cargo business is presenlty being handled by the Anchorage Airport 700 Wide Body Cargo Flights per week. In order for Prince George to get any of this business it would have to take it away from Anchorage, which would mean that big shippers such as Fedex, DHL, UPS would end up having two operations, one in Anchorage and one in Prince George. This is not likely to happen. FedEx is already on record stating they have no plans to come to Prince George even with a Runway Expansion.

I suspect that when and if they put forward a business plan it will be more of a wish list that a real plan, and this could be the reason that it has not yet been given to anyone.