The completed expansion of Victoria International Airport’s departure area will mark a key moment for the facility in 2019, as well as defining airport operations for the foreseeable future.
Following the Victoria Airport Authority’s annual general meeting Thursday night, chief executive Geoff Dickson said the completion of the first phase, expected in August, will be a major milestone.
“That will be a significant change in the entire airport operation with all carriers moving into that new space,” he said. “It’s a significant change when you’re adding an 1,800-square-metre addition to an existing building.”
The departure-area project is part of a $19.4-million expansion of the terminal. The second phase is due to be complete by the end of this year and the final stage done in the spring of 2020.
Dickson said the expansion is part of building just ahead of the demand curve. The airport has seen 25 per cent growth over the past few years.
During Thursday’s meeting, the authority noted last year saw a record 2.048 million passengers pass through the airport’s gates, and 5.9 per cent passenger growth over last year. It also reported revenue increased by 6.3 per cent to $39.5 million, meaning a 4.2 per cent increase in the airport’s operating surplus to $11.17 million. The airport authority also noted that Victoria International Airport is one of two debt-free airports in Canada, the other is Saskatoon.
“2018 was a terrific year for us, particularly in crossing the two-million-passenger milestone, that’s great for an airport our size,” Dickson said. “We also saw improved financial performance and executed a number of significant capital projects and we’re continuing to position ourselves well for 2019 and beyond.”
Last year, the authority spent $15 million on capital projects, including the construction of the departure lounge, addition of 520 parking stalls and resurfacing Willingdon Road.
Dickson said for the first year in a long while they are forecasting a bit of decline in passenger numbers in 2019, partly due to the grounding of Boeing’s 737 Max fleet. “It’s a bit of a reversal of trend,” said Dickson. “We think it will rectify, but again we have to keep an eye on things and see how demand unfolds.”
Boeing 737 Max aircraft have been grounded around the world after authorities closed their skies to the aircraft following a second fatal crash in March, which Boeing has since linked to a malfunctioning safety alert.
“The [grounding] has an offshoot effect where carriers that might have contemplated an increase in service may retrench until the issue is cleared, while carriers that may have operated here last summer might not come back until that issue is a little more clarified,” Dickson said.
The airport will also be keeping an eye on the economy and whether other carriers come into the market to pick up the slack left by competitors.
Delta Airlines has decided to suspend its service from Victoria International Airport as of September. The daily service started in April 2016, offering three 40-minute flights a day to Seattle, and was part of a suite of new services from the airline intended to significantly increase capacity across its system.
United Airlines stopped its United Express service between Victoria and San Francisco in January after 10 years.
The loss of the two carriers represents a six per cent decrease in the number of flights out of Victoria daily.
Dickson said there is an opportunity for someone to fill the capacity, particularly between Victoria and Seattle, which may suit Alaska Airlines, which currently has four flights a day each way between the two cities.
“But right now there’s a pause on everything until the industry gets a better sense of timing on the 737 Max,” said Dickson.
