On October 16th, the Speech from the Throne was delivered to members of parliament by Governor General David Johnston. The speech outlined the government's agenda for the coming parliamentary session and will serve as its blueprint for the next federal election in 2015. Amidst plans to grow the economy, balance the budget, and action several consumer-focused initiatives, the Canadian air transport industry heard some encouraging news during the speech.

The government announced its intention to work with industry partners to "promote Canada as a top destination for tourism." This is good news not only for our important aviation-based tourism sector, but for the Canadian economy.

"Travel and tourism is an $81.7 billion dollar industry in Canada and employs over 614,000 people in every region of the country. With international air traffic growth currently at 4 per cent, plans to promote Canada as a top tourist destination will help increasingly contribute to the future prosperity and global competitiveness of the Canadian tourism industry and greater economy," said CAC President Daniel-Robert Gooch.

The government also announced that it will continue to promote Canada as a world-class destination for foreign students. The department of Citizenship and Immigration reported that Canada welcomed over 100,000 foreign students in 2012, an increase of 60 percent from 2004. As such, convenient air travel options are critical to ensuring Canada remains a top choice for prospective students.

"The aviation sector is at the heart of Canada's 21st century economy. There is no question that international air links between Canada and other parts of the world are vitally important to help Canada's business networks and social institutions function to their maximum potential," said Mr. Gooch.

The Deer Lake Regional Airport announced record passenger numbers for July and August at the Western Newfoundland Destination Management Organization's Annual General Meeting on October 4th.

The airport serviced a total of 80,792 passengers during the peak summer travel period; 40,050 passengers in July and 40,922 in August. The numbers were all-time records for the airport and represented the first time ever that the airport counted more than 40,000 passengers in a single month.

"A strong air service link is essential to the ongoing promotion and development of our tourism industry", said Executive Director of the Western Newfoundland Destination Management Organization Mark Lamswood. "Additional airline capacity at Deer Lake Airport during the summer months has enhanced travel to the region and we are delighted with the recent announcement by WestJet to expand to a year-round service as this will provide added opportunities for winter tourism and shoulder-season activities," said Mr. Lamswood.

Airlines, Sunwing and WestJet.

The airport's previous monthly record was 39,946, set in August 2012.

On October 2nd, Minister of the State for the Federal Economic Development Agency for southern Ontario Gary Goodyear announced $19.9 million in federal funding to help the Windsor International Airport become a cargo hub, creating approximately over 100 jobs.

The government agency will allocate $12.6 million to the airport for a new 35,000 square foot building which will be occupied by FedEx. A 7,000 square-foot building will be made available for future tenants.

"By investing in research for faster, safer ways to move goods and people across international borders, our government is not only helping to create high-quality jobs in Windsor, but we are also positioning this region to be a leader in the increasingly important field of border logistics and security," said Mr. Goodyear.

Over $7 million will be allocated will help establish the Institute for Border Logistics and Security, which will include a facility on the University of Windsor's campus dedicated to research and development support for businesses, and a facility at the Windsor International Airport aimed at providing real-world testing.

"This investment helps to ensure that our economic diversification strategy continues and that, together with our partners at the University of Windsor and FedEx, our region is positioned to be a key and critical hub of logistics, international trade and border security," said Windsor Mayor Eddie Francis.

The new facilities are expected to open by the end of 2014.

On October 2nd, Minister of Transport Lisa Raitt and Minister of International Trade Ed Fast announced that Canada successfully concluded negotiations with Japan to allow daytime access to Tokyo's Haneda Airport for Canadian air carriers starting April 2014.

Haneda Airport is one of the two primary airports that serve the Greater Tokyo Area and is the closest to downtown Tokyo. This new daytime access will allow Canadian air carriers to offer services in addition to those at Tokyo's Narita Airport.

"This is a very positive development for Canada-Japan air transport relations," said Minister Raitt. "Access to Haneda Airport during daytime hours is very important to the further development of Canada-Japan air services. This agreement, reached under Canada's Blue Sky policy, is testimony to the excellent, longstanding relationship that exists between Canada and Japan. It is a concrete step in support of the Federal Tourism Strategy and the growth of the Asia-Pacific Gateway."

"Our government continues to deepen Canada's trade and investment ties with the world's third-largest economy," said Minister Fast. "This announcement is great news for Canadian travellers, particularly business people, who need better air service to Japan. We continue to work closely with Japan, through initiatives such as the Canada-Japan Economic Partnership Agreement and the Trans-Pacific Partnership negotiations, to create new opportunities for our workers and businesses and take this priority relationship to the next level."

The following week, the government announced new and expanded air transport agreements with seven countries.

The amended agreements with Algeria, Ethiopia, South Africa and Turkey expand Canada's existing air transport relationships by allowing airlines to introduce more flight options and routings, which benefit passengers and businesses by providing greater choice and convenience.

First-time bilateral air transport agreements were also reached with Burkina Faso, Ecuador and Macedonia. These new agreements will help develop air travel markets between Canada and these countries by providing full flexibility for airlines to offer air services using the flights of other airlines, commonly referred to as code-sharing, and to adjust prices according to market conditions.

Under the Blue Sky Policy, the Government of Canada has concluded new or expanded air transport agreements covering almost 80 countries.

A study by the Chris Lowe Planning and Management Group reported that the Halifax Stanfield International Airport contributed $1.27 billion to the provincial economy, a figure that represents an additional $13 million in economic output over the previous year.

"Together, the Airport Authority and all of our airport partners have a tremendous impact on Halifax and the province as an economic generator and growth enabler," said Halifax International Airport Authority President and CEO Tom Ruth. "We will continue to propel Halifax Stanfield forward, embracing our role as a major contributor to the region."

Since operational transfer of the airport from the federal government in 2000, HIAA and airport tenants have contributed approximately $475 million in renovation and new construction impacts, generating some 7,975 full time construction-related jobs and $300 million in wages and salaries. These projects represent over 70 per cent of airport-related capital improvements in Atlantic Canada.

"It's also noteworthy that Halifax Stanfield's economic impact reaches out well beyond the urban centres of the province," said Mr. Ruth. "A recent review showed that over 65 per cent of airport community workers live in rural areas or rural communities of Nova Scotia, and their total wages and salaries amounted to nearly $330 million in 2012."

Highlights from the report include:

-Airport community employees paid $60.9 million in personal income tax to the province in 2012

-A total of 12,360 jobs are attributed directly and indirectly to the airport, accounting for 2.7 per cent of employment in Nova Scotia

-Visitors to the province by air represent 32% of all tourists to Nova Scotia, and they tend to stay longer and spend more than tourists who arrive by other modes of travel, contributing an estimated $882 million in revenue (44% of the province's estimated $2.02 billion total tourism revenues for the year)

The full report entitled 2012 Economic Impact Report is available online at HIAA's website.

International passenger traffic was the main source behind the 5% growth this past August. The Middle East and Asia Pacific both experienced gains of +18.6% and +10.2% respectively in international passenger traffic. This is supported by key airport hubs in these regions such as Dubai (DXB) and Jakarta (CGK), which continue to experience robust gains in passenger traffic on a monthly basis.

Air freight remains relatively sluggish with respect
to year-over-year rates for August, with growth being
almost flat at -0.2%. On an annual basis from September 2012 to August 2013, there was virtually no change in the volume of air freight compared to the previous period. During this twelve month period, over 50% of the world's top 20 airports in terms of air freight volume experienced a decrease in traffic. However, the first ranked Hong Kong (HKG) and second ranked Memphis (MEM) still achieved growth of +2.6 and +3.4 % respectively over this time interval.

Located 30 kilometres north west of Edmonton, the Villeneuve Airport handles an average of 200 airplane movements each day, currently employs approximately 90 people, and contributes about $19 million annually to the local economy.

But, news this month that the airport is will be expanding to make room for new businesses means those numbers are likely to increase over time.
 
"With our partners, we are making a serious investment in Villeneuve. To ensure safe, efficient regional aircraft operation, Villeneuve must be able to handle diverted flights, function as an alternate MEDEVAC airport, and accommodate smaller aircraft," said the Vice President of Operations and Infrastructure for Edmonton Airports Steve Rumley
 
Edmonton Airports owns and operates Villeneuve Airport and developed Villeneuve's strategic plan with feedback from meetings with the neighbouring municipalities.

The plan will update the role of the airport, which will require infrastructure improvements over a 20-year period such as:

-Reinforcing and expanding the storm water management facility;

-Improving the domestic water system including a better pump house and reservoir; and

-Adding a new lift station and reinforcing the sanitary system.

The Edmonton Journal also reported that the airport is lengthening one of its two runways to accommodate larger aircraft and it will be installing a landing system to accept medevac flights carrying patients.

Medevac planes will also be able to use Villeneuve, rather than Calgary, as an alternative destination to the Edmonton International Airport. The airport is relatively close by air to three hospitals in the region; the Royal Alexandra Hospital, the Misericordia Community Hospital, and the Sturgeon hospital.

The runway extension and Category 1 Instrument Landing System (ILS) installation should both be complete by November 2013 and certified by Transport Canada by February 2014. Funding for these upgrades is being provided by NAVCANADA, the Government of Alberta and Edmonton Airports.

Phase 2 will begin in 2014.