annual_report_99_eng..

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A T A C
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B O A R D
O F
D I R E C T O R S
Stephen C. SMITH, President & CEO,
1 9 9 8 - 1 9 9 9
Chairman of the Board
WestJet Airlines Ltd., Calgar y, Alberta
J. Clif ford MACKAY, President & Chief Executive Of ficer, President & Chief Executive Of ficer
ATAC, Ottawa, Ontario
Jim GLASS, President,
1st Vice Chairman
Athabaska Airways Ltd., Prince Albert, Saskatchewan
Douglas PORT, Senior Vice President, 2nd Vice Chairman
Corporate Af fairs and Government Relations, Air Canada, Toronto, Ontario
Patricia KENNEDY, Operations Manager,
Pacific Flying Club, Delta, B.C.
Honorary Treasurer
Dennis COOPER , Operation Manager,Honorary Secretar y
Sky Wings Aviation Academy Ltd., Penhold, Alberta
Stephen MARKEY, Senior Vice President,
Past Chairman of the Board
Corporate & Government Af fairs,
Canadian Airlines International Ltd., Ott awa, Ontario
Michael S. BLAND, Director of Development, Directors
Empire Aviation, London, Ontario
John D. ISSENMAN, President,
PROAV International Aviation Services Corporation,
Gloucester, Ontario
T. Al KAPT Y, General Manager,
Trans North Helicopters, Whitehorse, Yukon
Donald P. KENNEDY, Senior Vice President,
Corporate Af fairs,
Canada 3000 Airlines Limited, Toronto, Ontario
Barry LAPOINTE, President,
Kelowna Flightcraft Ltd., Kelowna, B.C.
Joseph D. RANDELL, President & CEO,
Air Nova Inc., Enfield, Nova Scotia
Robert W. REDING, President & CEO,
Canadian Regional Airlines (1998) Ltd., Calgar y, Alberta
John M. SCHOLEFIELD, President,
Laurentide Aviation, Les Cedres, Quebec
Guy SMITH, Chief Pilot,
Helijet Airways Inc., Richmond, B.C.
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C H A I R M A N ’ S
M E S S A G E
Stephen Smith
President & Chief Executive Officer
WestJet Airlines Ltd.
Progress on issues is of ten measured in modest
increments. What is not small, however, is the
commitment shared by the air industry representatives and association s taff who make up
our Association and its working committees.
It has been my privilege to serve as Chairman
of the Board for the Air Transport Association
of Canada during 1999. Reflecting on the events
and developments of the past year, I am struck
both by the challenges facing the industry as
well as by what we ha ve managed to accomplish.
This report provides a review of their work o ver
thepast year, and a summary of the important
challenges that are still before us. It will give you
a sense of the diversity of issues that challenge
Canada’s air industr y. Most impor tantly, it will
give you a feel for the dynamism of our industry.
Sixty-five years ago, when this Association was
founded, Canada’s aviation industry was in the
middle of a period of profound change brought
on both by economic pressures and advancing
technologies. Back then, our predecessors had
one straightforward objective – to provide a single
coordinated voice for Canada’s air industry –
a voice that would be heard by politicians and
the public alike.
Canada’s aviation industry has a long and
storied history. We have seen important change
in the past. We are moving through a period
of tremendous change once again. We are an
industry whose presence is felt in every city,
town and village in Canada.
Today, the value of industry members working
together to address common challenges has
never been more important.
Our goal is to build a stronger air industry –
an industry that will continue to contribute to
the economic wellbeing of this country into the
next Millennium.
In a highly competitive marketplace, where the
decisions of airport authorities, the air navigation
service and government regulators can quickl y
affect the corporate bottom-line, it is essential
that the industry have a roundtable where
corporate differences are set aside and industr ywide concerns are tackled.
On behalf of the Board of Directors I would like
to thank my fellow Directors and the staff of the
Air Transport Association of Canada for their
commitment over the past year in advancing
the interests of the aviation industry. As you
will see in this report, it has been a very busy
and productive year.
Working together, we have helped raise awareness
dramatically of the potential consequences of
rapidly rising operating costs. As an industry,
we have worked to enhance cus tomer service
and to further improve a record of safety that
is already among the best in the world. And as
a national association, we have improved relations
with airport authorities, with NAV CANADA,
and with the federal government.
Stephen Smith
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P R E S I D E N T ’ S
M E S S A G E
J. Clifford Mackay
President & Chief Executive Officer
Air Transport Association of Canada
Last year, in my first annual report to ATAC
members, I talked about the extensive and
fundamental changes being experienced by the
aviation industry – both in Canada and around the
world. In the past twelve months, the ef fects of
these changes have continued to be felt by all
ATAC members.
Business Plan Update
Last year, ATAC introduced a new strategic plan
designed to return the focus of the Association to
its primary role of promoting and protecting the
interests of the aviation industry. Over the next
year, ATAC will continue along the same course.
I would like to update you on the key objectives
of this plan for the coming year.
Our industry is dealing with significant new
cost pressures brought on by the massiv e
commercialization of Canada’s airport and air
navigation services. These charges have added
more than a billion dollars to our costs and they
continue to be a major area of concern to the
industry. Your Association is making real progress
in dealing with these issues. NAV CANADA’s recent
fee reductions, the new AIF ag reements and our
continuing work to improve airport charging
principles are examples of recent successes.
However, much more work is necessary befor e
we can say that we have a safe, world-class and
cost effective aviation infrastructure.
On Cost Containment and Reduction
ATAC will continue to work to reduce industry
costs arising from airport and ANS char ges,
EDS implementation, fuel taxes, environmental
regulations and FAA overflight charges. We also
will work to expand the co verage of the new AIF
agreements.
On Regulatory Suppor t
ATAC will work with governments to fur ther
reduce the industry’s regulatory burden
through the Canadian Aviation Regulator y
Advisory Committee process and JAA/FAA
Harmonization talks. Moves by provinces and
municipalities to regulate cer tain aspects of
aviation activity will also be monitored.
Also, this last year has seen the re-emergence
of discussions and proposals on industr y
restructuring. This is a normal part of the
workings of a free market. Your Association
will continue to monitor these developments to
ensure that there is not a significant shift back
toward re-regulation of our industr y.
For these and many other reasons, ATAC’s
priority will be to work on behalf of the industry
to limit and reduce costs – particularly those
costs imposed on the industry by outside forces.
Our ability to make progress in this area will be
critical to long-term profitability of our members.
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On Safety and Communications
Meeting the Y2K Challenge
The Association will continue to promote the
industry’s excellent safety record, including our
success in meeting the Y2K challenge. ATAC also
intends to develop and implement an overall
communications strategy for the Association.
As I have mentioned, over the past se veral years
ATAC and its member companies ha ve been working
to ensure that air transpor tation systems
in Canada are ready for the year 2000.
I am pleased to report that, working with ATAC’s
members and our partners in the Air Transport
Association of America and the International Air
Transport Association, the Canadian aviation sector
is fully prepared to meet the challenges of the new
millennium. On January 1, 2000, we are confident
that it will be business as usual for Canada’s
air industry.
On Market Development and Services
We will implement a new PEMD ag reement to
promote expansion of international markets,
and initiate a study of pilot demand with the
department of Human Resources Development.
Two pilot projects to define Transport Canada
service levels and standards will be s tarted.
Financing and business support services for
smaller members will also be expanded.
In closing, I would like to thank your Board for
the support and guidance that I have received
over the last year. Also the hard work and
sacrifice that ATAC’s staff routinely bring t o
our efforts to support your interests must be
recognized. Without these efforts, it would not
happen. Finally, I would like to welcome Geoffrey
Elliot, our Executive Vice President, Policy and
Strategic Planning, to the ATAC family.
On Revenue Growth
Through promoting the services and advantages
offered by the Association, we intend to continue
to expand ATAC’s membership and revenue base.
Opportunities to expand non-member revenues
and to make other activities self-sus taining will
also be explored.
J. Clifford Mackay
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ATAC’S
Mission Statement
and O b j e c t i v e s
Mission Statement
MISSION
To support our members in their pursuit of a safe, world-leading and
competitive Canadian air transport industry.
Objectives
OBJECTIVES
Promote safe and reliable air transportation of people and goods
to the benefit of Canadian society.
Consult and cooperate with all Government and regulatory authorities
seeking the advancement or improvement of commercial aviation.
Promote and advocate for the commercial air transport industry.
Encourage a regulatory framework that recognizes enterprise and
imagination in providing safe and competitive air transport services.
Provide excellent and cost-ef fective services to our members.
Promote professional operational standards and sound business
practices by the membership.
Inform the public about the industry and its views in an open and
factual manner.
Communicate matters of interest to our members in a timely and
clear manner.
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contents
CONTENTS
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INDUSTRY OVERVIEW SECTION I T HE 2 0 T H C E N T U RY BE L O N GE D TO C AN A DI A N AV I AT I O N
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Canada’s Love Affair with the Airplane
Moderate Traffic Growth
International Growth Continues
Transborder Traffic
A Major Export Industry
The High Cost of Flying in Canada
Spiraling Airport Fees
A Course Correction is Needed
NAV CANADA – Going in the right direction
Canada’s Heavy Fuel Tax Burden
New Airport Explosive Detection Systems
The Economic Impact of the Canadian Air Industry
Safe and Secure
Millennium Bug Under Control
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S E C T I O N I I - ATAC : S E R V I N G
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A New Era, A Changing Mandate
ATAC Committees: Decisions for Members by Members
ATAC Committees, Subcommittees and Their Chairpersons
ATAC Activities and Accomplishments 1998-1999
ATAC Financial Statements 1999
ATAC Membership
Honorary Life Members
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THE
NEEDS
S E C T I O N I I I - A I R C A R R I E R S T AT I S T I C S
2000 Annual General Meeting
The Westin Bayshore
Vancouver BC
November 12, 13 & 14, 2000
OF
MEMBERS
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L I S T
O F
F I G U R E S
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Increase in Air Passengers in Canada, 1940-1998
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Air Cargo Volumes, 1971-1998
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Canada-International Traffic Forecast, 1998-2002
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Employment Impact of Traffic Diversion
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Passenger Growth at Canada's Three Largest Airports
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Employment by Canadian Air Carriers, 1960-1998
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Annual Airline Expenditures vs. Provincial Government
Program Spending
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Air Carriers Levels I-IV, 1989-1998
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Net Income 1989-1998, Air Carriers Le vels I-IV
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Employment and Payrolls 1989-1998,
Air Carriers Levels I-IV
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Passengers Carried 1989-1998, Air Carriers Le vels I-IV
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Revenue Passenger Miles 1989-1998,
Air Carriers Levels I-IV
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Canadian Aircraft Regis tered, 1995-1999
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1998 Passenger Traffic - Top Ten Canadian Airports
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Aviation Personnel Licences, 1995-1999
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Goods Carried 1989-1998, Air Carriers Levels I-IV
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Top Ten Canadian Airports 1998
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Fuel Consumption and Costs 1989-1998,
Air Carriers Levels I-III
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Fuel Ef ficiency, 1960-1998
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I N D U S T R Y
O V E R V I E W
-
S E C T I O N
I
TH E 20T H C E N T U RY BEL ONG ED T O C AN AD IAN AV I AT I O N
I n c rease in Air Pa s s e n ge rs in Canada,
19 4 0 -19 9 8
At the beginning of the current century, Canada’s
Prime Minister, Sir Wilfrid Laurier, made the bold
statement that the 20 th Century would belong to
Canada – and for the most part he was right.
Canada was a young, dynamic country dotted by
widely separated cities and smaller isolated
frontier towns. Aviation, which began to take
shape as an industry in the first decades of the
new century, helped knit together a sprawling and
diverse country, effectively displacing the railroads
from the nation-building role they pla yed in
Canada’s earliest days.
The development and growth of Canada’s air
transport industry has paralleled the dynamic
expansion of the country throughout most of the
20th Century. Today, commercial air transpor t
underpins Canada’s industrial competitiveness
and shapes the w ay we see ourselves.
Looking back, Sir Wilfrid probably would have
agreed that the 20th Century also belonged to
Canadian aviation. It’s s tarting to look like the
21st Century will belong to it too.
* Re v i s e d
* * P re l i m i n a ry
S o u rc e : 19 4 0 -1990 info r mation: Sta t i stics Canada,
Aviation in Canada, Cat. No. 51 - 5 01.
19 91 -1998 info r mation: St a t i stics Canada,
Aviation Sta t i stics Centre .
C a n a d a ’s L o v e A f f a i r w i t h t h e
Airplane
M o d e r a t e Tr a f f i c G r o w t h
When Canadians travel, the only mode of
transportation more likely to be used than a
commercial aircraft is the family automobile.
Canadians take more and longer flights than any
other people on ear th.
Overall, the Canadian air transportation industr y
showed moderate growth during 1998-99, with
some reduction in specific markets.
And this year, more Canadians than e ver chose to
travel by plane.
Nationally, air traf fic grew by approximately 4 per
cent and loads averaged 68 per cent – about 3 per
cent ahead of last year. Scheduled traffic growth
significantly outper formed charter traf fic. In
cargo, markets have been soft with traffic down
from the previous year by approximately 7 per
cent. For smaller operators, emer gency and
special operations such as forest firefighting
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T r a n s b o r d e r Tr a f f i c
A ir Cargo Vo lumes, 19 71 -19 9 8
(Canadian Carr i e rs )
Transborder air travel has continued the robust
growth we have seen since the signing of the
Canada-U.S. Open Skies Agreement in 1995.
Airplane trips from Canada to the United States set
yet another record in 1998.
Trips to the United States accounted for about 13
per cent of all commercial aircraft movements in
1998. The total number of passengers on
transborder flights went up by 12.5 per cent – or
just over 37,500 people – compared to the year
before.
A Majo r E xpor t Indust ry
*P re l i m i n a ry
S o u rc e : 19 71 -19 91 info rmation: Sta t i stics Canada,
19 9 2 -1997 info rmation: Sta t i stics Canada,
All this growth in international and transborder air
traffic is impor tant to the Canadian econom y. On
this basis, ATAC has been encouraging business
and government leaders to think of Canadian
aviation as an export business.
activity were above average and flight school
enrollments were up.
Every time a foreign traveller chooses to f ly on a
Canadian carrier the money spent to purchase the
ticket represents export dollars for the Canadian
economy. Every time a Canadian chooses to fly
abroad on a Canadian carrier ins tead of a foreign
airline, their transpor tation dollars are being
spent at home rather than to the benefit of a
foreign economy.
I nterna tiona l Grow th C ont inues
Around the world, growth in air traffic continues
to be strong. In 1998, the world’s air carriers
transported 1.4 billion people according to the
International Civil Aviation Organization (ICAO),
virtually unchanged from the year before.
Well over half of the revenues of Canada’s
two major domestic carriers, and that means
approximately $5 billion each year, is derived from
the participation of those airlines in the
international marketplace. Anything that adds to
the cost of doing business for Canada’s airlines –
including domestic business – reduces the ability
of our airlines to compete in international
markets.
Air carriers regulated by IC AO member countries
transported 15.9 million tonnes of freight in 1998,
up 1.1 per cent from 1997.
The International Air Transport Association (IATA)
forecasts that air traf fic will continue to grow at a
rate of 5.02 per cent this year. The most
profitable regions for the world’s air carriers
continue to be Nor th America and Europe. Traffic
growth expectations for South America, previously
projected to be among the highest in the world,
have been substantially reduced. In Asia,
upswings in the economies of Thailand and Korea
are expected to of fset the continued s tagnancy of
the Japanese economy.
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C a n a d a - I n te rna ti onal Tra f f ic Fo re c a st ,
19 9 8 - 2 0 0 2
E mp l oyment Impact of Tra f fic Dive rs i o n
An nual En planed
and Deplaned Passengers
(’000,000)
S o u rc e : Sypher:Mueller Inte rnational; Un i ve rsity
of Manitoba Centre for Tr a n s p o rtation
St u d i e s .
S o u rc e : I n te rnational Air Tra n s p o r t Association
( I ATA ) .
The High Cost of Flying in Canada
It is ironic that, at precisely the time that the air
industry needs to become more cost competitive,
rapidly escalating domestic infrastructure costs,
over which the industry has no control, are
undermining its ability to compete internationally
and generate traf fic locally.
The robust growth expected over the next five
years in air tr avel between Canada and
international destinations sho ws the extent of our
industry’s opportunity to capture new business. If
Canada wants to win this international business
and the huge value it represents to the Canadian
economy, we must ensure that our carriers and the
infrastructure they depend upon remain cost
competitive.
Canada’s aviation competitiveness is being
seriously weakened by miscalculations of the cost
implications of the federal government
withdrawing from the airport and air navigation
businesses. The air industry now must shoulder an
estimated $1.35 billion in annual user charges to
cover the cost of airport projects and air
navigation, with future increases very likel y. For
an industry with less than $10 billion in total
annual revenues this is a burden not easily carried.
The only way for airlines to co ver $1.35 billion in
extra costs is by increasing ticket prices, which
reduces the number of passengers using our
airways.
If we succeed, the result will be more export
dollars, more Canadian dollars s taying at home,
and more economic growth and job opportunities
in the airlines and supporting businesses.
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Pa s s e n ge r Grow th at Cana da’s
T h ree Lar ge st Air por t s
Since the National Airports Policy came into effect,
the annual cost of operating Canada’s airports has
increased by over $800 million including the cost
of debt on new capital projects. Part of the
problem stems from the nearly $210 million the
federal government takes out of the airports in
leasing fees each year.
These steep cost escalations have had serious
financial consequences for air carriers and resulted
in higher ticket costs for air travellers. In
particular, short haul or regional carriers have
been heavily impacted since their ability to absorb
higher costs is less than some other parts of the
industry.
One example of rapidly escalating airport costs –
but by no means the only one – comes from the
Greater Toronto Airport Authority (GTAA).
Like many other airports, the fees and charges
levied by the G TAA have escalated rapidly since
the facility came under local management. In
financial documents prepared for the Authority to
support a revenue bond issue, the GTAA revealed
that fees, charges and other revenues are
projected to increase dramatically over the next
ten years.
*
P re l i m i n a ry
S o u rc e : 19 7 0 -1990 info rmation: St a t i stics Canada,
1996 info r mation: Sta t i stics Canada,
GTAA revenues derived from airlines, including
landing fees and terminal char ges, will most likely
amount to about $260 million in 1999. However,
the Authority expects that revenues from airline
charges will double by 2003, and top $840 million
by 2010, more than three times the current level.
The magnitude of this percentage increase in
revenue will greatly outpace the expected growth
in Canadian air tr avel over the same period.
Spirali ng A irpor t Fe e s
When the federal government unveiled its
sweeping National Airports Policy in 1994,
Canada’s air industry was among the new policy’s
strongest supporters. At the time, ATAC hoped
that the transfer of the country’s largest airports
from Transport Canada to local authorities would
lead to management innovations and cost
efficiencies that were unavailable to the airports
while under government control.
Furthermore, the GTAA documents clearly
show that the Authority plans to begin receiving
revenues from an Airport Improvement Fee by
2001. This fee was projected to bring in more
than $126 million for the Authority in its first year
and more than $170 million by 2010. This mone y
will come straight out of the pockets of air
travellers already paying higher ticket costs thanks
to increased landing and terminal fees.
As control over local airports has been devolved to
local authorities, and public subsidies have given
way to ‘user pay’ sy stems, serious problems in the
implementation of the National Airports Policy
have emerged.
The implications of these cost increases for the
competitiveness of the GTAA as a Nor th American
hub airport could be serious.
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A Cou rse Corr ectio n is N ee ded
4.
ATAC is concerned about the potentially serious
consequences of such large fee increases at
Canada’s busiest airport as well as at others across
the country. Consequently, the Association has
encouraged Transport Canada to r eview the
National Airports Policy with a view to finding
ways to mitigate escalating airport costs, and to
defuse disputes between airports and the aviation
community.
The user charges and fees set by airpor t
authorities should be based on national
principles consistent with IC AO standards.
These principles should clearly s tate that fees
and charges must be cost-based, and that
parties af fected by a proposed change should
be consulted and provided with detailed
justification for the change.
5.
ATAC has proposed a se ven-point plan to put the
National Airports Policy back on course. They
include:
1.
6.
Enhancing the viability of smaller and remote
airports
Many small and remote airports also need to
generate revenue to cover current and future
capital requirements, and cur rent operating
costs. These airports are an important part of
Canada’s national air transpor tation system.
ATAC would like to see the existing Airport
Capital Assistance Program (ACAP) improved
to make more government funds available for
capital projects at smaller airports. Airports
that qualify for capital assistance under ACAP,
but are unable to generate enough revenue to
cover operating costs, should have operating
deficits covered by municipal and provincial
governments.
Ensuring that authority mandates focus on
core airport activities.
An airport’s primary mandate must be to
provide safe, cost ef fective and ef ficient
airport services to the communities they
serve. ATAC believes that Transport Canada
should clarify the mandates of airpor t
authorities to prevent financial and other
resources from being diverted to non-core
activities.
3.
Establishing an appeal mechanism for
disputes about fees.
Currently, the only avenue to settle disputes
between airports and airlines over fees and
charges is through the courts. ATAC has
asked Transport Canada to create an appeal
mechanism – an arbitration tribunal, for
example – which would allow disputes to be
settled without the need for litigation.
Adding air industry expertise to airport
boards.
As the primary users of airports, the air
industry needs to have direct input in the
management and planning decisions of the
authority. ATAC proposes that at least two
members of each authority board should be
selected from lists submitted by the air
industry, and that nominees should meet
local conflict of interest requirements.
2.
Introducing national principles for setting
airport fees and charges.
Increasing public accountability and
transparency.
7.
Airports are impor tant public institutions
whose activities should be fully transparent
and accountable to the people they serve. To
ensure this accountability, ATAC has asked
Transport Canada to require airport
authorities to publish cur rent and future
plans, and hold semi-annual public meetings.
ATAC has also proposed that Transport Canada
publish an annual review of airport activities
and statistics to allow operating and financial
statistics to be benchmarked against best
industry practices.
Freezing and reducing airport authority land
lease payments to government.
Airport Authorities should not have to make
excessive lease payments to the federal
government. ATAC has proposed that total
lease payments to government should be
capped at the cur rent level of about $210
million annually. Lease payments should also
decline over time to reflect depreciation in
the value of the non-land assets transferred
to the authorities, while maintaining a
reasonable return to the cr own.
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N AV C A N A D A – G o i n g i n t h e r i g h t
direction
One indication of the significant progress made by
NAV CANADA in reducing costs can be seen in its
decision this summer to reduce ANS fees for one
year beginning September 1, 1999. These fee
reductions should save commercial air carriers
about $107 million dollars.
The collection of service char ges by NAV CANADA
represents another area of cost g rowth for air
carriers. Air navigation costs, which were
previously paid for by go vernment through
revenues collected from the Air Transportation Tax,
now add another $500 million per year to airline
operating costs.
In total, N AV CANADA estimates that the air
industry is paying $272 million less per year in
charges than airline cus tomers would have paid
through the Air Transport Tax (ATT), a reduction of
more than 25 per cent.
While Air Navigation Service fees are a subs tantial
new air industry cost burden, the actual cost of
providing ANS has not exhibited the same growth
pattern as airports. Over the next ten years, ATAC
is confident that real ANS production costs and
user charges will decrease significantly, as NAV
CANADA’s debt is paid down and long-term service
efficiencies are realized.
C a n a d a ’s H e a v y F u e l Ta x B u r d e n
Canada’s heavy taxes on aviation fuel are also
causing higher ticket prices for consumers and
reducing the competitiveness of our aviation
industry. Last year, the federal and provincial
governments took over $200 million in fuel
taxes from Canadian carriers.
ATAC’s status as one of N AV CANADA’s four
‘Members’ has helped assure that the interests
of Canada’s air transport industry are protected.
ATAC appoints four persons to N AV CANADA’s
Board of Directors. The ANS legislation contains
provisions designed to maintain proper levels of
service and to protect users from excessive
charges. NAV CANADA’s structure also provides
customers with a significant voice into the
company’s operations and future direction.
Again, this represents a serious competitive
problem for the industry. Fuel is one of the single
largest components of airline production costs.
A study conducted by The Van Horne Institute in
Calgary determined that Canadian carriers pay
some of the highest aviation fuel taxes in the
world. In fact, at the federal level alone, excise
taxes are about 260 per cent higher than the taxes
faced by U.S. air carriers.
The ANS management frame work set in place prior
to the 1996 transfer has the right balance of
public accountability, attention to s takeholder
concerns, and the application of sound
management principles. NAV CANADA represents
an excellent model of the right w ay to privatize
monopoly infrastructure.
NAV CANADA’s challenge is to increase ef ficiency
and service while reducing costs and continuousl y
maintaining its high le vel of safety per formance,
while managing for future g rowth. By law, NAV
CANADA is required to set its user fees at no more
than its costs within the context of a cost
allocation system based on generally accepted
accounting principles.
The situation is worsened by provincial taxes.
For example, the Van Horne study found that the
aviation fuel taxes imposed by British Columbia
alone accounted for 4 per cent of the cost of an
average plane ticket from Vancouver to Toronto.
Yet B.C.’s expenditures on aviation infrastructure
represent only a small fraction of its take.
Two years ago, in its S tatement of Corporate
Direction, NAV CANADA made a commitment t o
reduce operating costs by $135 million over three
years.
8
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E mp l oyment by Canadian Air Carr i e rs * ,
19 6 0 -19 9 8
When federal and pr ovincial taxes are combined
they can be as high as 30 per cent of the cost of
aviation fuel. And since aviation fuel represents
15 per cent of an air carrier’s operating costs,
the impact of the ‘hidden taxes’ is significant.
The tax on aviation fuel is a tax on Canadian
aviation competitiveness – and it is killing jobs
and increasing the cost of air transportation for
Canadians.
New A irp or t Exp losive Det ectio n
Systems
New cost areas continue to arise. Transport
Canada has announced that they will soon require
installation of expensive high-technology
explosive detection systems (EDS).
This will be another big ticket item for air carriers,
not only because the EDS machines themselves
will be expensive, but also because entire baggage
handling systems at airports will have to be reengineered for the compulsory screening of all
checked baggage. The final cost of these new
systems is not yet known, but the total will
certainly reach into the hundreds of millions
of dollars.
* L evels I-IV; 19 8 5 -1986, Levels I-III
* * P re l i m i n a ry
S o u rc e : 19 6 0 -1992 info rmation: St a t i stics Canada,
19 9 3 -1997 info rmation: St a t i stics Canada,
Annual Airline Expenditures* vs.
P r ovincial Gove rnment Pro gra m
Spending**
The Econ omi c Im pac t of t he
C ana dian Ai r Industr y
Studies on the economic impact of the aviation
industry continually show that the Canadian
aviation industry generates many billions of
dollars in the Canadian economy and creates
hundreds of thousands of jobs.
In the Toronto area alone, the air industry
generates in excess of $10 billion in sales and
creates more than 100,000 jobs paying more than
$3 billion in wages. This represents more than
four per cent of all employment in the Greater
Toronto area. The s tory is the same in Vancouver,
Calgary, Halifax and many other Canadian cities.
Aviation helps Canada prosper.
* For f iscal year ending December 19 9 8
* * To tal pro gram expenditures (public
accounts basis) for f iscal year ending
M a rch 19 9 9
S o u rc e : D e p a rtment of Finance Canada;
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Page 10
S afe a nd Secu re
ATAC members are also investing in Global
Positioning Systems (GPS), and in the
development of GPS approaches throughout
Canada. This technology is already enhancing the
safety and ef ficiency of operations at many smaller
airports, and may eventually provide pilots with
even more precise guidance under adverse weather
conditions.
Aviation in Canada and around the world
has never been safer.
Over the past twenty years, the number of
aviation fatalities in Canada has decreased by
approximately 50%. The commercial aviation
community, working with Transport Canada, ar e
engaged in significant ef forts to reduce that
figure even more.
As well, commercial operators throughout Canada
are continually reviewing their procedures and
training with a view to implementing the best
practices available.
Canadian commercial aviation operator s
have invested billions of dollars in new aircraft
incorporating the latest and safest technology
and will invest even more over the next
several years.
The industry is investing in collision avoidance
systems that will alert flight crews to other
aircraft with potentially conflicting trajectories.
Millions of dollars are being spent on Ter rain
Awareness Warning Systems (TAWS), which will
provide pilots with a virtual image of approaching
terrain, even under conditions of zero visibility .
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wrongful dismissal
collective bargaining
workers’ compensation
employment contracts
human rights
employment standards
occupational health and safety
(Services available in both official languages.)
12/9/99
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Page 11
Mill enni um Bug Under Co ntro l
For several years now, ATAC and its member
companies have been working hard to ensur e
that air transportation systems in Canada and
around the world are completely Year 2000
compliant before the beginning of the new
millennium. The key objective is to ensur e
that airlines have full information on when
and where it is safe to fly.
ATAC is pleased to report that the aviation
industry’s response to the Y2K bug has exceeded
projections. Canada’s air carriers will enter the
new millennium fully prepared to operate safely
and reliably.
North America and most other parts of the world
will be ready. Concerns remain about the state
of readiness of aviation infrastructure in some less
developed regions. Under this Millennium Project,
airlines will have the information they need to
ensure safe operations.
Worldwide, the International Air Transport
Association estimates that air carriers have spent
$1.6 billion dollars (U.S.) in dealing with potential
millennium bug problems. In Canada, airlines
devoted $110 million to ensure that their
computer driven systems will not be af fected.
Meeting the Y2K challenge is an unprecedented
international Millennium Project involving air
carriers, airports, air navigation service providers
and aviation service suppliers in Canada and
throughout the world. International carriers,
working cooperatively through a process
involving IATA, the ATA and ATAC, worked closely
with key suppliers and service providers to ensure
that they were all prepared for the year 2000.
CT Aero
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S E C T I O N
A T A C :
S
E R V I N G
N
T H E
Today ATAC represents approximately 300
commercial carriers and suppliers located in all
provinces and territories. ATAC members account
for more than 95 per cent of commercial air
transport revenues in Canada. Association
policies are determined by the Membership,
represented by the elected Chairman and Board
of Directors.
•
A spokesperson on key industry issues.
•
A focal point for industry leadership and
coordination on operational issues.
•
A cost-effective provider of certain common
needs.
O F
M
E M B E R S
ATAC identifies at the earliest stages new
regulatory, legislative or operational initiatives.
•
Every piece of proposed legislation or
regulation affecting air transpor tation
passes through ATAC’s offices in draft form
for comment. Advance warning provides the
industry with critical time to formulate
positions, achieve consensus, and take
action.
•
ATAC provides a “neutral forum” for members
to exchange non-competitive technical
information, discuss impending legislative,
regulatory and operational actions, discuss
and resolve controversial issues, and
establish industry positions.
Four fundamental benefits underlie the
industry’s support for a strong, effective
Association:
An effective common voice in regulatory and
legislative matters.
E E D S
ATAC supports its members by promoting
aviation safety, systems productivity and cost
effectiveness; promoting industr y-wide
positions; conducting designated industr y-wide
programs and research; and working to assure
public understanding of industry issues.
The Air Transport Association of Canada (ATAC)
has been the national service organization for
Canada’s commercial air transport industry since
1934.
•
I I
ATAC serves as an ef fective and credible industr y
voice to help achieve public understanding of
industry positions on national or regional
issues. Public opinion can be critical on certain
issues before Parliament or other government
bodies.
A N e w E ra , A C ha n gi n g Ma n da t e
ATAC’s mission is changing to reflect industry
requirements in an environment where the role
of the federal go vernment is changing
dramatically, where provincial and municipal
governments will become more involved in
aviation through local airport authorities, and
where international actions can significantly
affect the competitive position of Canadian
industry.
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Page 14
AT A C C o m m i t t e e s ,
Subcommittees and Their
Chairpersons
[ AT A C o f f i c e r r e s p o n s i b l e ]
S t a n d a rd s :
ATAC works with members to establish standards
for activities such as interline transactions,
baggage, and passenger processing and
ticketing. The Association coordinates domestic
standards, as established by members, with
those of IATA. ATAC works actively with IATA, ATA
and HAI to promote global s tandards to
facilitate exchange of material and services.
A c c e s s i b l e Tr a n s p o r t a t i o n
Barry Schneider, Canadian Regional Airlines
[Geoff Elliot]
A e ro m e d i c a l A d v i s o r y
Claude Thibeault, Air Canada
[Fred Jones]
A ff i l i a t e M e m b e r s ’ L i a i s o n
Glenn Priestley, ATAC
[Glenn Priestley]
Common programs:
ATAC works with members on programs that
meet a common need, and are non-competitive.
Examples of current ATAC programs are the
Passenger Sales Agency Program, the Bank
Settlement Plan, the Flight Training Financing
Program, and the Aircraft Hull and Liability
Group Insurance Program for Members involved
in flight training and charter.
A i rc r a f t F u e l H a n d l i n g
Terry Delong, PLH Aviation Services Inc.
[Glenn Priestley]
Airport Affairs
Dave Robinson, Air Canada
[Michael Skrobica]
Airside Safety
Coleen Rogers, Canadian Airports Council
[Glenn Priestley]
AT A C C o m m i t t e e s : D e c i s i o n s
for Members by Me mb ers
Effective and frequent communication with
members is fundamental to the Association’s
role as the eyes and ears for the industry. ATAC
convenes regular meetings of its industry
committees to discuss issues with the federal
government or to formulate ATAC positions on
matters concerning the interests of the
committees.
Cargo
Appointment Pending
[Geoff Elliot]
Committee members are consulted on a
continuing basis concerning matters handled by
ATAC on behalf of members.
Dangerous Goods
Knut Ohm, Canadian Airlines International
[Glenn Priestley]
The following ATAC Committees work actively to
meet industry-wide objectives.
Engineering and Maintenance
Ron Elvidge, Air Canada
[Les Aalders]
Communication/Navigation/
S u r ve i l l a n c e
Grant Wilson, Air Canada
[Fred Jones]
Engineering and Maintenance
Steering Committee
Ron Elvidge, Air Canada
[Les Aalders]
* Engineering
Les Aalders, ATAC
[Les Aalders]
* Maintenance & Quality
A s s u ra n c e
Les Aalders, ATAC
[Les Aalders]
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Page 15
Environmental Affairs
Don McLeay, Air Canada
[Les Aalders]
Legal
George Petsikas, Air Transat
[Geoff Elliot]
Facilitation
Appointment Pending
[Geoff Elliot]
L o ca l S er vic es O p e ra t or s Gro u p
Dennis Cooper, Sky Wings Aviation Academy
[Glenn Priestley]
F ix e d W i ng C har te r
Jim Glass, Athabaska Airways Ltd.
[Glenn Priestley]
S af e ty A d vi so r y
Walter Wolfe, Canada 3000 Airlines Limited
[Fred Jones]
Flight Operations
Ron Clark, Air Canada
[Fred Jones]
Security
Carol Clark, First Air
[Michael Skrobica]
* Cabin Operations
Francine Desjardins-Lafond, Air Transat
[Fred Jones]
Ta x
Leslie O’Leary, Canadian Airlines International
[Geoff Elliot]
F l i g h t Tr a i n i n g
Dennis Cooper, Sky Wings Aviation Academy
[Glenn Priestley]
Tr a f f i c C o n f e r e n c e
Appointment Pending
[Geoff Elliot]
G roun d S a fe t y
David Byers, Canadian Regional Airlines
[Glenn Priestley]
User Charges
Cheryl Rau, Canadian Airlines International
[Michael Skrobica]
Helicopter
Guy Smith, Helijet Airways Ltd.
[Fred Jones]
* Subcommittees
* Helicopter Executive
Committee
Guy Smith, Helijet Air ways Ltd.
[Fred Jones]
Labour Legislation
Appointment Pending
[Geoff Elliot]
* Employment Equity
Appointment Pending
[Geoff Elliot]
* Occupational Safety & Health
Melanie Costly, Canadian Airlines
International
[Geoff Elliot]
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Page 16
ATA C A c t i v i t i e s a n d
Accomplishments 1998-1999
ATA C O p p o s e s U . S . P r o p o s a l
on Air Courier Rights
This year, ATAC established a new Cargo
Committee, which developed and distributed a
Position Paper encouraging the government of
Canada to resist American pressures for
additional co-terminal rights for transborder
courier services. If Canada were to agree to U.S
demands, the change would allow American
courier operators to integrate their operations
in the two countries in a way that would
potentially eliminate significant business for a
number of ATAC members.
With the help of outside counsel, ATAC
developed a legal brief to challenge the findings
of an interim report of the CTA. Under these
findings, obesity would be defined as a
disability under the Canadian Transportation Act
and would, therefore, oblige airlines to
introduce new mandatory policies to provide
additional space for obese people at no extra
charge.
Aviation Millennium (Y2K)
P ro j e c t o n Tr a c k
ATAC also joined with the Air Transport
Association of America in a joint ATAC/ATA Y2K
due diligence program. This program is both on
time and on track to ensure that all North
American commercial air transpor tation
infrastructure – including airports, air
navigation and other critical suppliers of goods
and services to the industry – will be Y2K ready
and tested.
Facilitation Improved for
Movement of People and
Goods
ATAC appeared before the Joint Parliamentary
Committee on Foreign Af fairs and International
Trade in support of Bill S-22 (The Pre-clearance
Act). The purpose of the Association’s
submission was to challenge the criticism raised
by the Canadian Bar Association to certain
elements of the proposed legislation. Following
ATAC’s oral and written presentations, Bill S-22
was approved by the Committee and received
third and final reading a short time later.
The ATAC/ATA Millennium Project has already
successfully defused Y2K as a significant public
issue for Canadian aviation and has provided
ATAC members with the information they need
to make sound operational decisions regarding
the Y2K readiness of the destinations and routes
on their respective systems.
A similar IATA program is examining Y2K
readiness of aviation infrastructure on a global
basis.
The Senate Standing Committee on
Transportation and Communications was also
urged to give early approval to Bill S-23 – which
would allow the federal government to ratify
Montreal Protocol No. 4, related to carrier
liability for loss or damage to cargo, and let
airlines introduce automated data transmission
systems to replace traditional w aybills. This
legislation also allows Canada to become a
signatory to the Guadalajara Convention of
1961, which extends carrier liability for
passengers and baggage.
Engaged in Dialogue with
Disabilities Community
Working with Transport Canada, the Canadian
Transportation Agency and with organizations
representing the interests of people with
disabilities, ATAC has attempted to explain how
the Canadian air transport industry meets its
legal obligation to remove unreasonable barriers
to air transpor tation for people with disabilities.
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Page 17
ATA C A t t a c k s G o v e r n m e n t
Measure s th at Increase
Costs
ATAC intervened with Revenue Canada Taxation
to request uniform application of a favourable
ruling regarding the definition of a ‘continuous
journey’ for the purpose of applying GST to
airline tickets. Revenue Canada auditors had
been inconsistent in their application of this
ruling. At the request of ATAC, Revenue Canada
will clarify the application of the ruling for
auditors to ensure consis tency.
ATAC appeared before the Commons S tanding
Committee on Transport to support the
committee study of competitiveness in the
Canadian air transport industry. ATAC’s
appearance provided an opportunity to explain
how government policies and actions –
particularly those regarding the privatization of
the air navigation system and the devolution of
airports to independent local airport authorities
– had imposed massive new financial burdens
on the industry and contributed to the financial
vulnerability of Canadian carriers.
On behalf of the industry, the Association also
submitted a pre-budget brief to the Government
of British Columbia seeking a reduction in the
aviation fuel taxes applied on domestic and
international travel.
P re - B u d g e t S u b m i s s i o n
P ro p o s e s M e a s u r e s t o
Reduce Costs
E n h a n c i n g AT A C
Communications
In response to a request from the Commons
Standing Committee on Finance, ATAC made a
pre-budget submission for the Year 2000 federal
budget. This submission included a call for tax
relief on aviation fuels, as well as the removal of
GST on Canada/U.S. travel, consistent with
established international taxation principles.
ATAC also initiated a review of how the
Association can and should work with the
communications professionals of member
companies. Our objective is to develop a new
ATAC communications strategy, for consideration
by the Board in November, 1999, which builds
on member company strengths to better deliver
shared industry messages on public policy and
other issues.
The submission also called for the rollback or
elimination of indirect taxes levied by the
federal government on the aviation industry.
These taxes include the excessive lease
payments the new airport authorities are made
to pay by Transport Canada, as well as the new
fees and charges associated with Canadian
aviation regulations, which are particularly
burdensome for smaller operators.
Security Issues
The Association of fered comments on a
proposed amendment to the American ‘Antiterrorism and Effective Death Penalty Act’,
commonly known as the Hatch Amendment.
This amendment would force air routes
connecting to the United States to undergo the
same security measures as would be employed
on routes departing from the U.S.
P ro g r e s s o n O t h e r T a x I s s u e s
ATAC obtained a number of long sought after
technical changes in the application of the GST
to additional miscellaneous services provided by
Canadian carriers. For the most part, the rules
governing the assessment of the GST for such
services will now match the way the tax is
assessed for the airline ticket. In other words,
if the corresponding class of transpor tation is
exempt from GST – international travel outside
North America, for example – then the
miscellaneous services provided will also be
exempt from the tax.
ATAC argued that the proposal was
extraterritorial in the application of U.S. law,
and violated ICAO’s Annex 17 on International
Security Arrangements. Furthermore, it was
seen to be less concerned with real security
issues, than with “levelling the playing-field”
for U.S. carriers, given that it applied only to
routes on which U.S. carriers competed with
foreign air carriers.
A Notice of Proposed Rulemaking (NPRM) on
this issue was proposed in November 1998, and
was vigorously protested by ATAC and its
members with service to the U.S. The
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Page 18
Association conducted a cost study on the effect
of this rule and noted that out of pocket first
year costs to Canadian carriers would total
$33,000,000, with total operating inefficiencies
topping an astonishing $244,000,000 per year.
Federal Aviation Administration’s rule on
overflight fees. In 1998-99 ATAC members were
spared from paying charges totalling
approximately $50,000,000, and have avoided
paying a further $25,000,000 so far this year.
The U.S., in light of the criticism of ATAC and
others in the international community, has not
put the Rule into effect and is currently
‘studying’ the issue.
Airpo rt Affairs
Following on the successful ag reement reached
in 1997 allowing air carriers to collect airport
improvement fees on behalf of airports, ATAC
has concluded a follo w-on agreement that will
see the arrangement extended beyond the
original three airports covered under the
agreement (Calgary, Winnipeg & Kelowna). The
new agreement signed on May 31, 1999, now
includes Ottawa, Regina, Saskatoon, Victoria,
St. John’s and Edmonton. The agreement
ensures that airlines will have meaningful input
on airport capital projects through the Airline
Consultative Committee to be set up at each
airport.
At the same time as the NPRM for the ‘Hatch
Amendment’ was issued, the FAA also published
an emergency amendment on cer tain new
security measures that would have applied to
Canada for the first time. Again, security
consideration appeared not to be the chief
motivation of the emergency amendment. As
with Hatch, ATAC protested vigorously and in
this case the amendment was withdrawn.
ATAC has also participated in a study to upgrade
Canadian passenger screening procedures. A
joint ATAC/Transport Canada/Canadian Airports
Council/Air Transport Security Corporation
process has been established with a view to
enhancing certain passenger screening security
measures.
ATAC anticipates that airlines will collect nearly
$140,000,000 on behalf of the airports during
the upcoming year.
In 1998-99 Transport Canada conducted a
mandated review of the Local Airpor t
Authorities (LAA) initiative. This review of the
four LAAs included the following areas:
ATAC and its member airlines are conducting a
trial project in the use of computer assisted
training techniques in the training of passenger
screening agents.
-
ATAC has participated in discussions in setting
standards for staffing screening points for small
airports.
User Charges
ATAC participated in, and facilitated for its
members, a consultation between commercial
aircraft operators and NAV CANADA – the
company established to operate Canada’s air
traffic control system. This year’s phase of
consultations dealt with the full implementation
of user charges, which replaced the hybrid user
charge/air transportation tax arrangement of
the previous year.
Environmental Stewardship
Asset Maintenance
Facility Planning and Capacity Development
Crown Rents and LAA Financial Viability
Pricing Practices
Safety
Security
Service Levels
Economic Impact
Governance
ATAC participated extensively in the review on
behalf of its members. In the course of
responding to the review ATAC developed an
industry position on the following issues:
-
An ATAC accomplishment in 1997-98 continues
to pay dividends for members. At that time the
Association successfully challenged the U.S.
18
Public Accountability
LAA Mandates
Airline Representation on LAA Boards
Charging Principles
Rates and Charges Appeal Mechanisms
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The Association has been participating
extensively in the Montreal, Ott awa, Vancouver,
and Toronto Noise Management Committees, to
ensure that the interests of the commercial
aviation community are represented in the
processes leading up to new noise abatement
procedures and restrictions. Together with the
Canadian Business Aircraft Association (CBAA)
and NAV CANADA, ATAC has developed a series
of proposals that will significantly mitigate
noise concerns at Toronto’s Pearson Airpor t
during restricted-hour night operations.
Land Leases
Small Airport Viability
ATAC will continue to participate in this review
until its anticipated conclusion in 1999-2000.
Flight Operations
ATAC’s Vice President Flight Operations
represented all levels of our operatormembership at the Canadian Aviation
Regulatory Advisory Committee (CARAC)
process.
ATAC and its operator members successfully
concluded discussions with Transport Canada
which will see Terrain Awareness Warning
Systems (TAWS) become a mandator y
requirement for airline operations in Canada.
ATAC and its members are committed to
ensuring that members of the travelling public
enjoy the highest le vels of safety. The
Association is also committed to ensuring that
the competitive position of the Canadian
aviation industry is not compromised by
regulations that do not enhance safety, but only
impose financial and operational limitations on
the Canadian commercial aviation community.
ATAC is encouraging Transport Canada to expand
the Transponder requirements at a number of
Canada’s busiest airports as a prelude to a
mandatory requirement for Traffic Collision
Avoidance System (TCAS) in airline operations.
Through our participation on the Additional
Operational Requirements Working Group, ATAC
and its operator members agreed on a wet
runway engine-out accountability s tandard that
is harmonized with a similar standard in the
United States.
ATAC and its operator members participated
extensively on a Simultaneous Intersecting
Runway Operations(SIRO) Working Group tasked
with an examination of recent American changes
to the procedure, with a view to assessing their
value in a Canadian operational environment.
ATAC and its operator members have provided
outspoken representation to the FAA/JAA
Aviation Rulemaking Advisory Council (ARAC)
Performance Harmonization Working Group. The
group is attempting to harmonize aircraft
performance regulations between the U.S. and
Europe.
The Association participated extensively in the
Take-off and Landing Minima and Approach Ban
Working Group tasked with an examination of
existing IFR procedures and minima.
ATAC recently participated in a Working Group
tasked with a review of crosswind limitations for
preferential runway selection in Canada.
ATAC and Transport Canada have also been
working very closely as members of a similar
Canadian Performance Standards Working
Group, set up to ensure that Canadian rules on
this issue respect the new harmonized
standards. ATAC and its operator members have
been instrumental in opening the debate on
contaminated runway engine-out accountability
in this forum. The group is also addressing
many other issues including runway alignment
distance, net take-off flight path, and dispatch
factors.
With Transport Canada, the Aerospace Industries
Association of Canada, NAV CANADA and
Aerovision North America, ATAC co-organized
Aerovision 2000, a major aviation symposium
set in Vancouver, British Columbia.
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Page 20
Emergency Response
Services
Air Navigation Systems
ATAC has continued to support NAV CANADA’s
implementation of the Canadian Automated Air
Traffic System (CAATS). The project is almost
complete and is undergoing factory testing.
CAATS will make a controller’s job easier by
consolidating all vital information on a single
display panel.
Together with the Canadian Airports Council
(CAC), ATAC sponsored a review of a study
prepared for the Union of Canadian Transport
Employees on the Emergency Response
Capability at Airports in Canada. Also with CAC,
ATAC sponsored a study of the Effect of
Increased Emergency Response Services at
Canada’s Non-Designated Airports.
ATAC supported NAV CANADA’s initiative to
provide VHF datalink as the primary means for
air-ground communication in suitably equipped
aircraft.
These investigations were initiated with an aim
to ensuring that appropriate and affordable
levels of Emergency Response Service are
provided to all members of the travelling public.
ATAC supported NAV CANADA’s trials for Oceanic
Automatic Dependant Surveillance/Controller
Pilot Data Link Communication (ADS/CPDLC).
Cabin Operations
ATAC and its operator members participated
extensively in the Passenger Inter ference with
Crew Members Working Group. In concert with
other Working Group members, ATAC developed
a public awareness campaign on the subject that
included posters for display at airports and
ticket stuffers. The Working Group is currently
finalizing a series of recommendations that will
ensure that the aviation community reduces the
number of incidents of assaultive and disruptive
behaviour on board aircraft.
ATAC suppor ted NAV CANADA’s decision to make
available weather information by data link at
selected Canadian airports.
ATAC supported NAV CANADA’s decision to
expand Flight Management System (FMS)
Arrivals in 1999 to include Montreal, Toront o
and Winnipeg. Canada Air Pilot publication for
Vancouver’s new FMS arrival procedures is
scheduled for early 2000.
ATAC and its operator members have
participated in the Medical Emergencies Working
Group, which is reviewing the contents of the
on-board Medical Emergencies Kit to ensure that
carriers are well-prepared to deal with most
common in-flight medical problems.
Safety Advisory
The Safety Advisory Committee is developing an
ATAC generic Emergency Response Plan which
could be modified and used by other carriers
looking to update their own emergency
response procedures.
ATAC and its operator members have
participated in a Working Group updating the
Flight Attendant Training Standard. This group’s
deliberations are nearly complete.
Committee members are developing a Mutual
Aid Agreement, which will formalize a
commitment made between participating
member carriers to provide assistance to one
another in the event of an air disaster.
ATAC and its operator members are working on
the Survival Equipment Working Group, which is
reviewing the content of the survival kits on
board Canadian commercial and general aviation
aircraft.
Helicopter Operations
ATAC presented written and oral submissions to
Transport Canada to prevent an expanded
definition of on-call duty, which could have a
drastic negative ef fect on the application of
flight and duty time limitations for helicopter
operators in Canada.
ATAC supported a proposal to apply air taxi
helicopter rules to commuter-class VFR
helicopter operations.
20
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The prime CAR AC areas of interest t o
Engineering & Maintenance are the Maintenance
& Manufacturing Technical Committee, of which
the ATAC VP E&M is the co-chair, the Aircraft
Certification Technical Committee, and their
associated Working Groups.
ATAC participated in a Working Group tasked
with an examination of the flight test and
approval process for af fixing external loads
to helicopters.
ATAC participated on the Survival Equipment
Working Group to ensure that helicopter
operators will retain some flexibility to modify
the contents of survival kits to reflect their
operational and seasonal requirements.
•
Maintenance & Manufacturing Technical
Committee
- Various Maintenance related CARs
and Standards were revised and/or
developed.
- CAR561 (Manufacturing) development.
•
Aircraft Certification Technical Committee
- Various Engineering related CARs
and Standards were reviewed
and commented upon.
•
Commercial Air Service Operations (CASO)
Technical Committee
- Engineering & Maintenance issues
regarding MMEL/MEL Policy and
Procedures Manuals and various
equipment topics were reviewed
and commented upon.
•
Survival Equipment Working Group
- ATAC is coordinating a strong position
to harmonize Transport Canada and
FAA survival kit contents.
•
MMEL Working Group
- MMEL and MMEL Guidance Book
issues were coordinated/developed.
ATAC has been communicating with the aircraft
manufacturers and regulators to prepare
a regulatory environment that will facilitate
the arrival of Bell’s 609 tiltrotor technology.
Engineering & Maintenance
CARAC Activities
ATAC’s Vice President of Engineering &
Maintenance (VP E&M) has actively participated
in all of the Canadian Aviation Regulation
Advisory Committee (CARAC) meetings
pertaining to Engineering and Maintenance.
These meetings take place throughout the
year and cover amendments to the regulations
(CARs) and s tandards by which engineering and
maintenance practices are governed in Canada.
Safety Initiatives
ATAC has also begun developing a comprehensive
safety initiative for ATAC and its members. This
includes the overall coordination of safety
awareness and enhancements within ATAC’s
membership.
This process is an excellent example of
close cooperation between our industry and
the regulator. The CAR AC process allows for
direct input by ATAC and its members to
Transport Canada during the development
phase of regulation and standard revisions.
This alleviates many of the operational problems
of relying on exemptions to rules not thoroughly
developed in consultation with the end users.
In addition to active ATAC participation in safety
related Transport Canada activities such as the
Canadian Aviation Safety Seminar (CASS) and
CARAC, this initiative also includes research
into new possibilities of safety enhancement
through various quality assurance type
programs. Recent participation with the
Commercial Aviation Safety Team (CAST)
in the U.S. has added another dimension
to the possibilities of safety enhancement.
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Page 22
Canadian Aviation
Maintenance Council (CAMC)
Most aircraft maintenance organizations within
Canada are experiencing a shor tage of qualified
personnel in the various required fields of
expertise. This shortfall was foreseen several
years ago and is one of the main reasons that
ATAC was a leading force in the formation of
CAMC.
Since ATAC members employ the vast majority of
aviation maintenance practitioners in Canada, it
was recognized early on that ATAC should
strongly support CAMC activities. ATAC’s VP E&M
is one of two Coordinating Directors on the
Board of CAMC and thus ensures that CAMC
develops and maintains the infrastructure to
support the maintenance personnel standards
that our industry relies upon.
ATAC continues to strongly support
developments in Human Factors awareness
training in both the flight operations and
maintenance areas. For the maintenance area
this is a joint project with participation by ATAC,
CAMC, Transport Canada, and various ATAC
members.
At this stage thirteen different occupational
standards have been developed along with
various other supporting documents. In
addition, a significant project to develop Human
Factors training for aircraft maintenance is
nearing completion. With the recent retirement
of Bill Weston a search for a new Executiv e
Director is now under way.
A i rc r a f t T h e r m o a c o u s t i c
Insulation
In October 1998, the FAA issued a statement
requiring a new test and associated rules for
Aircraft Thermoacoustic Insulation
implementation that was to be developed over
the following six months. The short allowable
time frame was a direct result of pressure due to
the Swissair 111 accident.
AME Licensing System
Changes
The changes to the Aircraft Maintenance
Engineer (AME) licensing system that have been
under development with much ATAC involvement
for the past several years became ef fective
August 1, 1999.
Development has been progressing over many
years for new test procedures regarding fuselage
burn-through but this new activity now also is
taking into account the problem of flame
propagation. Both problems are being reviewed
in isolation and collectively.
J A A / FA A H a r m o n i z a t i o n
The current schedule calls for a new test
procedure and an NPRM to be in place by the
end of this year. The ATAC VP E&M has taken a
proactive stance on this subject by arranging for
regular meetings with Transport Canada
representatives to ensure practical methods are
used to achieve their goals.
ATAC’s Vice-President of Engineering and
Maintenance attended the annual Joint
Airworthiness Authorities (JAA) and FAA
Harmonization meeting. This is the ongoing
effort to harmonize the engineering,
maintenance, and flight operations regulations
between the European and U.S. regulator y
authorities.
Also playing a major role in these discussions
are TC, and airline and manufacturers’
associations. A common maintenance release
tag recognized by the JAA, FAA, and TC is finally
expected to be agreed to within the next year.
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I AT A E n g i n e e r i n g &
Maintenance Committee
F i x e d W i n g , A i r Ta x i , F l i g h t
Tr a i n i n g
ATAC’s VP E&M continues to take an active part
in the IATA Engineering & Maintenance
Committee (EMC) semi-annual meetings. A
good cross-section of international airlines and
airline associations attend to discuss many
common concerns such as Y2K, 16g Seats,
FDR/CVR, Digital Documentation, Cost of
Customization (i.e. unique aircraf t
configurations), and Interchange of Reliability
Data.
Canada’s transportation system continued to
perform well in 1998 and to contribute
substantially to the country’s economic
prosperity*:
Momentum has been gaining in support of the
initiative for the Engineering & Maintenance
sections of the various airline associations to
become better connected with one another and
thus be able to support their members in the
most efficient way possible. This cooperative
activity is taking place between ATAC, AEA
(Association of European Airlines), AAPA
(Association of Asia Pacific Airlines), ATA (Air
Transport Association of America), and IATA.
-
-
Environmental Affairs
During the past year the Environmental Affairs
Committee (EAC) has maintained a close
working relationship with the National Climate
Change Secretariat Transportation Table and
more specifically the Air Sub-group within. This
continues to be an intensive activity due to the
limited resources and time given to fulfill the
mandate set by the Minis ters of the
Environment and Natural Resources. The Air
Sub-group report has been completed.
-
Tourism expenditures on transpor tation
amounted to $17.6 billion. Of this, $9.8
billion or 56% was spent on air
transportation.
As of December 1998, there were 74,538
licenses and permits in force including
1,075 commercial pilot licenses that were
issued in 1998. Female flight crew is still
trending under ratio with 470 commercial
pilots in Canada.
A total of 52,896 persons were employed
with Level 1-4 air carriers.
As well, the ten-year trend indicates that
accidents from most aircraft types declined
significantly.
F l i g h t Tr a i n i n g I n d u s t r y
The EAC has been actively involved in the review
of Ethylene Glycol de-icing fluids and their
effects on the environment. ATAC-coordinated
mitigation plans are reviewed and put in place
annually for all of the major airports in Canada.
It was another busy year for flight training
institutions as pilot hiring continued at a brisk
pace by all le vels of air carriers. Due to
Canada’s relatively strong economy, recreational
flying also indicated a positive trend as more
people enrolled to become private pilots. This
trend included Canadians in the over 40 age
group who have disposable income and a
lessening of family responsibilities that allowed
experiencing new challenges such as piloting an
aircraft.
The use of Dichloromethane (DCM) is to be
drastically reduced in Canada as per
Environment Canada’s new regulations. This has
a large af fect on our industry, as DCM use mus t
be phased out for use in the aircraft paint
stripping process. Through intervention by the
EAC a realistic adjustment period has been
adopted.
ATAC worked closely with other Canadian and
American Aviation Associations in the promotion
of aviation as a career or hobby. A series of
national television advertising campaigns
targeted special groups and was ef fective in
increasing the number of student starts.
23
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Page 24
The exchange rate of the Canadian dollar was
also very attractive to overseas customers. ATAC
members reported increased revenue generated
on new customers from Italy, Germany, United
Kingdom, Belgium, Holland and United States.
Phase 2 of the marketing prog ram was started
in late 1999. This program includes a market
retention effort in the United Kingdom, market
penetration and development in Western Europe
and the United States. There is increased focus
on raising the profile of aviation in Canada. To
this goal, ATAC is a committee member of the
“Be A Pilot” Program that has provided
companies with promotional materials and
marketing support.
ATAC also helped produce and distribute a
“Flight School Success” guidebook that provided
participating schools with strategies on how to
be better at what they do. This marketing and
business support continues with a quarterly mail
out of information to members to improve
business and positive press releases on aviation
to the media.
The Work Experience Program ATAC negotiated
with the Department of Citizenship and
Immigration has resulted in overseas customers
training to a Canadian commercial standard and
working as instructors in Canada for a set
period. This program, introduced in early 1999,
has proven very popular. Overseas students are
attracted to this training feature as it allows the
building of important flight experience. As this
program matures, ATAC will continue to work
with the Department of Citizenship and
Immigration to fur ther develop programs that
will attract more international aviation students
to Canada.
The Program for Export Market Development was
successfully completed in 1999. Phase 1 was a
five-year program, which provided basic
foundational structures such as:
-
Marketing Checklist
Communication Links
Market Research
Market Penetration
In 1999, ATAC coordinated trade missions to
England, Belgium and Germany. As a national
organization, ATAC established a strong
relationship with the Department of Foreign
Affairs and International Trade including the
Trade Commissioner service worldwide. On
behalf of ATAC members, information on
aviation in Canada is sent out daily to interested
people worldwide.
Flight Safety
In the area of flight safety, ATAC has cooperated
extensively with Transport Canada in the
development of an integrated commercial pilot
program. This program will focus on sy stem
safety and career streaming. Along with
enhanced safety, there is a marketing
opportunity as this improved program will be
compatible with other international standards.
Canadian flight schools successfully developed
aviation products in addition to traditional
flight training that proved attractive to the
international market. These products included
inclusive aerial touring packages and specialty
flight training such as float flying, mountain
flying and winter f lying activities.
In 1999, the emphasis of spin awareness
competency was changed to a competency based
on spin avoidance situations rather than spin
recovery. This will allow more time for greater
integrated ground and air training involving the
human element and will be a further safety
enhancement.
24
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Page 25
Local Service Operators and
A i r Ta x i C o m m i t t e e
Dangerous Goods Committee
There is a preoccupation of all committees to
encroaching costs from various user fees or
performance limiting regulations. ATAC worked
with Transport Canada in establishing a level of
service review project to analyze the cost
effectiveness of Transport Canada’s monitoring
program. ATAC also worked with Transport
Canada on how best to ensure the competency
of operations managers and chief pilots.
Meetings were held in Winnipeg in the spring
and Banff in the fall of 1999. This is a large
group of dangerous goods professionals from all
areas of the aviation industry and government.
This year the meetings were focused on the
Clear Language Legislation, which is a virtual
rewrite of the Dangerous Goods Regulations.
This committee works very well on email with
fast exchanges of DG related incidents and
reports shared for mutual support in the goal of
increased safety.
A ffi li ate M em be rs Com m i tt ee
ATAC developed an outreach program to provide
better communications with af filiated
associations on subjects of common interest and
concern. These concerns included challenging
the fuel excise tax, provincial and municipal
regulatory oversight encroachment situations
and programs to give a positive profiling of
aviation in Canada.
Membership Support Services
G ro u n d S a f e t y C o m m i t t e e
Recognizing the importance of suppor t
programs for employees, ATAC worked with Aon
Consulting to develop and deliver a Group
Health Insurance Program. A Loss of License
Insurance Program was also developed. The
ATAC/TD Flight Training Financing Assistance
Program goes into its third year with over 1,500
students benefiting from some form of
financing assistance.
Also held biannually in conjunction with the
Dangerous Goods Committee, since many ATAC
members belong to both committees and this
makes efficient use of their time. This
committee has developed a FOD awareness
program and is developing common safety
practices for ATAC members.
AT A C / C A C A i r s i d e S a f e t y
Committee
A monthly online news service has proven very
popular with ATAC members. With the majority
of ATAC members email capable, this monthly
report quickly provides valuable intelligence on
marketing opportunities, safety concerns,
regulatory oversight initiatives and user fees.
With the privatization of airports in Canada,
there was now a need for dialogue with a
common group. A committee was formed
between safety managers of ATAC members and
safety of ficers from member airports of the
Canadian Airports Council. This very useful
committee has developed ramp safety
checklists, encouraged FOD a wareness and
enhanced discussions and contacts on a variety
of safety issues.
In 1999, ATAC launched a sectoral study of the
training requirements and hiring trend of the
commercial pilot. This first of its kind study is
being coordinated by ATAC in cooperation with
Human Resources Development Canada. A
Steering Committee is comprised of 30 leaders
of the aviation community representing all
levels of air carriers, government, unions and
associations.
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Page 26
Ensuring the Viability of
Aviation in Canada
ATAC will be focusing more attention on the
level of service that regulatory authorities are
providing. This focus will include challenging
the requirement for a particular monitoring or
regulatory oversight as well as the cost
effectiveness of the service provided. As the
Canadian aviation industry continues to become
more sophisticated, there is greater opportunity
for self-regulation.
ATAC once again was proud to administer the Air
Cadet Flying Scholarship Program that produced
184 pilots at a dozen ATAC member flight
schools.
* From the Federal Government’s report on
Transportation in Canada that was tabled in
the House of Commons at the end of May 1999.
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26
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Page 27
AT A C F i n a n c i a l S t a t e m e n t s 1 9 9 9
Auditors' Report to the Members
We have audited the s tatement of financial position of Air Transport Association of Canada as at September 30,
1999 and the statements of operations, changes in net assets and cash flows for the year then ended. These
financial statements are the responsibility of the Association's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require
that we plan and per form 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 Association as at September 30, 1999 and the results of its operations and its cash flows for the year then
ended in accordance with generally accepted accounting principles. As required by the Canada Corporations
Act, we report that, in our opinion, these principles have been applied on a basis consistent with that of the
preceding year.
Chartered Accountants
Ottawa, Canada
October 18, 1999
27
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Page 28
Statement of Financial Position
( I n c o r p o ra ted under the laws of Canada)
September 30, 1999, with comparative figures for 1998
19 9 9
19 9 8
Assets
C u rrent assets:
Cash and cash equ i va l e n t s
$
S h o rt - te rm inve st m e n t s
Re st r i c ted cash (note 3)
Accounts re c e i va b l e
Accounts re c e i vable relating to training pro grams (note 2)
Deposits and prepaid expenses
76 , 3 8 5
593,523
3 0 , 716
14 2 , 0 9 6
–
9,568
852,288
$
555,546
5 74 , 6 3 2
–
19 4 , 3 7 2
5 5 7, 0 7 5
9,629
1, 8 91, 2 5 4
C a p i tal assets (note 4)
219 , 2 8 6
17 3 , 6 6 6
D e fe r red cos ts (note 5)
62,442
–
$ 1,13 4 , 016
$ 2,064,920
$
$
Li a b il i ti e s , De fe r re d A m o un t s an d Ne t A ss e ts
C u rrent liabilities:
Accounts payable and accr ued liabilities
Accounts payable relating to training pro grams (note 2)
C u rrent por tion of capit al lease obligat ion (note 6)
C a p i tal lease obligation (note 6)
D e fe rred amounts (note 7)
Net assets:
I n ve sted in capit al assets (note 4)
Re st r i c ted for special projects (note 10 )
Un re st r i c te d
2 3 5 ,13 2
–
9,270
244,402
899,240
512 , 3 5 3
–
1, 411, 5 9 3
41,19 3
–
2 76 , 5 31
265,672
219 , 2 8 6
328,429
2 4 ,17 5
5 71, 8 9 0
17 3 , 6 6 6
15 7, 7 2 2
56,267
3 8 7, 6 5 5
$ 1,13 4 , 016
$ 2,064,920
Commitments (note 15 )
See accomp a nying notes to f inancial sta te m e n t s .
On behalf of t he Board :
Director
Director
28
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1:19 PM
Page 29
Statement of Operations
Year ended September 30, 1999, with comparative figures for 1998
Re st r i c te d
for special
p rojects
(note 10)
Un re st r i c te d
Revenue:
Membership fees
$ 1,374,605
Association meetings (note 12)
58,360
Interest on investments
33,420
International Marketing Program
27,519
Miscellaneous
9,339
Special projects (note 11)
–
1,503,243
Expenses:
Salaries and benefits
Occupancy cost
Travel
General
Amortization of capital assets
Telecommunications
International Marketing Program
Professional fees
Annual report
Printing and stationery
Postage
Publications
Bad debts
Special projects
Excess of revenue over expenses
(expenses over revenue)
$
917,655
98,887
64,653
44,365
42,700
38,211
32,327
30,914
30,024
27,756
21,854
9,330
9,285
–
1,367,961
$
135,282
$
19 9 8
19 9 7
–
–
–
–
–
527,323
527,323
$ 1,374,605
58,360
33,420
27,519
9,339
527,323
2,030,566
$ 1,274,777
39,028
44,185
39,990
25,611
901,128
2,324,719
–
–
–
–
–
–
–
–
–
–
–
–
–
478,370
478,370
917,655
98,887
64,653
44,365
42,700
38,211
32,327
30,914
30,024
27,756
21,854
9,330
9,285
478,370
1,846,331
832,834
95,128
56,757
102,766
39,346
34,099
33,347
67,398
30,180
31,193
24,499
5,829
9,163
967,270
2,329,809
48,953
$
184,235
$
(5,090)
See accompanying notes to financial statements.
Statement of Changes in Net Assets
Re st r i c te d
for special
p ro j e c t s
( n o te 10 )
I n ve sted in
c a p i tal assets
Un re st r i c te d
$ 173,666
$ 56,267
$ 15 7, 7 2 2
–
13 5 , 2 8 2
48,953
A m o r tization
of capit al assets
(42,700)
42,700
–
–
–
P u rchase
of capital assets
88,320
(88,320)
–
–
–
–
( 121, 7 5 4 )
121, 7 5 4
–
–
$ 219 , 2 8 6
$ 2 4 ,17 5
$ 328,429
Balance,
beginning of ye a r
E xces s of revenue ove r
expenses
(expenses over re ve n u e )
I n te r fund tra n s fe rs
Balance,
end of ye a r
See accomp a n ying n otes to f inancial sta te m e n t s .
29
To ta l
19 9 9
To ta l
19 9 8
$ 3 8 7, 6 5 5 $ 3 9 2 , 745
18 4 , 2 3 5
(5,090)
$ 5 71, 8 9 0 $ 3 8 7, 6 5 5
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Page 30
Statement of Cash Flows
19 9 9
19 9 8
Cash and cash equivalents pr ovided by (used in):
Operations:
(expenses over revenue)
Items not involving cash:
Amortization of capital assets
Pension expense
Amortization of defer red lease inducement
$
184,235
$
42,700
6,100
(13,000)
220,035
(597,765)
17,759
(359,971)
Decrease (increase) in operating working capital (note 13)
Increase in fees received in advance
Financing:
Capital lease obligation
39,346
19,500
(13,000)
40,756
309,968
5,979
356,703
50,463
Investments:
Decrease (increase) in investments
Purchase of capital assets
Increase in deferred costs
(5,090)
–
(18,891)
(88,320)
(62,442)
(169,653)
155,076
(10,667)
–
144,409
Increase (decrease) in cash and cash equivalents
(479,161)
501,112
Cash and cash equivalents, beginning of year
555,546
54,434
Cash and cash equivalents, end of year
$
76,385
$
555,546
See accompanying notes to financial statements.
Notes to Financial Statements
Year ended September 30, 1999
The Air Transport Association of Canada is incorporated under Part II of the Canada Corporations Act as a
non-share organization and as such is not subject to
income taxes. Its purpose is to act as the national
service organization for Canada’s commercial air
transport industr y.
the unrestricted fund in the period to which
they relate.
Revenue from special assessments is recognized
as revenue in the restricted for special projects
fund in the year in which the related expenses
are recognized.
Revenue from Association meetings and
programs is recognized as revenue in the
unrestricted fund when the services
are provided.
1. Significant accounting policies:
(a) Cash equivalents:
Cash equivalents include deposits with financial
institutions that can be withdrawn without prior
notice or penalty and short-term deposits with
an original maturity of ninety days or less.
(d) Capital assets:
Capital assets are s tated at cost. Capital assets
are amortized on the straight-line basis using
the following rates:
(b) Investments:
Short-term investments are recorded at cost
plus accrued interest, which approximates market value.
Asset
Office equipment
Computer equipment
Leasehold improvements
Marketing equipment
(c) Revenue recognition:
The Association follows the deferral method of
accounting for contributions.
Membership fees are recognized as revenue in
30
Rate
10%
20%
10%
50%
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1:19 PM
Page 31
Notes to Financial Statements, page 2
1. Significant accounting policies (continued)
(e) Deferred lease inducements:
Deferred lease inducements are amortized on a
straight-line basis over the term of the lease,
which is ten years beginning, February 1, 1997.
The amortization of the deferred lease inducements is applied to reduce the occupancy cost.
(f)
5. Deferred costs:
Deferred costs comprise expenses incur red in the suc cessful arrangement of a Memorandum of Agreement
on Airport Improvement Fees that was executed
between airlines, airports and the Association during
the year. The Agreement provides for an administr ative fee to be paid to the Association. The deferred
costs will be amortized over 5 years commencing in
the 1999-2000 year.
Vacation pay:
Vacation pay is accrued as entitlement to these
payments is earned.
6. Capital lease obligation:
Leases are classified as capital or operating leases.
Assets recorded under capital lease are amortized
using the same rates as disclosed in note 1(d). The
obligation under capital lease is reduced by rental
payments, net of imputed interest which is recorded
as interest expense.
(g) Termination pay:
Employees with five or more years of service
are entitled to receive payments upon termination or retirement. These credits are accrued
as entitlement to these payments is earned.
2. Training programs:
The Association administers training programs for
training air cadets. The Association contracts for
the services of flight training schools and receives
reimbursement for the costs of the air cadet training
from the Department of National Defence and the Air
Cadet League. The Association receives fees for the
administration of the programs. Total revenues and
expenditures with respect to the training programs
are as follows:
1999
Revenue
Expenditures
Future minimum lease payments under capital lease
are as follows:
2000
2001
2002
2003
2004
1998
$ 12,607
12,607
12,607
12,607
9,455
59,883
Amount representing interest
9,420
$1,048,901
1,044,201
$1,035,252
1,030,627
Balance of obligation at
September 30, 1999
50,463
$
$
Less principal included in
current liabilities
9,270
4,700
4,625
3. Restricted cash:
The balance of restricted cash relates to the administration of a program by the Association on behalf of
Human Resources Development Canada.
$
41,193
The imputed interest rate with respect to the capital
lease obligation is approximately 7%.
4. Capital assets:
Office equipment
Computer equipment
Leasehold improvements
Marketing equipment
Equipment under capital lease
C o st
Ac c u m u l a te d
a m o rt i z a t i o n
19 9 9
Net book
v alue
19 9 8
Net book
va l u e
99,804
133,566
127,070
11,232
52,680
$ 74,695
82,626
33,879
11,232
2,634
$ 25,109
50,940
93,191
–
50,046
$ 24,832
40,883
105,898
2,053
–
$ 424,352
$ 205,066
$ 219,286
$ 173,666
$
Cost and accumulated amortization at September 30, 1998 amounted to $339,319 and $165,653 respectively.
31
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Page 32
7. Deferred amounts:
Deferred amounts comprise the following:
1999
11. Special projects revenue:
During the year, the Association received $385,105
and $30,009, respectively, from a special assessment
to members for an industry wide program on Year
2000 readiness and an accessibility study .
Additionally, the Association received a net amount
of $112,208 from the United States government as a
reimbursement of its legal expenses related to a claim
by the Association against the Federal Aviation
Administration.
1998
Pension surplus(note 8)
$ 134,800
Deferred lease inducement
95,333
Fees received in
advance (note 9)
46,398
$ 128,700
108,333
$ 276,531
$ 265,672
28,639
12.Association meetings:
During the year, the Association held an annual
general meeting and a spring reception. Gross
revenue and expenditures related to these events
were as follows:
8. Pension plan:
The Association maintains a defined benefit pension
plan which is available to substantially all of its
employees. The pension plan provides pension benefits based on length of service and projected salaries.
A valuation projection of the plan to September 30,
1999 reported that the pension fund assets at that
date were $827,600 and the present value of accrued
pension benefits attributed to services rendered to
that date was estimated at $775,500. The excess of
pension fund assets over accrued pension benefits of
approximately $52,100 as of September 30, 1999 is
being amortized on a straight-line basis over the
expected average remaining service life of the
employees covered by the plan.
The plan administrator recommended that the
Association's annual contributions to the plan be suspended for the years ending September 30, 1991
through to 2000.
Revenue
Expenditure
1999
1998
$ 165,741
107,381
$ 123,163
84,135
$
$
58,360
39,028
13.Decrease in operating working capital:
The decrease (increase) in operating working capital
is computed as follows:
19 9 9
19 9 8
Restricted cash
$ (30,716) $
–
Accounts receivable
52,276
(109,952)
Accounts receivable
relating to training
programs
557,075
(32,381)
Deposits and
prepaid expenses
61
(5,705)
Accounts payable
and accrued liabilities
(664,108)
470,347
Accounts payable relating
to training programs
(512,353)
(12,341)
9. Fees received in advance:
Fees received in advance consist mainly of funds
received in the cur rent fiscal year which relate to
the Annual General Meeting to be held in
November 1999.
10. Net assets restricted for special projects:
The Association maintains restricted assets to deal
with ad hoc special projects on behalf of the industry.
Each year, the Association appropriates a portion of
the excess of revenue over expenses from unrestricted
net assets to net assets restricted for special projects.
$ (597,765) $ 309,968
32
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Page 33
14.Controlled corporation:
The Association is the sole member of the Air Transport Security Corporation, a company incorporated
March 3, 1997 under Part II of the Canada Corporations Act as a non-share corporation. The Corporation has
assumed ownership, operates and manages certain security related equipment situated at Canadian airports.
Air Transport Security Corporation issues separate, audited financial statements and their results are not
consolidated with the Association. The Corporation commenced operations on November 7, 1997. Selected
financial information as repor ted by the Corporation for its last two periods is as follows:
Year ended
December 31, 19 9 8
Results of opera t i o n s
Period from November 7,
1997 to December 31, 19 9 7
Total revenue
Total expenses
$
2,449,485
1,589,190
$
356,368
193,807
$
860,295
$
162,561
Financial position
December 31, 19 9 8
December 31, 19 9 7
To tal assets
$
1, 3 4 2 ,16 9
$ 76 5 , 9 8 4
To tal liabilities
Net assets
$
319 , 313
1, 0 2 2 , 8 5 6
$ 603,423
16 2 , 5 61
$
1, 3 4 2 ,16 9
$ 76 5 , 9 8 4
Year ended
December 31, 19 9 8
Period from March 3, 19 9 7
to December 31, 19 9 7
Sta tement of cash f l ows
Cash from operations
Cash from financing and investing activities
$
776,840
(446,465)
$
(141,522)
55,480
Increase (decrease) in cash
$
330,375
$
(86,042)
15.Commitments:
The Association leases premises under a long-term
operating lease which expires in 2007. The future
minimum lease payments are approximately
as follows:
2000
2001
2002
2003
2004
Thereafter
processed. In addition, similar problems may arise
in some systems which use cer tain dates in 1999 to
represent something other than a date. The effects
of the Year 2000 Issue may be experienced before,
on, or af ter January 1, 2000, and, if not addressed,
the impact on operations and financial reporting may
range from minor errors to significant systems failure
which could af fect the Association ability to conduct
normal business operations. It is not possible to be
certain that all aspects of the Year 2000 Issue affecting the Association, including those related to the
efforts of cus tomers, suppliers, or other third parties,
will be fully resolved.
$ 44,900
44,900
52,400
54,900
54,900
128,000
$ 380,000
17. Comparative figures:
Certain 1998 comparative figures have been
reclassified to conform with the financial statement
presentation adopted for 1999.
16. Uncertainty due to the Year 2000 Issue:
The Year 2000 Issue arises because many computerized systems use two digits rather than four to identify a year. Date-sensitive sy stems may recognize the
year 2000 as 1900 or some other date, resulting in
errors when information using year 2000 dates is
33
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Page 34
ATA C M e m b e r s h i p ( a s o f S e p t e m b e r 3 0 , 1 9 9 9 )
O P E R AT O R S
Calgary Flight Training Centre
Calgary Flying Club
Calm Air International Ltd.
Camrose Flight Center
Canada 3000 Airlines Limited
Canadian Airlines International Ltd.
Canadian Flight Academy Ltd.
Canadian Flight Centre
Canadian Flyers International/York University
Canadian Regional Airlines (1998) Ltd.
Canuck Air Service Ltd.
Centennial College-Aerospace Dept.
Centennial Flight Centre Ltd.
Centennial Flying School Ltd.
Chinook Helicopters
Clinton Aviation Ltd. (dba Wes tern Air Services)
Cloud Air Service Ltd.
Coastal Aviation Limited
Coastal Pacific Aviation
Cooking Lake Aviation Academy Inc.
Cornwall Aviation (1979) Ltd.
Courtenay Flight Center, Inc.
Custom Helicopters Ltd.
30,000 Island Air
Abbotsford Flight Centre
Accelerated Aviation Training
Advance Flight Training Centre Inc.
Aero Academy Inc.
Aero Futures Flight Centre
Aero Peninsule Ltee
Aeroclub de Montreal
Aerotaxi
Air Canada
Air Creebec Inc.
Air Georgian Limited
Air NorTerra Inc. dba Canadian Nor th
Air Nova Inc.
Air Ontario
Air Transat
AirBC
Air-Hart Aviation
Airline Training Resources
Airmac Flight Centre
Algonquin Flight Centre Inc.
AllCanada Express Limited
Anderson Aviation Ltd.
Aspen Air Ltd
Athabaska Airways Ltd.
Atlantic Aviation Academy
Aviation Commercial Aviation
Aviation International (Canada) Inc.
Aviation Rouyn-Noranda (3506568 Canada Inc.)
Avitas
Dauphin Air Service Ltd.
Delta Helicopters Ltd.-Training
Diamond Flight Centre
Durham Flight Centre Inc.
Eagle Flight Centre
Edmonton Flying Club
Empire Aviation
Enterprise Air Inc.
Ervin Aviation Enterprises Ltd.
Exploits Valley Air Services Ltd.
E-Z Air
Babin Air Ltd.
Bearskin Lake Air Service Ltd.
Brampton Flying Club
Brandon Flying Club
British Columbia Helicopters Ltd.
Buffalo Airways Ltd.
Falls Aviation Limited (dba Welland Aero Center)
First Air
First Nations Air Service Ltd.
Forest Protection Limited
34
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1:18 PM
Page 35
Macleod School of Aviation Inc.
Millennia Helicopters Ltd.
Mitchinson Flying Service Limited
Moncton Flight College Inc.
Montair Aviation Inc.
Morgan Air Services Co. Ltd.
Morningstar Air Express Inc.
Mount Royal College (Aviation Program)
Gateway Helicopters Ltd.
General Aviation Inc. (O/A Flying Colors Pilot
Training)
Georgian Bay Flight Academy
Grand Falls Aviation Services Ltd.
Great International Biplane Flights Ltd.
Great Northern Flying School
Greatwest Aviation/Spring Aviation Ltd.
Grimsby Aviation
Namao Flying Club
National Flyers Academy
Nelson Mountain Air Inc.
Niagara Air Tours Ltd.
Niagara Helicopters Limited
Nighthawk Flying Club Inc.
Norair Flight Inc.
North Cariboo Flying Service Ltd.
(dba North Cariboo Air)
Northern Flight Training Center ( dba Air Tindi)
Northern Flight Training Centre
H.F.I. Heli Frontiers Inc.
Hamilton Flying Club
Helicopter Training Corporation
Helijet Airways Inc.
Huron Flight Centre Inc.
Institut Aeronautique de la Capitale (3009 408
Canada Inc.)
InterCanadien (1991) Inc.
Interlake International Pilot Training Centre
Int'l Express Air Char ter Ltd. (dba Regency
Express Flight Operations)
Island Air Flight School and Charters Inc.
Ottawa Aviation Services
Ontario Fun Flyers, Inc.
Orillia Aviation Limited
Ottawa Flying Club
Jackson Air Services Ltd.
Juan Air (1979) Ltd.
Pacific Coastal Airlines Limited
Pacific Flying Club
Pem-Air Ltd.
Peninsulair Limited
Peterborough Flying Club Inc.
Pincher Creek Flight Services Ltd.
O/A Red Aero Aviation)
Pioneer Flight Training Ltd.
Points North Air Services, Inc.
Prairie Bible College Aviation Department
Prince Edward Air Ltd.
Pro Aviation Inc.
Pro Wings Aviation Ltd.
Kanata Flight Centre
Kapuskasing Flying Club Inc.
Kelowna Flightcraft Ltd.
Knighthawk Air Express (2734141 Canada Inc.)
Kootenay Valley Helicopters
L.F.C. Flight Centre
Labrador Airways Limited
Langley Flying School, Inc.
Laurentide Aviation
Lawrence Aviation
Linvic Flying Club
Lloyd Air
Québec Hélicoptères Inc.
35
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1:18 PM
Page 36
Waterloo Wellington Flying Club
Westcoast Flight Training
WestJet Airlines Ltd.
Wetaskiwin Air Services Ltd.
Whitehorse Flight Centre (dba Summit Air)
Windsor Flying Club
Winnipeg Flying Club
Regal Air
Regina Flying Club
Rockcliffe Flying Club (1961)
Royal Aviation Inc.
Scotia Flight Centre (1994) Incorporated
Scotia West Aviation Ltd.
Sechelt-Gibsons Air Inc.
Selkirk College Professional Aviation Department
Seneca College of Applied Arts & Technology
Sharp Wings
Shearwater Flying Club
Sky Wings Aviation Academy Ltd.
Skylink Express Inc.
Skyservice
Southern Interior Flight Centre (1993) Ltd.
Springdale Aviation Ltd.
St. Catharines Flying Club
St. Thomas Flight Centre
Stage Air Ltd.
Strait Flying Inc.
Stratford Air Services Ltd.
Strathcona Flight School
YKA Flight Discovery, Ltd.
A S S O C I AT E S
Aerodevco Consultants Ltd.
Aeroports de Montreal
Aerospace Welding Inc.
Aerospatiale Canada Inc.
AIG Aviation (Canada), Inc.
Air Transport Security Corporation
Airbus Industrie of Nor th America, Inc.
Airport Group Canada Inc.
Alexander Holburn Beaudin & Lang
AlliedSignal Engines
America West Airlines, Inc.
American Airlines
Aon Group Limited Aviation
Aon Reed Stenhouse Inc.
( Aviation Specialty Group)
Associated Aviation Underwriters
ATCO Frontec Corp.
ATR Marketing, Inc.
Avia Marketing Consultants Inc.
Aviation Publishers Co. Limited
Aviation Quarterly
AvPlan Inc.
Tacata Airways Limited
T-Byrd Flight Training
Tech Helicopters Ltd.
Terra-Geoterrex Limited
The Flight Academy
Toronto Airways Ltd.
Trans North Helicopters
Truro Flying Club
Vanderhoof Flying Service Ltd.
Victoria Flight Training
Victoria Flying Club
Vital Aviation Ltd.
Voyageur Airways Ltd.
BC Transportation Financing Authority
Bombardier Aerospace Regional Aircraf t
Borden Howard Gervais Association
British Aerospace Asset Management
British Airways
British Aviation Insurance Group
(Canada) Limited
Brouwer Claims Canada & Co. Ltd.
36
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1:18 PM
Page 37
Lavery, de Billy
Leggat Aviation Ltd.
Lloyd's Aviation Underwriters' Association
Lyondell Chemical Company
C.T. AeroProjects Inc.
Calgary Airport Authority
Campney & Murphy
Canadian Aviation Insurance Managers Ltd.
Cara Operations Limited
Cassels Brock & Blackwell
Cast Safety Systems
(A Division of 849859 Ont. Inc.)
Cessna Aircraft Company
Check Six Event Management Corporation
Cincom Systems of Canada, Ltd.
Commuter Air Technology, Inc.
Consolidated Aviation Services
Corp Air Inc.
Corvus Publishing Group Ltd.
Marsh Canada Limited
MCC Financial Corporation
Menasco Aerospace
MTU Maintenance Canada
(Daimler Chrysler Aerospace)
NAV CANADA
Nobbs, Woods, Kavanagh & Bateman
Northwest Airlines, Inc.
NOVA Gas Transmission Ltd.
Ontario Ministry of Transportation,
Aviation Office
Osler, Hoskin & Harcourt
Ottawa International Airport Authority
Delta Air Lines, Inc.
Department of National Defence
Dulude, Taylor Inc.
Edmonton Regional Airports Authority
Edwards, Kenny & Bray
Embraer Aircraft Corporation
Emond Harnden
Paterson, MacDougall
Piedmont Aviation Services, Inc.
Plattsburgh Airbase Redevelopment Corp.
PLH Aviation Services Inc.
Pratt & Whitney Canada Inc.
PricewaterhouseCoopers LLP
PROAV International Aviation Services
Corporation
PSA Insurance Services Ltd.
Purolator Courier Ltd.
Fairchild Aerospace
Fasken Campbell Godfrey
Federal Express
Field Aviation Company Inc.
FlightSafety Canada
Fraser Milner
Rapid Aircraft Repair Inc.
Raytheon Aircraft Company
Rockwell Collins Inc.
Rohmer & Fenn
Rolls Royce Product Support Canada Inc.
GE Aircraft Engines
Gerling Canada Insurance Company
Government of the Nor thwest Territories
Gowling, Strathy & Henderson
Harper Grey Easton
Houston Casualty Company
Saab Aircraft Leasing
Saramac Consulting Services
Shell Canada Products Limited
Skyplan Services Limited
Standard Aero Limited
Sypher: Mueller International Inc.
Hudson General Aviation Services Inc.
(Airway Centre)
Hydro-Québec
Imperial Oil
KPMG Chartered Accountants
37
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Page 38
Honorary Life Members
( re v i s e d O c t o b e r 1 9 9 9 )
Temple Scott Associates Inc.
Transport Canada
19 76 D.N. (Don) Wa t s o n
Retired President, Pacific Western Airlines
Union Carbide Canada Inc.
United Airlines, Inc.
United Parcel Service Canada Ltd.
US Airways, Inc.
19 7 7 Al Smith
President, Smith Airways Limited
19 7 8 J a ck Fleming
President, Dominion Pegasus Helicopters
Vista Cargo International Inc.
1978 Max Wa rd
President, Wardair Canada (1975) Limited
Wagner International Insurance Brokers
William F. Clark, Barrister & Solicitor
Willis Corroon Aerospace of Canada Ltd.
Wilson Aircraft, Div. of 913661
Winnipeg Airports Authority Inc.
1979 H.D. (Don) Camero n
Senior Vice President, Administration & Public
Affairs, CP Air
1980 Jack Sch o l e fi e l d
President, Laurentide Aviation Limited
A F F I L I AT E S
Alberta Aviation Council
British Columbia Aviation Council
Canadian Business Aircraft Association
Federation of Canadian Municipalities
Helicopter Association International
National Air Transportation Association
Northern Air Transport Association
Saskatchewan Aviation Council
19 81 Claude Tay l o r
President & Chief Executive Officer, Air Canada
1982 Dave Jacox
Vice President, Pacific Western Airlines
1983 Ian Gray
Retired President, CP Air
1984 T.L. (Tom) Spalding
Executive Vice President,
Wardair International Ltd.
1985 A.C. (Angus) Morr i s o n
President & Chief Executive Of ficer, Air
Transport Association of Canada
1987 Rhys Eyto n
Chairman & Chief Executive Of ficer, Canadian
Airlines International Ltd.
1988 Pierre J. Jeanniot
President & Chief Executive Of ficer, Air Canada
38
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Page 39
1988 Sta n l ey M. Deluce
Chairman of the Board, Air Ontario
1989 Do nald S. McClure
Moncton Flight Centre
19 91 E. Pa t r i ck Ca llison
(Retired) Founder of Klondike Helicopters
1994 Ch arle s H. Si mp s o n
Retired Executive Vice President, Operations,
Air Canada
1995 T.A. (A l) Ka p t y
General Manager, Trans North Helicopters
1997 Jean-Jacques Bourge a u l t
Senior Executive Vice-President, Air Canada
In memory of the following Honorary Life
Members who passed away since our last Annual
Report - they will be missed.
F l oyd R. Glass
President, Athabaska Airways Ltd.
Awarded Honorary Life Membership in 1993
G lenn M cP herson,
P resident, Okanagan Helicopters
Moncton
flight
college
A l Mich a u d
President, West Coast Air Services
new film supplied
39
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Page 40
S E C T I O N
A
I R
C
A R R I E R
I I I
S
T A T I S T I C S
Air Car r i e rs Levels I-IV , 19 8 9 -19 9 8
Year
1998*
1997**
1996***
1995
1994
1993
1992
1991
1990
1989
*
**
***
S o u rc e :
O p e ra t i n g
R e ve n u e s ( $ )
11,913,499,481
11,005,024,948
10,054,725,743
9,325,848,559
8,385,378,037
7,535,518,920
7,540,556,782
7,600,631,212
8,230,535,537
7,868,642,200
O p e ra t i n g
Expenses($)
11,628,605,474
10,368,922,550
9,785,369,937
8,930,831,891
7,975,870,565
7,548,900,826
7,775,853,366
7,850,101,532
8,228,759,504
7,746,053,900
A f ter income ta xes and inte re s t ch a rge s
P re l i m i n a ry
Rev i s e d
St a t i stics Canada, Aviation St a t i stics Centre .
Net Income* 19 8 9 -19 98, A ir Carr i e rs Level I-IV
*
**
***
S o u rc e :
( $ million s)
A f ter income ta xes and inte re st ch a rge s
P re l i m i n a r y
Rev i s e d
Sta t i stics Canada, Aviation Sta t i stics Centre .
40
O p e ra t i n g
Income($)
284,894,007
636,102,398
269,355,806
395,016,668
409,507,472
-13,381,906
-235,296,584
-249,470,320
1,776,033
122,588,300
Net
Income*($)
-89,335,970
491,989,616
-5,689,081
-82,093,355
140,544,302
-604,525,578
-868,309,429
-426,822,234
-122,144,309
69,256,353
12/9/99
1:18 PM
Page 41
E mp l oyment and Pay rolls 19 8 9 -19 9 8 ,
A ir Ca rr i e rs Le ve ls I-IV
Pa s s e n ge rs Carried 19 8 9 -19 9 8 ,
A i r C a rr i e rs Levels I-IV
Ye a r
Ye a r
1998*
1997**
1996
1995
1994
1993
1992
1991
1990
1989
1998*
1997**
1996
1995
1994
1993
1992
1991
1990
1989
To t a l
E m p l o ye e s
57,210
52,911
50,159
50,378
47,978
47,375
50,739
53,551
56,331
55,891
Total Wa g e s
( $ 0 00,000)
2,739
2,516
2,380
2,265
2,023
1,975
2,091
2,224
2,259
2,142
Ave ra g e
Wag e ($)
47,888
47,570
47,449
44,962
42,172
41,689
41,211
41,531
40,102
38,325
Un it To l l
38,490,031
36,622,820
33,653,837
29,611,745
26,109,666
25,352,215
26,254,000
26,104,724
30,350,577
30,734,319
C h a rt e r
6,496,203
7,590,107
6,522,602
6,747,067
6,758,016
6,135,112
5,955,000
5,674,134
6,462,831
6,440,669
To t a l
44,986,234
44,212,927
40,176,439
36,358,812
32,867,682
31,487,327
32,209,000
31,778,858
36,813,408
37,174,988
* P re l i m i n a r y
* * Rev i s e d
S o u rc e : St a t i stics Canada,
* * Rev i s e d
S o u rc e : Sta t i stics Canada,
Revenue Pa s s e n ger Mi les 19 8 9 -1998, Air Carr i e rs Levels I-IV
Year
U n i t To l l
(’000)
Charter
(’000)
To t a l
(’000)
1998*
1997**
1996
1995
1994
1993
1992
1991
1990
1989
46,326,594
43,395,690
3 9 , 511,419
34,002,938
29,318,581
27,271,549
28,004,066
26,579,605
31,142,576
31,311,298
11,988,771
13,678,781
11,515,834
11,664,024
11,465,637
10,479,678
10,633,681
9,508,861
10,360,548
11,018,373
58,315,364
57,074,471
51,027,254
45,666,961
40,784,218
37,751,227
38,677,747
36,088,466
41,503,124
42,329,671
A v e ra g e
Passenger
J o u rn e y
(miles)
1,296
1,291
1,174
1,256
1,241
1,199
1,200
1,136
1,127
1,139
* P re l i m i n a ry
* * Rev i s e d
S o u rc e : St a t i stics Canada, Aviation Sta t i stics Centre .
Canadian Airc ra f t Re g i ste red, 19 9 5 -19 9 9
Commercial
Aeroplanes
Helicopters
Private
Aeroplanes
Helicopters
Ultra-Light Aeroplanes
State
Aeroplanes
Helicopters
1999**
1998*
1997
1996
1995
4,905
1,257
4,839
1,235
4,756
1,256
4,642
1,231
4,569
1,197
15,616
371
4,306
15,830
354
4,270
16,051
348
4,175
16,253
360
4,042
16,382
337
3,956
215
69
214
72
210
70
212
71
218
71
* * As of Au g u s t 31, 19 9 9
* As of Au g u s t 31, 19 9 8
S o u rc e : Tra n s p o rt Canada, Canadian Civil Air c ra f t Re g i ste r.
41
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Page 42
1998 Pa s s e n ge r Tra f f i c * - To p Ten Canadian Airpor t s
A i r p o r ts ra n ked by to t al deplaned plus enplaned passenge rs
A i rp o rt
Major
% Change
Regional
% Change
Major
% Change
Scheduled
f rom 1 997
and Local
f rom 1997
C h a rt e r
f rom 1997
Services
Scheduled
To t a l
% Change
f rom 1997
Services
Services
Toronto (LB Pearson)
20,647,914
Vancouver
12,559,028
Montréal (Dorval)
6,213,548
Calgary
6,804,621
Edmonton (International) 3,151,411
Ottawa
2,332,952
(Macdonald-Cartier)
Winnipeg
2,246,793
Halifax
1,319,606
Montréal (Mirabel)
286,652
Victoria
732,157
7.1
4.9
28.8
7.1
2.8
4.3
1,892,185
1,353,706
1,431,501
599,511
386,790
546,746
-10.5
26.4
-0.2
42.2
31.9
-8.3
3,057,213
957,871
243,318
479,964
224,154
55,463
-10.3
-9.7
-27.3
-5.4
-17.0
-66.3
25,597,312
14,870,605
7,888,367
7,884,096
3,762,345
2,935,161
3.2
5.4
19.7
8.2
3.7
-2.1
6.0
2.8
-73.0
3.1
240,853
1,031,594
3,880
371,676
54.4
-4.7
-55.7
34.0
154,294
228,534
878,258
19,606
-81.9
-11.3
--15.2
-61.7
2,641,940
2,579,734
1,168,790
1,123,439
-15.6
-1.7
-44.4
8.1
S o u rc e : Sta t i stics Canada, Aviation Sta t i stics Centre .
Av iation Pe rsonne l Li cences, 19 9 5 -19 9 9
Type of Licence
Aeroplanes
Private Pilots
Commercial Pilots
Senior Commercial Pilots
Airline Transport Pilots
Helicopters
Private Pilots
Commercial Pilots
Airline Transport Pilots
Total
Permits
Glider Pilots
Gyroplane Pilots
Balloon Pilots
Ultra-Light Pilots
Recreational Pilots
Total
Other Licences
Flight Navigators
Flight Engineers
Air Traffic Controllers
Air Maintenance Engineers
Total
GRAND TOTAL
1999**
1998*
1997
1996
1995
27,814
9,106
N/A
10,696
27,698
9,055
N/A
10,426
25,950
8,346
N/A
9,537
25,590
7,139
N/A
8,851
28,028
7,799
N/A
8,837
321
2,762
678
51,377
310
2,783
668
50,940
286
2,513
611
47,243
270
2,198
541
44,589
288
2,315
548
47,815
5,742
25
262
2,619
934
9,582
5,695
24
275
2,663
706
9,363
5,511
21
277
2,627
421
8,857
5,648
20
264
2,604
276
8,812
5,747
22
283
2,659
N/A
8,711
N/A
533
2,078
N/A
N/A
63,570
N/A
541
2,127
10,546
13,214
73,517
N/A
506
1,973
10,347
12, 826
68,926
51
475
1,947
10,069
12,542
65,943
59
469
1,957
10,278
12,763
69,289
* * A t June, 19 9 9
* At June , 19 9 8
S o u rc e : Tra n s p o r t C anad a, Civil Ae ronautics, Summar y of Pe r sonnel Licence s.
42
12/9/99
1:18 PM
Page 43
Goods Carri ed 19 8 9 -19 98, Air Carr i e rs Levels I-IV
Year
1998*
1997**
1996
1995
1994
1993
1992
1991
1990
1989
Scheduled Goods
( k i l o g ra m s )
564,686,910
596,629,720
535,612,199
513,228,531
519,183,918
522,406,451
474,522,900
479,099,194
500,980,650
491,013,080
Charter Go ods
252,242,436
273,185,195
226,567,829
199,398,276
164,020,737
131,013,822
144,314,483
145,592,534
155,312,522
171,043,800
To t a l
816,929,346
869,814,915
762,180,028
712,626,807
683,204,655
653,420,273
618,867,383
624,691,728
656,293,202
662,056,880
* * Rev i s e d
S o u rc e : St a t i stics Canada, Aviation St a t i stics Centre .
Top Te n Canadi an A irpor ts 19 9 8 *
R a n ke d b y e n p l a n e d / d e p l a n e d p a s s e n g e r s a n d a i r c ra f t m o v e m e n t s
Rank
1.
2.
3.
4.
5.
6
7.
8.
9
10.
Boundary Bay
Calgary (Springbank)
Toronto (Buttonville)
Montréal (St. Hubert)
Waterloo Regional
Toronto City Centre
Winnipeg (St Andrews)
Abbotsford
Victoria Intl
Langley
Rank
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Vancouver
Montréal (Dorval)
Calgary
Edmonton (International)
Ottawa (Macdonald-Cartier)
Winnipeg
Halifax
Montréal (Mirabel)
Victoria
Rank
Local
A i rc ra f t
M o ve m e n t s
(’000)
140
95
89
85
82
81
80
76
67
65
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
E/D
Passengers
(’000)
24,597
14,871
7,888
7,884
3,762
2,935
2,642
2,580
1,169
1,123
S o u rc e : St a t i stics Canada, Aviation St a t i stics Centre .
43
Vancouver
Calgary
Montréal (Dorval)
Ottawa (Macdonald-Cartier)
Winnipeg
Victoria
Edmonton
Halifax
Québec/Jean Lesage Intl
I t i n e ra n t
A i rc ra f t
M o ve m e n t s
(’000)
421
368
246
209
136
127
116
110
105
94
12/9/99
1:18 PM
Page 44
Fue l Con sumpti on and Cos ts 19 8 9 -1998, Air Car r i e rs Levels I-III
Ye a r
1998*
1997**
1996
1995
1994
1993
1992
1991
1990
1989
Tu rb o F u el
( L i t re s
Millions)
C ost Pe r
Litre ( ¢)
Gasoline
( L i t re s
Millions)
Cost Per
Litre ( ¢)
5,570
5,244
5,249
4,833
4,463
3,851
3,962
4,065
4,602
4,690
24.9
29.1
30.0
26.9
26.2
26.3
26.3
28.0
29.9
25.2
24
24
23
25
27
31
31
30
34
34
61.7
60.3
60.0
58.8
59.2
58.0
58.0
59.0
55.0
57.2
* * Rev i s e d
S o u rc e : Sta t i stics Canada, Aviation St a t i stics Centre .
Fuel Ef f i c i e n c y, 19 6 0 -19 9 8
Ye a r
1960
1965
1970
1975
1980
1985
1990
1995
1996
1997*
1998**
To n n e - K i l o m e t e r s F l o w n /
Litre of F uel Con sumed
0.77
0.87
0.94
1.06
1.32
1.48
1.83
1.93
1.96
2.2
2.1
* Rev i s e d
* * P re l i m i n a r y
S o u rc e : 19 6 0 -1990 info r mation: Sta t i stics Canada,
Aviation in Canada, Cat No. 51 - 5 01.
19 9 5 -1998 info r mation: Sta t i stics Canada,
44
Fue l C ost as
% of
O p e ra t i n g
Cost
12.8
15.9
16.2
14.7
14.8
13.7
16.0
18.0
17.0
16.8
12/9/99
1:18 PM
Page 45
ATA C S t a f f
Officer
Ext.
Assistant
Ext.
Les Aalders – VP Engineering &
Maintenance
308
Zeny Aquino
305
Geoffrey Elliot – Executive VP
Strategic Planning and Policy
314
Pamela McGann
317
Fred Jones – VP Flight Operations
307
Jeanie Peppy
304
Cliff Mackay – President & CEO
313
Debbie Simpson
312
Glenn Priestley – VP Fixed Wing Air Taxi
And Flight Training
309
Zeny Aquino
305
Michael Skrobica – VP Industry Monetary
Affairs
310
Pamela McGann
Linda Watson – Accountant
317
311
For more information on ATAC, or to speak wit h
an ATAC officer, please contact:
AIR TRANSPORT ASSOCIATION OF CANADA
255 Albert Street, Suite 1100
Ottawa, ON KIP 6A9
Tel: (613) 233-7727
Fax:(613) 230-8648
Internet: http://www.atac.ca
E-mail: [email protected]
45

annual_report_99_eng..

Transcription

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