CITY OF KAWARTHA LAKES MUNICIPAL AIRPORT CNF4

Transcription

1 CITY OF KAWARTHA LAKES MUNICIPAL AIRPORT CNF4 A CASE FOR INVESTMENT & BUSINESS VISION Photo courtesy of Bob Burns

2 Table of Contents A 1 Pages 1. Executive Summary [1] - [11] 2. Foreword 1 3. Background Section 2 Existing Conditions 5 5. Existing Airport Aerial View 6 6. Figure 2.1 Existing Airport Layout Plan 7 7. Airport Facility 8 8. Current Conditions of Airport Infrastructure Aircraft Movement Activity Aviation Trends & Demand Projection Table 2.1 Aviation Demand Forecast Baseline & Target Project Airport Employment Activity Regional & Socio - Economic Impact Keeping The Airport Airport Development (Airside) Airport Development (Groundside) Figure 6.1 Proposed New Terminal Addition Concept Drawing Figure 6.2 Proposed Floor Plan for Terminal Addition Airport Development (Groundside) Cont d Medium Term Development Plan Figure 7.1 Medium Term Development Plan Figure 7.2 Terminal Area Development Plan Terminal and General Aviation area Development Future Airside Infrastructure Table 7.1 Extended Runway Zoning & Physical Characteristics Figure 7.3 Suggested Long-Term Land Use Plan Property Acquisition Requirements 41

3 Table of Contents A 2 Pages 28. Financial Plan Table 8.1 Summary of Baseline CIP Costs By Year ( ) Table 8.2 Summary of Target CIP Costs By Year ( ) Table 8.3 Summary of Target CIP Costs By Year ( ) Potential Funding Sources Table 8.4 Recommended Airport User Fees Current And Projected Financial Position Table Year Baseline Cash Flow Projection Table Year Target Cash Flow Projection Prospects For Self-Sufficiency Appendix A Glossary Appendix B Aerodrome Traffic Circuit Patterns Appendix C Nav Canada Aerodrome Chart 66

4 EXECUTIVE SUMMARY INTRODUCTION City of Kawartha Lakes Municipal Airport, categorized as a local/regional public general aviation (GA) registered aerodrome and located 3 kilometres northwest of the Lindsay town centre, is owned, operated and maintained by the City of Kawartha Lakes. Between 1979 and 2001, the Airport was managed, operated and maintained under a lease arrangement with Lindsay Airpark. In 2001, the City bought back the head lease and has since taken a much greater role in the day-to-day operation. In so doing, the City now has the ability to make key decisions regarding the Airport s operation and development according to local requirements, thus presenting a number of unique opportunities and challenges. The City s mission for the Airport is to provide the residents and businesses of Kawartha Lakes with access to convenient and cost-effective air transport services in a socially and fiscally responsible manner, while being progressive in its efforts to promote, develop and upgrade the Airport s lands and facilities. Since resuming management and operation of the Airport, the City has been actively working toward development and upgrading of the Airport, as well as implementing safety and service improvements in order to achieve full compliance with Federal regulations and accepted industry practice. In order to provide a blueprint for the future development of the Airport and to provide a clear plan for operation and management of the facilities, the City retained Marshall Macklin Monaghan Limited in 2002 to prepare a comprehensive Airport Master Plan, which updated the last Master Plan completed in Further studies were completed in 2007, (Airport Service Review & Economic Impact Study), 2008, (Airfield Pavement Condition Survey) as well as extensive public consultation, culminating in the setting up of an Airport Board to oversee the daily operations of the airport and implement development plans. PLAN OBJECTIVES The purpose of the Business Vision document is to provide guidelines for the orderly long-term development of the Airport s lands, operation and facilities which will satisfy aviation demand in a financially responsible manner, while at the same time resolving present and future aviation, environmental and socio-economic issues. In general, the Business Vision specifically addresses a 10-year horizon while preserving for long-term needs and opportunities. The primary objective of the Business Vision document is to present: the needs and desires expressed by community and business leaders, Airport users, tenants and staff through a consultation process; an inventory and financial value assessment, ($), of existing facilities, services, tenants and operational practices; [1]

5 historical statistics and forecasts for Airport demand, demographics and market trends; short-term and long-term improvements to meet current deficiencies and future demand; a land use plan and appropriate zoning controls for the Airport which foster development opportunities while protecting the existing and future onairport operations and surrounding land uses; an ultimate development plan which optimizes the potential use of lands without affecting increases in aviation related activities and promotes new tenants/users in order to enhance revenues; suggested marketing and business development strategies in order to enhance revenue sources, retain and expand the Airport tenant and user base; a financial plan with a long-term strategy for a self-sustaining facility and suggested changes to user fees and charges. AVIATION DEMAND The Airport currently, supports, or is capable of supporting, the following activities: scheduled service/passenger, mail and cargo; charter service passenger, mail and cargo; corporate and recreational (general aviation) users; air ambulance, military and government users; aviation support services, flight school and other commercial interests. The Airport presently handles approximately 3,000 annual itinerant aircraft movements and about 20,000 local movements: (estimated). Given the Airport s potential for innovative air service development and marketing, the target forecast projects General Aviation itinerant movements to increase by 3.5% per annum. A modest but growing component of the aviation traffic has been corporate/business charter operations. Although the success of charters has been primarily driven by the lack of scheduled service, growth of charter traffic is expected to continue due to increased activities related to tourism. At present, the Airport has no scheduled service, however, it is estimated that the market can sustain an annual passenger level of about 7,500. Provided that an air taxi/scheduled service can be attracted to service flights to Southern Ontario centres, such as Toronto, it is believed that this market sector could grow by 3.5% per annum. Local movements are primarily tied to the existing flight training operation, air ambulance and movements by locally based aircraft. It is expected that local movements will increase by 1.5% during the period consistent with growth in flight training and the number of based aircraft. [2]

6 To date, cargo volumes at the Airport have been relatively minor, and are typically associated with timesensitive and perishable goods. Cargo operations are dependent solely on the growth in the local and regional economy; therefore growth is expected at 1.0% per annum during the period. Currently there are over thirty (30) aircraft based at the Airport including those associated with the flight school. If expanded facilities and services are available at the Airport, the number of based aircraft could increase by 10% per annum until pent-up demand is satisfied, and thereafter 3.5%. In short, the best opportunity for growth will be from recreational and tourism needs. FACILITIES AND SERVICES The Airport s primary runway, categorized as an instrument Code 2B facility, is 1,067 metres (3,500 ft.) by 23 metres (75ft.) and is capable of accommodating most twin-engine aircraft and a limited number of corporate jets without restrictions. Based on the forecast, the runway will need to be extended to 1,198 metres (3,930 ft.) in order to accommodate projected commercial and corporate activity. The secondary runway is categorized as a non-instrument Code 2B facility, is 805 metres (2641 ft.) by 23 metres (75 ft.) and has an operational displacement of metres (360 ft.) at the Runway 03 end. The existing Airport layout is shown on Exhibit 1. The following is a short list of the Airport s other major facilities and equipment: 9,300 m2 (100,110 sq. ft.) asphalt aircraft apron connecting to the runways by way of two taxiways; a 620 m2 (6,674 sq. ft.) terminal/flight school/restaurant complex; aircraft fuel facility providing LL 100 and Jet A1 fuel; a variety of visual aids-(runway lighting, wind directional indicators, guidance signs, rotating beacon) and apron floodlighting; and a I0-unit GA hangar complex and one 375 m2 (4,035 sq. ft.) aircraft hangar. The two runways and the apron have been identified as requiring significant pavement rehabilitation. In addition, the apron floodlight is aging and inadequate for the present needs. The runway and taxiway lighting was fully replaced in The existing terminal/flight school/restaurant complex, constructed in the early 1960 s and expanded over the years, is not able to serve passenger or GA pilot needs. It is proposed that the complex be expanded and the facade improved. In order to improve safety for approaches into Runway 31 and to reduce approach minimums, it is recommended that an omni-directional approach lighting system (ODALS) and precision approach path indicator (PAPI) be installed to serve the Runway 31 approach. [3]

7 The Airport currently has one published runway approach procedure (VOR/DME). However, this procedure requires a visual circling procedure and only provides minimums down to 718 ft. In order to improve access and usability of the runway, it is recommended that the ODALS/PAPI visual approach aids (noted above) be implemented, in addition to a non-precision GPS approach procedure for Runway 31. These improvements should allow for approach minimums down to about 400 ft. This is important given the proposed Big Box store development to the south east of the airport. The table on page [6] is a summary of the recommended capital improvement program required to serve the shortterm (FY2013-FY2017) and long-term (FY2018-FY2022) needs of the Airport. The total short-term capital cost of the proposed program is $8.092 million in 2013 dollars. LAND USE The Airport property lies in a rural/agricultural area immediately west of the Lindsay Urban Area. The City of Kawartha Lakes Consolidated Official Plan was Council approved in 2010, and designates the airport lands within the revised Lindsay Urban Settlement Area in an industrial designation. This was done to recognize the existing airport and to plan supporting infrastructure to service that facility. highway commercial use adjacent to the southeast boundary and a future Community Development use immediately east of Highway 35. To protect airports from incompatible development, the Provincial Policy Statement and the City s Official Plan limit new residential development to those areas above a 30 Noise Exposure Forecast/Noise Exposure Projections. At this time, it is not believed that noise impacts exist beyond the limits of the Airport property (i.e. above NEF/NEP 30). In order to facilitate the controlled and progressive development of airport lands while maintaining safe operations, protecting existing and future lands, facilities and optimizing the Airport s economic potential, the Business Vision presents a land use plan intended to control development within the Airport property during the planning period. The Business Vision identifies areas for core airport operations, general aviation and terminal uses, aviation and nonaviation industrial/commercial development, and open space. In addition, the Business Vision offers intended uses and recommended development control guidelines for each designated area. The proposed land use is shown on Exhibit 2 The Airport consists of 68.1 ha (168.3 ac) of land bounded by Monarch Road to the west, Highway 35 to the east, and privately held lands to the north and south. The surrounding land use is generally agricultural with a [4]

8 EXISTING AIRPORT LAYOUT EXHIBIT 1 [5]

9 Improvement Description Cost (2013 $) Timeline Apron Rehabilitation 60, Apron Expansion & Parking Lot (Robinson) 80, Paving & Drainage around north T-Hangars 80, New T-Hangar Building (10) 620, New Internal Roadway (Gravel) 25, Apron Rehabilitation 121, Removal old fuel tanks 50, Runway Extension, widening and repave m 1,715, GPS, ODALS,PAPI,REILS, for Runway , Construction parallel taxiway m 1,420, Connection municipal services (Water & Sewer) 200, Parking & Apron lighting upgrades 15, Purchase Airport operational equipment 190, Runway Drainage, paving, lighting and painting 1,221, Interior Roads to service commercial/hangar area 600, Commercial/Hangar Area development 250, Perimeter fencing 285, Terminal renovation/rebuild 950, Total short-term 8,092,000 Land Acquisition 280, Monarch Road re-routing 215, Runway Extension to 4500 feet 650, Parallel Taxiway Extension to 4500 feet 350, unit T-Hangar construction 700, Total long-term 2,195,000 [6]

10 RECOMMENDED LAND USE PLAN EXHIBIT 2 [7]

11 ULTIMATE DEVELOPMENT PLAN The Case for Investment and Business Vision presents an ultimate development concept for a fully built-out airport which not only makes the best use of available lands, but helps ensure a flexible, responsible and logical plan of development. Such a concept plan will enable the City to make decisions today regarding development and expansion which will ensure that future needs and opportunities are not limited or constrained. The ultimate development concept as represented in Exhibit 3 contains the following planned features: development of a maximum Runway length of 1,372m (4500 feet) thus allowing for commercial and corporate air travel within North America; 13-31, aprons sized for Code C aircraft and access to Highway 35; development of a more prominent passenger and GA pilot terminal area north of the present location with expanded apron area; and redevelopment and expansion of the existing general aviation area, including space for additional hangars and apron area. In order to realize this long-term concept, the city will need to acquire, approximately 18.5 ha (46 ac.) of land to the north and west, as well as reroute a section of Monarch Road. development of a parallel taxiway on the north side of the airfield in order to improve runway capacity, safety and to help segregate commercial aviation activities from the general aviation/public side of the Airport; revised aerodrome reference code to 3C thus accommodating aircraft with wingspans of up to 36 metres (i.e. Boeing 737); development of an airside industrial/commercial area on the north side of the Airport, suitable for cargo, corporate, manufacturing, maintenance or other activities, with direct access to Runway [8]

12 LONG TERM DEVELOPMENT PLAN EXIHIBIT 3 [9]

13 AIR SERVICE & BUSINESS DEVELOPMENT For the Airport to achieve long-term sustainability it is crucial that air service be retained, expanded and attracted particularly that of passenger service which typically generates the most significant portion of an airport s revenue. In today s competitive and deregulated environment, it is incumbent on airport owners and operators to take a proactive role in developing and marketing for air services. This means staying abreast of industry trends, collecting relevant market data and partnering with travel agents, local/regional tourist boards/associations, municipalities, federal and provincial agencies and operators of regional tourist attractions. It is believed that air taxi/scheduled passenger service serving Kawartha Lakes is viable provided that an air carrier can be attracted that will provide a high quality, reliable and reasonably priced product offering. The City should seek to develop and exploit new innovative air service and business development strategies, such as: attraction and development of an air taxi/scheduled passenger service at the Airport; expansion of the Airport s permanent pilot base; promotion of inbound and outbound travel using air services (tied to the City s tourism strategy); on-site aviation industrial/commercial development (manufacturing, repairs, assembly); attraction of aircraft maintenance, overhaul and certification services; expansion of flight training services; development of general aviation hangars; and development and attraction of non-competitive special events (i.e. air shows, fly-ins, product/corporate launchings and civic ceremonies). FINANCIAL PLAN The Financial Plan prepared provides an analysis of the financial implications of the Case for Investment and Business Vision based on estimates surrounding present and future operations at the Airport. The Airport currently generates revenue from three main sources: fuel sales, aircraft parking fees, and terminal and hangar licenses. A comparison of the Airport s current fees and charges with that of other comparable airports indicates that the fees and charges are competitive. Despite this, some minor adjustments to fees and charges are recommended. Actual revenues derived from fuel sales are believed to be far below those expected, primarily due to the absence of a flight school in [10]

14 The new fuel facility was installed in 2011, and coupled with the new flight school, fuel sale revenues should be much improved from now on. Operating expenses are relatively low compared to the level of services provided; therefore, there appears to be no latitude for further reductions in expenses. On the basis of the cash flow analyses, the baseline (or low growth) scenario will not allow the Airport to realize an operating surplus during the planning period without external operating subsidies. Under the target (high growth) scenario, if the City embraces a proactive marketing, and business plan, the Airport could significantly improve its financial position, including an operating surplus throughout most of the period. With respect to the planned capital expenditures, there is no current government funding sources available for the types of improvements proposed. If the Airport were to achieve an annual passenger level of 1000 on commercial air services, the City could be eligible to receive funding through Transport Canada s ACAP program for all airside safety related improvements. It is believed that about one-half of the capital improvements identified could be eligible for ACAP funding. Should ACAP funding not be achievable, it is recommended that the City continue to lobby both levels of government, (Federal and Provincial) to provide the capital infusion necessary, spread out over the period from FY2013 to FY2017, to maintain and improve the quality, standard of facilities and services at the Airport. These capital improvements are necessary to maintain a reasonable level of service. The Airport is a key tool for the City s tourism and economic development strategy. OUTLOOK Since regaining full control of the Airport, the City has been successful in responsibly operating and managing the facility, while taking steps to improve services and safety. Despite planned capital expenditures in the Target scenario of about $8 million (in 2013 $ s) over the next five years that include expansion of the terminal/flight school/restaurant complex and rehabilitation, expansion, widening existing runways and apron, the City is committed to operating the Airport at a break-even financial position over the long-term. Given the Airport s strategic location and capacity for future development, the Airport could benefit from new opportunities which will ensure the long-term viability of the facility. In order to capitalize on these opportunities, the City will need to be proactive in attracting and retaining users and tenants, in establishing strategic partnerships and in marketing the benefits of the Airport. Because of the opportunities available, the long-term outlook for the Airport is positive. [11]

15 Foreword In 2002, an Airport Master Plan Study report was prepared by MMM Group which reviewed the current condition of the airport and its future potential as a major economic driver for the City of Kawartha Lakes. It identified reasons for support for development of a 1,3720m (4,500 ft.) runway and other infrastructure improvements at the City of Kawartha Lakes Municipal Airport. The proposed funding strategy for airport development required local, provincial and federal funding contributions, with the Province and the Federal Governments identified as providing the greatest majority of financial assistance. Both the Province and the Federal Government have not yet agreed to funding assistance. City of Kawartha Lakes Municipal Airport A Case for Investment and Business Vision is a follow-up to the 2002 report, as well as other studies for the purpose of acquiring funding of $8,000,000 to proceed with the planned airport development, principally using provincial and federal funds, and based on parameters that could best illustrate the development opportunities, revenue increases, job retention and job creation at the airport. These parameters along with the various estimates/assumptions used in this Business Plan report are, of course, subject to changing conditions; all dates are approximate and are for illustration purposes only. The results of this business vision should therefore be reviewed in this context. The City of Kawartha Lakes Airport Board provided overall direction for the preparation of the A Case for Investment and Business Vision. The Marshall Macklin Monaghan 2002 study provided much of the detail contained in the vision document. Other contributions came from Jocelyn Purcell, Inside Canadian Airports - Economic Impact Study 2007; Mike Osypchuck, Consultant Airport Service Review, 2007; AMEC Earth & Environmental - Airfield Pavement Condition Survey, 2008; Leigh Fisher Management Consultants Ontario Municipal Airports Update 2011; R Fortin & Associates Business Plan; Kawartha Lakes Flying Club, COPA 101, Eric Dumigan and Bob Burns - aerial and ground photos; City of Kawartha Lakes Public Works, Planning & Development Services, Finance & Engineering staff - technical support and advice; Judith Hayes - document editing and Tom Savage - aviation rules and regulations. George Sweetnam Ric McGee Mark Fisher Chair Mayor CAO Airport Board City of Kawartha Lakes City of Kawartha Lakes 1

16 1. Background The airport has been part of the transportation infrastructure in Kawartha Lakes since the early 1960 s.when it was constructed as a general aviation facility. This facility was upgraded over time and aviation business tenants were established at the airport. Facility was operated under a lease agreement until Between 1979 and 2001, the Airport was managed, operated and maintained under a lease agreement with Lindsay Airpark. In 2001, the City bought back the head lease in order to take a greater role in day to day operations. Since taking over management and operation of the airport in 2001, the City has been working toward development and upgrading of the airport, as well as implementing safety and service improvements in order to achieve full compliance with Federal regulations and accepted industry practice. A great deal of effort and activity has taken place regarding the airport: December 2002 Lindsay Airport Master Plan Study by Marshall Macklin Monaghan. In May of 2003, The Development and Public Works Committee submitted a report recommending safety repairs to the fuel system, navigational aids, beacon and culvert. From 2003 to 2007, City staff made repairs to the fuel system, installed new navigational aids and beacon, replaced the culvert under the taxiway, drilled a new well and flushed the septic system. It was recommended that staff and the Economic Development Advisory Board proceed with a full review of the Master Plan and formulate a business plan that involves community input. Council resolved that a task force be formed to review the master plan and formulate a business plan for the Lindsay Airport. This Airport Task Force was established in 2003 and was in existence until Airport Service Review Report 2007 & Airport Economic Impact Study 2007 & update The Airport Task Force held public consultations to get input from all stakeholders. At the Council Meeting of December 9, 2008, The Airport Task Force Final Report was received and accepted and Council gave the green light to pursue airport development. In 2008/2009, the City of Kawartha Lakes Municipal Airport Board was established with the mandate to implement the Task Force recommendations. June 26 th City of Kawartha Lakes Municipal Council passed Resolution CR that Council support The Case for Investment & Business Vision in order to seek funding opportunities from the Federal Government and The Province of Ontario. 2

17 Aviation Industry Requirements: Aviation in Canada operates on the principle that safety is a shared responsibility by all members in the industry, both on the ground and in the air. The Federal National Airports Policy NAP 1994 provided a framework that clearly defined the Federal government s role with Airports in Canada. Under NAP the Federal government withdrew from operational and financial involvement in regional and local Airports and became the regulator of the Industry. Now, Transport Canada sets the standards and regulations for the safe operation and maintenance of Airports in Canada. The department ensures compliance with standards and regulations through a regular program of comprehensive monitoring, inspections and audits. They also initiate training and promotional campaigns to encourage safe practices by aviation professionals in Canada. It is within this framework that the Lindsay Airport must operate. In 1999, Transport Canada introduced Flight 2005, a planning document used by the department to move the Civil Aviation program towards their new role as safety managers. Flight 2005 provided a safety framework used to identify Transport Canada s operating principles and values, described the direction for the next five years, provided safety targets, and identified key results. During the five years following the introduction of Flight 2005 advances have been made towards a safety focused and self-regulating industry. FIight 2010 has now been introduced and in keeping with the systems approach to managing risks for aviation organizations, Civil Aviation has begun to institute a formal framework for its own management systems through an Integrated Management System (IMS). So what does this mean for Airport owners and operators? These new regulations have placed greater responsibility on owners and operators to ensure compliance with these new regulations. Certified Aerodromes Airports are aerodromes certified under Subsection of the CARs. Despite regulations that govern registered and non-registered aerodromes, the onus remains on a pilot to determine whether an aerodrome is safe and suitable. Regulations are in place primarily to protect those unfamiliar with an airport environment - the fare-paying public and those residing in the vicinity that could be affected by unsafe airport operations. Operating rules are listed in CAR Ill, Sub-part I of the Canadian Aviation Regulations (CARs), which also set forth provisions for registering an airport in the Canada Flight Supplement (CFS) - a publication for pilots containing operating information for registered aerodromes and airports. 3

18 Certified Aerodromes cont d Certification requires an operator to maintain and operate the site in accordance with applicable Transport Canada standards listed in Transport Canada s TP Aerodrome Standards and Recommended Practices. Transport Canada staff conduct regular inspections to ensure compliance. Aerodromes in Canada must be certified when: They are located within the built-up area of a city or town; They are used by an air carrier as a main operations base, or for scheduled passenger carrying service; The Minister considers certification is in the public interest. Registered Aerodromes While listed, registered aerodromes are not certified as airports in the Canada Flight Supplement (CFS). Registered aerodromes are not subject to ongoing inspection by Transport Canada; however, they are inspected periodically to verify compliance with Canadian Aviation Regulations (CARs) and to ensure the accuracy of information published in the CFS. In spite of these efforts pilots planning to use a registered aerodrome are still expected to contact aerodrome operators to confirm CFS information is current. The Lindsay Airport was once a holder of a valid Airport Operators Certificate and considered a Certified Airport; however, the costs associated with maintaining certification was found to be too high. The Lindsay Airport gave up its certification and is now a Registered Aerodrome. In order for the City to require the airport to become a Certified Airport, numerous steps and actions would be required. A few of these actions would include, ensuring the infrastructure meets current standards, an inspection/audit completed by Transport Canada, and ensuring ongoing compliance with regulations. 4

19 2. Existing Conditions 2.1 Airport Location and Service Area The City of Kawartha Lakes Municipal Airport is located just west of the community of Lindsay, the business hub of the City of Kawartha Lakes. Located on the northeast border of the Greater Toronto Area (GTA), the City of Kawartha Lakes covers more than 300,000 hectares and is comprised of seventeen former municipalities, amalgamated in 2001, that are linked by the Trent Severn Waterway. Just over a one hour commute to the GTA, many Kawartha Lakes residents commute to the Toronto area for work. Known as the "Land of Shining Waters", the region is home to more than 250 lakes and rivers and has evolved into a prime recreational/cottage and retirement centre for GTA residents. Driving Distances to the City of Kawartha Lakes From Distance (KMs) Toronto 135 Hamilton 200 Fort Erie 285 Niagara Falls 260 Kingston 180 Montreal 450 Windsor 490 Lindsay 5

20 EXISTING AIRPORT Photo courtesy of Bob Burns View to the West 6

21 EXISTING AIRPORT LAYOUT PLAN Figure 2.1 7

22 2.2 Airport Facility The following facilities and services are available at the City of Kawartha Lakes Municipal Airport CNF4: Operating Areas Runway 13-31: 1067m x 23m (Code 2B Non-Precision) Paved and Lighted (Remote radio control access) Runway 03-21: 805m x 23m Turf (Code 2B Non-instrument) Taxiway Alpha: 171m x 11m Asphalt Taxiway Bravo: 417m x 11m Asphalt & Turf Main asphalt aircraft parking apron: 9300m2 Turf tie-down area for outdoor storage of aircraft Non designated Turf Taxiway Public parking facility Buildings Airport Terminal/Flight School/Restaurant/Pilots Lounge/Washrooms Building: 620m2 South Aircraft Hangar: 375m2 North 10 T-Hangar: 960m2 Other Aircraft Refueling Card Lock System: Avgas 100LL & Turbo/Jet A1 fuel Unicom MHz & ARCAL A web site ( is maintained for visitor information about the airport & facilities Card Lock Fuel System Pilots Lounge 8

23 2.3 Current Condition of Airport Infrastructure Key Infrastructure The key infrastructure for the operation of the Airport is the main runway, secondary turf (grass) runway, main aircraft apron and associated taxiway system. The Lindsay Airport Master Plan Study found the existing runway length to be adequate to serve the operating requirements for all aircraft types currently using the Airport and the present activity levels. However, in order to attract larger aircraft and accommodate increased usage, the main runway would need to be extended as well as the construction of a parallel taxiway. A preliminary inventory of the existing Infrastructure includes: Item Date of Construction Current Condition Runway Asphalt 1963 Fair. Extension and 1985 rehabilitated repave required Extended Drainage upgrading required Micro surfaced Runway Turf (grass) 1963 Good. Minor maintenance & Drainage work required. Taxiway A Alpha 1960 s Fair to good. Taxiway B Bravo 1960 s Good. Repaved and extended in 2012 Public Aircraft Apron Asphalt 1960 s Poor. Repave required. Runway Edge Lighting 2002 Excellent Taxiway Edge Lighting 2002 Excellent Apron Flood Lighting 1960 s Poor. Inadequate for area. Wind Directional Indicators Good. Rotating Beacon Good ARCAL Aerodrome Lighting Good Airfield Power Supply Good 9

24 Buildings The Lindsay Airport Master Plan Study completed in 2002 identified that the Air Terminal Building (ATB) is not able to serve passenger or GA pilot needs and required upgrading. The capital budget forecast includes an allocation to repair the ATB, and some work has been completed at this time. A preliminary inventory of the existing facilities includes: Building Date of Construction Current Condition Air Terminal Building (ATB) Mid-I960 s Poor (Requires upgrading). South Aircraft Hangar 1982 Good (Wall and roof have no insulation). North T-Hangars Mid-1980 s Good. Terminal Building (Airside) 10

25 2.4 Aircraft Movement Activity General Aviation Data Aircraft Movements: The City of Kawartha Lakes Municipal Airport currently handles an estimated 20,000 local aircraft movements annually. Itinerant activity at the airport is estimated to be in the range of 3,000 to 4,000 movements. Local movements at the airport primarily consist of flight training circuits and practice flights (touch and go), while flights operating between Lindsay and Oshawa, Buttonville and Toronto City Centre airports account for most of the itinerant movements. The Air Ambulance Service of Ontario also makes frequent use of the airport with both fixed wing aircraft and helicopters. The infrastructure at the City of Kawartha Lakes Municipal Airport has the potential to accommodate a variety of aviation services, including charter services, cargo operations, corporate users, military aircraft, and more. Air Ambulance Data Patients transferred out via airport: Average 143 per year 11

26 2.5 Aviation Trends General Aviation An article published by the US Airport Owners and Pilot s Association cites that the future of General Aviation is promising and currently makes up over 1% of the US GDP, which is almost as large as the petroleum industry. This article refers to seven key areas of anticipated GA growth: On-Demand Air Taxis (point to point travel); Corporate Aviation (regional flying); Entertainment and News Gathering (air shows, news coverage, flybys in film and video); Agricultural Services (aerial planting, fertilizer applications, crop dusting); Law Enforcement (patrol and pursuit, surveillance, evidence gathering, search and rescue); Overnight Freight (small packages and letters to outlying cities and towns); Personal Use (visiting tourist spots, sightseeing). The trends in the GA industry which may influence the forecasts for Lindsay Airport (either positively or negatively) include: Increase in production of GA aircraft - Since 1995, the production of GA aircraft has steadily risen. In the U.S., a number of manufacturers re-started production of new piston engine aircraft following passage of the General Aviation Revitalization Act in Rising cost of GA flight - Despite the recent increase in GA activity since 1995 and as a result of the tragic events of September 11, 2001, the cost of owning and operating aircraft is rising (principally due to the cost of aircraft insurance and aviation fuel). New technologies are influencing the use and safety of flight The use of technologies such as the global positioning system (GPS) are having a significant impact on the demand for and level of safety for GA flight. Fractional ownership programs The recent popularity of these programs is contributing to the increased awareness and utility of business/corporate aircraft, primarily jet and turboprop types. These programs allow businesses and individuals to purchase an interest in an aircraft and pay for only the time they use the aircraft. While fractional ownership in the United States is booming, it has been applied very limitedly in Canada primarily 12

27 because of Transport Canada s operating regulations and security laws, which differ from that of the FAA, in the United States. Should Transport Canada loosen regulations which currently restrict the viability of fractional ownership, then it should have a dramatic impact on business and corporate air travel. The age of GA aircraft is increasing The average age of used GA aircraft in the U.S. is approximately 35 years old. This number is expected to increase to 41 by the year General aviation demand has historically been influenced by population growth of the air service area, continued diversification of the local economy, and disposable income levels. As noted in Section 4, the population of the City of Kawartha Lakes is expected to increase 30,000 over the next 20 years. Disposable income for the community is expected to increase by roughly the same rate Ontario Aviation Trends Total aircraft movements among reporting Ontario municipal airports increased 15% between 2006 and 2010; an average of 3% p.a. Itinerant traffic represents approximately 57% of the total aircraft traffic among reporting airports Itinerant traffic grew a total of 16% between 2006 and 2010; an average of 4% p.a. Transport Canada forecasts that Canadian general aviation activity, on a national basis, will grow at a rate of approximately 2.6% per year. 2.6 Aviation Demand Projections Passenger Projections Lindsay Airport has historically never had scheduled passenger service. The primary reason for this is its proximity (within 2-hour driving time) to Greater Toronto Area (GTA) airports offering various levels of scheduled passenger service. These airports include L. B. Pearson International, Toronto City Centre, and Buttonville Airport. Because of the Airport s current lack of scheduled passenger service and the recent fluctuations in passenger air travel over the last few years, it is difficult to apply any existing national or regional scheduled air carrier forecasts to the Lindsay Airport situation. It is believed that the market can currently sustain an annual passenger level of about 7,500. However, it is reasonable to assume that new air taxi or scheduled service, if commenced by 2015, may take up to two years (by 2017) to fully absorb the pent-up demand since marketing efforts need time to take affect and markets need time to accept a new service. Therefore, the initial two years of new service may see up to 15% increases per annum. Further, it is believed that passenger service at the Airport, if appropriately marketed and provided by a consistent and conscientious carrier with reasonably priced service, could grow by 3.5% per annum beyond However, the caveat to this growth scenario is that no operators are currently expressing serious interest in providing air taxi or scheduled service. 13

28 2.6.2 Air Charter Projections The Airport had a small but growing charter business which is predominantly a result of the lack of scheduled service and the increase in use of GA charter rather than scheduled services (due to September 11th, 2001 and because of the time and cost factors at major hub airports). Some of this traffic could disappear if scheduled service were to be reintroduced. However, there are also many charter movements which are not dependent on users which otherwise might access scheduled service. The Airport has experienced a steady increase in trans-border charter movements (between the US and Canada) over the last five years. Trans-border tourism related movements, although still relatively few in number, are seeing steady increases. This sector is expected to grow due to the recent rise in fortunes for the tourism industry in the region. It is felt that charter traffic could increase by as much as 3.5% per annum during the planning period Itinerant Movement Projection The number of itinerant movements will be greatly influenced by the ability of the Airport to commence an air taxi or scheduled air service operation at the Airport. In addition, itinerant movements associated with tourism should also have a significant impact. Despite the national trends for itinerant traffic, it is believed that the Airport could realize an annual increase of 3.5% over the next 10 years Air Cargo Projection The airport handles a relatively small quantity of local inbound and outbound cargo. Currently, there are no scheduled dedicated cargo flights using the Airport and no information exists about the volume of cargo that is shipped from the Airport annually. Typically, cargo flights originating or destined for the Airport are of the just-in-time or perishable variety, and are sporadic at best. Because of the City s proximity to major cargo hub airports (i.e. Pearson International, Hamilton International), integrated cargo (Fedex, Purolator) and express courier operators tend to ship goods to/from the City via ground transportation. This trend is not expected to change over the long-term. The cargo demand for the Airport is, therefore, dependent on growth in the local and regional economy. Conditions indicate that the Airport would certainly not support a regular cargo operation based on current and forecast demand. However, this does not rule out that there maybe existing businesses within the region which have not yet made a linkage between their products and operation, and the use of the Airport as a cargo departure point. 14

29 The demand for air cargo at the Airport is expected to increase by 1.4% per annum which is consistent with the expected growth in population and disposable income Based Aircraft Projection It is believed that the number of based aircraft at the Airport has been limited over the last number of years due to: (1) the lack of available hangar and apron space; (2) the lack of AMO services; (3) the general degradation of the Airport s facilities. Should these three limitations be improved upon, it is believed that the Airport could see an annual increase of up to 3.5% in number of based aircraft over the next 10 years Local Movements Projection Based on the national trends and historical trends at the Airport, it is expected that the number of local movements will increase by at least 1.5% per annum. Although, national trends indicate a higher increase, the projection figure is limited due to the high proportion of local movements associated with the flight training operation. The flight training operation is only expected to increase by the same rate as the population, 1.4% annually. 2.7 Consolidated Projection In order to consider a realistic overall aviation demand projection and yet have a projection that can fully exploit the growth potential of the Airport, two demand forecasts are presented a baseline and a target projection. Table 2.1 summarizes the 10-year baseline and target projections for the Airport. Baseline Scenario For planning purposes, the traffic projections must recognize the realities of a flat or very modest (say about 1%) increase in revenue generating aircraft movements as a baseline projection. This is supported by the population and economic projections for the City. In addition, the baseline scenario reflects no scheduled passenger traffic, as is the case today. This will allow the review of pricing options and the assessment of other revenue sources or enhancements necessary for a baseline eventuality. Target Scenario.A more realistic target should be established to provide the Airport and the City with an aggressive, yet attainable, goal. This target should focus on the benefits to the Airport in terms of passengers and aircraft movements. 15

30 TABLE 2.1- AVIATION DEMAND FORECAST BASELINE & TARGET SCENARIOS Year No. of Based Local GA Itinerant GA Air Taxi/Charter Aircraft Movements Movements Passengers Baseline Scenario ,000 3, ,100 3, ,201 3, ,302 3, ,403 3, ,505 3, ,608 3, ,711 3, ,814 3, ,918 3,430 0 Target Scenario , , , , , , , , , , , , , , , , , ,896 16

31 3. Airport Employment Activity Direct Employment activity at the airport is estimated as follows: i) Government City of Kawartha Lakes: Airport maintenance, management and operations one part-time airport manager as well as contracted services for snow plowing and grass cutting. Total staff is estimated at 1.5 (FTE). ii) Aviation/Manufacturing E.B. Robinson Ltd: Aircraft maintenance & modification, 3D Cad Services, aircraft retrieval, instrument panels, Seabee LS 10 Corvette V8 engine conversions, and development of new Seabee* 6 passenger aircraft. Lessee of South hangar. Nine persons employed. Canadian Academy of Flight (April 2012): International flight school & training. Lessee of terminal office space & hangar. Anticipated six to nine persons will be employed. iii) Food Airportview Restaurant: Full service restaurant serving breakfast, lunch and dinner. 9 persons employed. Summary Direct Employment: During the year 2011, the Kawartha Lakes Municipal Airport supported an estimated 19.5 person years of employment. It is anticipated this will go to 30 person years in * This development could lead to significant employment opportunities for the area with the potential for 100+ manufacturing and technical jobs. 17

32 4. Regional Economic Impact Study In 2007, an Economic Impact Study report was prepared by Inside Canadian Airports for the City of Kawartha Lakes Airport. Study methodology and results are as follows: 4.1 Methodology The purpose of the study was to measure the contribution of the airport to the regional economy. To determine the economic impact, three types of impacts were measured: direct, indirect, and induced. Direct economic impact refers to the employment and revenues attributable to the commercial activities which physically take place at the airport. The indirect economic impact measures the value of goods and services purchased by airport businesses from other firms, in terms of the employment and revenues resulting from their operations in support of airport operations. The induced economic impact is the increase in employment and revenues resulting from direct and indirect airport activities. The jobs sustained by the direct and indirect airport activity generate an increase in household income. This drives the induced economic impact that results from an increase in purchases at local businesses. The traditional approach to estimating the economic impact of an airport involves in-depth interviews and detailed review and financial analysis of the operations of the businesses which operate at the airport. An alternative method, which has been used here, is the statistical approach. For this analysis, the economic impact of the City of Kawartha Lakes Municipal Airport has been estimated using a model originally formulated by the Transport Institute of the University of Manitoba. Transport Canada began using the Transport Institute model in 1993 to produce estimates of the economic impact of airports throughout the Pacific region. The decision to use the model followed an evaluation of the accuracy of the model against the traditional survey methodology. On average, the econometric model was found to produce estimates of revenues and employment which varied between 5 and10% of the survey estimates, producing fair and reasonable measures of an airport's economic impact. Ontario airports that have used the model include Brockville, Lake Simcoe Regional (Barrie), Sault Ste. Marie, Waterloo, Peterborough, North Bay, Niagara District Airport (St. Catherines), Haliburton/Stanhope, London, Dryden and Kingston. 18

33 4.2 Population/Industry and Labour Force Population: The current population of the City of Kawartha Lakes is estimated to be 74,561. Amalgamated in 2001, the area s population has grown by a total of 8.3% since 1996, and is expected to reach 105,000 by the year The largest population centres in the City of Kawartha Lakes are Lindsay, Fenelon Falls, Bobcaygeon and Omemee. An estimated 213,000 people live within 40 kilometres of Lindsay, and more than 4.2 million reside within a 100 kilometre radius of the City of Kawartha Lakes Municipal Airport. Population City of Kawartha Lakes 100,000 80,000 60,000 40,000 20,000 Industry and Labour Force: Industry Canada: Community Demographics Government of Ontario: Proposed Growth Plan for the Greater Golden Horseshoe The area has been successful in developing a diverse economy, and the labour force profile of the City of Kawartha Lakes illustrates the importance of manufacturing, retail trade, health care and construction to the local economy. Together these sectors represent 46% of the labour force. More than 130 manufacturing companies are located in the City of Kawartha Lakes; 25% of which export products outside of Canada. As the business hub of the region, Lindsay is home to the largest employers in the city. The municipal government is the largest single employer, followed closely by the Trillium Lakelands District School Board and Ross Memorial Hospital. 19