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Rob Seaman Seaman: The National Airports Policy

Success or Great National Nightmare?

Written by Rob Seaman   
The Canadian National Airport System (NAS) was first defined in 1994 in an aptlynamed document called the National Airports Policy (NAP), published by the government of the day. The intent of the NAP was to map out a plan of action for all airports with an annual passenger traffic rate of 200,000 or more and airports that serve the national, provincial and territorial capitals.

As of 1994, there were 26 airports categorized as NAS airports, which served 94% of all scheduled passenger and cargo traffic in Canada. In 2006, there are still 26 NAS airports – despite the increase in overall passenger traffic numbers.

In addition to the NAS airports, other airports within the NAP are classified as Regional Local Airports, Small Airports and Remote Airports. In total, 150 airports that were originally owned and operated by Transport Canada were up for a change. By March of 2000, they were transferred to their various new owner/operators including the provinces, municipalities, local airport authorities or private operators. In the case of the NAS sites, the airport is leased to the operating authority that agrees to take on the responsibility for its operation.

The Auditor General of Canada (AG) has found things not to be as rosy as she would like. In a late 2005 media release, the office of the nation’s watchdog reported: “In our October 2000 Report, we audited the transfer of the airports in the NAS by Transport Canada. We found that the department did not know the financial impact of the transfer. Specifically, how the transfer affected taxpayers and the long-term viability of the airport authorities, or whether it was fair and equitable for all airports. The department had not completed its five-year review of the transfer of the first five airports, had not defined its role as owner, landlord, and overseer of the airports. It also did not know whether airport authorities were complying with the provisions of their lease in areas such as facility management, environmental protection, and governance. It was stated that the department was not systematically overseeing the financial viability of the NAS and had not determined how to measure the performance of the airports. It also had not reported to Parliament on the impact of the transfer.”

In the most recent review and report, the AG sees some improvements. “Transport Canada has almost concluded the National Airports Rent Policy Review, which will allow it to assess the financial impact of the transfer of the airports in the National Airports System.” The report continues: “The Department has also clarified and assumed its role as owner, landlord, and overseer of the NAS airports, and established good relations with the airport authorities. The Department found a high level of compliance by airport authorities with the provisions of their lease. The authorities are maintaining the airport facilities in as good or better condition than before the transfer. Also, they are exercising due diligence regarding environmental protection and complying with the lease provisions on public interest and governance. Moreover, Transport Canada now monitors the financial situation of the airport authorities annually and oversees the longterm viability of the NAS.”

On the negative side, though, the AG finds that “Transport Canada does not measure the airports' performance, with the exception of financial data. The department has not yet identified the areas it needs to measure and has no approved framework showing how it would measure performance.”

People have to fly for business and personal reasons. So with little or no choice, they use the resources at hand, which come with landing fees, improvement surcharges, inconvenience, poor customer service and all. There are many things that a government is required to do in support of its citizens. And some of these things simply should not be reassigned to anyone other than the government. In the opinion of many, air transportation is one of those. So while we now hear that the federal government is moving to its latest great idea – the “Blue Sky” strategy for the airline industry, “a plan that will create more foreign airline competition and more choice for travellers” – some of us are given to pause and ask, in light of all of the above, are we ready for this? Is the support structure there? Or are we just going to add more fuel to a fire that is apparently not that well tended to start with?

We will look at the impact of the National Airports Policy on the 124 non-National Airport System airports in the March/April 2007 issue of WINGS.