B.C. airports 'left holding the bag' as Air Canada fails to pay debts

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B.C. airports 'left holding the bag' as Air Canada fails to pay debts
Damian Inwood   The Province Sunday, April 13, 2003

B.C. airports are owed hundreds of thousands of dollars by ailing Air
Canada. And those debts may lead to "bare-bones" operations, says Alvin
Maier, managing director of Fort St. John Airport and B.C. spokesman for
the Regional and Community Airports Coalition of Canada. "It's every
airport in Canada that Air Canada owed money to up to April 1, for landing
fees or terminal fees," he said. "The airport community has been left
holding the bag." Air Canada filed for bankruptcy protection April 3. Maier
said that in Fort St. John that amounts to $110,000, covering a period from
January to April 1, which is about 10 per cent of the airport's annual
revenue. "The airport this size runs on a break-even budget, with a net
income of about $10,000," he added. "A loss that big puts us in the red
pretty quickly." He said the airport, which employs six staff, cannot make
cuts but will have to look at "creative ways" of saving money. "We'll do
the bare minimum," he said, adding that safety will not be compromised.

Maier said smaller airports that have Air Canada service are hoping to get
an operational subsidy from the federal government. These include Fort
Nelson, Prince George, Terrace, Prince Rupert, Quesnel, Williams Lake,
Smithers, Kamloops, Cranbrook, Castlegar, Nanaimo and Campbell River.
Bigger airports, like Kelowna, Abbotsford and Vancouver international, are
trying to get a reduction in their rents from Transport Canada. The amount
owed to airports across Canada is about $80 million, said Maier. The amount
owed in B.C. is still being calculated, he said. Nanaimo Airport general
manager David Hunter said his airport is owed $49,000 for March. "We are at
the low end of the scale," he said. "All of us that had Air Canada Jazz or
Air Canada flying into us, all have an impact of some sort. In all, 70 per
cent of my monthly revenue comes from Air Canada, so that's a nasty tweak,
to say the least." Hunter said that once Air Canada actually files for
bankruptcy, ongoing payments will be secure. But there may be cuts in
flights when the airline is restructured, said Hunter, adding that fuel and
food operations are also being hit. Nav Canada, which provides
air-traffic-control services across Canada, estimates it is owed $44
million nationwide.


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