Halifax airport helps power Nova Scotia economy

Routes and Airports Channel

Halifax airport helps power Nova Scotia economy

By Sandra Arnoult
ATW's Airports Today, November, 2009, p.1

A recent study concluded what officials at Halifax Stanfield International already knew: The airport is proving to be a powerful engine that is driving the economy along the Atlantic Canada region.

In 2008, HSIA contributed C$1.27 billion ($1.18 billion) to Nova Scotia's economy, according to a new economic impact report prepared by the Chris Lowe Group. This includes the contributions from airlines, airfreight firms, the Airport Authority, retailers and other companies that support the air transportation industry, which has become a major economic, fiscal and employment generator for Halifax and Nova Scotia.

"Even during challenging economic times, the results of the study demonstrate the important role the airport plays as an employer and contributor to the Nova Scotia economy," said HSIAA President and CEO Tom Ruth. "We actually move half of the aircraft for the Atlantic Canada region and 53% of the passengers."

The overall economic impact of the airports in the four provinces in the region--which in addition to Halifax include Prince Edward Island, New Brunswick and Newfoundland--amounts to C$2.9 billion, according to the report.

Last year about 3.5 million passengers used the Halifax airport. Tourists accounted for 33% of that number and are credited with generating more than C$725 million in revenue.

Over the past year, ABX Air and Asiana Airlines launched freighter services, comprising three weekly movements by ABX and one by Asiana, Ruth said. Much of the new business centers around the seafood industry. In the past, shippers relied on trucking seafood to market but have shifted more to airfreight, he explained.

"The problem with trucking is you are losing, [through] shrinkage, lots of value of the shipment," he said. "We wanted to take more control of that. We needed to develop infrastructure here." He estimates the airport has spent nearly C$150 million building up infrastructure over the past two years.

Last year HSIAA signed a lease agreement with Gateway Facilities under which the company will build and manage an estimated 40,000-sq.-ft., multi-tenant, C$15 million cargo facility at the airport that will include the largest perishables center north of Miami, Ruth said. It is targeted for opening by year end. Related to this development, Air Transport Canada granted HSIA approval to take part in the international air cargo transshipment program that allows cargo to be moved through Canada for shipment to third countries.

"We meet with other cargo carriers to bring the business but it's much more effective if we are involved with the forwarders, shippers and local business. Airports need to help facilitate this," Ruth told ATW's Airports Today. "A lot of people miss the point--growing cargo helps the community and increases the economic impact."

Halifax is ideal for cargo and transshipment because it has no noise restrictions and can operate 24/7, he pointed out. Currently, it has about 24 carriers (some are seasonal) that offer 100 flights each day.

Airport officials estimate that each additional weekly widebody cargo flight can generate up to C$100,000 a year for Halifax and create dozens of direct and indirect jobs for the region. Ruth said efforts to increase cargo also could bring in more widebodies from airlines that are looking to fill belly capacity. "The more critical mass, the more opportunity you have to get more international traffic."

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