Approaches

OUR PEOPLE – Burton Wright, Ken Champion, Charles Clow, Mel Dinney, Bruce Loveridge, Twila Grosse, Donald Myers, 

Stephen Whalen, Joey MacPherson, Douglas Kinsman, Edward Dempsey, Todd Ball, Karen Harrie, Stephanie Gorman, 

Rick Garson, James Moulton, Paul Hood, Alastair Cox, Keith Conner, Thomas Morris, Robert Ettinger, Shawn Hicks, 

William D. Turple, Leigh Robinson, Lydia Bowie, Kim Oakley, Malcolm Phippen, Melissa Foley, Clayton Maynard, Jerry 

Staples, Harry McMullen, Deborah MacLeod, Kellie Hannam, Anita Chisholm, Kenneth Bayers, Eleanor Humphries, Laine 

Peters, Christopher Ball, Allan Pace, Garry Parsons, Reg Beeler, Steven Hilchie, Vernon Myers, Leonard Brown, William 

Cowan, Mike Sweet, Gilbert Chandler, Angela Hartt, Dan Tanner, Paula Cannon, Dan Pride, Cathy Walker, Joseph Young, 

Richard Gooding, Paul Tuttle, Jeff MacMillan, Brian Cutler, Peter Snair, Janet Ingraham, Kelly Martin, Rachael Robinson, 

Jamie Wilkins, Gary Christian, Robert Silver, Gary Porter, Michael Healy, Peter Clarke, Brian Gillette, Steven Nelson, 

Aaron Whynder, Tim Fisher, 

David Brown, Blair Christian, 

2007 WAS ALL ABOUT GETTING THE APPROACH 

Stephen Bezanson, Chris 

Catherine Huddleston, Wayne 

Collier, Thomas Maguire, 

RIGHT: DOING THE THINKING AND PLANNING 

DeCoste, Doug Eisan, Ron 

Barry Carroll, Alex Skinner, TO TAKE US TO THE NEXT STAGE OF CUSTOMER Conway, Larry Naugle, Peter 

Tom Murray, Sean Dempsey, 

Sworin, Jeremy Carrier, Paul 

SERVICE EXCELLENCE. THAT’S WHY “APPROACHES” 

Esther MacDonald, Carol 

Dalrymple, William Wellwood, 

IS THE THEME FOR THIS YEAR’S ANNUAL REPORT. 

Mackie, Catherine Towers, 

William A. Turple, Tim Zinck, 

Randall Clooney, Marcel Laforest, Greg Shackleton, Terry Hilchey, Delbert Geddry, Anil Mohan, John Melbourne, Milly 

Hardwick, Dean Letto, Howard Rose, Judy Snair, Barry Woynar, Art Nowen, David Dawe, Mario Carbonneau, Jane Scott, 

Frank Leavitt, Clifford Gillie, Joyce Carter, Don Lajoie, Roxanne Hilchie, Bill Crosman, James McKee, Bruce Gaudet, Michael 

MacEwan, Joseph MacLean, Kelly Zwicker, Theresa Conway, Mike Maxwell, Reg Verge, Shawn Delong, Troy Appleby, Donna 

Anderson, Tony McMillen, Kim Keeling, Robert Clarke, Mark Bowser, Rick Wyatt, Stephen Fudge, Kevin Mosher, Tonya 

McLellan, Kim Porter, Gord Duke, Larry Butler, Derek Forrest, Ivan Frame, Jack Weir, Timothy Bull, Andy Lyall, Kevin 

Boutilier, Alan O’Leary, Rhonda Brassard, Janet Menzies, Lee Nolter, Drake Clarke, Joyce Hoskin, Cecillia Anderson, 

Arnold Wood, Norman Ross, Mike Hartlen, Dave Snow, Nancy Fong, John Young, Michael Stewart, Richard Boutilier, 

Ron Moakler, Sherrie Clow, Peter Spurway, Karen Sinclair. (AS OF DECEMBER 31, 2007)

APPROACHING OUR DESTINATION 

Message from the Chair 

Frank Matheson 

For Atlantic Canada’s gateway airport, 2007 can 

best be described as a foundation-building year. 

A year where we consolidated the gains from our 

most recent phase of development and laid the 

groundwork for the next. 

Those following our progress will know that 

over the past few years we dramatically transformed 

the inside of our terminal and significantly 

upgraded our airside facilities. Much of that work 

was completed in 2006. 

In 2007, we geared up for our next stage of 

development. Our focus turned to the outside 

of the terminal, or “groundside”, as we finalized 

plans for an $82 million development that will 

include a large, new parking structure; enhancements 

to the roadway system; services for a new 

hotel; and other improvements that will complement 

the significant expansion of facilities and 

services in our terminal building. 

During the past 12 months, we also finalized 

plans for two other major projects that will take 

shape in 2008: a state-of-the-art, multi-tenant 

cargo facility and a much-needed combined services 

complex, housing our maintenance facility as 

well as our fire and emergency response services. 

As anyone who’s worked on a major project knows, 

the front-end part of the process – the planning, 

analyses, consultations, and approvals – is critical 

to project success. Getting it right at this stage paves 

the way for a smooth construction phase. 

And that’s why “Approaches” makes so much 

sense as the theme for this year’s annual report. 

2007 was all about getting the approach right: doing 

the thinking and planning to take us to the next 

stage of customer service excellence. You could 

think of it as a year of steady, focused progress. 

Fittingly, in February 2007, we renamed our 

airport to recognize the Right Honourable Robert 

L. Stanfield, one of our province’s and our country’s 

finest leaders and staunchest advocates, and 

a much-loved Canadian. Our Halifax Stanfield 

International Airport (HSIA) stands as an enduring 

tribute to his far-reaching vision. 

In August, our President & CEO, Eleanor 

Humphries, resigned. I want to express our thanks for 

what was accomplished during her two-year tenure. 

Halifax International Airport Authority’s Vice 

President, Finance and Chief Financial Officer, 

Joyce Carter, ably took the helm as Interim President 

& CEO for the remainder of the year. Her 

experience as a member of our executive management 

team served our partners, our customers 

and our organization well during this period, and 

I want to sincerely thank Joyce for her hard work, 

leadership and dedication. 

In January 2008, we welcomed Tom Ruth as our 

new President & CEO. Tom brings an outstanding 

record of achievement with two airlines, Canadian 

North and Northwest Airlines; a container ship 

firm, Oceanex; and an international logistics 

company, Livingston International. Tom’s the right 

person with the right skills and experience to take 

HIAA through the next stage of our development – 

and beyond. We are honoured he’s come on board. 

We also welcomed two new members to the 

HIAA Board of Directors in 2007: Michele A. Wood- 

Tweel, CEO and Executive Director of the Institute of 

Chartered Accountants of Nova Scotia, and Jeffrey 

R. Hunt, a Partner with the Truro office of Patterson 

Law. I also want to thank all my Board colleagues for 

their contributions this past year and their continuing 

commitment to the airport, our employees, partners, 

customers, volunteers and, of course, our community. 

Representatives from airports all over the 

world visit HSIA, wanting to learn what it is we’re 

doing that sets us apart. 

Our answer? It’s all in the approach. We believe 

in the power of partnership. After all, everything to 

do with air travel, whether access, security, safety, 

or service, starts on the ground – with cooperative 

partnerships among people dedicated to the 

common goal of making the passenger and visitor 

experience as positive as possible. 

We see ourselves at the hub of a network of key 

partnerships. People are at the core of how we do 

what we do. Our role is to support our partners and 

to enhance these relationships so that together we 

can best serve the millions of visitors we greet each 

year. When 5,500 people in the airport community 

work together and share responsibility, as we do, 

the results are outstanding. 

As you read through this annual report, you’ll see 

we met or exceeded every one of the goals set for 

ourselves in 2007. In a rapidly changing and competitive 

industry, HIAA is emerging as the standard-setter 

within our industry. A strategic economic asset to 

the community. An enabler of economic development 

in the region. That’s our approach, and one that will 

carry us through 2008 – and onwards. 

Frank Matheson 

Chair of the Board of Directors 

HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2007 ANNUAL REPORT 1

2007 also marked the beginning of the next 

stage in the airport’s physical evolution when our 

Board of Directors approved, and we broke ground 

on, an $82 million Groundside Redevelopment 

Program. Until now, our infrastructure dollars were 

directed at improving the air terminal building and 

restoring the airfield. This new phase, featuring 

a 2,300-space parking structure connected to the 

terminal by a covered pedway, improvements to 

the roadways, and services for a future hotel, will 

significantly change the face of the airport and 

also offer our guests new levels of exceptional 

service and convenience. 

A good passenger year usually means a good 

revenue year, and 2007 was no exception. Even 

though we incurred new expenses from our 

expanded facilities, I am pleased to say HIAA 

posted record revenues of $56.6 million. 

In 2007, we bid farewell to Peter Clarke, our 

highly respected Vice President, Operations, after 

18 years of service. Everyone will miss his sound 

counsel, and we wish him good days ahead. I also 

want to sincerely thank Gord Duke, our Director, 

Operations, who so adeptly stepped in as Interim 

Vice President upon Peter’s retirement. 

On February 25, 2008, HIAA welcomed Paul 

Baxter as our new Vice President, Operations. 

Paul, who comes to us from Farmers Dairy, brings 

senior-level experience in operations, logistics 

and supply chain management. Safe and effective 

airport operations are at the core of what we do, 

and Paul’s background and accomplishments 

will strengthen this already effective and efficient 

department. 

Partnerships are fundamental to the way we do 

business at HIAA. The culture of teamwork and 

cooperation we’ve built permeates every decision, 

every initiative, and every interaction, and is at the 

core of our success as an organization. Looking 

back on 2007, I especially want to recognize: 

• The 5,500 airport community employees and 

volunteers, whose commitment to outstanding 

customer service brought us – yet again – international 

recognition with three first-place honours 

in the 2007 global Airport Service Quality Survey: 

for overall passenger satisfaction for airports 

worldwide with under five million passengers 

(the fifth year in a row), best domestic airport 

worldwide, and in the regional category of 

Airport People Awards; 

• Our partners in US Customs and Border 

Protection who worked so closely with us, 

and the airlines, to make our US Preclearance 

service an immediate success; 

• The several hundred HIAA and other airport 

employees plus our security and response 

agency partners who planned and participated 

in Exercise Navigator, our day-long emergencyresponse 

simulation in October; 

• The Air Access Forum conference team 

who once again brought together airlines and 

airports from around the world with the aim 

of building air service across Atlantic Canada; 

• Our joint union-management committee, 

who completed our job evaluation project 

after several years of hard work; 

• The dedicated group who worked extensively 

to get our Groundside Redevelopment Program 

started; and 

• Our employee team and my executive 

management colleagues – whose names 

you see on the inside front cover – for their 

commitment and dedication, and the Board 

of Directors for their support. 

While we’re a business – one worth more than 

$1.2 billion to the Nova Scotia economy – we know 

we’re also here to serve the community in its 

broadest sense. After all, when we do well, everyone 

does well: our employees, our partners, our 

province, our region. 

At HIAA, we’ve been entrusted with a public 

asset – this airport – and it is our responsibility 

to grow Halifax Stanfield International Airport into 

the facility our community and our region wants 

and needs. The facility we know it can be: the best 

airport in the world. 

Joyce Carter 

w 

Interim President & CEO 

Tom Ruth 

Tom joined HIAA as President 

& CEO in January 2008. 


APPROACHING COMPLETION 

Nearing Our Goal. Realizing Our Vision. 

“ WE’RE BRINGING THE RANGE 

AND QUALITY OF CUSTOMER 

SERVICES OFFERED OUTSIDE 

THE TERMINAL BUILDING UP 

TO THE SAME HIGH STANDARD 

WE’VE SET INSIDE.” 

w 

2007 marked the mid-point of HIAA’s initial 

10-year capital plan and the year we turned our 

attention outward from the terminal building to 

the groundside.“From this point on, you’ll see 

us focus on bringing the range and quality of 

customer services offered outside the terminal 

building up to the same high standard we’ve set 

inside,” says Michael Healy, HIAA’s Vice President, 

Infrastructure & Technology. 

Our multi-million-dollar Groundside Redevelopment 

Program (GRP) will accomplish this goal 

by offering airport visitors improved services and 

facilities while making access to and from the 

terminal easier. Several key pieces of this strategy 

were completed in 2007, such as an expanded 

Park’N Fly lot, featuring 1,300 new spaces, and the 

new north tunnel, connecting the public parking 

lot to the north end of the terminal. Preparatory 

work also started to create separate upper and 

lower access roads to the terminal – one for 

departures, the other for arrivals – designed to 

streamline traffic flow and reduce congestion in 

front of the building. 

By far, however, our most significant achievement 

of 2007 came in July with the Board of Directors’ 

decision to approve plans for the full GRP, an $82 

million project that will significantly change the look, 

feel and function of the groundside of the airport. 

The cornerstone of this initiative? An efficient, 

2,300-space parking structure, connected to the 

terminal building by an over-road pedway with 

two moving sidewalks.“We worked with a team 

of designers to create a modern facility with 

an aviation-style look, featuring stainless steel 

screens on two facades,” explains Michael. The 

energy-efficient structure, incorporating a rental 

car facility on the main floor, will be the first of 

its kind in Eastern Canada. 

“We’ve seen these state-of-the-art parking 

structures in Europe and parts of the US, although 

never before here,” notes Michael. Construction of 

the facility is underway, with completion expected 

in early 2009. 

Complementing this next stage of groundside 

development is a proposed 175-room hotel, 

attached to the terminal. A request for proposals 

for its construction and management was issued 

in 2007 with construction of the hotel expected to 

start in 2009. 


w 

Not all our efforts last year were focused outside, 

however, as we wrapped up expansion of the airport 

terminal building.“The original building dates 

from the 1960s. With the new US Preclearance 

facility at the north end and the new commuter 

terminal at the south end, the middle section of 

the departures lounge didn’t match architecturally 

with the newer phases,” explains Michael. From 

fresh wall finishes to new flooring, floor-to-ceiling 

windows to new lighting and more, we’re literally 

putting the finishing touches on the public spaces 

and creating one cohesive, modern look for the 

inside and outside of the terminal. 

Airfields form the core of any airport’s operations. 

By virtue of their constant use, they must 

meet exacting federal quality and safety standards. 

In 2007, we marked the third year of a comprehensive 

six-year airfield restoration initiative. 

Over a period of five months, we restored onethird 

of our main runway 05/23 by installing new 

drainage, electrical systems, and runway lights, 

and widening the runway by adding stabilized 

shoulders, making snow removal easier, and milling 

and paving the existing surface. We also milled 

and replaced the asphalt on one-half of the apron 

(the area behind the aircraft parking positions at 

the terminal), with the second half scheduled for 

2008. This $10 million project, completed on time 

and under budget, was carried out with minimal 

disruption to our guests and air carriers. 

During 2007, we also moved forward with planning 

and consultation on the proposed combined 

services complex, designed to house our mobile 

equipment and a new fire station. This project is 

a major undertaking, critical to providing updated 

and expanded facilities, and one welcomed by our 

operations and emergency response crews. 

Our current maintenance facility, where we store 

and maintain all our heavy equipment for snow 

removal and runway maintenance, is housed in 

a 45-year-old groundside hangar, with no direct 

access to the airfield. By moving this facility 

airside, our snow ploughs, loaders, graders, and 

other heavy equipment will not only be closer to 

the runways, they’ll no longer be using public 

roads to get there. 

On the technology side, we leveraged our earlier 

investments in a common network infrastructure 

to realize new benefits in 2007 – such as free Wi-Fi 

access throughout the terminal. This popular 

service, enthusiastically embraced by both our 

business and leisure travellers, made HSIA the 

first major airport in Canada to offer this feature. 

This common-use platform also means that 

tenants and airlines can easily tap into our existing 

integrated network for telephone and Internet 

service. Not only is this an attractive convenience 

for our clients and a revenue stream for HIAA, it 

gives us better overall control of our technology 

infrastructure. 

From inside to outside, from airfield to groundside, 

our physical vision for this airport continues 

to take shape. As our facilities transform. As 

our services expand. In Michael’s words, “We’re 

approaching completion.” 


APPROACHING BUSINESS 

Succeeding by Enabling Success. 

“ THE COMBINATION OF THE INCREASED NUMBER OF DIRECT FLIGHTS 

AND THE IMMEDIATE AND REMARKABLE SUCCESS OF THE NEW 

US PRECLEARANCE FACILITY ALONG WITH THE STRONGER CANADIAN 

w 

DOLLAR ENCOURAGED MORE TRAVELLERS TO CHOOSE OUR AIRPORT.” 

Passenger growth and new routes; one complements 

the other. Together they drive an airport’s 

success. In 2007, we enjoyed plenty of both, 

thanks in part to our approach of building partnerships 

within the community and throughout the 

aviation industry. 

A record 3,469,062 passengers passed through 

our gates in 2007, breaking our previous record 

set in 2006. Most of this growth came in our US 

and international markets, with a 15.5 per cent 

increase in both categories. 

“Without doubt, the combination of the increased 

number of direct flights and the immediate and 

remarkable success of the new US Preclearance 

facility along with the stronger Canadian dollar 

encouraged more travellers to choose our airport,” 

says Jerry Staples, HIAA’s Vice President, Marketing 

& Business Development. 

The convenience and increasing number of new 

routes and direct flights, whether domestic, transborder 

or international, benefits both business and 

leisure travellers.“And that’s a direct result of the 

work we do to cultivate rapport with the carriers 

at all levels and, in particular, the airline business 

analysts who make recommendations on new 

routes,” adds Jerry.“We’re constantly in the carriers’ 

offices, building relationships and making the 

case for Halifax Stanfield International Airport.” 

It’s an approach that’s paying off. In 2007, 

we launched a number of new routes to major 

destinations solidifying our position as Atlantic 

Canada’s gateway airport. 

Among our major achievements on the US 

side, for example, was United Airlines’ decision 

to initiate year-round, non-stop daily service to 

Chicago. And as a direct result of our new US 

Preclearance facility, both Air Canada Jazz and 

American Eagle began daily, non-stop service into 

New York’s LaGuardia Airport. 

Our international routes showed similar strength. 

Icelandair returned to Halifax after a six-year absence 

with a seasonal, three-times-weekly service to 

Reykjavik. This alternative route to Europe, scheduled 

to go year-round in 2008, opens up Nordic 

destinations to Atlantic Canada – and is an added 

bonus for both business and leisure travellers. 

Zoom Airlines added weekly seasonal service 

to Paris and Belfast in 2007, while Air Transat 

offered twice-weekly seasonal flights to London 

(Gatwick). And in June 2008, we’ll welcome a new 

international carrier when Corsairfly launches 

a weekly seasonal service between Paris (Orly) 

and Halifax. 


Eighty per cent of our passenger travel is domestic, 

so expanding and diversifying our Canadian 

routes remains paramount. In June 2007, Porter 

Airlines began offering seasonal summer flights 

between Halifax and Toronto City Centre Airport, via 

Ottawa and Montreal. The route proved so popular 

that Porter extended the Ottawa-Toronto service 

to weekends year-round. As well, Air Canada 

launched a daily, non-stop service between Gander 

and Halifax and, along with WestJet, added seasonal 

service to Edmonton. 

We also introduced two new services in 2007 

designed to make transborder and international 

travel easier for both passengers and carriers. 

Working in partnership with Canada Border 

Services Agency (CBSA), HSIA was one of the first 

airports to introduce NEXUS technology to expedite 

border clearance between Canada and the US. 

This trusted traveller program allows low-risk, 

pre-approved individuals to bypass the customs 

line-up by using self-serve kiosks instead, a 

real convenience – especially for those who fly 

frequently. 

Our carriers benefited from CBSA’s move 

last year to 24/7 customs coverage. In the past, 

the cost of customs services used after standard 

working hours was borne by the airlines. The 

growth of air charter service in recent years, 

however, has meant an increase in early morning 

and late evening flights requiring customs clearance. 

Staying competitive requires paying constant 

attention to costs, and we’re pleased that 

our representations to government departments 

and our partners resulted in the decision by 

CBSA to offer 24/7 coverage. Not only can air 

carriers fly into Halifax at any time of the day 

or night and know their passengers can clear 

customs, the arrangement helps our carriers 

remain cost-competitive. 

Being the largest airport and the region’s gateway, 

we know our continued success depends 

on building the air network throughout Atlantic 

Canada. That’s why every two years we host the 

Air Access Forum. Our 2007 conference, Altitudes 

East, brought airports from across the region, 

other parts of Canada and the US together with 

airlines from around the world. Under one roof, the 

150 attendees networked, met one on one, built business, 

and created opportunities for each other – all 

with the aim of growing air service. After all, as 

Jerry says, “When the other airports in the region 

do well, we do well, too.” 

While most people think of airports from a 

passenger perspective, the air cargo business 

is a major revenue-generator, and one we want to 

grow aggressively. A feasibility study completed 

in 2007 demonstrated how HIAA could increase 

its cargo numbers by attracting more business 

– mainly seafood – that’s now trucked from the 

Maritimes to the US and then airlifted to international 

markets. 

Growing this business means building the right 

facility for our cargo clients, and we’re close to 

finalizing plans with a developer for the construction 

of a multi-use cargo facility. Once completed, 

this modern building will feature new apron space 

for aircraft and loading docks plus warehousing 

and equipment, including refrigeration space, so 

important for seafood.“Airlines like to fly full in 

both directions,” explains Jerry.“This new facility 

not only means exporters can fly, rather than 

truck, their product, we can also help the region’s 

importers grow their businesses.” 

We enjoyed positive cargo growth in 2007. Cargo 

activity increased to almost 29,800 metric tonnes, 

up 7.4 per cent over 2006. While business for 

most cargo carriers was up, Air Canada’s dedicated 

MD-11 service to Vitoria, Spain, accounted 

for the most significant increase, adding some 

1,500 metric tonnes. 

Woven through all we do is a belief in the value 

of partnerships. Whether within our industry or out 

in the community, with transportation colleagues 

in the Halifax Gateway Council or stakeholders like 

the Greater Halifax Partnership; Halifax Chamber 

of Commerce; Nova Scotia Department of Tourism, 

Culture and Heritage; Destination Halifax; Tourism 

Industry Association of Nova Scotia; Nova Scotia 

Department of Transportation and Infrastructure 

Renewal; Nova Scotia Business Inc.; and Nova Scotia 

Economic Development, we know that rapport, 

relationships and credibility are fundamental to our 

success – and the success of those who work with 

us, for us, and beside us. 

Quite simply, it’s how we approach business at HIAA. 

w 


OUTSTANDING CUSTOMER SERVICE 

A Team Approach. A Shared Commitment. 

“ EVERYONE WHO SERVES A GUEST, DIRECTLY OR INDIRECTLY, IS A PART OF OUR TEAM.” 

Our objective is to provide a convenient, safe and 

seamless experience for every visitor to Halifax 

Stanfield International Airport. Whether it’s checking 

in, going through security, renting a car, or getting 

information, we work with our partners as a committed, 

focused team to reach this goal. 

Each of the 5,500 people who work at the airport 

is responsible for delivering outstanding customer 

service – every day, with every guest. And this collaborative 

approach is at the heart of our success. 

The Airport Service Quality (ASQ) Survey, a rigorous 

global rating system that assesses 90 airports 

worldwide, once again recognized HSIA with three 

first-place rankings in 2007: one for overall passenger 

satisfaction for airports with under five million 

passengers – for the fifth year in a row; one for the 

best domestic airport worldwide; and the Airport 

People Award, for cultivating a strong customer 

service culture among staff and business partners. 

We also earned one other award: second in the 

Americas for overall customer satisfaction. 

In the six years HSIA has participated in this international 

program, we have earned a total of 19 awards 

– 12 first place, five second place and two third places. 

“Everyone here contributes to creating the ‘wow’ 

factor that places us among the best airports in 

the world,” explains Kelly Martin, HIAA’s Customer 

Relations Manager.“And we do it through training, 

recognition and communication.” For example, 

through our Airport Customer Service Council, 

we work in partnership with our colleagues from 

across the airport community to create a common 

focus, enhance programs and build on what we’re 

already doing so well. 

Four years ago, HSIA was named a SuperHost 

airport – the only airport in Canada so designated. 

We keep that designation by ensuring that every year 

at least 60 per cent of our employees, Volunteer Hosts, 

retail and service outlet employees, and other partners 

come together for refresher training sessions. 

Not only does the training reinforce that sense 

of shared purpose and commitment, the fact that 

employees from all levels of these organizations 

attend, from seasoned executives to new hires, 

makes the point crystal clear: each and every one 

of us is responsible for delivering customer service 

above and beyond what our guests expect. 

And no one embodies this pride of service better 

than the 110 tartan-vested Volunteer Hosts, always 

ready to give a friendly welcome and lend a helping 

hand. These dedicated individuals, many retired 

from all walks of life, go through the same rigorous 

screening and training program as airport employees. 

The Volunteer Hosts clearly love what they do 

on the front lines, whether it’s helping a mother 

struggling with luggage and a couple of children 

or sitting with an anxious passenger who needs 

a little reassurance. And when unexpected delays 

occur, airport staff and Volunteers quickly bring 

out water, blankets, baby food, even decks of 

cards for tired passengers. Says Kelly, “At times 

like this, there’s no one more appreciative than a 

mother who needs a diaper for her baby.” 

To consolidate and improve French-language 

services to the travelling public, in 2007 HIAA met with 

representatives of the Office of the Commissioner 

of Official Languages, who provided assistance and 

guidance with this customer service initiative. 

So what’s the secret of our award-winning approach 

to customer service? Quite simply, it’s the people and 

how they feel about the work they do. After all, happy 

employees mean happy visitors. “All we do is reinforce 

good habits, recognize a job well done and ensure that 

everyone – employees and partners, whether on the 

frontline or behind the scenes – feels proud to be a 

part of this extraordinary team,” says Kelly. 


Scheduled and Charter Passenger Services 

Scheduled and Charter Passenger Air Carriers 

1 5 D O M E S T I C 

1 9 I N T E R N AT I O N A L 

11 TRANSBORDER 

19 PASSENGER 

9 C A R G O 

DESTINATIONS 

DESTINATIONS 

(USA) DESTINATIONS 

AIR CARRIERS 

CARRIERS 

Calgary, AB 

Bermuda – Hamilton 

Atlanta, Georgia 

Air Canada 

Air Canada 

Charlottetown, PE 

Deer Lake, NL 

Edmonton, AB 

Fredericton, NB 

Gander, NL 

Goose Bay, NL 

Hamilton, ON 

Moncton, NB 

Montreal, QC 

Ottawa, ON 

Saint John, NB 

St. John’s, NL 

Sydney, NS 

Toronto, ON 

Cuba – Cayo Coco, Holguin, 

Santa Clara, Varadero 

Dominican Republic – 

La Romana, Puerto Plata, 

Punta Cana 

France – Paris 

Germany – Frankfurt 

Iceland – Reykjavik 

Ireland – Belfast 

Jamaica – Montego Bay 

Mexico – Cancun, Cozumel 

St. Pierre et Miquelon 

United Kingdom – 

Glasgow, London (Gatwick), 

London (Heathrow) 

Boston, Massachusetts 

Chicago, Illinois 

Detroit, Michigan 

Newark, New Jersey 

New York (JFK), New York 

New York (LGA), New York 

Orlando, Florida 

St. Petersburg, Florida 

Tampa, Florida 

Washington (IAD), DC 

Air Canada Jazz 

Air Georgian 

Air St. Pierre 

Air Transat 

American Airlines 

CanJet Airlines 

Condor Flugdienst 

Continental Airlines 

Delta Air Lines 

Icelandair 

Northwest Airlines 

Porter Airlines 

SkyService Airlines 

Sunwing Airlines 

Airborne Express 

CargoJet Airways 

Icelandair 

Kelowna Flightcraft (Purolator) 

Korean Air Lines 

Morningstar Express (FedEx) 

Provincial Airlines 

Prince Edward Air 

Thomas Cook (UK) 

United Airlines 

WestJet 

Zoom Airlines 

w 


APPROACHING RESPONSIBILITIES 

Seeing Needs. Creating Solutions. 

“ WE’RE WEAVING SAFETY AND 

SECURITY INTO THE FABRIC OF 

HOW WE DO BUSINESS EVERY DAY. 

IF IT’S NOT SAFE AND SECURE, 

NOTHING ELSE YOU DO MATTERS.” 

w 

In the end, airports are about people: our employees, 

our guests, our partners, our community. As an 

employer and as a neighbour, we approach our 

responsibilities more as opportunities: opportunities 

to make a difference where it counts most – 

with people. 

Safety and security in the air starts on the ground. 

Here at HIAA, we take a community-based approach 

to both.“In fact, we’re weaving safety into the fabric 

of how we do business every day,” says Gord Duke, 

Interim Vice President, Operations. 

For example, we’re well ahead of schedule in 

implementing Phase One of Transport Canada’s 

Safety Management System for airports, with 

elements of Phase Two already in place. This fully 

integrated approach to safety, starting with a gap 

analysis and resulting in a comprehensive and 

ongoing action plan, involves the active participation 

of all employees.“Safety is a standing item 

at every executive management team meeting,” 

notes Gord.“Steps like this start to change the 

culture of an organization.” 

When it comes to airport security, employees 

are our best eyes and ears: they’re here, they’re 

aware, they notice anything out of the ordinary. 

And that’s the key to HIAA’s successful i-Watch 

program. This highly visible security-awareness 

initiative, designed in part by our employees, 

stresses constant vigilance and action. The awardwinning 

program is part of the security training for 

everyone who works at Halifax Stanfield International 

Airport, and it is a model for other airports. 

In October, we tested our emergencyresponse 

capabilities when we ran Exercise 

Navigator, a large-scale simulation replicating 

an aircraft hijacking, bomb threat and fire. This 

multi-agency exercise, the result of a planning 

process that began in January, involved hundreds 

of participants, including airport tenants, employees 

and emergency responders.“You need to 

train outside your comfort zone,” explains Gord. 

“Overall, we were pleased with our performance 

and agency cooperation through the exercise, 

and have already put a number of the recommendations 

in place.” 

HIAA enhanced its emergency-response capabilities 

with the acquisition of a new fire truck. The 

665-horsepower Rosenbauer Panther uses stateof-the-art 

technology including thermal imaging 

cameras, onboard computers, Holmatro rescue 

equipment, and a command light. 


w 

Firefighter Tim Bull worked on the Panther’s 

colours to reflect Emergency Response Services’ 

new paint scheme, making the equipment bound 

to be noticed wherever it goes. Training has begun 

for both the firefighters and mechanics. 

In 2007, HIAA took a major step forward in airport 

operational response with the establishment of our 

new Maintenance Response Teams. Today, our 

rotating teams of two electricians and a millwright 

are on duty seven days a week, sixteen hours a 

day, supporting the maintenance needs of the busy 

international airport we’ve become. 

As a responsible corporate citizen, HIAA remains 

committed to a high level of environmental stewardship. 

We follow best practices for the environment, 

with ongoing attention to water treatment. In 

2007, we updated our Environmental Management 

Plan and, in partnership with the Canadian Environmental 

Assessment Agency, we developed a Model 

Class Screening Protocol to enhance and streamline 

our environmental-impact assessment studies, 

and provide HIAA and airport tenants with a series 

of predetermined environmental assessments, 

which will improve both the quality and timeliness 

of assessments. 

On the employee front, a joint labour-management 

committee spent much of 2007 designing 

and implementing a new system to evaluate all 

unionized positions in a fair and equitable manner. 

This framework, which complies with federal 

employment equity regulations, is intended to bring 

order and objectivity to the system. We sincerely 

thank the hard-working team, along with all the 

employees involved, for taking on this challenging, 

often strenuous, project. 

Over the course of 2007, we also moved forward 

on our plan to bring a more strategic, organized 

and methodical approach to succession planning, 

more akin to the private sector model. Besides 

ensuring succession plans were in place and implemented, 

we hired seven additional staff to support 

our expansion and, in the process, ensure a transfer 

of knowledge and skills. 

HIAA is committed to its employees and working 

with them for the benefit of our community. 

Our Humanities Fund is designed to help meet 

the needs of the community and bring hope to 

people. Created through the collective agreement 

between the HIAA and the Union of Canadian Transportation 

Employees Local 80829, union members 

contribute $.01 for every hour worked, and HIAA 

doubles that contribution. Every year, an employee 

committee solicits suggestions from throughout 

HIAA on how the fund should be distributed. In 2007, 

the Humanities Fund awarded $7,100 to six organizations 

that deal with a range of issues including 

children with special needs, homeless youth, and 

those struggling with addictions. 

HIAA employees also step forward to fundraise 

for a range of community causes. In 2007, they 

raised almost $12,300 for the United Way and 

$3,500 for amateur sport in Nova Scotia through 

the annual Manulife Dragon Boat Festival, and 

they donated more than $700 worth of school 

supplies and food to the Parker Street Food & 

Furniture Bank. As well, in December, a group 

of employees helped them make holiday dinner 

deliveries throughout the Metro area. 

By waiving our usual fees, HIAA provided inkind 

support to Air Canada’s Dreams Take Flight 

program that offers financially challenged children 

a chance to visit Walt Disney World Resort for a 

day. As well, HIAA firefighter Rhonda Brassard 

volunteered her time as a chaperone. Through our 

corporate donations we continue to support local 

initiatives that our employees tell us are important 

for the health and well-being of the communities 

in which they live. 

Seeing needs. Creating solutions. Whether on 

the tarmac, in the office or at the neighbourhood 

hockey rink, we know that success is all about making 

a difference. With people. In ways that matter. 


FINANCIAL STABILITY 

A Measured Approach . Solid Results. 

“IN 2007 WE REPORTED A STRONG BOTTOM LINE AS REVENUES EXCEEDED EXPENSES BY $5.1 MILLION.” 

Like so much of what’s happened this past year 

at HIAA, 2007 was the year the “pieces came 

together,” and we began reaping the financial 

benefits of our earlier investments. 

In the airline business, more people passing 

through our terminal means more people using 

our concessions, more people parking, more people 

getting on airplanes. Thanks to a record passenger 

year and the success of our new US Preclearance 

facility, HIAA earned revenues of $56.6 million, our 

highest to date. 

2007 also marked our first full year of operation 

in our new expanded facilities. And while that 

naturally meant increased costs, we are still able to 

report a strong bottom line with revenues exceeding 

expenses by $5.1 million. 

Growing transborder and international traffic 

is a cornerstone of our business strategy at HIAA, 

and this past year we added another incentive for 

carriers by blending landing fees. Prior to this, lower 

landing fees were charged for domestic flights than 

non-domestic, standard practice at many Canadian 

airports. Blending the two fees, however, means that 

no matter where flights originate all carriers now pay 

the same landing fees. While this resulted in a modest 

cost increase for domestic flights, transborder 

and international landing fees dropped significantly, 

giving HIAA yet another competitive advantage in 

attracting new routes and new carriers. 

CanJet’s decision in late 2006 to end scheduled 

service meant an initial drop in domestic traffic – and 

revenues – for HIAA. Yet despite this, and other current 

challenges in the industry, by the summer of 2007 

domestic traffic and revenues had fully recovered. 

We’re also pleased to report that our credit 

rating agency, Standard & Poor’s, affirmed our A+ 

credit rating, first assigned in 2006 for our initial 

bond issue. This outstanding rating is one of the 

best among Canadian airport authorities. 

In 2007, total revenues for HIAA, including airport 

improvement fees (AIF), reached $56.6 million 

compared with $51.8 million in 2006. The growth in 

revenues is mainly attributed to the first complete 

year of operation of the US Preclearance facility and 

increases in AIF revenue due to record-breaking 

passenger levels. 

Total expenses were $51.4 million in 2007 compared 

to $41.3 million the previous year. This rise was 

due mainly to additional costs in providing commonuse 

facilities, which included the first full year of operating 

the US Preclearance facility, increased amortization 

associated with the expansion, and a full year 

of interest on our bonds along with the higher costs of 

maintaining the expanded air terminal building. 

Overall, revenues exceeded expenses by $5.1 

million in 2007 compared to $10.5 million in 2006. 

As per our madate, this excess will be reinvested 

in the airport. 

Looking ahead to 2008, HIAA will continue 

growing passenger and cargo business by investing 

in state-of-the-art infrastructure expected of 

a leading international airport. Over the next 12 

months, you can expect to see a number of major 

capital projects come to fruition including: 

• Construction of a 2,300-space parking structure 

along with awarding of the contract and negotiating 

arrangements for the new airport hotel as 

part of the $82 million Groundside Redevelopment 

Program; 

• Implementation of Phase Four of our six-phase 

runway restoration program; and 

• Development of a multi-use cargo facility 

designed to make HSIA the principal air 

cargo centre as part of the Atlantic Gateway. 

With our destination in sight, we remain solidly on 

course. Our measured approach to financial stability, 

driven by the vision of our airport as a dynamic, 

interconnected community, will continue to serve 

as our guiding principles throughout 2008. 


financial statements 

auditors’ report 

To the Directors of 

Halifax International Airport Authority 

w 

We have audited the balance sheet of the Halifax International Airport Authority 

as at December 31, 2007 and the statements of operations and changes in net 

assets and cash flows for the year then ended. These financial statements are the 

responsibility of the Authority’s management. Our responsibility is to express 

an opinion on these financial statements based on our audit. 

We conducted our audit in accordance with Canadian generally accepted 

auditing standards. Those standards require that we plan and perform an audit 

to obtain reasonable assurance whether the financial statements are free of 

material misstatement. An audit includes examining, on a test basis, evidence 

supporting the amounts and disclosures in the financial statements. An audit 

also includes assessing the accounting principles used and significant estimates 

made by management, as well as evaluating the overall financial statement 

presentation. 

In our opinion, these financial statements present fairly, in all material 

respects, the financial position of the Authority as at December 31, 2007 

and the results of its operations and its cash flows for the year then ended 

in accordance with Canadian generally accepted accounting principles. 

balance sheet As at December 31 

2007 2006 

(in thousands of dollars) $ $ 

assets 

Current 

Cash 60,917 77,354 

Accounts receivable 3,988 3,943 

Inventories 338 380 

Prepaid expenses 868 695 

66,111 82,372 

Capital assets, net (note 4) 185,850 170,223 

Deferred financing costs, net (notes 3 and 5) – 3,862 

Debt service reserve fund (note 5) 4,127 4,127 

Accrued benefit asset (note 8) 375 426 

256,463 261,010 

liabilities and net assets 

Current 

Accounts payable and accrued liabilities 14,458 20,569 

Deferred revenue 1,057 938 

Current portion of long-term debt (note 5) 80 80 

15,595 21,587 

Long-term debt (note 5) 149,495 150,644 

Security deposits 1,902 1,764 

166,992 173,995 

Net assets 

Equity in capital assets (note 6) 89,471 87,015 

256,463 261,010 

Halifax, Canada 

February 15, 2008 

Chartered Accountants 

Commitments (note 7) 

Contingencies (note 10) 

See accompanying notes 

On behalf of the Board: 

Director 

Director 


financial statements 

statement of operations 

and changes in net assets Year ended December 31 

2007 2006 


revenues 

Terminal and passenger security fees 13,063 11,875 

Landing fees 9,009 9,148 

Concessions 8,563 8,301 

Parking 6,559 6,260 

Interest 3,164 1,756 

Rental 1,753 1,825 

Other 852 312 

42,963 39,477 

Airport improvement fees (note 6) 13,637 12,316 

56,600 51,793 

expenses 

Salaries, wages and benefits 12,668 11,655 

Materials, services and supplies 12,004 11,276 

Amortization 9,192 6,530 

Interest on long-term debt (note 5) 8,125 2,762 

Ground lease rent 4,093 4,271 

General and administrative 4,075 3,588 

Property taxes 1,306 1,265 

51,463 41,347 

Excess of revenues over expenses for the year 5,137 10,446 

Net assets, beginning of year 87,015 76,569 

Opening adjustment (note 3) (2,681) – 

Net assets, end of year (note 3) 89,471 87,015 

statement of cash flows Year ended December 31 

2007 2006 


operating activities 

Excess of revenues over expenses for the year 5,137 10,446 

Items not involving cash: 

Amortization 9,192 6,530 

Net change in non-cash working capital balances 

related to operations (10,143) (7,559) 

Cash provided by operating activities 4,186 9,417 

investing activities 

Expenditures on capital assets (20,542) (54,008) 

Cash used in investing activities (20,542) (54,008) 

financing activities 

Proceeds of bond issue – 150,000 

Repayment - CIBC term loan – (26,000) 

Deferred rent - Transport Canada (81) (81) 

Debt service reserve fund – (4,127) 

Deferred financing costs – (3,912) 

Cash (used in) provided by financing activities (81) 115,880 

Net (decrease) increase in cash during the year (16,437) 71,289 

Cash, beginning of year 77,354 6,065 

Cash, end of year 60,917 77,354 




notes to financial statements December 31, 2007 

1. general 

Halifax International Airport Authority (the “Authority”) was incorporated 

on November 23, 1995 as a corporation without share capital under Part II 

of the Canada Corporations Act. On February 1, 2000, the Authority signed a 

60-year ground lease with Transport Canada and assumed responsibility for 

the management, operation and development of the Halifax Robert L. Stanfield 

International Airport. Excess revenues over expenses are retained and reinvested in 

airport operations and development. 

The Authority is a dynamic and multi-faceted aviation enterprise that provides 

air access to the world, facilitates personal and business connections and promotes 

regional economic growth. 

The Authority is governed by a Board of Directors whose members are 

nominated by the Halifax Regional Municipality, the Province of Nova Scotia 

and the Federal Government, as well as the Halifax Chamber of Commerce. The 

nominated members can also appoint additional members who represent the 

interests of the community. 

The Authority is exempt from federal and provincial income tax, federal large 

corporation tax, and Nova Scotia capital tax. 

2. summary of significant accounting policies 

The Authority’s financial statements have been prepared in accordance with 

Canadian generally accepted accounting principles. The preparation of financial 

statements requires management to make estimates and assumptions that affect 

the reported amounts of certain assets and liabilities at the date of the financial 

statements and the reported amounts of certain revenues and expenses during the 

year. Actual results could differ from those estimates. 

Inventories 

Inventories consist of materials, parts and supplies and are stated at the lower of 

cost, determined on an average cost basis, and estimated replacement cost. 

Ground lease 

The ground lease with Transport Canada is accounted for as an operating lease. 

Capital assets 

Capital assets are recorded at cost including interest on funds borrowed for 

capital purposes, net of contributions and government assistance and are 

amortized over their estimated useful lives on a straight-line basis as follows: 

2. summary of significant accounting policies (continued) 

Assets 

Rate 

Computer hardware and software 20% - 33% 

Leasehold improvements 2.5% - 10% 

Machinery, equipment, furniture and fixtures 5% - 20% 

Vehicles 5% - 17% 

Construction in progress is recorded at cost and is transferred to leasehold 

improvements when the projects are complete and the assets are placed into service. 

Revenue recognition 

Landing fees, terminal fees, parking revenues and passenger security fees are 

recognized as the airport facilities are utilized. Concession revenues are recognized 

on the accrual basis and calculated using agreed percentages of reported 

concessionaire sales, with specified minimum guarantees where applicable. Rental 

revenues are recognized over the lives of respective leases, licenses and permits. 

Airport improvement fees (“AIF”) are recognized when originating departing 

passengers board their aircraft as reported by the airlines. 

Deferred revenue consists primarily of a portion of the common-use terminal 

equipment fee required for future capital acquisitions. 

Employee benefit plans 

The Authority sponsors a pension plan on behalf of its employees which has 

defined benefit and defined contribution components. In valuing pension 

obligations for its defined benefit component, the Authority uses the accrued 

benefit actuarial method prorated on services and best estimate assumptions. 

Pension plan assets are valued at current market values. The excess of the 

accumulated net actuarial gain or loss over 10% of the greater of the accrued 

benefit obligation and the fair value of the plan assets is amortized over the 

average remaining service life of employees. Defined contribution component 

amounts are expensed as incurred. 

Derivative financial instruments 

Derivative financial instruments, including interest rate swaps, may be used from 

time to time to reduce exposure to fluctuations in interest rates. These financial 

instruments will be accounted for under the deferral method if the Authority 

meets the hedging requirements set out in existing accounting pronouncements 

and the Authority chooses to designate these financial instruments as hedges. 

Accordingly, the book value will not be adjusted to reflect the current market 

values. Payments and receipts under interest rate swap agreements will be 

recognized as adjustments to interest and financing costs where the underlying 

instrument is an Authority debt issue. 



2. summary of significant accounting policies (continued) 

Derivative financial instruments that are not designated by the Authority to be in 

an effective hedging relationship will be carried at fair value with the changes in 

fair value, including any payments and receipts made or received, being recorded 

in interest and financing costs. 

Realized and unrealized gains or losses associated with derivative financial 

instruments, which have been terminated, designated from a hedging relationship 

or cease to be effective prior to maturity, will be deferred and recognized in the 

period in which the underlying hedged item is realized. In the event a designated 

hedged item is sold, extinguished or matures prior to the termination of the related 

derivative financial instrument, any realized or unrealized gain or loss on such 

derivative financial instrument will be recognized in the statement of operations. 

3. changes in accounting policy 

On January 1, 2007, the Authority adopted the Canadian Institute of Chartered 

Accountants’ (“CICA”) revised standards on recognition and measurement and 

presentation of financial instruments. The standards are titled 3855 – Financial 

Instruments – Recognition and Measurement and 3861 – Financial Instruments 

– Disclosure and Presentation. The standards are retroactively applied, but are 

prospectively presented. 

Upon adoption, the Authority has elected to review contracts for embedded 

derivatives subsequent to the elected transition date of January 1, 2003 in 

accordance with 3855 – Financial Instruments – Recognition and Measurement. 

(a) Effective Interest Method 

The new rules require transaction costs to be included in the debt balances and 

recognized as an adjustment to interest expense over the life of the debt. The 

Authority is also required to use the effective interest method to recognize bond 

interest expense where the amount to be recognized varies over the life of the 

debt based on the principal outstanding. Previously, transaction costs were 

amortized on a straight-line basis into the statement of operations. 

As at January 1, 2007, the Authority reclassified deferred financing costs to longterm 

debt. This resulted in a decrease in deferred financing costs of $1.101 million 

and a corresponding decrease in long-term debt of $1.101 million. 

(b) Hedges 

The new rules require deferred amounts relating to cash flow hedges, which were 

discontinued before the end of the original hedge term, to be removed from the 

balance sheet and recorded in the accumulated unrealized changes in net assets. 

Accordingly, the deferred financing costs of $2.761 million were reclassified as at 

January 1, 2007. 

3. changes in accounting policy (continued) 

These deferred costs will continue to be amortized to interest and financing costs in the 

statement of operations over the remaining term of the previously hedged instruments. 

4. capital assets 

Capital assets consist of the following: 

(in thousands of dollars) 2007 2006 

Accumulated Net book Net book 

Cost amortization value value 

$ $ $ $ 

Computer hardware and software 6,608 4,306 2,302 3,260 

Leasehold improvements 182,994 15,791 167,203 151,911 

Machinery, equipment, furniture 

and fixtures 6,659 2,740 3,919 4,173 

Vehicles 8,172 3,954 4,218 4,643 

Construction in progress 8,208 – 8,208 6,236 

5. long-term debt 

212,641 26,791 185,850 170,223 

Long-term debt consists of the following: 

2007 2006 


5.503%, non-amortizing Series A Revenue Bonds due 

July 19, 2041. Interest payable semi-annually in arrears 

on January 19 and July 19 of each year until maturity, 

commencing on January 19, 2007. 150,000 150,000 

Transport Canada deferred rent, non-interest bearing, 

repayment in monthly installments of $6,700 which 

commenced in 2006. 644 724 

150,644 150,724 

Less current portion 80 80 

Less transaction costs 

(net of accumulated amortization - $32,000) 1,069 – 

149,495 150,644 



5. long-term debt (continued) 

Bond issue 

In July 2006, the Authority completed a $150 million Revenue Bond issue. The 

$150 million 5.503% Series A Revenue Bonds, are due on July 19, 2041. The net 

proceeds from this offering are being used to finance the 10 year Capital Plan, and 

for general corporate purposes. These include the funding of a $4.1 million Debt 

Service Reserve Fund and a $6.6 million Operating and Maintenance Reserve 

Fund required by the Master Trust Indenture entered into by the Authority in 

connection with the offering. The bonds are direct obligations of the Authority 

ranking pari passu with all other indebtedness issued under the Master 

Trust Indenture. 

Reserve funds 

Pursuant to the terms of the Master Trust Indenture, the Authority is required to 

establish and maintain with a trustee a Debt Service Reserve Fund with a balance 

at least equal to 50% of annual debt service costs. As at December 31, 2007, the 

Debt Service Reserve Fund included $4.1 million in interest bearing deposits 

held in trust. These trust funds are held for the benefit of bondholders for use in 

accordance with the terms of the Master Trust Indenture. 

The Authority is required to maintain an Operating and Maintenance 

Reserve Fund of approximately $6.6 million. The Operating and 

Maintenance Reserve Fund must be established and funded as required by 

the Master Trust Indenture, for the benefit of bondholders. The balance in the 

Operating and Maintenance Reserve Fund is equal to at least 25% of certain 

defined operating and maintenance expenses for the previous fiscal period. For 

2008, approximately $7.2 million will be required to fund the Operating and 

Maintenance Reserve Fund. The Operating and Maintenance Reserve Fund 

may be satisfied by cash, letters of credit, or the undrawn availability under a 

committed credit facility. 

Deferred Financing Costs 

2007 2006 


Deferred financing costs – 3,912 

Less Accumulated amortization – 50 

– 3,862 

In accordance with the adoption of CICA 3855 standards, certain balances 

previously classified as deferred financing costs, have now been reclassified on the 

balance sheet. (See note 3, Changes in Accounting Policy) 

5. long-term debt (continued) 

Capitalized interest 

Interest on long-term debt of $210,019 (2006 - $1,966,365) was capitalized as part 

of construction in progress during the year. 

6. airport improvement fees 

On January 1, 2001, the Authority implemented an AIF of $10 per local boarded 

passenger to fund the cost of a major capital program. These fees are collected by 

the air carriers for a fee of 6% under an agreement between the Authority, the Air 

Transport Association of Canada, and the air carriers serving the Halifax Robert 

L. Stanfield International Airport. Under the agreement, AIF revenue may only 

be used to pay for the capital and related financing costs as jointly agreed with air 

carriers operating at the Halifax Robert L. Stanfield International Airport. 

A summary of the AIF collected and capital and related financing expenditures 

are as follows: 

2007 2006 


AIF revenue (net): 

AIF revenue 14,489 13,122 

AIF collection costs (852) (806) 

13,637 12,316 

Interest on surplus funds 3,164 1,756 

Net funds received 16,801 14,072 

Capital expenditures funded by AIF 24,708 44,388 

Interest expense funded by AIF 8,125 2,762 

32,833 47,150 

Excess of expenditures over AIF revenue 16,032 33,078 

Prior years expenditures now ratified* 24,600 – 

Excess of expenditures over AIF revenue, 

beginning of year 92,803 59,725 

Excess of expenditures over AIF revenue, 

end of year 133,435 92,803 

*As per terms of the MOA with the air carriers. 



6. airport improvement fees (continued) 

From January 1, 2001 to December 31, 2007, the cumulative capital 

expenditures totaled $214,674,000 (2006 - $157,241,000) and exceeded the 

cumulative amount of AIF revenue by $133,435,000 (2006 - $92,803,000). 

Net assets of the Authority as at December 31 are as follows: 

2007 2006 


Net assets provided by airport improvement fees 54,630 55,147 

Net assets provided by other operations 37,522 31,868 

Opening adjustment to net assets (note 3) (2,681) – 

Net assets, end of year 89,471 87,015 

7. commitments 

Transfer agreement 

Effective February 1, 2000, the Authority signed a 60-year ground lease with 

Transport Canada which provides for the Authority to lease the Halifax 

Robert L. Stanfield International Airport. A 20-year renewal option may be 

exercised, but at the end of the term, unless otherwise extended, the Authority 

is obligated to return control of the Halifax Robert L. Stanfield International 

Airport to Transport Canada. 

On May 9, 2005, the Government of Canada announced the adoption of a 

new rent policy that will result in reduced rent for Canadian airport authorities, 

including the Authority. This reduced rent will be phased in over four years 

beginning in 2006, with the new formula achieving its full impact in 2010. The 

new formula is based on percentage of gross revenues on a progressive scale. 

The Authority finalized the amendment to its ground lease with Transport 

Canada in December 2005. 

The estimated lease obligations under the amended ground lease over the 

next five years are approximately as follows: 

(in thousands of dollars) $ 

2008 3,826 

2009 3,290 

2010 3,890 

2011 4,000 

2012 4,164 

7. commitments (continued) 

Long term debt – bond issue 

The $150 million Series A Revenue Bonds yield interest of 5.503% per annum, 

payable on January 19 and July 19 of each year until maturity. The interest due 

over the next five years is as follows: 

(in thousands of dollars) $ 

2008 8,255 

2009 8,255 

2010 8,255 

2011 8,255 

2012 8,255 

Construction in progress 

At December 31, 2007, the Authority had outstanding contractual construction 

commitments amounting to approximately $7 million (2006 - $1.5 million). 

8. pension plan 

The Authority sponsors a pension plan (the “Plan”) on behalf of its employees, 

which has defined benefit and defined contribution components. The defined 

benefit component is for former Transport Canada continuing full-time 

employees who were employed by the Authority on February 1, 2000 and 

previously participated under the Public Service Superannuation Act (“PSSA”) 

Plan. However, these employees had the option to elect to become members of 

the defined contribution component in lieu of the defined benefit component. 

All other employees will become members of the defined contribution 

component. An actuarial valuation has been prepared as of January 1, 2007, for 

purposes of funding the Plan. 

The existing Government of Canada pension plan assets and accrued benefit 

obligations for certain employees have been transferred to the Authority. The 

pension transfer agreement between Transport Canada and the Authority was 

finalized during 2004 and the total pension liability has been transferred, fully 

funded to the Authority. 

The following table provides information concerning the accrued benefit 

obligation, plan assets, funded status and prepaid (accrued) pension costs of the 

Plan as at December 31: 



8. pension plan (continued) 

2007 2006 


8. pension plan (continued) 

2007 2006 

% % 

Plan assets 23,533 22,290 

Accrued benefit obligation (23,821) (23,093) 

Funded status – plan deficit (288) (803) 

Unamortized net actuarial gain 663 1,229 

Accrued benefit asset 375 426 

The significant actuarial assumptions adopted in measuring the Authority’s 

accrued pension benefits are as follows: 

2007 2006 

% % 

Discount rate 5.50 5.25 

Expected long-term rate of return on plan assets 6.75 6.75 

Rate of compensation increase 4.00 4.00 

Other information related to the Authority’s defined benefit component is 

as follows: 

2007 2006 


Employers’ contribution 426 1,032 

Employees’ contributions 194 203 

Benefits paid 255 138 

Pension expense for 2007 amounted to $201,000 (2006 - $165,000) for the 

defined contribution component and $477,000 (2006 - $556,000) for the defined 

benefit component. 

Equity securities 50 60 

Fixed income securities 39 32 

Real estate securities 10 8 

Other 1 – 

100 100 

9. financial instruments 

Fair value 

The Authority’s primary financial instruments consist of cash, accounts receivable, 

long-term debt and accounts payable and accrued liabilities. The difference 

between the carrying values and the fair market values of the primary financial 

instruments, excluding long-term debt, are not material due to their short-term 

maturities. The fair values of long-term debt are based on amortized cost using the 

effective interest rate method. 

Credit risk 

The Authority is subject to credit risk through its accounts receivable. A significant 

portion of the Authority’s revenues, and resulting receivable balances, are derived 

from airlines. The Authority performs ongoing credit valuations of receivable 

balances and maintains reserves for potential credit losses. 

10. contingencies 

The Authority may, from time to time, be involved in legal proceedings, claims and 

litigation that arise in the ordinary course of business which the Authority believes 

would not reasonably be expected to have a material adverse effect on the financial 

condition of the Authority. 

11. comparative figures 

The comparative financial information has been reclassified to conform to the 

presentation adopted for 2007. 


FIVE-YEAR FORECAST 

w 

A C T U A L 

F I V E - Y E A R F O R E C A S T 

YEAR 2005 2006 2007 2008 2009 2010 2011 2012 

Passenger Volume 3,229,111 3,378,601 3,469,062 3,626,566 3,766,119 3,897,039 4,005,090 4,109,970 

Per cent Change -0.4 % 4.6 % 2.7 % 4.5 % 3.8 % 3.5 % 2.8 % 2.6 % 

Total Aircraft Movements 86,393 86,110 89,251 95,142 99,518 103,797 107,430 111,083 

Per cent Change -3.8 % -0.3 % 3.6 % 6.6 % 4.6 % 4.3 % 3.5 % 3.4 % 

Planned Capital Expenditures ($ 000’s) $57,881 $58,807 $24,721 $97,500 $36,266 $26,013 $13,243 $10,127 

Rent Payable to Transport Canada ($ 000’s) $4,361 $4,271 $4,093 $3,826 $3,290 $3,890 $4,000 $4,164 


CORPORATE GOVERNANCE 

HALIFAX INTERNATIONAL AIRPORT AUTHORITY (HIAA) IS A DYNAMIC AND MULTI-FACETED 

AVIATION ENTERPRISE THAT PROVIDES AIR ACCESS TO THE WORLD, FACILITATES PERSONAL 

AND BUSINESS CONNECTIONS, AND PROMOTES REGIONAL ECONOMIC GROWTH. 

HIAA is governed by a Board of Directors consisting 

of a maximum of 14 directors nominated by the 

following entities: 

Government of Canada 2 

Government of Nova Scotia 1 

Halifax Regional Municipality 4 

Halifax Chamber of Commerce 3 

HIAA Board of Directors 4 

Generally, a director may serve no more than a total 

of nine years from the date of transfer, February 1, 

2000. Collectively directors are expected to possess 

knowledge relating to the aviation industry, air 

transportation, business, finance, administration, 

law, government, engineering, labour organizations, 

and the interests of consumers. 

The Board oversees the conduct and operation 

of HIAA; reviews and approves corporate strategies, 

plans and financial objectives; appoints the 

Chief Executive Officer; assesses the performance 

of the Board and the Chief Executive Officer; ensures 

effective communication with the nominators and the 

community; and ensures the effectiveness of HIAA’s 

internal controls and systems in preserving and 

enhancing HIAA’s assets and pursuing its mission. 

The Board meets as often as is required to carry 

out its responsibilities and maintains three standing 

committees that make recommendations to the 

Board with respect to matters within their jurisdiction: 

the Governance Committee, chaired by Robert 

Winters; the Audit Committee, chaired by Roy Rideout; 

and the Capital Projects Committee, chaired 

by Peter McDonough. HIAA has adopted conflictof-interest 

guidelines to govern the conduct of, and 

the disclosure and avoidance of conflicts of interest 

for, all officers and directors. These disclosures are 

updated as required. 

During 2007, the Governance Committee of the Board 

reported that there were no breaches of the conflict-ofinterest 

guidelines by any officer or director of HIAA. 

Compensation of the senior officers and directors 

of HIAA is reviewed annually. Amounts paid to HIAA’s 

officers and directors during 2007 are as follows. 

Board of Directors’ Total Compensation 

Chair: F. Matheson $60,000 

Vice Chair: F. Smithers $18,500 

Secretary: J. S. Cowan $36,400 

Directors: 

J. Baillie $13,200 

N. Comeau * $ 2,213 

W. Fares $12,800 

P. Gurr $12,000 

J. Hunt $ 7,200 

P. McDonough $25,400 

B. Miller $10,009 

C. Newcombe $15,200 

R. Rideout $20,200 

R. J. Scott $14,400 

K. Streatch $13,600 

J. R. Winters $31,400 

M. Wood-Tweel $ 5,613 

* Mr. Comeau completed his term in December 2006. This compensation 

represents fees incurred in 2006 and paid in 2007 according to HIAA’s 

quarterly payment schedule. 

Executive Compensation 

The salary range for the President & CEO and for 

each of the Vice Presidents of HIAA during 2007 was 

$104,400 to $250,000. 

In addition to base salaries, annual bonus payments 

totalling $104,284 were paid during the year. 

Bonus payments are contingent on individual and 

corporate achievements. 

Contracts in Excess of $95,841 

HIAA, in accordance with its lease with Transport 

Canada, is required to report all contracts in excess 

of $95,841 ($75,000 in 1994 dollars adjusted by the 

Consumer Price Index) that were entered into during 

the year and that were not awarded on the basis of 

a public competitive tendering process. 

During 2007, HIAA entered into a contract with 

Strescon (Atlantic) Limited for the supply and construction 

of a pre-cast concrete parking structure 

in the amount of $20,700,000. Strescon (Atlantic) 

Limited was awarded this contract without a public 

competitive tendering process as they are the only 

supplier of pre-cast concrete structures in the 

Maritimes. 

w 


BOARD OF DIRECTORS 

Frank 

Matheson 

Chair 

Fred 

Smithers 

Vice Chair 

Jamie 

Baillie 

Director 

James S. 

Cowan, QC 

Secretary to 

the Board 

Wadih 

M. Fares 

Director 

Paul 

Gurr 

Director 

Jeffrey 

R. Hunt 

Director 

w 

w 

w 

w 

w 

w 

w 

Frank Matheson – Chair 

Frank is President and CEO of Homburg Canada 

Inc., an international real estate company with 

holdings in residential, commercial, industrial, and 

retail properties. Frank is a past Chair of the Halifax 

School Board and the Halifax Forum Commission. 

Frank became Chair of the Board on January 1, 

2006. He currently is a Governor of Canada’s Sports 

Hall of Fame and sits on the Board of Governors for 

Saint Mary’s University and the Advisory Board of 

the Sobey’s School of Business. 

Fred Smithers – Vice Chair 

Fred is the President and Chief Executive Officer 

of Iona Resources Holdings Limited. Prior to this, 

he was the founder and President of Secunda 

International Limited, the dominant vessel operator 

in the Canadian Offshore sector, with vessels 

operating throughout the world. Fred is the Honorary 

British consul for the Maritime Provinces, 

Director of ProGear, a golf club manufacturing 

company, and President and Owner of Granite 

Springs Golf and Country Club. He sits on the 

Board of Directors of Barrington Wind Energy, 

the Saint John Ambulance Society, and the World 

Wildlife Fund of Canada, and is on the Board of 

Governors for Saint Mary’s University. 

Jamie Baillie – Director 

Jamie is President & CEO of Credit Union Atlantic. 

Prior to joining the Credit Union, he held various leadership 

roles in Nova Scotia business and government, 

including three years as Chief of Staff for Premier John 

Hamm, and as a Partner with Robertson Surrette. 

He holds a Bachelor of Commerce from Dalhousie 

University as well as a Chartered Accountant (CA) designation. 

Jamie’s leadership in both the public and private 

sectors was recently recognized when he was named 

one of Atlantic Canada’s Top 50 CEO’s. He is a member 

of the Board of Governors of Dalhousie University 

and of the Junior Achievement Nova Scotia Business 

Hall of Fame, and he currently sits on the Board of 

Directors of Neptune Theatre, Equifax Canada and the 

Public Service Pension Investment Board. 

James S. Cowan, QC – Secretary to the Board 

Jim is a member of the Senate of Canada and 

Partner of the law firm Stewart McKelvey. He is 

the Chair of the Board of Governors of Dalhousie 

University and past Chair of the Atlantic Provinces 

Transportation Commission. Upon his appointment 

to the Senate in March of 2005, Jim resigned from 

the Board but continues as Secretary, a position 

that he has held since 1995. 

Wadih M. Fares – Director 

Wadih currently serves as the President of W.M. 

Fares Group, a building design, project management 

and development firm, and has served as 

the Honourary Consul of Lebanon for the Maritime 

Provinces for the past 11 years. He is a Councilor 

(Halifax Area Representative) for the Association of 

Professional Engineers of Nova Scotia, Chairman 

of the Pier 21 Society, Capital Campaign Chair for 

the Halifax Theatre Project, founder and honourary 

member of the Canadian Lebanese Chamber of 

Commerce, and member on the Board of Directors 

for the Urban Development Institute of Nova Scotia. 

Wadih is a recipient of Her Majesty the Queen 

Golden Jubilee Medal, 2005 APENS Citizenship 

Award and has recently been awarded The Business 

Man of the Year by the Canadian-Lebanese Chamber 

of Commerce and Industry of Montreal who 

pays tribute to Canadians of Lebanese heritage that 

have made significant contributions to Canada. 

Paul Gurr – Director 

Paul is principal of Gurr & Associates, a Halifax 

based management consulting firm specializing in 

strategic development and core process redesign. 

Paul was formerly President of the Oland Brewery 

and a senior executive with Labatt Breweries of 

Canada. Paul has participated as a director on 

the Halifax Chamber of Commerce, and currently 

serves on the Advisory Board of the Frank H. Sobey 

Faculty of Commerce (Saint Mary’s University), the 

Canadian Centre for Ethics in Public Affairs and 

Trade Centre Limited. 


BOARD OF DIRECTORS 

Peter 

McDonough, QC 

Director 

Cheryl 

Newcombe 

Director 

Roy 

Rideout 

Director 

Robert 

J. Scott 

Director 

Ken 

Streatch 

Director 

J. Robert 

Winters, QC 

Director 

w 

w 

w 

w 

w 

w 

Jeffrey R. Hunt – Director 

Jeff is a Partner with the Truro office of Patterson 

Law. He is Chair of the firm’s Litigation Group, with 

a practice in areas of insurance, employment and 

general litigation. He has been with Patterson Law 

since 1992 and a Partner since 1997. Jeff is the Past 

Division Chair of the United Way of Colchester County 

Campaign Cabinet, Past Member of Parish Council 

and Finance Committee for St. John’s Anglican 

Church, Board Member and Past Chair of the Bridges 

Program for Family Counselling, and a Board Member 

of the Honourable G. I. Smith Memorial Trust. 

Peter McDonough, QC – Director 

Peter is a Senior Partner at McInnes Cooper, and 

has been in practice for over 30 years in the areas 

of property development and real property (commercial 

and residential). He has served on the 

Board of Governors of Dalhousie University, Nova 

Scotia College of Art and Design, Special Olympics 

and the YMCA. He was the co-Chair of the Halifax 

Industrial Commission, President of the Dalhousie 

Alumni Association, and is the founding President 

of the Dalhousie Black and Gold Club. 

Cheryl Newcombe – Director 

Cheryl joined the HIAA Board in July 2005. She is 

the Controller of Canadian Gold Seafood in Enfield. 

Cheryl is also on the Halifax Regional Plan Advisory 

Board, the Board of Beacon House, and is the 

immediate past Chair of the Halifax Regional Water 

Commission. 

Roy Rideout – Director 

Roy is past Chairman and CEO of Clarke Inc., 

a publicly traded company in the transportation 

industry. He is also a Director of Fortis Inc. and 

NAV CANADA. Prior to 1988, Roy held senior 

executive positions with both Eastern Provincial 

Airways and Canadian Airlines International for 

15 years. Roy is a chartered accountant. 

Robert J. Scott – Director 

Bob is Executive Vice President of Glenora Distillers 

International Ltd. and is a former Director of the 

Small Business Development Corporation for the 

province of Nova Scotia. 

Ken Streatch – Director 

Ken has over thirty years of senior management 

experience in both business and government. He 

is the President and CEO of Sunberry Cranberry 

Producers Inc., and Chairman of the Board of 

Atlantic Canada Cranberries Inc. Ken has held 

a number of portfolios with the government of 

Nova Scotia, including Minister of Transportation 

and Communications and Minister of Economic 

Development. 

J. Robert Winters, QC – Director 

Robert is counsel to Burchell MacDougall, 

Barristers & Solicitors of Truro, Nova Scotia, and 

Chairman of Napwick Holdings Limited, a private 

holding company. He is past Chairman of the Board 

of Regents of Mount Allison University, a member of 

the advisory board of the Bragg Group of Companies, 

and a Director of High Liner Foods Inc. 

Michele A. Wood-Tweel, FCA, CFP, TEP – Director 

Michele is CEO and Executive Director of the 

Institute of Chartered Accountants of Nova Scotia 

(ICANS). She serves on the ICANS Executive and 

also on the CA profession’s national Council of 

Senior Executives. Before joining ICANS, she practiced 

with KPMG LLP for over twenty years in the 

areas of personal taxation and financial planning. 

Always active in the community, Michele is Vice 

Chair of Saint Mary’s University Board of Governors 

and Chair of the University’s Finance Committee. 

She has previously served on the Boards of the 

Halifax-Dartmouth Bridge Commission, The Royal 

Nova Scotia International Tattoo Society and the 

Halifax Chamber of Commerce. 

Michele A. 

Wood-Tweel, 

FCA, CFP, TEP 

Director 

w 


w 

1 Bell Boulevard 

Enfield, Nova Scotia 

B2T 1K2 

Tel: 902.873.4422 

Fax: 902.873.4750 

www.halifaxairport.com

Approaches

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?