‘Catastrophic discount’: Regina airport grapples with monetary challenges, lowered journey demand – Regina

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The Regina Worldwide Airport skilled a “catastrophic discount” within the variety of passengers that went by way of its doorways in 2020 as pandemic restrictions dampened demand for journey.

Whereas these numbers are anticipated to enhance in 2021, the monetary hardships aren’t going away.

“The excellent news is persons are listening to these journey suggestions,” mentioned Regina Airport Authority president and CEO James Bogusz.

“The unhealthy information is we don’t have any income coming in to really pay our prices.”

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The Regina airport dropped down to simply 15 per cent of its traditional passenger site visitors in December. All of 2020 noticed about 30 per cent of the airport’s regular ranges, in response to Bogusz.

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The airport authority makes its cash off of passenger charges tacked onto issues corresponding to journey, parking and leases.

Fewer passengers means much less income.

Usually the airport generates about $30 million a yr, in response to Bogusz, which is simply barely greater than its prices.

Even with trimming bills by about 30 per cent — coming within the type of layoffs, working funds reductions and capital program alterations — the airport authority is predicted to lose about $6 million from 2020.

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Assuming journey picks up this yr, the CEO says 2021 will possible finish with the airport shedding one other $four million.

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Accumulating $10 million in debt can be “completely unsustainable,” in response to Bogusz.

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“Now we have made our cuts already, we’ve actually lowered all the way down to a comparatively bare-bones operation, ensuring although we keep ranges of security, security and all our regulatory obligations,” he mentioned.

“That’s why we’ve gone to Ottawa.”

Within the fall financial assertion, the federal authorities mentioned it earmarked $65 million for airport authorities “to additional help airports to handle the monetary implications of lowered air journey.”

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Whereas Bogusz says he doesn’t know the way or when these funds shall be distributed, he’s requested Ottawa to assist offset the income losses with a purpose to cowl the payments and pay employees.

“We will’t improve the fee to journey. We will’t be ready to drive up prices to airways who’re additionally struggling,” Bogusz mentioned.

“If we’re crippled with heavy debt and our charges are up, we’re not going to be aggressive.”

In an announcement to World Information, Transport Canada says it’s “presently engaged on subsequent steps and is actively partaking with stakeholders.”

Transport Canada didn’t present a timeline as to when the funds can be allotted.


Click to play video 'NAV Canada could scale back operations at Regina airport following review'



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NAV Canada might cut back operations at Regina airport following evaluation


NAV Canada might cut back operations at Regina airport following evaluation – Nov 26, 2020

© 2021 World Information, a division of Corus Leisure Inc.

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