ONWARD UPWARD

Sustaining
Financial Stability
HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT 20
Halifax International Airport is a significant economic
force for the region. In November, HIAA released the
results of an economic impacts study conducted by SGE
Acres Limited. The report concluded that the Airport and
its aviation community generated $1.135 billion in gross
output in 2004, and achieved consistent growth over the
past 15 years.
“As the Airport operator, HIAA plays a major role in the
Airport’s impact on our economy,” says Joyce Carter, Vice
President Finance. “We initiate construction, capital
improvements, and bring in new business, but it is the
contribution of the entire Airport community that makes
Halifax International Airport such an economic driver.”
For HIAA’s part, 2005 was a year marked by construction,
technology improvements and better airline service. In the
long term, it has set the stage for the services that we will
provide to both air carriers and passengers.
Financial Overview
Operating revenue for 2005 was $34.4 million compared
to $33.2 million in 2004. A number of factors contributed
to this increase in revenue. Positive impacts included the
opening of a Park’N Fly lot in February, representing an
additional $617,000 in revenue, and a gain of $1.2 million
due to the elimination of the Transport Canada final
chattels repayment, as announced in May by the federal
government under the new rent policy. This was offset by
several factors negatively impacting revenue, including
shifts in air service by major carriers, the bankruptcy of
Jetsgo, and the reduction of international cargo flights.
Airport Improvement Fee revenue in 2005 was $11.7
million, up slightly from $11.4 million in 2004.
Operating expenses increased in 2005 to $32.4 million
compared to $30.0 million in 2004. These increased
expenses are mainly related to the operation of Park’N Fly,
increases in amortization due to a larger asset base,
property taxes under the transition year of our development
grant agreement with Halifax Regional Municipality
(to stabilize after 2005), contract salary increases, and
inflationary increases in the cost of goods and services.
Looking ahead, 2006 will be a year of building our
future and managing our growth. We will complete the
air terminal building expansion, including the opening
of U.S. pre-clearance. As well, we will commence the
planning and design for a parkade, develop and implement
a comprehensive revenue diversification strategy, develop
and introduce an integrated risk management strategy,
and complete a succession planning framework. An
ambitious financial plan is in place for 2006, and does
not include any change in general terminal and aircraft
landing fees.