Ottawa`s announcement of a reduction in rent paid by Canada`s airports to the Government…
Ottawa`s announcement of a reduction in rent paid by Canada`s airports to the Government of Canada is being welcomed by Vancouver International Airport Authority.
Today`s announcement is very good news for Vancouver International Airport, said Larry Berg, President and CEO, Vancouver International Airport Authority. We have been asking Ottawa to provide a more equitable rent formula for a number of years, and we`re pleased the Federal Government has responded. We appreciate the efforts of Transport Minister Jean Lapierre, Industry Minister David Emerson and the B.C. Liberal Caucus in advocating this initiative on our behalf.
Between 1992 and 2003, the Airport Authority paid more than $600-million in ground lease payments. Rent currently consumes more than 25 per cent of Vancouver`s total revenues, and is the single biggest cost of operating Vancouver International Airport (YVR).
For Vancouver, the new rent formula translates into a 54 per cent reduction. Over the next four years, rent paid to Ottawa by Vancouver will be reduced by approximately $90 million. Between 2006 and 2020, the savings will total approximately $1.1-billion.
Mr. Berg said the savings will go towards reducing airline charges and contributing to the Airport Authority`s capital program to ensure that YVR continues to be a premier global gateway and economic generator for the Province of British Columbia.
We had a lot of support in the community for this initiative, Mr. Berg added, particularly from the Provincial Government, the cities of Vancouver and Richmond, Vancouver Board of Trade, the B.C. Business Council, the GVRD, the Greater Vancouver Gateway Council and many others. We are very grateful for their continued support.
For Vancouver, the new rent formula effectively achieves the 50 per cent reduction that the Canadian Airports Council (CAC) put forth in a proposal to Ottawa.
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