2022 ANNUAL REPORT
Take Off
GROWTH & RECOVERY
AT THE ISLAND'S AIRPORT
Chair's Message
After two very challenging years for the Charlottetown Airport Authority (CAA) and the aviation industry, it is great to be writing this message with a strong sense of optimism as we look back on the past year and to the future of YYG Charlottetown Airport.
Through all of the uncertainty created by the pandemic, we remained laser-focused on prudently managing the airport knowing that recovery would occur. What we did not anticipate was just how quickly that recovery would take place. Looking at our 2022 results, we are extremely proud to say that YYG is leading the region in recovery. We experienced record passenger numbers through last summer, with no sign of that slowing down as we look at forecasts for 2023 and beyond.
Our success over the past year could not have been possible without the dedicated and hard-working employees at YYG. Once again, our team rose to the occasion during an eventful year for air travel. Your efforts to provide a safe, secure, and sustainable airport for everyone that works at, or uses our facilities, do not go unnoticed. On behalf of the Board, and all Islanders, I say thank you.
I also want to acknowledge the valued and much-appreciated support of our federal, provincial, and municipal government partners. Their support has allowed us to get through the pandemic with a strong financial outlook that positions us for a bright future of growth and development.
The Government of Canada provided critical pandemic-related relief measures, while the Province of Prince Edward Island aggressively supported our air access recovery program. And led by Mayor Philip Brown – who never misses an event at YYG! – the City of Charlottetown continues to provide important property tax relief.
As we emerged on the other side of the pandemic with a clear path to recovery and future growth, the board of directors spent considerable time with the YYG team to work on a new strategic plan last year. Driven by extensive consultation with our key stakeholders and partners, this plan provides us with the direction, objectives, and priorities for the next three years as we look to continue to operate an airport that supports our community and economic growth in Prince Edward Island.
On behalf of the board, I would like to thank our outgoing chair, Kent Scales, who completed his term on our board in September. Kent served as chair during some of the Authority’s most challenging times in its history, always providing a calm and steady presence. Thank you, Kent, for your leadership and commitment to YYG.
I would also like to recognize Myron Mackay who retired from the board in early 2023. Myron’s passion and devotion to the board was second to none.
To my fellow board members, I value the diverse backgrounds and expertise that you bring to the table and your ability to continually focus on what’s best for our province’s airport and its future. Your guidance and governance of YYG are a big part of our success.
Steve Loggie
Chair
I love to take off from YYG…because I love the comfort of familiar faces
CEO's Message
When I sit back and reflect on the past couple of years, it is hard to even believe what we have endured as an organization, and as an industry.
In March 2020 we were planning for record passenger numbers in the peak summer and initiated a terminal expansion project. The following month, our passenger movements were down to just 3% of the previous year.
What took place over the following 24 months is something that none of us could ever have imagined. And it took until May 2022 for things to return to “normal” at YYG.
Once the worst of the pandemic was behind us, the floodgates suddenly opened as people started to travel in record numbers. June through October were all record months at YYG as we led the region in getting back to, and, in fact, exceeding pre-pandemic passenger numbers.
There are a lot of people to thank for these results.
Our airline partners are at the top of that list as we had a record-setting four airlines operating to seven different airports last year. We saw Air Canada get back to regular flight schedules while WestJet expanded Calgary service, Flair added two new markets to their network here, and Swoop launched a new service to three Canadian markets.
Although we are very grateful for their confidence in our market, we realize there is much work ahead to provide Islanders with the airline choices they expect and deserve, on a year-round basis. Continuing to grow our air service offerings by working collectively with our key stakeholders will continue to be a priority for all of us at YYG.
Our air access recovery would not have been possible without the support of the Province of Prince Edward Island. I want to thank the Province, as well as our other community partners, for their ongoing collaboration and support as we work together to reach our air service goals.
In order to meet our strong recovery in air travel numbers, there were several initiatives implemented or started last year at the airport. Many of these projects are focused on the passenger experience, which is another key strategic priority for us.
Two new ground transportation partnerships were launched in 2022. An agreement with car sharing company Turo was reached to provide travellers with more rental car options at a time when our traditional rental car partners experienced inventory challenges. We also partnered with the Hotel Association of PEI and Tourism PEI to launch a hotel shuttle pilot project at YYG for the summer months.
Also, with an eye on the passenger experience, we completed phase 1 of a signage and wayfinding upgrade. We also completed phase 1 of the implementation of common use passenger processing technology with three of our airline partners. Both projects are set to be fully complete in spring 2023 in time for our busy summer season.
Perhaps the most significant project that we started in late 2022 was the initiation of a 4-year, $20 million air terminal building expansion. This project will allow us to better service both current and forecasted passenger movements in a safe and efficient manner by considerably increasing the footprint of our terminal.
I would be remiss not to acknowledge and thank our board of directors for their leadership in corporate governance and strategic direction over the past year. They continue to be committed to what’s best for the airport authority and our stakeholders, with an eye on the future vibrancy of our airport.
Finally, I am extremely fortunate to be surrounded by a team of committed employees who strive every single day to provide an exceptional airport experience with a focus on safety, security, and sustainability. They all take great pride in YYG, and for that, we should all be very grateful.
Doug Newson
Chief Executive Officer
Business Planning
Our Vision
To provide an exceptional Island experience.
Our Mission
To provide a convenient, modern, and sustainable airport that connects people and drives economic growth in Prince Edward Island.
Our Strategic Goals
- Maximize Business Development.
- Improve Passenger Experience.
- Safe, Secure, and Sustainable Operations.
- Organizational Excellence.
- Strong Stakeholder and Community Support.
Air Service
As we entered 2022, uncertainty remained for air travel as we dealt with Omicron and the latest wave of the pandemic. The first quarter of the year saw air travel numbers remain at less than half of pre-pandemic levels. Regardless, there was optimism in the air as we prepared to launch new services and welcome large numbers of visitors to PEI for the first time in three years.
By spring we started to see air travel return just as we welcomed our newest airline partner, Swoop. On May 1st, Swoop launched new service between YYG and Hamilton International Airport, a first for PEI. The following day, Swoop also started flights to Toronto Pearson and on June 16th, Edmonton was added as their third route for the summer months. By peak summer, Swoop was offering nine flights per week, providing over 13,000 low fare seats per month for our airport.
Our other low fare partner, Flair Airlines, had started Toronto service the previous summer and continued to add new flights in our market for summer 2022. Two new markets – Ottawa and Kitchener-Waterloo, Ontario – were added to the Flair network from PEI. The Kitchener-Waterloo flight was also a first for YYG and provided convenient, twice weekly non-stop flights to the Island for travellers from southwestern Ontario. In the end, Flair operated eight weekly flights in the peak season.
Our two network airline partners, Air Canada and WestJet, also got back to normal flight schedules for summer 2022. Air Canada provided five daily flights from their three core markets to PEI – Toronto, Montreal, and Ottawa – while WestJet was back with daily Toronto service and expanded their Calgary product to three flights per week.
Thanks to all four airline partners, and a strong recovery for tourism in our province, we were pleased to see passenger movements get back to 89% of 2019 levels for the full year. YYG led Atlantic Canada in recovery, with every single month from June to October producing record levels.
Passenger stats:
| 2018 | 370,730 |
| 2019 | 383,183 |
| 2020 | 71,480 |
| 2021 | 111,160 |
| 2022 | 341,649 |
Marketing &
Community Relations
With new airlines and new routes launching in 2022, our marketing efforts once again kicked into high gear. One of our primary objectives was to create awareness of all the new services to ensure that Islanders and visitors alike were informed of all the convenient air access options at YYG.
One of our first decisions was to partner with HOT 105.5 radio, signing a major partnership to be their morning show sponsor for the full year. This was a great partnership as it allowed us to use them and their sister station, Ocean 100, for several airline promotions throughout the year. Extensive marketing campaigns were developed for all four airline partners that included trip giveaways, influencer campaigns, in-terminal advertising, and extensive social media strategies.
Next, we engaged eight local social media influencers to help us kick off the “Back to Travel” season. Each influencer shared their most loved travel experiences through YYG, their next adventure, and why YYG is their first choice when they travel by air. It was a great way to start the season and engage Islanders in the resurgence of air travel.
Thanks to the exposure and increased excitement, ultra-low-cost carrier Swoop added Edmonton to their YYG service following their inaugural Hamilton and Toronto flights. We used innovative marketing techniques to promote this new partnership, including detailing a Charlottetown city bus with the Swoop brand to drive around the city, and a radio contest to win a flight for two.
We then partnered with four local social media influencers to promote air travel and the current and new flight offerings at YYG. Stephanie McQuaid (@theredheadroamer) took the new Swoop Edmonton flight to tour the city and reconnect with the family she hadn’t seen in over two years. Influencer Emma Rudy (@emmawrightrudy) visited family in Hamilton to promote Swoop and its offerings, while Bianca Garcia Urena (@afrotinaxaf) took us on a Toronto getaway with Flair, and Robin Ghislain Shumbusho (@iamgessyy) travelled to Canada’s capital with our largest carrier, Air Canada, and toured the city.
We were once again pleased to be able to hold the YYG Runway Run in May 2022. On May 13, over 250 people laced up their sneakers to run, jog, or walk our main runway in support of two worthwhile causes. In total, over $7,000 was raised and split evenly between KidSport PEI and the Canadian Red Cross Ukraine Humanitarian Crisis Appeal.
In June, we were very pleased to see our hardworking and dedicated Corps of Commissionaires team be presented with COVID Warrior Coins by the Honourable Antoinette Perry, Lieutenant Governor of PEI. These coins were awarded for their outstanding efforts and leadership in helping keep passengers safe throughout the COVID-19 pandemic.
Community engagement is important to everyone at YYG, and the following list are the organizations and events we were pleased to support in 2022:
- Queen Elizabeth Hospital Foundation
- Prince County Hospital Foundation
- Stars for Life Foundation/Mayors Cup Golf Tournament
- Hope Air
- Upper Room Food Bank - CBC’s Feed a Family Campaign & Ocean 100 Stuff-A-Bus Food Drive
- Holland College Tourism & Travel Management Program
- Atlantic Canada Aerospace Association Sea to Sky Conference
- KidSport PEI
- Canadian Red Cross Ukraine Humanitarian Crisis Appeal
- Hospice PEI’s Dancing with the Stars
Last year, I flew in and out of the airport several times, and each time was an adventure. As an actress and influencer, I love meeting interesting people at the airport - and there are always plenty of those around!
I can't wait until my next trip so I can see what new adventures await me at the airport.
Operations
The COVID-19 pandemic has presented significant challenges for airport operations worldwide. At YYG, we have been in a constant state of implementing, monitoring and adapting measures to ensure the safety of our passengers and employees, while also dealing with a period of reduced demand for air travel and the increased financial strain.
A good example would be an almost overnight effort where the Authority partnered with Canadian Health Labs for departure antigen testing in the terminal building as a service for air travellers requiring a negative test for international travel.
And from the early months of the pandemic when air passenger traffic dropped to almost nothing, our team had to pivot just a few short years later to managing record breaking traffic numbers this past summer.
It has taken tremendous flexibility on the part of our operations team to quickly respond to the many unknowns and uncertainties, but they have done a great job.
The completion of the phase 1 common use passenger processing technology has been mentioned. This involved connecting eight passenger service counters and four gates. And wow, what a difference it has made, especially in allowing us to have four airlines operating at YYG this past summer when traveller demand was so high. We look forward to the phase 2 work, along with the air terminal building expansion and the resulting increased travel convenience.
During the year, we had three Transport Canada audits done and we’re pleased that all three were successful with no non-compliances identified.
We also completed the SafeHaven certification, which is a Tourism Industry Association of PEI program developed to demonstrate participants’ commitment to providing health and safety peace-of-mind to tourism operators and visitors.
And to help keep our operations in top form, we conducted a full-scale emergency exercise in late October. This involved exercising both safety and security components over a 4-hour period. It’s a big task with more than 150 first responders and other emergency and security professionals participating. We’re in the process now of completing the After-Action Report and working on any areas where there are opportunities for improvement.
The unprecedented challenges of COVID-19 have been a tremendous learning opportunity for YYG operations. Our expanded expertise and know-how will serve us well as we look ahead to bigger and better operational capacity and capabilities to meet growing air traveller demand to and from Prince Edward Island.
Environment
YYG continues to work hard to introduce carbon reduction projects and initiatives throughout all aspects of airport operations. In 2022, we achieved Level 2 Reduction recertification through the Airport Carbon Accreditation (ACA) Program for our 2021 carbon footprint. We achieved this by showing that our 2021 carbon footprint has decreased compared to the average of the three proceeding years. Components of our carbon footprint we were able to reduce include Scope 1 emissions (heating oil, gasoline, and diesel) and Scope 2 emissions (electricity).
Within the next couple of years, we are looking to progress further in the ACA program and reduce the airport's overall carbon footprint further. We will do this by starting to look at airport tenants and stakeholder emissions in addition to continuing to implement impactful projects and initiatives to reduce airport operations carbon emissions.
During the procurement process for our two new aircraft rescue and firefighting apparatus (ARFF) trucks in 2022, we made the decision to switch to a more environmentally conscious, fluorine-free firefighting foam. This will allow us to respond to emergencies and complete annually required training while further protecting soil, groundwater, and surface water on airport property.
The staff is very welcoming and make the travel experience easy. It doesn't hurt that YYG allows us to take in the breathtaking views of PEI when taking off.
Capital Program
Following some slower years with a reduced capital spend due to the challenges of the pandemic, 2022 looked like a more normal year for capital investments as the pandemic appeared to be behind us and air passenger traffic began to recover.
Aside from annual capital investments and ongoing fleet and equipment renewal, the focus of the 2022 capital plan was completing projects that had been approved for federal funding support: phase 1 of the wayfinding and signage project and starting work on the air terminal building (ATB) expansion.
Staff are really pleased with the feedback that has been received on the wayfinding and digital signage work as it was a much-needed facelift to the terminal with new colours, PEI-themed wall wraps, and directional signage. Phase 2, which includes the arrivals area and outdoor signage, will be completed in 2023.
An existing apron panel replacement project that took place in two phases was completed in the spring. Phase 2 included the replacement of 22 panels and various spalled concrete repairs to other panels. Thanks again to the Government of Canada as we received support for 50% of the project cost under the Airports Capital Assistance Program (ACAP).
In addition to receiving ACAP support for the apron panel replacement project, we were also successful in cost-partnering for the replacement of 2.5 kilometers of fencing. Other projects completed in 2022 include some improvements to both the air terminal building and combined services building (CSB), including installation of new LED lighting in the terminal and heat pumps in the CSB.
Finally, our terminal expansion work started with the issuance of a request for proposals for design and construction services. The expansion will be completed in a phased approach over several years as we work around peak season travel at the airport. In all, the expansion is expected to cost approximately $20 million with the first phase starting in April 2023.
| Airside Assets | $617,929 |
| ATB & CSB Assets | $645,531 |
| Fleet & Equipment | $152,980 |
| Groundside Assets | $211,534 |
| Recurring Capital | $179,924 |
| Total | $1,807,898 |
Human Resources
The past year saw some new faces join our team, while some familiar faces took on new roles.
In April, our management team expanded to five as Tim McCarthy was hired as Director, Infrastructure. Tim will be busy in his new role as he takes on responsibility for capital asset planning as well as the management of all buildings, facilities, and infrastructure during a period of expansion for the airport.
After 35 years at the Charlottetown Airport, Wade MacMillan, our Supervisor, Operations decided to retire in July. Affectionately known to many as the “Godfather” of the airport, Wade was always a loyal and hardworking member of the team, who always had the best in mind for YYG and all our users.
With Wade’s retirement, we were pleased to promote Andrew MacRae from an Airport Maintenance Technician (AMT) position to the role of Supervisor, Operations. Andrew’s promotion opened the door for Michael Morrow to move from a seasonal equipment operator to an AMT.
We also had three new seasonal employees join our team in 2022 – Jamie MacKinley worked with us during the summer months, while Robert Murchison and Chris Koughan were hired for the winter season.
To help assist our busy terminal during the peak summer of 2022, we were also very fortunate to have Charlie Morse join our team as a summer student. An engineering student studying at McGill University, Charlie was a great addition to our team as he provided customer service support among other duties around the terminal and in the office.
Financial Review
2022 saw a significant rebound in domestic travel beginning in early Spring with YYG welcoming record passenger levels during the peak summer months. This resulted in strong financial results driven by Passenger Facility Fee (PFF), concession, parking and aeronautical revenues with increased interest revenues driven by prime interest rate hikes.
YYG received funding from the Government of Canada through the Tourism and Hospitality Recovery Program as well as the Airports Capital Assistance Program to fund a new runway sweeper, and complete apron panel and fencing replacements. In addition, funding from the Province of Prince Edward Island was used to help re-establish flight routes and service capacity. We would again like to acknowledge and thank our funding partners for their valued support.
Property tax grants provided by the City of Charlottetown and the Province of Prince Edward Island are also greatly appreciated and continue to help YYG deliver a convenient, modern and sustainable airport that connects people, and supports economic growth in Prince Edward Island.
For best experience when viewing on a phone, view tables in landscape orientation.
2022 Actual vs. Business Plan Forecast
| Revenues | 9,567,841 | 11,285,178 | 1,717,337 | Stronger than expected return of summer passenger traffic drove PFF, concession, parking and aeronautical revenues, while prime interest rate hikes increased interest revenue. |
| Expenses | 9,785,638 | 9,671,186 | 114,452 | Lower than expected marketing, depreciation, salary, and travel costs. |
| Capital | 2,022,000 | 1,807,896 | 214,104 | Deferral of some smaller capital projects to 2023. |
Business Plan Forecast 2023 – 2027
| Revenues | 12,116,514 | 12,414,999 | 12,532,247 | 12,680,354 | 12,818,768 |
| Expenses | 10,195,522 | 10,839,204 | 11,190,962 | 11,567,139 | 12,111,157 |
| Capital | 6,062,300 | 9,580,000 | 2,964,000 | 10,185,000 | 7,930,900 |
Note: Revenues includes Passenger Facility Fees, operations, subsidies, and investment income.
*In accordance with its lease with Transport Canada, Charlottetown Airport Authority is required to report on all contracts in excess of $133,362 ($75,000 in 1994 dollars adjusted by the Consumer Price Index) entered during the year which were not awarded based on a public competitive tendering process. In 2022, YYG entered one sole sourced contract:
A sole source contract for $370,035 was awarded to Halifax International Airport Authority (HIAA) for the provision of common use equipment, implementation services, and annual support services. YYG’s 2022 capital budget was amended via Board motion on May 2, 2022, to include the implementation of common use technology at the airline counters.
I start my adventures and take off from YYG because their kindness, dedication and efficiency is unlike anywhere else in Canada!
Kent Scales
Myron MacKay
Wendy MacIntyre
Paul Kiley
Angus Orford
Steve Loggie
Pam Montgomery
Perry Gotell
Khalid Shami
Kathy Hambly
Patrick MacFadyen
Nicole Phillips
Terry Shea
Doug Newson
Chief Executive Officer
Shelley Christian
Vice President, Operations
Matt Adams
Director, Finance & Administration
Meghan Senechal
Director, Regulatory Affairs
Tim McCarthy
Director, Infrastructure
*Combined salaries of the senior management team $586,642.
Doug Newson
Shelley Christian
Matt Adams
Meghan Senechal
Tim McCarthy
Administration
Susan Stewart
Finance Clerk
Amanda Smith
Administration Coordinator
Operations
Andrew MacRae
Supervisor, Operations
Chris Walsh
Supervisor, Safety & Security
Danny Walsh
Building Maintenance Technician
Todd Bannister
Airport Maintenance Technician
Thane MacQuarrie
Airport Maintenance Technician
Cory Bolger
Airport Maintenance Technician
Mark Newman
Airport Maintenance Technician
Guy Belliveau
Airport Maintenance Technician
Stephen MacLean
Airport Maintenance Technician
Anson Grant
Airport Maintenance Technician
Keith Panton
Airport Maintenance Technician
Michael Morrow
Airport Maintenance Technician
Colton Holroyd
Airport Maintenance Technician
Janet Axworthy
Airport Maintenance Technician
Jared Mason
Airport Maintenance Technician
Jamie MacKinley
Equipment Operator
Chris Koughan
Equipment Operator
Robert Murchison
Equipment Operator
...it’s so convenient, easy and close! I just love flying out of YYG because it’s honestly so straightforward you don’t have the big wait times like you do at bigger airports.
You’ll always see a friendly and familiar face. It’s the perfect jumping off spot for our Canadian and international travels.
Financial Statements
Charlottetown Airport Authority Inc.
Financial Statements
December 31, 2022
