Greater Moncton airport survival plans: layoffs, debt and holding out for better days - Action News
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New Brunswick

Greater Moncton airport survival plans: layoffs, debt and holding out for better days

The province's busiest airport is strapped for cash, laid off a quarter of its staff and is putting off major repairs, but it's doing better than most.

The airport laid off 26% of its staff and is increasing some fees but hasn't dipped into credit line, yet

A Cargo jet plane unloads at the Moncton International Airport. Bernard LeBlanc said domestic cargo shipping is one of the only areas of growth for the authority in 2020. (Shane Magee/CBC)

The province's busiest airport is strapped for cash, has laid off a quarter of its staff and is putting off major repairs, but it's doing better than others in the province.

The Greater MonctonRomeo LeBlanc International Airporthas done its best to cut costs, but it will still need to go into debt in the coming year, managing director Bernard LeBlancsaid Wednesday at a community engagement meeting.

"When we look at passenger activity in the province, you know, it's still quite bad in our situation," he said.

The airport makes most of its money from passengers, and with air travel at about 12 per cent what it was last year, revenue is down significantly, LeBlanc said.

"This is where the picture is not so pretty," he said.

Bernard LeBlanc, the President and CEO of the Greater Moncton Romeo LeBlanc International Airport, says the airport authority needs passengers to make money. (Kate Letterick/CBC)

About $20 millionin revenue had been projected for 2020, especially after a particularly good winter, which saw passenger numbers at an all-time high.

Butafter factoring in the hit airports took from COVID-19 restrictions, LeBlancis expecting that number to be cut in half. And 10 per cent of that is coming from the federal government wage subsidy program.

"The good news is we have maintained flights to Montreal, Toronto and now St. John's, Newfoundland, and Deer Lake and Wabush," said LeBlanc.

"That's better than some of our neighbouring airports have done."

Air Canada is suspending all flights out of the Saint John Airport and all Toronto flights out of the Fredericton International Airportindefinitely, starting Jan. 11.

LeBlanc said ninefull-time employees and three seasonal workers have been laid off. He said large-scale projects like the planned $8 millionresurfacing of one of the airport's main runways, had to be scaled back to a patch job. The repair will still cost $1 million but is necessary to keep the needed runway operational.

Courtney Burns, director of finance and administration, said one of the biggest budget hits is to the airport improvement fund. To try to make up for the shortfall, there will be a $ 4increase on each passenger ticket, putting the AIF fee at $29.

She said this increase is "essentially meant to meet debt obligations."

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In order for the airport to continue paying off debt for projects like a major runway extension in 2013, it had to increase its AIF fee $4 per ticket. (Photo: Shane Magee/CBC News)

The airport borrowed money for major projects like a runway extension, and it was being paid off through the AIF fund. Burns said Moncton's fees are nowin line with Fredericton and Saint John improvement fees, but even with the hike, itwill only allow the airport to continue to pay its debt, not replenish the fund.

According to LeBlanc, good news comes in the form of a 17 per cent increase in domestic cargo shipment weight this year from last year. He named Fed Ex and Cargojetas the two companies responsible for the increase.

He said the airport will try to access as much federal money as possible.

"A lot of things that have been announced, but we're not sure if we qualify for them," said LeBLanc.

"We're really trying to get that clarity."

But the bottom line is, airports need travellersto make money, said LeBlanc.

"Our biggest challenge will be getting back passengers," he said.

"We need to have some alternatives to quarantine for that to happen, so whether it's vaccines or testing, but without getting passengers back, it's very difficult for us to get into a profitable situation again."

He said the best-case scenario is that passenger numbers will be back to the glory days of 2019 by 2024.