CAIR Issue No. 73 - August 2009

CANADIAN AVIATION INTELLIGENCE REPORT

In this issue…

Features Columns: Regular Reports: CEO Update (p.1) A Global Response to Tourism Industry

Challenges (p.2) North American Seat Capacity (p.5) Airline Market Cap Update (p.7) Airport Concessions (p.16) Caribbean Report (p.17) Asia Report (p.18) European Report (p.19) Ottawa Report (p.20) Washington Report (p.21) Delcan Report (p.22)

Airline Data - Canada (p.9) Airline Data – U.S. (p.10) Selected Canadian Airport Data

(p.11) News (p.12) InterVISTAS News (p.24)

InterVISTAS’ Canadian Aviation Intelligence Report August 2009 Copyright ©2009 InterVISTAS Consulting Inc., all rights reserved. Page 1

Gerry Bruno CEO

CEO UPDATE August 2009

Welcome to the August 2009 edition of InterVISTAS Consulting Inc.’s Canadian Aviation Intelligence Report (CAIR). We are now back from taking a one month hiatus in July 2009.

InterVISTAS New Project Update The InterVISTAS Group is currently working on a large number of consulting assignments for a variety of clients in Canada and abroad.

• DMO Benchmarking and Best Practices Study In conjunction with DMAC (Destination Marketing Association Canada), InterVISTAS Consulting Inc. is undertaking a study of financial and operational performance of DMOs (Destination Marketing Associations). This is the first year of the study and the goal is to provide participating DMOs with valuable information on operational and financial efficiency metrics.

• City of Leduc; Airport Integrated Land Use Compatibility Plan InterVISTAS has been retained by the City of Leduc (Alberta) to prepare an Airport Integrated Land Use Compatibility Plan (AILUCP) for lands adjacent to the Edmonton International Airport. Actively involving a multi-stakeholder group, InterVISTAS will provide guidance to the city and landowners on compatible land use strategies in the area, including measures to minimize impacts of aircraft and ground-based noise through land use and design practices.

• Northern Rockies Regional Municipality; Long-Term Strategic Plan for the Fort Nelson Airport The InterVISTAS planning team has been awarded a contract to produce a Long-Term Strategic Plan for the Fort Nelson Airport (British Columbia). The project involves development of an airport master plan and a development strategy that leverages the strong outlook for the Northern British Columbia oil and gas industry.

• Charlottetown Airport Authority; Charlottetown Airport Master Plan Update With its project partner Stantec Engineering, InterVISTAS has been contracted to update the Master Plan for the Charlottetown Airport (Prince Edward Island). InterVISTAS’ mandate includes an update to the air traffic forecasts at the airport to reflect its traffic growth, along with analyses of airfield capabilities to meet future opportunities.

• Santa Barbara Airport InterVISTAS has been retained by the Santa Barbara Airport to assist the airports’ efforts to attract and retain quality air service. The project involves local air service strategy meetings with the airport and regional stakeholders, air service development meetings with selected carriers, material development and meeting attendance at air service conferences and ad-hoc air service support and carrier communications.

The August CAIR Line-Up In addition to our regular features and reports, this month’s publication line-up includes articles on airline market capitalization, global tourism initiatives and an update on North American seat capacity. We hope you enjoy this month’s edition.


Eugene Chu Senior Project Manager

A GLOBAL RESPONSE TO TOURISM INDUSTRY CHALLENGES – UPDATE 18 August 2009

In the June 2009 edition of the Canadian Aviation Intelligence Report, it was reported that the World Tourism Organisation had established a Tourism Resilience Committee to help the industry manage current economic challenges. An outline of the broad strategies and measures that were being undertaken was also summarised.

This article provides an overview of some of the specific measures that have been initiated by different countries and destinations around the world since the committee was formed, along with an outline of initiatives in Canada. In particular, airport and air service related initiatives are highlighted. A summary is provided below.

Select Initiatives in the Americas and the Caribbean:

Destination Description of Select Programs and Initiatives

Bahamas Lowering and eliminating airport taxes to reduce airfares Leveraging U.S. immigration and customs pre-clearance facilities to add new

U.S. gateways Advertising campaign in major U.S. markets such as New York and Washington,

D.C.

Brazil Gradual reduction in the minimum price of international flights from Brazil Policy to not create any fees that may impede international tourism

Jamaica Jamaica Tourist Board marketing initiatives targeted at markets in Canada, U.S. and U.K., including joint marketing program with Air Jamaica for the U.S.

United States

U.S. Senate Committee on Commerce has approved Travel Promotion Act to create a non-profit organisation to promote international travel to the U.S.

Organisation estimated to have an annual budget of $200 million - to be funded by private sector and a US$10 fee on foreign visitors that are currently not required to pay the $131 visa fee

U.S. Senate will vote on the Act in September 2009


A GLOBAL RESPONSE TO TOURISM INDUSTRY CHALLENGES – CON’T Select Initiatives in Asia Pacific:

Country Destination Select Measures

China US$59 million in grants to subsidise air services to remote and under-developed areas

Government subsidisation of small and medium airports who exempt landing fees for airlines in 2009

US$59 billion investment in airport infrastructure (50 new airports, 90 airport renewal and expansion projects)

International marketing campaign targeted at markets such as the U.S., Japan, Australia and New Zealand

Japan Tourism Nation Promotion Act to encourage expansion of tourism between Japan and international markets

Government ministries, tourism offices, airport authorities, airlines, tour operators, travel agencies working together to stimulate tourism

Thailand 50% reduction in landing and parking fees at all airports Transit passenger program which allows passengers changing

planes at Bangkok to leave the airport for local tours of 3-5 hours International promotional campaign in China, Japan, South Korea

and the U.K.

Select Initiatives in Europe and the Middle East

Country Destination Select Measures

Egypt Encouraging reduction of airline landing fees at all airports Co-operative marketing campaigns with airlines

France Reduction of VAT (value-added tax) from nearly 20% to 5.5% for the food and beverage sector, effective 1 July 2009

Members of restaurant trade groups have agreed to lower prices in 10 menu categories and to create 40,000 new jobs over the next two years

Spain USD$1.4 billion to finance investment in tourism infrastructure USD$2.8 million in government subsidy to tourism companies for

innovation and enhancing competitiveness


A GLOBAL RESPONSE TO TOURISM INDUSTRY CHALLENGES – CON’T Initiatives in Canada In Canada, the federal government has announced that it will provide the Canadian Tourism Commission with an additional $40 million over the next two years on top of its current $76 million annual budget. This includes $20 million for domestic marketing and $20 million for international markets. Other initiatives to be implemented over the next two years include the following:

• $100 million for marquee festivals and events;

• $150 million for Canada’s national parks system;

• $25 million to create new hiking trails across Canada;

• $60 million for local and community cultural and heritage institutions;

• $140 million for economic and tourism development in northern Canada;

• Additional funding of projects to develop tourism infrastructure;

• $407 million to improve VIA Rail passenger service in the Montréal-Toronto corridor; and

• $24 million to develop cruise ship tourism.

For the Canadian aviation industry, the federal government’s significant investment into rail services along the Montréal-Toronto corridor may result in an increase in competition for air services operating along the same routing. On another front, the investment in cruise ship tourism has the potential to provide air service development opportunities in select markets to serve homeport cruises.

What does this all mean? The last couple of years have been challenging for tourism and the current global economic downturn has further deteriorated the market demand for travel. However, destination countries around the world have been very aggressive - launching global marketing initiatives, making major industry investments, and introducing policy measures to stimulate tourism market demand. The reason is because destination countries around the world recognise the importance of tourism as a critical economic sector that creates jobs and generates significant foreign exchange earnings for the destination country.

However, the result of all of these destination initiatives and investments is that the international tourism industry has become much more competitive – not only now but in the future – as many of the marketing programs and investments made now will have long-lasting impact on the competitiveness of those destinations that make them.

Specific to the aviation industry, one of the consistent trends that have emerged is that many destinations are making substantial investments and/or have launched policy initiatives in air services development and airports – thereby enhancing their ability to connect to and generate demand from global international tourism markets. To remain competitive, Canada must do the same and ensure that all levels of government, airport operators, airlines, tour operators, travel agencies and other tourism service providers work together to enhance the tourism industry in Canada.


Connie Chang Senior Analyst

NORTH AMERICA SEAT CAPACITY CHANGES 2009 VS. 2008 August 2009

On a global basis, airlines have continued to reduce both seat capacity and employment in response to decreasing passenger traffic and revenues resulting from the global economic downturn which began in Fall 2008.

Significant cutbacks in seat capacity by US carriers Almost all U.S. full service carriers lowered their system-wide seat capacity in the range of 2% to more than 12% between July 2008 and July 2009, as shown in Figure 1 below. The only exception was Hawaiian Airlines, which increased total seats by nearly 8% during the period.

Similarly, U.S. low cost carriers have also been reducing capacity levels. Among low cost carriers, Spirit Airlines showed the most significant cutbacks, reducing seat capacity by over 20% in July 2009 over July 2008.

Among selected U.S. regional carriers, Allegiant Air increased its seat capacity by nearly 40% in July 2009 compared to July 2008. According to Allegiant Travel Company’s CEO and President, Maurice J. Gallagher Jr., “we substantially increased the size of our network footprint, including the successful start of 13 new routes to our new Southern network… [which] further diversifies our exposure to regional economies and offers more protection to us in these uncertain times.”1 On the other hand, Midwest Airlines suffered more than a 40% capacity cut during the same period.

Figure 1: Change in airline seat capacity in July 2009 over July 2008

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Source: OAG Schedules, July 2009 and July 2008.

1 Allegiant Air press release, 21 July 2009.


NORTH AMERICA SEAT CAPACITY CHANGES 2009 VS. 2008 – CON’T

The U.S. legacy carriers continue to announce further capacity cuts for the remainder of 2009. For instance, United Airlines has decided to cut international capacity by 7% for the fourth quarter2 and Delta has increased its system target for capacity cuts to 10% for 2009 overall.3

Relatively stable airline seat capacity in Canada In Canada, airline capacity levels remain relatively stable compared to the U.S. Canada’s largest air carrier, Air Canada, experienced capacity cuts of less than a 2% in July 2009 over July 2008 and announced record load factors for July 2009 (83.6% on a consolidated basis) 4 made possible by seat capacity cuts. WestJet’s seat capacity, on the other hand, was nearly constant in July 2009 over July 2008. However, despite its apparent stability in seat capacity levels, the carrier recently announced plans to reduce its capacity growth expectations to between 1% and 2% for the third quarter of 2009,5 in response to a 65% decline in company profits for the second quarter.6

2 “Airlines to cut capacity and jobs.” The Montreal Gazette, 21 July 2009. 3 “Delta looks to cut more of its workforce to reduce costs.” Market Watch, 7 August 2009. 4 Air Canada News Release, 5 August 2009. 5 “WestJet squeaks out profit despite weak demand,” The Vancouver Sun, 6 August 2009. 6 WestJet News Release, 6 August 2009.


Connie Chang Senior Analyst

2009 AIRLINE MARKET CAPITALIZATION UPDATE August 2009

An update on market capitalisation levels for selected air carriers in July 2009, which can serve as an indicator of financial health during this time of economic uncertainty, which is provide below. Figure 1 summarises market capitalisation levels for selected airlines worldwide, with a particular focus on North American air carriers.

Figure 1: Airline Market Capitalisation by Carrier (US$ billions) – July 2008 vs. July 2009

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Source: Canadian carriers: Air Canada and WestJet 2007 and 2008 Annual Reports and July 31, 2007 and July 31, 2008 closing prices from the Toronto Stock Exchange. U.S. and International carriers: July 31, 2008 and July 31, 2009 closing prices from Aviation Daily, Aviation Industry Stock Performance, July 2008 and July 2009. Notes: Prices are in U.S. dollars, except for Air Canada and WestJet which are presented in Canadian dollars. *Northwest merged with Delta on 31 October 2008; therefore, Delta’s 2008 market cap accounts for the acquisition.

In July 2009, major Canadian air carriers experienced significant declines in market capitalisation levels over July 2008. Air Canada saw a 52% drop in its market cap to approximately CAD$505 million in July 2009 over the same month last year. However, this is a major improvement over December 2008, where market caps for Air Canada were less than half of the current amount at CAD$244 million. WestJet, in comparison, saw a less severe drop in market cap of 23% over the same period. At the closing price of $10.40 per share, market caps were estimated at CAD$1.5 billion as of 31 July 2009, which is slightly less than in December 2008 (CAD$1.7 billion).


2009 AIRLINE MARKET CAP UPDATE – CON’T

Market capitalisation levels for select U.S. airlines were somewhat mixed in our analysis. Among the U.S. full service carriers examined, American, Continental and United saw declining market caps of 32%, 1% and 40% respectively, while Delta saw a surprising 144% increase in its market capitalisation in July 2009 compared to July 2008. U.S. low cost carriers also saw varying results during the same period, with AirTran and JetBlue experiencing increases in market caps by 236% and 8% respectively, and Southwest encountering a 39% market cap decrease. Other U.S. carriers examined include US Airways and Alaska Air, both of which saw increases in market cap levels during the period. Overall, most of these U.S. carriers did not see an improvement in market capitalisation levels in July 2009 compared to December 2008, with the exception of Delta and AirTran whose market caps grew by 53% and 67% respectively.

A few select international carriers were examined for comparative purposes. In China, market capitalisation levels for China Eastern were relatively stable between July 2008 and July 2009, although it had more than doubled since December 2008 (to US$1.6 billion in July 2009). Brazilian carrier, GOL Linhas Aereas, saw a decline in market caps by 35% to US$1.5 million in July 2009 over July 2008, which once again, represents a significant increase compared to December 2008 (up 75%). Chilean carrier, LAN Chile SA, experienced a modest increase in market caps by 19% between July 2008 and July 2009 and an even larger increased by 52% between December 2008 and July 2009.


AIRLINE DATA – CANADA Traffic and Load Factors on Canada’s Major Air Carriers July 2009

Passenger Traffic Revenue Passenger

Kilometres Capacity

Available Seat Kilometres Load Factor Air Carrier

% Change over 2008

% Change from 2007

% Change over 2008

% Change from 2007

Change over 2008

Change from 2007

Air Canada7 -3.3% -3.9% -4.1% -6.0% +0.6 pts (to 83.6%)

+1.8 pts (from 81.8%)

Domestic (Mainline) 0.6% -2.9% -0.5% -2.9% +0.8 pts -0.1 pts

International & Charter -5.2% -4.4% -5.9% -7.6% +0.6 pts +2.9 pts

WestJet -4.5% +13.0% -0.4% +22.2% -3.3 pts (to 76.4%)

-6.2 pts (from 82.6%)

Analysis: • Starting in July 2009, Air Canada will only report traffic for both Air Canada Mainline and Jazz on

a consolidated basis. Jazz operates both domestic and transborder flights only with Air Canada Mainline operating flights in the domestic, transborder and other international sectors.

• Air Canada’s domestic traffic increased 0.6% in July 2009 over July 2008; however, the airline suffered a system-wide decline in passenger traffic of 3.3% in the same period. The carrier’s domestic load factor increased from 78.9% in July 2008 to 79.7% in July 2009.

• Air Canada Mainline’s international sector experienced declines in both traffic (-5.2%) and capacity (-5.9%) in July 2009 versus July 2008. During that time period, the carriers’ Pacific, Latin America and Other international region traffic and capacity decreased by 17.9% and 9.0%, respectively. The Transborder market has experienced a decline in traffic and capacity of 9.3% and 10.5% respectively, year-over-year.

• WestJet reported a drop in its system-wide load factor of 3.3 percentage points to 76.4% in the month of July. The decreased load factor was due to a modest decline in seat capacity (-0.4%) coupled with a larger drop in passenger traffic (-4.5%) during the period.

7 Air Canada Mainline consists of all Air Canada operations including Jazz.

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AIRLINE DATA – U.S. U.S. Airlines Release July 2009 Traffic Figures

Airline Traffic (RPMs – millions)

Capacity (ASMs – millions) Load Factor

2,545 ↑0.3%

2,957 ↑0.9%

86.1% ↓0.5 pts

723

↓5.0% 929

↓10.8% 77.8% ↑4.8 pts

7,240 ↑5.2%

8,703 ↓3.6%

83.2% ↑6.9 pts

1 8,886 ↓3.4%

10,173 ↓6.9%

87.3% ↑3.1 pts

2 11,151 ↓4.0%

12,836 ↓7.0%

86.9% ↑2.7 pts

11,662 ↓6.4%

13,364 ↓8.0%

87.3% ↑1.4 pts

19,521 ↓2.5%

22,271 ↓3.6%

87.7% ↑1.0 pts

2 5,655 ↓4.3%

6,544 ↓5.7%

86.4% ↑1.3 pts

1,959 ↓5.1%

2,219 ↓4.1%

88.3% ↓0.9 pts

862

↓12.0% 937

↓16.0% 92.0% ↑4.2 pts

Notes: 1. Mainline operations only. 2. Load factor includes scheduled service only. Sources: Carrier traffic reports.

InterVISTAS’ Canadian Aviation Intelligence Report August 2009 Copyright ©2009 InterVISTAS Consulting Inc., all rights reserved.

Page 11

Toronto Vancouver Montréal-Trudeau Calgary Edmonton Ottawa Winnipeg Halifax Victoria Kelowna Saskatoon Regina St.

John’s May +5.1% +6.7% +1.4% +3.1% +5.9% +7.6% -2.1% +12.1% +3.3% +1.0% +3.5% +5.3% +5.2% June +6.4% +5.1% -2.7% +2.4% +5.2% +8.5% -1.4% +6.6% +7.6% +0.5% +6.1% +2.2% +6.4%

2nd Quarter +5.7% +6.0% +0.5% +3.0% +5.5% +8.7% +0.2% +9.3% +4.7% +0.5% +3.9% +3.6% +4.8% July +3.0% +0.7% -2.1% +1.9% +7.2% +9.1% -1.4% -3.9% +5.6% +2.7% +8.8% -1.5% +0.3%

August +3.0% +0.3% -0.9% +1.2% +4.1% +9.9% -4.8% +2.0% +6.7% +4.8% +8.1% +6.9% +3.0% September -1.6% -6.0% -5.1% -5.7% +4.9% +6.9% -2.4% -4.1% +3.5% +2.0% +14.9% +4.7% +2.5% 3rd Quarter +1.6% -1.4% -2.6% -0.7% +5.4% +8.6% -2.9% -1.8% +5.4% +3.2% +10.5% +3.2% +1.9%

October -4.8% -3.2% -4.0% -3.2% +6.1% +1.0% -3.7% -1.0% +3.5% +2.4% +12.3% +10.3% +2.7% November -3.2% -5.9% -4.6% -0.1% +2.7% -5.6% -1.3% -8.5% +3.2% -1.1% +7.4% +0.6% +4.3% December -1.1% -6.7% -3.3% +0.8% +6.8% +3.5% -0.9% -4.9% -7.1% -3.1% +15.1% +5.3% +3.8% 4th Quarter -3.1% -5.3% -4.0% -0.9% +5.2% -0.3% -2.0% -4.5% -0.1% -0.7% +11.6% +5.4% +3.5%

2008

Full Year +2.6% +2.0% -0.1% +2.0% +6.1% +6.1% +0.1% +3.2% +3.8% +2.1% +9.6% +5.0% +3.2% January -4.0% -9.6% -2.7% -4.2% -1.7% -0.9% -1.0% -7.5% +1.1% -8.8% +10.5% +7.1% -0.1% February -5.9% -11.3% -7.0% -3.5% -3.2% -8.0% -3.5% -11.3% -2.8% -8.5% +6.5% +0.8% -5.9%

March -8.8% -11.3% -5.7% -7.7% -3.7% -4.1% -5.2% -14.3% -1.2% -5.5% -0.1% -5.1% -4.1%

2009

1st Quarter -6.3% -10.7% -5.3% -5.2% -2.9% -4.4% -3.3% -11.5% -1.0% -7.6% +5.7% +0.9% -3.4%

April -6.7% -8.1% -6.4% -5.1% 1.5% -7.1% -3.2% -1.9% 0.1% -0.7% 11.8% 6.4% 3.3%

May -11.9% -14.6% -10.4% -8.3% -8.5% -4.5% -8.1% -8.4% -3.4% -2.9% -2.0% -2.8% 2.0%

June -12.3% -16.0% -7.8% -6.9% -9.9% -6.9% -8.3% -7.5% -4.1% 11.0% -1.9% 1.0% -4.4%

2nd Quarter -10.4% -13.1% -8.2% -6.8% -5.7% -6.2% -6.6% -5.9% -2.5% +2.4% +2.3% +1.4% +0.1% Source: Transport Canada and individual airports’ traffic reports. Note: Subject to revision.

Summary of Total Year-Over-Year Passenger Traffic Performance at Selected Canadian Airports


NEWS AIR CANADA UPDATE SUN DESTINATIONS ADDED THIS WINTER

Air Canada announced that

the company is adding and expanding services to holiday sun destinations this winter. The services include:

• Halifax / Samana and Tampa, once weekly • Montréal / Punta Cana, four times weekly • Montréal / Tampa, twice weekly • Montréal / Fort de France, Fort Meyers,

Samana and Puerto Vallarta, once weekly • Ottawa / Fort Lauderdale, daily • Ottawa / Providenciales, once weekly • Toronto / Varadero, five times weekly • Toronto / La Romana, once weekly • Calgary / Honolulu, once weekly increasing to

twice weekly in mid-December • Calgary / Maui, once weekly increasing to

thrice weekly in mid-December • Vancouver / Varadero, once weekly

TORONTO / AUSTIN, TX ROUTE DROPPED The airline is cancelling its non-stop flight between Toronto and Austin due to a drop in passenger demand. Passenger traffic dropped by 49% from June 2009 versus the same month in 2008. The airline introduced the route just over a year ago.

$155 MILLION IN Q2 NET INCOME Air Canada’s 2009 second quarter financial highlights include the following:

• Net income of $155 million versus $122 million in Q2 2008.

• Operating loss of $113 million versus operating income of $7 million in Q2 2008.

• Passenger Revenue decrease of $396 million, a 16% drop from Q2 2008.

Declines in traffic and revenue were due to impact of H1N1 influenza, weakened demand for air travel and competitive pricing initiatives initiated by the airline to try and stimulate traffic.

$1.02 BILLION RAISED TO IMPROVE LIQUIDITY Air Canada has made a number of arrangements that have allowed the airline to raise $1.02 billion in additional liquidity via transactions and financing with select lenders and stakeholders. Highlights include:

• Financing agreement with GE Canada Finance holding company

• Amended credit card processor agreement • Sale leaseback agreement of 3 Boeing 777-

300ER aircraft • Amended Boeing 787 purchase agreement • Repayment of existing credit facilities.

ALL LABOUR AGREEMENTS SUCCESSFULLY CONCLUDED The ratification process has come to a conclusion among all five Canadian based unions at Air Canada. The unions, representing approximately 26,000 employees ruled in favour of labour agreements that would stabilize costs for 21 months and support a moratorium on pension funding. During the contract extension period the agreement specifies that there shall be no adjustments made to wages or pension benefit levels.

WESTJET UPDATE INTERLINE AGREEMENT WITH AIR FRANCE & KLM

Passengers booking on Air France and KLM

can now connect into WestJet’s network. Bookings make by Air France and KLM will allow customers to travel on one itinerary to their final destination in WestJet’s network.


NEWS CON’TWESTJET UPDATE – CON’T NEW SERVICES

WestJet is launching 11 new destinations for

the 2009-2010 Winter Season. The new services include:

• Montréal / Las Vegas, five times weekly • Ottawa / Montego Bay and Punta Cana, once

weekly • Toronto / Atlantic City and Miami, daily • Toronto / St. Martin and Varadero, thrice

weekly • Toronto / Cayo Coco, Cozumel, Freeport,

Holguin and Providenciales, twice weekly • Hamilton / Punta Cana, once weekly • Thunder Bay / Punta Cana, once weekly • Edmonton / Yellowknife, daily • Calgary / San Diego, thrice weekly • Calgary / Ixtapa, twice weekly • Vancouver / Kamloops, daily • Vancouver / Los Angeles, four times weekly • Vancouver / Phoenix, thrice weekly • Vancouver / Lihue, twice weekly • Victoria / Honolulu, once weekly

2ND QUARTER EARNINGS REPORTED WestJet reported its 2009 second quarter financial results, with highlights as follows:

• Net income $9.2 million versus $26.8 million in Q2 2008.

• Operating income of $9.2 million versus an operating income of $26.8 million in Q2 2008.

• Passenger revenue decrease of $84.8 million from $616 million in Q2 2008.

Low revenues for the 2nd quarter can be attributed to the continued weakened economy and aggressive pricing strategies.

NEW TRAVEL REWARD CARD ANNOUNCED WestJet announced that it has selected RBC and MasterCard for its new travel rewards credit card which will be unveiled in Fall 2009. The new reward card, issued by RBC with MasterCard, will match RBC's other rewards cards and appeal to North American and Caribbean travellers.

U.S. AIRLINES REPUBLIC WINS BIDS FOR FRONTIER Denver-based Frontier Airlines has been

purchased by Republic Airways Holding Inc. for US$108.8 million.

Despite a US$180 million bid from Southwest Airlines, the pilot unions of Frontier and Southwest reached an impasse with regards to seniority. Frontier Airlines has been in Chapter 11 protection for 15 months since April 2008; however, they expect to emerge from bankruptcy sometime next month.

US AIRWAYS AND ANA SIGN CODESHARE AGREEMENT Pending approval from the U.S. Department of

Transportation, All Nippon Airways (ANA) and US Airways will be permitted to place their respective flight

codes on selected services. US Airways will place its US flight code on ANA flights between Tokyo's Narita International Airport and Los Angeles, San Francisco, Chicago, Washington, D.C. (IAD) and New York (JFK). ANA will place its NH flight code on US Airways flights from the aforementioned airports to Charlotte, N.C., Philadelphia, Phoenix and Las Vegas.


NEWS CON’TCARGO AIR CARGO TRAFFIC DROPS IN JUNE 2009 IATA has announced the international scheduled traffic results for June showing freight demand declining 16.5% compared to the same month in the previous year. On a monthly comparison, cargo demand showed a slight improvement from weak levels in May, which was 17.4% below 2008 levels. Utilization of air freight capacity on international routes remained low at 47.3% for June due to unbalanced trade flows with Asia and market share loss to ocean shipments. Meanwhile, Asia-Pacific airlines reported a 15.8% drop in June. Despite a weakening market, the drop was an improvement compared to the 18.1% decline in May. The slight improvement can be attributed to improved economic conditions in some Asian economies, such as China. IATA reports that the economic recovery in Europe and North America is suppressed by consumers choosing to repay debt rather than boost spending. European carriers experienced weak demand for freight in June, down 20.3% from the same month a year. North American carriers reported an 18.6% decline in June traffic. Middle Eastern carriers freight demands dropped 4.2% while African carriers decline by 20.2%. Latin American carriers freight demand dropped by 14.2% in June 2009 versus the same period last year.

DHL MOVES ITS TRANSBORDER OPERATION TO HAMILTON On 5 August 2009, DHL announced that it is moving its transborder operations to the Hamilton International airport. The service will begin with flights to Cincinnati, five times a week. The service is set to commence in September 2009.

OTHER EDMONTON CITY CENTRE AIRPORT TO CLOSE On 8 July 2009, Edmonton’s City Council voted in favour of closing the Edmonton City Centre Airport. The City Manager has negotiated with the Edmonton Regional Airport Authority to amend the lease agreement. The closure of the airport will take place in phases. Runway 16/34 will be closed first and a GPS approach will be added to Runway 12/30 to compensate for the closure of the current ILS runway. It is expected that the current general aviation business activities will be adjusted to accommodate a one-runway airport while Medevac services will not be impacted. Edmonton Airports will collaborate with the City to ensure that users will develop a plan to operate services until a final closure date has been set. Once a closure date is set, environmental remediation on the airport land will commence.

CANADA AND KOREA SIGN “OPEN SKIES” AGREEMENT The Government of Canada and the Korean Government signed an “open skies” agreement on 15 July 2009. The new agreement allows any

number of air carriers from either country to operate scheduled passenger and

all-cargo air services as frequently as desired, to and from any point in either country's territory. The carriers involved will also be permitted to pick up traffic in each other's territory and continue to a third country as part of a service to or from their home territory. The agreement also includes rights pertaining to cargo only flights, permitting stand-alone cargo services between each other's country and third countries.


NEWS CON’TOTHER – CON’T VISITORS TO THE U.S. DROPS FOR THE MONTH OF MAY On 29 July 2009 the U.S. Department of Commerce announced that 3.8 million international visitors traveled to the U.S. during the month of May. This figure is down 12% compared to the same month in 2008 and down 10% compared to year to date for May. In addition, visitors spent US$9.5 billion during the month which is 22% less than the same period in 2008. Unfortunately, May 2009 represents the 7th consecutive month of decreased spending by international visitors to the U.S.

OUTBOUND AIR TRAVEL FROM THE U.S. DECLINES U.S. international air travel declined 10% for the month of May as compared to the same month in 2008. Outbound (U.S. Citizens) travelers totaled 3.3 million passengers. Markets that saw increases in U.S. origin travelers include the Middle East, Africa and Central America. Travel to Mexico declined 46% for the month.

KOREAN AIRLINES UTILIZES BLUE SKY AGREEMENT Soon after the announcement was made that the Canadian and Korean Governments signed

an “open skies” agreement, Korean Air lines announced that an

increase in capacity would be offered on routes from both Toronto and Vancouver to Seoul. Korean Air will be increasing its Toronto-Seoul service to a daily 777 effective 14 August 2009, and will add capacity to Vancouver by upgauging to a Boeing 747 on the route from a Boeing 777.

BOOK YOUR CLOTHES IN ADVANCE Travellers will be able to “book their clothes in advance” for their holidays instead of worrying about what to pack in their luggage in an introductory service that will be launched in

Australia in 2010. This concept will allow travellers to book their choice of clothes online before departing for their trip while the items will be available to them at their destination. This concept is being introduced as a way to be more energy efficient, (for the airlines) while saving travellers time and worries in that they would not have to be waiting in baggage queues nor worry about lost or stolen baggage. Travellers will be able to choose between new and pre-worn clothes. The concept is planned to be launched at Australia’s Gold Coast because of its popularity among both business and leisure travellers. The Zero Baggage concept is created by Canada’s Catharine MacIntosh who is planning to launch the product in her hometown of Toronto while simultaneously launching the product in Australia.

TOURISM BC TO BE INTEGRATED INTO BC MINISTRY OF TOURISM, CULTURE AND THE ARTS The BC Provincial government has announced that Tourism BC, the crown corporation responsible for marketing and promoting tourism in the province, will be folded into the Ministry of Tourism, Culture and the Arts effective 1 April 2010. Tourism BC's current president, Rod Harris, has been dismissed along with the entire board of directors. Deputy tourism minister Lori Wanamaker has been named as Tourism BC's interim president and CEO, while the 15-person board will be replaced by a new Minister's Advisory Council, which reports directly to the Minister. Tourism BC was created in 1997 as the destination and tourism marketing arm for the province, and has approximately 146 employees with offices in Vancouver and Victoria, along with in-market representation abroad internationally.


Karla Petri Manager,

Economic and Financial Analysis

AIRPORT CONCESSIONS August 2009

Trends in Airport Concession Revenues: The Rise of the Vending Machine Non-aeronautical revenue has become an increasing source of income for airports around the world. As these revenues grow to become a greater percentage of total airport revenues, both airports and retailers alike continue to seek innovative new concepts to appeal to the increasingly sophisticated airport shopper. A new and growing trend is the increase in number and type of products now available in airport vending machines.

Traditionally, vending machines have been a traveler’s sole option for limited late night snacks and beverages, offering primarily pop and junk food. Over time, these food and beverage machines expanded to offer hot soups and coffees and somewhat healthier fare such as water, milk and granola bars. This retail medium, however, is beginning to offer a whole new range of products at much higher price points.

As early as 2005, vending machines selling Apple iPods and other electronics started to appear in airports, beginning with Atlanta Hartsfield-Jackson International and San Francisco International. Zoom Systems of San Francisco, the developer of the machines, has partnered with a number of retail brands. Rosetta Stone (language learning software), Proactive Solution (skin care and cosmetics) and Sony Access (electronics) all boast a presence in airport vending machines across North America. Demos allow users to try out software prior to purchasing.

In 2008, Best Buy Co Inc. joined the vending machine trend, offering cell phones, digital cameras, flash drives, portable audio players and accessories such as laptop chargers and headphones. Best Buy is currently testing out the airport vending machine concept with a pilot project called “Best Buy Express”.

Zoom Systems announced expansion plans both domestically and internationally in 2009. Their automated vending machine technology results in the highest sales-per-square-foot average in the retail environment. They have been recognized for their airport performance with a number of awards since 2007.

This past summer (2009) has raised the bar for airport retail, with the installation of vending machines that dispense gold bars in the Frankfurt Airport and in Frankfurt’s main railway station. TG Gold-Super-Markt (a German-based

company) hopes to add their “Gold to Go” machines in airports and railways stations throughout Europe. Their more sophisticated models offer one gram bars as well as a Maple Leaf Five Canadian dollar coin, and a Kangaroo Fifteen Australian dollar coin (equivalent to about one tenth of an ounce of gold). These products appeal to both investors and shoppers looking for unique gift and souvenir items. The machines sport military grade armoured plating and have the ability to update gold prices as frequently as every two minutes. Speculation is that this vending machine model is viable as long as the price of gold remains high.

Airport vending machines are an innovative and promising retail trend to be watched closely. Coming soon to an airport near you!


Jacqueline Clarke Manager,

Strategic Development

THE CARIBBEAN REPORT August 2009

Caribbean benefits from economic slowdown This fall, the Caribbean looks set to benefit as several carriers announced increased frequencies and new services to the region. Highlights as follows:

• US Airways will offer the first non-stop service to the Caribbean from its Phoenix hub with the introduction of a four-per-week service to Montego Bay, Jamaica for the winter season, effective 17 December 2009.

• JetBlue will increase service to Puerto Plata and will launch service between New York and St. Lucia on 26 October 2009.

• Effective 19 November 2009, American Eagle will bring back non-stop service between Miami and three Bahamas destinations: Harbour Island; Treasure Cay, Abaco; and Governor's Harbour (not served since the 1990’s), add a second daily non-stop to Marsh Harbour and resume seasonal, daily service to Exuma, Bahamas.

• The Bahamas will also experience a boost with the introduction of Delta’s non-stop service from New York to Grand Bahama. From Toronto, the Bahamas is projected to receive an additional 12,000 visitors this season with the introduction of West Jet’s twice-weekly direct service. WestJet is also introducing service to the Turks and Caicos, Cuba and St. Martin starting in November 2009.

• American Airlines will add a second daily flight between Miami and Curacao effective 19 November 2009. American will also increase service to the US Virgin Islands, adding three weekly services from Miami to St. Croix. Delta will increase from two weekly services to daily service between Atlanta and St. Croix and to daily service between New York and St. Thomas.

• From Europe, Air Italy’s newly-introduced weekly B767 direct Rome-Havana service, with a stopover in Milan, is expected to significantly increase arrivals from Cuba’s third largest source of visitors (130,000 in 2008). British Airways will add additional flights from Gatwick to Bermuda (up from five to six per week), Barbados (from nine to ten per week) and St Lucia and Port of Spain (from three to five per week) and launch a new service to Montego Bay, effective 25 October 2009.

• From South America, Linea Turistica Aerotuy began a twice-weekly charter service to Barbados from Caracas in July 2009 and Gol announced the introduction of service from Sao Paulo, Brazil to Punta Cana, Curacao and Aruba. Gol is reorganizing its routes after posting losses for every quarter in 2008 as a result of reduced demand for travel between Brazil and the rest of South America.

Mexico planning new Yucatan peninsula airport The Mexican Tourist Board announced its intention to pursue the development of an international airport at an already-identified site at Tulum on the Yucatan Peninsula. The airport would serve the fast-growing Riviera Maya and emerging Yucatan destinations to the south. Specific development plans are on hold until financing conditions become more favourable for sourcing private investment.

Caribbean Airlines CEO to resign Philip Saunders, Caribbean Airlines’ CEO, announced his intention to resign for “personal reasons.” Saunders has agreed to remain in the position until a replacement has been appointed.


Doris Mak Director,

Special Projects

THE ASIA REPORT 20 August 2009

Changi Airport International takes 26% stake in India’s Bengal Aerotropolis Projects Ltd.

Changi Airport International, the international development subsidiary of Singapore’s Changi Airport Group, has taken a 26% stake in Bengal Aerotropolis Project Ltd. The development in the Durgapur-Asansol region of eastern India will involve setting up an industrial park, a logistics hub, and information technology park around Durgapur Airport. The project aims to attract $2.5 billion in investment. The first phase of the project will develop over 260

hectares of land with the supporting industrial and social infrastructure to be developed over 680 hectares of land.

ANA and JAL to resume fuel surcharges Both All Nippon Airways (ANA) and Japan Airlines (JAL) have announced that they will be reinstating a fuel surcharge beginning in October 2009 due to the recent escalation in spot fuel prices. ANA will keep the surcharges in effect for a two-month time period to allow for a more flexible response to market

changes while JAL has chosen to have the fuel surcharges in effect for a three-month time frame. JAL will charge a one-way surcharge of ¥10,000 (US$106) for flights between Japan and Brazil, ¥7,000 (US$75) for flights between Japan and North America or Europe and ¥1,500 (US$16) for services between Japan and China.

Air China and Swire Pacific Ltd. increase stake in Cathay Pacific Air China has purchased 491.9 million shares in Cathay Pacific Airways Ltd for HK$6.34 billion (US$818million) from Citic Pacific Ltd. As a result, Air China’s share of Cathay Pacific will rise to nearly 30%. Swire Pacific Ltd will also buy 78.7 million shares of Cathay Pacific Airways Ltd for HK$1.01 billion (US$131 million) from Citic Pacific Ltd., increasing its stake in the airline to

42%. Citic Pacific Ltd. is a Hong Kong based company with business interests in several industries including: steel, iron ore mining, property, aviation, civil infrastructure, and power generation. After the completion of the sale of the shares, Citic’s share in Cathay Pacific Airways Ltd will be just under 3% of the total share capital for the airline. This is down from 17.5% prior to the transaction.

Qantas reports year-end profit before taxes of A$181 million (US$150 million) down 87% from prior year Qantas reported profit before taxes of A$181 million (US$150 million), down 87% from the prior year. Freight revenue for the airline fell 20% to A$765 million (US$634 million), a level last seen in 2005. As a result, the airline has indicated that it will enact a further A$1.5 billion (US$1.2 billion) in cost cutting measures. Qantas also announced that it will not pay its dividend for the year and in light of the high level of

uncertainty in the marketplace, it will not provide analysts with guidance on its profits for the next financial year.


Ian Kincaid Director,

Economic Analysis

THE EUROPEAN REPORT August 2009

European Trading Scheme (ETS) Deadline Looms By 2012, nearly all airlines flying to, from or within the European Union (including airlines based outside the EU) will be required to operate under the European Trading Scheme (ETS). The European Commission estimates that almost 4,000 airlines will be impacted by the EU carbon trading scheme (based on current services).

The first stage in the process of incorporating aviation in ETS is the submission of revenue tonne kilometres and emission figures by the air carriers, in order to determine the initial allocation of carbon allowances. To this end, the carriers must submit plans for collecting this data by the end of August 2009. However, it looks like this deadline will not be met. The European Commission only released the list of airlines covered by the scheme in mid-August, giving member states little time to review the data collection plans of the carriers (each member state is responsible for assessing the plans of the airlines operating to/from/within their country). While the larger airlines have already prepared for the data collection requirements, many smaller carriers have a long way to go. In response, the U.K. has pushed back the submission date to November, and Germany, Italy and Sweden have followed suit (the U.K. has the largest number of carrier affected by this scheme).

The European Commission insist that despite these delays, the reporting process will be up-and-running by 2010 since this is a legal requirement.

A New Airport for London? A bit of controversy has arisen regarding the decision of Oxford Killington Airport to rename itself London Oxford Airport. The airport is located 60 miles outside of the capital of the U.K., considerably further than any of London’s other airports.

The airport management and local chamber of commerce argue that the renaming will raise the profile of the airport and attract new air service, business and tourism to the region. However, many locals complain that Oxford is an established business and cultural centre in its own right (with one the world’s top universities) and does not need to be sold as an offshoot of London. The airport currently serves business and general aviation and has only one (weekly) scheduled service. For the time being, it is probably not on Ryanair’s radar.


Fred Gaspar Regional Vice President

THE OTTAWA REPORT August 2009

Canada Introduces Transit Without Visa and China Transit Trial On 30 July 2009, Ministers Peter Van Loan and Stockwell Day announced the launch of the Transit Without Visa (TWOV) Program in Canada. Initially launched as a pilot program in 1997 at Vancouver International Airport, TWOV enables certain international passengers, in possession of valid U.S. visas, en route to and from the U.S. to transit through Canadian airports without a Canadian transit visa. Currently, only nationals of the Philippines, Indonesia, Thailand and Taiwan transiting Vancouver International Airport on Philippine Airlines, China Airlines or Cathay Pacific Airways are eligible to participate in the Transit without Visa Program. The Government will review expansion of the program on a case-by-case basis. According to Larry Berg, President and CEO of the Vancouver Airport Authority, “The Transit Without Visa program is a key initiative for facilitating travel between North America and Asia via the YVR gateway.”

At the same time, Ministers Van Loan and Day announced the launch of a 1 year China Transit Trial; a similar but separate program for nationals of China. Participants of the China Transit Trial must originate in Beijing, Hong Kong, Shanghai, Guangzhou, Manila or Taipei on board one of the TWOV approved carriers.

Canada Imposes Visa Requirements on Mexico and Czech Republic Since 14 July 2009, nationals of Mexico and Czech Republic have been required to be in possession of a valid visa to enter Canada. The new requirements were imposed due to the significant increase in refugee claims from both countries. Refugee claims from Mexico have almost tripled since 2005, making it the number one source country for claims. In 2008, more than 9,400 claims filed in Canada came from Mexican nationals, representing 25 per cent of all claims received. As expected, the new visa requirement was a hot topic during the 9-10 August 2009, annual North American Free Trade Agreement (NAFTA) meeting. Prime Minister Harper deflected criticism of Mexico by calling for a change in Canada’s refugee claim system. “This is not the fault of the government of Mexico. Let me be very clear about this. This is a problem with Canadian refugee law, which encourages bogus claims,” said Prime Minister Harper.

Since the visa requirement was lifted on the Czech Republic in October 2007, nearly 3,000 claims have been filed by Czech nationals, compared with less than five in 2006. The Czech Republic is now the second top source country for refugee claims. In response to the new visa requirement, the Czech Government recalled its Ambassador to Canada.

Canada and South Africa Conclude Air Transport Agreement For the first time, Canada and the Republic of South Africa have signed an air transport agreement between the two nations. The new agreement enables air carriers to operate passenger and all-cargo flights between the countries with flexibility in pricing and routing options. The agreement also permits code-sharing services. This agreement is the 48th air transport agreement signed since January 2006. According to Statistics South Africa, just over 3,000 Canadians visited South Africa last year.


Steve Martin Senior Vice President

Operations Facilities Research Airports TotalAppropriations, 2009 $9,042.5 $2,742.1 $171.0 $3,514.5 $15,470.1Obama proposal, 2010 $9,335.8 $2,925.2 $180.0 $3,515.0 $15,956.0House proposal $9,347.2 $2,925.2 $195.0 $3,515.0 $15,982.4Senate proposal $9,359.1 $2,942.4 $175.0 $3,515.0 $15,991.5

THE WASHINGTON REPORT August 2009

Congress completed major steps in U.S. aviation legislation before going on its traditional August recess. The Senate Commerce Committee passed its version of the reauthorization bill for FY 2010. The full Senate has not yet voted on the bill. Differences with the House-passed bill will then need to be reconciled. The House Appropriations Committee has also approved its version of the FY 2010 spending bill for the U.S. Department of Transportation, including the FAA.

The Senate Committee on Commerce, Science, and Transportation passed its version of the FAA Reauthorization Bill in late July before adjourning. The bill covers two years, FY 2010 and FY 2011, as opposed to the House bill, which would extend FAA’s authorization through FY 2012. The bill would provide slowly-increasing levels of authorized spending, rising to US$17.5 billion in FY 2011.

The bill has three main areas of emphasis: Modernizing the air traffic control system (the Next Generation Air Traffic System, or NextGen), enhancing safety (especially of regional airlines), and improving access of small communities to the national aviation system. The bill sets deadlines for the adoption of GPS navigation systems and mandating 100% coverage of the top 35 airports by 2014 and the entire national airspace system by 2018. The airports community was largely pleased with the Senate bill. It provides an increase in the Airport Improvement Program to US$4 billion in 2010 and US$4.1 billion in 2011. It also provides that airports whose enplanement numbers dropped below 10,000 in either 2008 or 2009 will still be eligible for AIP grant money at their 2007 funding level. The bill also retains the US$4.50 cap on PFCs (while the House bill increases the cap to US$7.00), but directs that a pilot program be undertaken to allow six airports to raise their PFCs to their own specified level as long as they collect the fees from passengers.

The Senate bill includes language concerning FAA’s oversight of foreign repair stations, but this provision will need to be reconciled with the more stringent requirement that the house bill included. The Senate bill does not include the House provision that would effectively sunset international immunized alliances.

Both the House and Senate appropriations committees finalized bills before the August recess. In general, both provide increases on the order of US$500 million over the current fiscal year’s funding level, and slight increases over President Obama’s spending proposal. The table below shows the proposed FAA budgets broken out by major accounts. Pay for air traffic controllers is included under the “Operations” account, while the modernization of the ATC system is covered under the “Facilities” account. The “Airports” program is largely federal grants to airports for capital improvements. (figures shown are in millions.)

Differences between the House and Senate proposals will be resolved when Congress returns in September.


Diana Hamilton Principal, Senior Architect

Delcan Corporation

Tom Ponessa Integration Manager –

Sustainable Design Delcan Corporation

THE DELCAN REPORT August 2009

This column is the first in a series of articles exploring Delcan’s various divisions and the business opportunities available as government policy embraces carbon reduction.

Opportunities in a Carbon-constrained Environment To varying degrees, Western governments have begun to grapple with carbon reduction as a policy priority. Incentives for renewable energy generation, more stringent building codes and improved efficiency standards for vehicles are all policy strategies aimed at reducing fossil fuel consumption and therefore CO2 generation. In North America, the west coast states and British Columbia took an early lead but other provinces and states are catching up.

Residential and commercial buildings consume 40% of the energy and represent 40% of the carbon emissions in the United States (Source: US Department of Energy). “State-of-the-shelf” materials, equipment and technologies exist to reduce building energy consumption by 50% or more.

Many governments have mandated that their own buildings now meet LEED standards. LEED (Leadership in Energy and Environmental Design) is an industry-led, 3rd party standard for achieving more efficient and sustainable buildings that incidentally increase productivity with their improved air quality and higher natural light levels. Green Globes, BOMA (Building Owners and Managers Association) and Energy Star offer alternatives to LEED. Delcan is currently retrofitting a 5-acre building into a municipal bus maintenance facility that will meet LEED Silver. As well, green building is accelerating in private industry and across sectors with companies like Ford, Google and Minto (a residential developer) either renovating or building new.

At the macro level, the Recovery Act in the US includes an ambitious plan to reduce fossil fuel dependence and targets 75 percent of federal building space for energy retrofits. The BC government has legislated that its operations be carbon neutral by 2010 and 174 local governments have signed the B.C. Climate Action Charter committing to becoming carbon neutral by 2012.

Carbon neutrality involves benchmarking current greenhouse gas emissions from government operations (e.g., buildings and fleets) and then reducing those emissions to net zero. Governments are also seeing the wisdom in promoting compact mixed-use development, district energy systems and electricity conservation and demand management programs.

The process is as important as the technology. With buildings, the integrated Design Process (IDP) brings all stakeholders together at the beginning of the development cycle to brainstorm and consider different design approaches. Design charrettes, or workshops, are intensive sessions where the owner, architect, engineers, energy experts, contractors etc. start with “blue-sky” ideas and eventually narrow them down to a workable solution; the advantage being that changes are more easily made at the concept stage.

The IDP also works for community-scale projects. Delcan recently assisted the City of Cambridge in generating development principles and guidelines for an eco-industrial park on land it owns.


THE DELCAN REPORT - CON’T

Tools like LEED and the IDP typically add an initial cost to any project; however the thinking behind energy efficiency and sustainable design is about future-proofing and keeping the life-cycle costs low. To achieve savings in energy and reduce carbon over the long term, a holistic, integrated approach needs to be taken up-front and capital must go into better equipment. To ease the financial burden, Energy Service Companies (ESCOs) will supply the capital and equipment for retrofits; they are then paid back over time from the resulting savings in energy costs.

The rewards are not limited to lower energy costs. Carbon credits are already in the financial mix around the world and may be an added benefit to those who pursue energy efficiency. For individual buildings the process of verifying carbon reduction may be too expensive and onerous. However, for large operations such as airports and portfolio owners such as hotel chains it is worth investigating the revenue stream potential from energy efficiency and carbon reduction strategies.

The public sector offers many opportunities for business. Governments will need assistance with benchmarking, analysis of building stock, recommendations for higher efficiency, knowledge of financing options and incentives available, education for staff, toolkits and knowledge for achieving green development, information for citizens, councillors, developers and municipal staff, a coherent strategy of CO2 reduction and so on. Municipalities may also benefit from a carbon credit revenue stream.

Along with the strong financial case that can be made for energy efficiency and CO2 reduction, there is the added bonus of excellent Public Relations for organizations that go this route. Those that have positioned themselves to offer carbon reduction knowledge linked with long-term savings and possible revenue generation have a bright future in front of them.


InterVISTAS’ Canadian Aviation Intelligence Report is a collection of information gathered from public sources, such as press releases, media articles, etc., information from confidential sources, and items heard on the street. Thus, some of the information is speculative and may not materialise.

To inquire about advertising opportunities or to provide comments/feedback on the InterVISTAS’ Canadian Aviation Intelligence Report, please contact Robert Andriulaitis at [email protected] or 1-604-717-1807.

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INTERVISTAS NEWS InterVISTAS Upcoming Speaking Engagements Kevin Schorr, Vice President Air Service Development • General Session II: Fast Forward: The Next Four Decades -40th Annual FAC

Conference: Miami, U.S. – 03 August 2009. Mr. Schorr participated in a panel discussion at the FAC Conference.

John Weatherill, Vice President Route Development • Aviation - The Catalyst for Economic Development Conference: Beijing,

China – 14 September 2009. Mr. Weatherill will deliver a presentation titled "Measuring and Leveraging the Economic Impact of New Air Services.”

• 4th Annual Airport Marketing & Business Development Conference: Munich, Germany – 15-16 October 2009. Mr. Weatherill will deliver a presentation titled “Airport Revenue Recovery: Action Plan for Generating Revenue and Funding Marketing in a Difficult Economy.”

Dr. Mike Tretheway, President & Chief Operating Officer • International Open Skies Summit: Vancouver, BC – 25 September2009.

Dr. Tretheway will be a keynote speaker at the Open Skies summit.

• Canadian Aviation Maintenance Council: Halifax, NS – 22 October 2009. Dr. Tretheway will be a keynote speaker at the conference, delivering a presentation titled “Economic Outlook.”

Nigel Brownlow, Vice President, Commercial Intelligence • Airline Information – Ancillary Revenue and Frequent Flier Programs: Los

Angeles, CA – 22-23 October 2009. Mr. Brownlow will be delivering a presentation titled “Integrating Ancillary Revenue and Revenue Management” and will be participating in a panel discussion on the integration of Frequent Flyer Programs and Ancillary Revenue objectives.

George Novak, Director, Safety, Borders and Security • MSNBC Sunday Morning National News: Washington, U.S. – 09 August

2009. Mr. Novak appeared as a guest commentator on the New York City crash involving a tour helicopter and a small aircraft.

• AVSEC World 2009 Conference: Cape Town, South Africa, – 10-12 November 2009. Mr. Novak will be delivering a presentation titled “How to Set up a One-Stop Security System: Methodology and Best Practices.”

CAIR Issue No. 73 - August 2009

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