September 16, 1999

To:Economic Development and Parks Committee

From:Joe Halstead, Commissioner Economic Development, Culture and Tourism

Subject:L.B. Pearson International Airport

Update by Greater Toronto Airports Authority (GTAA) Board Members - All Wards

Purpose:

To advise Committee of the update to be provided by the City=s nominees to the GTAA Board of Directors on ongoing and planned activities L.B. Pearson International Airport (LBPIA).

Financial Implications:

The recommendations of this report do not have any financial implications for the City.

Recommendation:

It is recommended that this report be received for information.

Background:

Twice a year, the City=s nominees to the GTAA Board of Directors together with GTAA staff provide an update on the ongoing and planned future activities at Pearson International Airport. The last update was provided at the March 29, 1999 meeting of the Economic Development Committee.

Comments:

The Greater Toronto Airports Authority (GTAA) is a private non-for-profit corporation with a mandate to:

(1)operate and develop L. B. Pearson International Airport;

(2)work toward an efficient system of airports in south-central Ontario;

(3)use the airport system to enhance regional economic growth and development; and

(4)confer regularly with communities and governments on all these matters.

The GTAA is governed by a 15 member Board of Directors comprised of representatives nominated by the City of Toronto, GTA Regional Municipalities and the Provincial and Federal governments. The City of Toronto has three nominees on the GTAA Board of Directors: Mr. Robert Bandeen, Mr. Gerry Mienzer, and Ms Sharon Moss.

The Authority assumed responsibility for the management, operation and maintenance of L.B. Pearson International Airport on December 2, 1996. Louis Turpen is the GTAA=s President and Chief Executive Officer.

The GTAA has established both a Consultative Committee and Noise Management Committee comprised of elected officials, citizen and business representatives of the surrounding municipalities and Regions to provide advice to its senior management. The City has four representatives on the Consultative Committee: Councillor Holyday and Councillor Gardner, Mr. Martin Ross (resident), and Mr. Michael Lauber (Toronto Board of Trade). Economic Development staff also attend Consultative Committee meetings as a non-voting member. The City also has three representatives on the Noise Management Committee, Councillor Li Preti and Councillor Brown and Mr. Ross Summers (resident). Planning Division staff attend Noise Management Committee meetings to provide technical assistance.

Since the last briefing by the GTAA Board members, the Airport Development Plan has been proceeding on schedule. This year, on average, the GTAA is investing about $1 million a day to improve Pearson airport. The level of investment is expected to increase to an average of almost $7 million a day in the peak construction year. The total cost of the proposed development plan, to be completed by 2007, is $4.4 billion. The improvements which will increase LBPIA=s passenger handling capacity from 28 million to 50 million people per year, includes replacing Terminals 1 and 2 with a single unified horseshoe shaped terminal building, constructing a new east-west runway and a new cargo facility, and improving taxiways, de-icing facilities, access roads and parking.

Although the dispute between the GTAA and Air Canada in regard to the total cost and cost apportionment of the airport development plan is still before the courts, both sides appear to be working to resolve this issue. Air Canada is contributing to both the design and cost of current work including construction of the new infield cargo facilities and the GTAA Board has recently indicated that it is considering implementing a passenger facility charge to help fund airport improvements.

The potential buyout and more specifically the merger of Air Canada and Canadian airlines may have implications for operations at Pearson. Air Canada (45%) and Canadian Airlines (20%) in total represents about 65% of all flights in and out our Pearson Airport.

As previously reported, City and GTAA staff are developing a draft Accord to clarify the relationships, responsibilities and planning processes that will guide the development of LBPIA over the medium term (5 years) and provide a framework for the ongoing working relationship between the City and the GTAA. Staff expect to report to Council on the terms of the draft Accord by year end.

Conclusions:

The City of Toronto and the GTAA have established a good working relationship and exchange information on a regular basis. The City=s nominees to the GTAA Board of Directors provide updates on the current and planned future activities at L.B. Pearson International Airport twice a year. This is an opportunity for Committee members and other interested members of Council to ask questions and provide comments to the Board members

Contact Name:

Randy McLean

392-3397

Joe Halstead

Commissioner, Economic Development, Culture and Tourism

ED0-99-47