Economic Importance of Air Cargo Winnipeg International Airport Canada s Fastest Growing Cargo Airport. ACI-NA Air Cargo Symposium March 2006
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1 Economic Importance of Air Cargo Winnipeg International Airport Canada s Fastest Growing Cargo Airport ACI-NA Air Cargo Symposium March 2006
2 Winnipeg Cargo Network YWG
3 The Shifting Role of Airports Airports used to be: Suppliers of concrete for others to use Processors for passengers and cargo Today, airports are true proactive partners in the supply chain
4 Shift 1: The World s Supply Chain
5 Shift 2: The Air Cargo Supply Chain Carrier economics have forced changes Many combination carriers have shifted focus to point-to-point air transportation Smaller aircraft, more frequencies Quick turnarounds Security regulations Still evolving Pushing cargo to trucks and freighters
6 The historical supply chain Carrier ownership - vertical integration model Distribution Car rental Handling Flight Services* Hotel Loyalty program Terminal Runways Government supplied infrastructure *- De-icing, Lounges, fuel, maintenance, etc.
7 Today s supply chain Internet Parking Carrier facilities Hotel air 3 rd Party Loyalty program Handling Services* Airports potential roles Car/bus *- De-icing, Lounges, fuel, maintenance, etc.
8 Shift 3: The Skills Shift Skill sets that used to be present within airlines have been reduced or eliminated Airports have a larger role to play in route development and analysis
9 New Role for Airports Proactive partners in the supply chain Economic engines for the community Facilitators of economic development Leaders in shifting the regulatory environment
10 Proactive Partners in the Supply Chain
11 Economic Engines Average person hours per departure & per year, B727F Service Provider Jobs Involved Person hrs/dep Annual Person hrs Load planner Manager Supervisor Acct Exec Cust Service Clerical Ramp crew Delivery Vehicle mx Service Provider Jobs Involved Person hrs/dep Annual Person hrs Air crew Fuelling Contractors ATC Service Provider Jobs Involved Person hrs/dep Annual Person hrs Total ,539 Direct Person Years 21
12 Economic Engines The Impact of Air Cargo Daily cargo flight: 48.0 FTEs $2.1 M in wages $3.0 M in GDP $7.2 M in economic output Daily passenger flight: 42.3 FTEs $1.6 M in wages $2.3 M in GDP $5.3 M in economic output
13 Facilitators of Economic Development Manitoba International Gateway Strategy Winnipeg Global Air Traffic Development Aerospace Campus Arctic Bridge Manitoba International Gateway Council Churchill Gateway Development Inland Marine Container Terminal International Mid-Continent Trade and Transportation Corridor Mexico, USA, Canada Winnipeg Inland Port
14 Facilitators of Economic Development Our Long-term Growth Model Inland Airport Airport Airport Port City Redevelopment Campus Control Impact Lead Partner
15 Shifting the Regulatory Environment International Cargo Transshipment Program Introduced in September 2004 Only Western Canadian transshipment airport Foreign-to-foreign cargo exchange at YWG Do not need bilateral rights to access transshipment airport Carrier with appropriate rights can co-mingle international and domestic origin cargo to foreign destination North American feed performed by air or ground partners
16 What has the new role for airports meant for the air cargo industry at Winnipeg International Airport?
17 Canadian Airport Cargo Activity Vancouver Edmonton Toronto Ottawa Trudeau Calgary Winnipeg Hamilton Mirabel Halifax
18 Total YWG Cargo Volumes Metric Tonnes 160, ,000 Canada s fastest growing cargo airport in nd in North America 12 th in the world 80,000 40, Sources: WAA Site Statistics Air Cargo World, July 2005
19 Winnipeg International Airport: Canada s No. 1 Freighter-Friendly Airport 2006 Scheduled Freighter Departures 4,000 3,556 3,000 2,000 2,258 2,236 2,048 1,893 1,676 1,000 1, Winnipeg Calgary Hamilton Montreal Vancouver Toronto Moncton Edmonton Ottawa Halifax Source: BACK Aviation OAG Schedules Database, January 2006 Data Capture
20 Economic Impacts Estimated total impacts of cargo activity at YWG 2,200 total jobs $65 million in labour income $95 million in GDP $200 million in total economic output Over 20% of WAA landing fee revenue
21 Barry Rempel President & CEO Tel: +1 (204) Fax: +1 (204) Mobile: +1 (204) This information was prepared by and is for the exclusive and confidential use of Airports Council International North America. Statements made herein are based on the assumptions shown and are expressed in good faith. Room 249, Administration Building 2000 Wellington Ave. Winnipeg, MB R3H 1C2 Canada
22 Economic Impacts Annual Impacts: One return B727F 4 times weekly Type of Impact Person Years Wages GDP Economic Output Direct 21 $1,100,000 $1,500,000 $3,900,000 Indirect 15 $515,000 $782,000 $1,600,000 Induced 12 $524,000 $781,000 $1,700,000 Total 48 $2,100,000 $3,000,000 $7,200,000 Note: Impacts measured within Manitoba only
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