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Changes at Toronto Pearson

Feb. 13, 2009, Toronto - Greater Toronto Airports Authority announces changes to reduce expenses and increase revenue.


February 13, 2009
By Carey Fredericks

Feb. 13, 2009, Toronto – In light of the current economic climate which has resulted in projections for a downturn in passenger traffic at Toronto Pearson in 2009, the Greater Toronto Airports Authority (GTAA) has announced changes to reduce expenses and increase revenue.

The economic climate has worsened significantly since the GTAA's 2009 budget was developed in the fall of 2008. Transport Canada's passenger volume forecasts are now anticipating a 5.8 per cent reduction, which translates to roughly 1.8 million fewer trips through Toronto Pearson this year.
    
As the GTAA is a not-for-profit authority which runs Toronto Pearson with the goal of breaking even on budget each year, there is a need to make adjustments to account for the difference between the approved budget and the new economic reality.

     In response, these four major steps are being undertaken by the GTAA:

     1. Additional cost containment measures will be implemented immediately –
        a hiring freeze, closure of certain airside and groundside facilities,
        consolidation of certain contracted services and a freeze in
        management salaries.

     2. Capital programs will be deferred – all but the most critical capital
        projects have been deferred.

     3. An incentive program to airlines will be introduced – a landing fee
        rebate program for air carriers that offer net new services at Toronto
        Pearson.

     4. The Airport Improvement Fee (AIF) will increase – the AIF will be
        increased by $5 per departing passenger, effective June 1, 2009, from
        $20 to $25. The AIF is used to fund capital expenses and to service
        debt associated with capital expenses.

    
Lloyd McCoomb, President and CEO of the GTAA, said "These changes are not made lightly, but they are the responsible course of action to manage Toronto Pearson today. We must ensure that the organization is well positioned to take advantage of growth opportunities when the economy improves."


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