Stephenville council approves cash for private company to manage airport

Stephenville's town council voted Monday to spend $223,000 to hire a private company to try to bring its beleaguered airport back from the brink.

The vote was ona proposed management contract between Stephenville's airport authority andWinnipeg Airport Services Corporation, a company that provides an array of aviation services to Canadian airports from Kamloops to Iqaluit. Its CEO reached out to Stephenvillecouncil in November, said the town's mayor, with meetings and discussions culminating in the proposed plan.

The funding matter came upat its last public meeting June 4, and was defeated by a 4-3 vote. Following several subsequent private meetings, on Mondaythe naysrecanted and the motion passed unanimously.

"Havingunanimous support shows that we as a council are working together. We're going to move this file forward," said Mayor Tom Rose at the meetingwhich took place via a live-streamed video conference.

During the meeting, Rose said most of the $223,000 will be repaid by the provincial government, with Stephenville taxpayers on the hook for about $13,500.

Coun. Mark Felix, a former councilfinance chair who has been a critic of the town's financial support of the airport in the past, was one of the people who changed his mind to support Monday's vote, given the money was now largely going to be repaid.

"I'm a supporter of the airport, but not at all costs," he said.

"As we reach sustainability in maybe threeyears from now, the airport might be putting money back into the town council, and that's my goal," Rose said, in an earlier interview with the CBC Newfoundland Morning Show.

Dwindling flights

Sustainability is a far cry from the current financial situation of the airport, which has been steadily losing traffic.

In May, Porter Airlines and Sunwingcancelled their summer services to Stephenville, totalling a loss of about 60 flights a year. That comes on the heels of anchor tenant PAL Airlines ending its year-round service in January, saying that route was no longer viable.

• 'They set this up to fail': Stephenville mayor says PAL Airlines could have saved route

Several councillors on Monday spoke of efforts underway to attract a new airline, hinting that a company is interested in providing regular service to Halifax, Sydney and St. John's, and that further fundraising efforts would be required to make that a reality.

"I'm sure we'll be bringing more information on that to the weeks that come," said Depurty Mayor Susan Fowlow.

"This is the first step, which is to get this company in and get things moving."

Rose said he has spoken to the provincial government and it has promised to chip in a portion of the needed funds.

"They're supporting this deal becausethey feel that Winnipeg is the right equation, the right business modelling, the right company, to finally get Stephenville back on track," Rose said.

Rose said WASCO'saviation expertise gives him confidence.

"They have the track record. They have the expertise and competencies, they're subject matter experts in the field, and I'm really excited," he said.

While official direction for the future rests withthe Stephenville Airport Corporation,a non-profit airport authorityrun by a board of directors,Stephenville's council has contributed to the airport financially for years.

• Stephenville councillor says airport spending is out of control

In September, Felix told CBCthat the town provided a$750,000 grant to the airport in 2016 meant to support financial viability by2019.

In 2019, the town gave the airport another $570,000.

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