2003-05_skytalk

Canucks Appreciation Day rior to Game 4 between the Vancouver Canucks and Minnesota Wild, passengers, airport employees and members of the public were invited to show their support for the Canucks hockey playoff drive at Vancouver International Airport.

A series of events were held which included

Photos: Courtesy Gary Eng

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an appearance from Fin, the Canucks’ Official Mascot. A game of “parkade” hockey, where airport employees demonstrated their hockey skills included music and play-by-play to make the parkade feel like “The Garage”. Airport employees were encouraged to come dressed as the most devoted fan for the fan-of-the day contest.

Canucks Official Mascot, Fin, and Summit Custom Brokers employees Jennifer Shulz and Karin Omilon at YVR Canucks Appreciation Day.

Prizes included an authentic, autographed Todd Bertuzzi jersey and two pairs of Canuck tickets for the 2003/2004 season.

Airport visitors have showed their support throughout the playoffs by purchasing Canucks merchandise at several airport retailers and by taking advantage of unique game-day drink specials, meal specials and game-night viewing options.

Win or lose, it’s been a great playoff season.

F R E E MAY 2003 • Your Airport Community Newspaper – Vancouver International Airport

FOD Hazard Diminished – Thanks to YVR and BCIT Volunteers efore sunrise every year, airport employees and students of BCIT aviation programs gather to take part in the YVR FOD (Foreign Object Debris) Walk. The FOD Walk is held as part of the YVR Safety Program and NAOSH (North American Occupational Safety and Health) week.

This year, 140 airport employees and BCIT students volunteered to participate in the 11th annual event, walking the apron and taxiways and picking

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up FOD to raise awareness of the FOD hazard.

“Each year we pick up less FOD, which is a sign that our efforts are working,” said Arnie Jassmann, chairman of the YVR FOD Committee. “In the last 10 years there has not been a recorded incidence of FOD damage at YVR.” In 2002, YVR won the award for the best FOD prevention video at the National Aerospace FOD Prevention Inc. annual convention.

FOD volunteers at Templeton, prior to dispersing to south and north sides of the airport to collect debris.

Construction Continues on New UPS Facility ast month, the weather cooperated and more than 70 concrete panels were erected for the new 125,000 square-foot UPS Canada Ltd. facility at Vancouver International Airport. Full completion of UPS’s consolidated facility is projected for November 2003.

UPS unveiled a “new look” in March that

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HMY Airways Announces New Service to Los Angeles and Toronto aving obtained its international scheduled licence from the United States on April 23, Vancouver-based HMY Airways has finalized its summer and fall schedule.

The airline will commence its new service between Vancouver and Los Angeles on June 27 with nine flights each week. In addition, HMY will now start its new daily service between Vancouver and Toronto on

H includes the first redesign in more than 40 years of the company’s famous “shield” logo. UPS said the change signifies the company’s expanding capabilities into the three flows of trade – goods, information and funds.

With its expanded capabilities, UPS says it “Synchronizes the World of Commerce” for its customers.

June 16, increasing to 13 flights per week on June 23 between the two cities.

“Adding Los Angeles service and having frequent flights between Vancouver and SEE HMY AIRWAYS, CONTINUED ON PAGE 2

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MRO Industry Award Awarded to Cascade Aerospace Chairman and CEO ast month, Barry Marsden, chairman and CEO of Cascade Aerospace Inc. received an Outstanding Achievement in Aviation Maintenance, Repair and Overhaul (MRO) award at a special dinner held in conjunction with MRO 2003, an industry conference held in Ft. Lauderdale, FL. With the conference attended by more than 4,000 people in the aircraft MRO industry, Marsden was honoured among peers including many top executives from major airlines and aerospace companies.

The award recognized Marsden’s vision for building a state-of-the-art,

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HMY Airways,

purpose-built aircraft maintenance, repair, overhaul and modification facility, which opened in Abbotsford, B.C. a little over two years ago. It has since attracted clients like Southwest Airlines (largest operator of Boeing 737 aircraft in the world) and Continental Airlines (the fifth largest airline in the U.S.), as well as the two largest aircraft leasing companies in the world, among others. It was through Marsden’s conviction and determination that the combination of a well-designed facility and a skilled and motivated workforce came to fruition.

In accepting the award Marsden

CONTINUED FROM PAGE 1

Toronto demonstrates our strategy and commitment to grow our business through competitive pricing, excellent customer service and frequent flights to destinations that are popular with Canadians in the summer,” said Brent Statton, general manager of HMY Airways.

Last year, HMY Airways began winter charter service to Las Vegas and to a number of Mexican sun destinations, including Mazatlan, Puerto Vallarta and Cancun.

HMY’s new summer and fall

schedule now includes Vancouver, Toronto, Los Angeles and Las Vegas.

As an airline that focuses highly on customer service, HMY Airways provides unrestricted low fares, inflight meals and entertainment, convenient departure times and comfortable legroom.

HMY operates 197-seat Boeing 757-200 aircraft which include 36 Premium Economy seats with an upgraded level of service and more legroom.

Notice of Annual Public Meeting The Board of Directors of Vancouver International Airport Authority announces that the Annual Public Meeting will be held to present the Airport Authority’s 2002 Annual Report and audited Financial Statements. The meeting is scheduled for: Thursday, May 15 3:30 p.m.

International Terminal Building Departures Level, East Concourse Vancouver International Airport Richmond, BC The 2002 Annual Report will also be available May 1 through our Web site: www.yvr.ca Vancouver International Airport Authority is a community-based, not-for-profit organization that manages and operates Vancouver International Airport (YVR).

www.yvr.ca

said, “This award belongs to the more than 500 talented and dedicated people in our growing Cascade family, and I am honoured to accept it on their behalf. I am very fortunate to be surrounded by an incredibly hardworking team of great people — and I am very proud of all of them.”

One of the founding principals over 30 years ago of Conair, Barry Marsden is also the president and CEO of Conair. Conair is a worldleader in aerial fire control, and is a sister company to Cascade.

Marsden began his aviation career in 1954 with Skyway Air Services of Langley, B.C., and following the formation of Conair in 1969, assumed successive positions that culminated in president and CEO in 1991.

He has been chairman and CEO of Cascade Aerospace since the affiliate organization was formed in 2001.

Marsden’s dream for the aggressive pursuit of the third-party aircraft maintenance and modification business

became possible with the standards-setting Cascade facility. It accommodates eight narrow-body aircraft at one time, and features custom-designed fixed docks that allow Cascade technicians to work in cells, where computer stations, equipment, tools, power, lights, air and consumable parts are positioned for each aircraft zone.

Technology applications such as a bar-coded time and materials management system, vending machines that allocate consumables to each job and an automated delivery Frank Jackman (left), editor-in-chief for system help make the facility Aviation Week’s O&M magazine, and Barry efficient and different from Marsden, recipient of this year’s MRO other MRO facilities. Since Industry award. opening the doors to the new facility, Cascade Aerospace quality services on time and on budget. has grown to become one of the top 10 Cascade Aerospace Inc. is a privateMRO providers in North America and ly owned Canadian company and curhas earned a reputation for delivering rently employs over 500 people.

Community Spirit Drives Golf for Kids ince 1992, YVR Golf for Kids has brought together airport businesses, employees and the community in support of children’s charities.

On August 21, the 12th anniversary event will continue to celebrate the spirit of giving and sense of community.

“Get your team ready and start practising your approach shots,” said

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Wayne Duzita co-chair of the event.

“This year’s directors have put together an outstanding event to challenge golfers and reward generous auction participants.”

The golf event will again revolve around an enjoyable day of golf with exciting hole-in-one prizes on each par 3.

However, the event only begins with golf as other prizes donated from a myriad of corporate sponsors will be awarded and auctioned later that evening at the charity dinner and auction at the Richmond Hotel. The gala evening event will feature special guests, including Canucks general manager Brian Burke and several key Vancouver Canucks players.

Last year’s event raised $112,000 for Canuck Place Spinoza Bear Program, James Gilmore Elementary, Vancouver Police and Girl Guides of Canada.

Over the past 11 years, YVR Golf for Kids has raised more than $850,000 to support a wide range of children’s foundations, organizations and charities; event organizers hope to surpass the $1 million mark this year.

For information about participating in this year’s golf, gala dinner auction, or for corporate sponsorship opportunities, contact (604) 2743175, fax (604) 277-1721. Web site www.yvrgolfforkids.com, e-mail yvrgolfforkids@shaw.ca.

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London Air Services Adds Challenger 604 to its Fleet ondon Air Services (LAS), a sister company within the H.Y. Louie Group, is expanding its fleet with the addition of a new luxury jet. The Bombardier Challenger 604 is the fourth addition to the growing LAS fleet that already includes two Learjet 45 aircraft and another Challenger 604.

The purchase of the aircraft signifies the continued growth and success of London Air Services even at a time when the air travel industry is experiencing hardships. Since beginning operations in 1999, LAS has added several aircraft to its fleet and continues to expand its service route to the UK and Asia. To keep up with increasing demands for charter flights, the company has also ordered two more Learjet 45 aircraft that are due for delivery in 2004 and 2005.

“The Challenger enables us to offer a unique long-haul service with efficient operating costs,” said Wynne Powell, president, London Air Services. “Passengers just have to arrive at our executive terminal 20 minutes before departure. They can even adjust their flight time by calling our pilots directly who are available on cell phones at all times. We fly when you want to, so LAS eliminates the stress factor often associated with airports and scheduled airlines."

Much of LAS’s success can be attributed to its dedicated customer base, comprised largely of business-

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people in the forestry, oil, gas and movie industries. LAS provides a private, customized, cost-effective executive travel experience. Shorter boarding times, customized routes, no delays or disruptions and on-board business facilities allow executives to conduct their business efficiently while traveling to their destination.

The aircraft features many hightech amenities including digital satellite telephones, modem uplinks and dataports. Passengers can also relax with a gourmet meal and drink served by a LAS flight attendant. After dinner, catch up on some sleep on the foldout divan bed, enjoy the latest DVD movie or score a hole in one on the LAS in-flight putting green. With a range of more than 7,500 kilometers, the Challenger can fly to most U.S. or Canadian business centers in less than five hours and flies directly to Britain and other global centers with only one 30-minute stop.

Established in 1999, LAS operates a private 24-hour, 7-day-a-week executive travel service to cities across North America and is the only charter airline at Vancouver International Airport to offer intercontinental travel featuring a wide body concept jet.

The aircrafts are equipped with double-club seating, digital telephones, modem uplinks, dataports, and catering services. www.londonair.ca

UpcomingEvents May 16th-June 3rd ARTROPOLIS 2003 May has been designated as “Visual Arts Month” in Vancouver by the office of Mayor Larry Campbell. “Artropolis” will be the primary vehicle for celebrating visual art in B.C., the importance of visual art as a primary voice of cultural expression and its importance in the economic life of the city and province. During the Artropolis exhibition, the work of 175 B.C. artists will be showcased in three curated sections and a juried exhibition. CBC Broadcast Centre, downtown Vancouver. Call Kriss Boggild (604) 872-4307 for more information. E-mail info@artropolis.bc.ca

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22nd RICHMOND CHAMBER OF COMMERCE, BUSINESS AFTER BUSINESS TRADE SHOW. Co-sponsored by British Columbia Aviation Council and Vancouver Board of Trade. Location to be announced. www.mychamber.ca

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PRESIDENT’S CORNER

By LARRY BERG, President and Chief Executive Officer

The Aviation Industry Will Soar Again his is without a doubt the most challenging time in the history of the aviation industry. The effects of September 11, war in Iraq, SARS, a struggling U.S. economy and the filing for bankruptcy protection by Air Canada and some U.S. airlines have created much uncertainty for travellers, airlines and airports.

We’ve experienced tough times before, however, and I am confident that this industry will rebound and soar to new heights again. Why? The aviation industry is a key economic generator, and each and every one of us depends on it in one way or another. Quite simply, air travel is an essential part of our lives. And over the past several decades, air transportation has experienced consistent, long-term growth worldwide, despite economic recessions and security issues, such as the Gulf War in 1991.

How long will the recovery take? While the economic picture in the United States remains cloudy, there is some positive news. The war in Iraq was relatively short and decisive, and the worst of the SARS outbreak appears to have passed. Here at home, WestJet is reporting its best ever advance summer bookings and the Vancouver-Alaska cruise ship industry, though down from last year, remains robust.

But in all likelihood, it could be two or three more years before we see passenger traffic at the levels we experienced pre-September 11.

Another critical question is — what will the airline

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industry look like two years from now? It is clear that major airline restructuring is under way. The low-cost carriers continue to be profitable, while the traditional mainline carriers are struggling and adopting different strategies to survive. Air Canada has created lower cost carriers, Tango and Zip, and Delta and United are proposing similar brands. It is a safe bet that the growth of low-cost airlines will continue.

As for YVR, we’ve always taken the long-term view at the Airport Authority, and we’re mindful of the important role this airport plays in the provincial economy and in the communities it serves. We’re focusing our efforts on positioning YVR to take advantage of the opportunities that will arise as our industry recovers. Vancouver has a natural, geographic advantage over other airports along the West Coast of North America — it’s the closest major airport to Asia. To strengthen our gateway position, we are actively pursuing the further liberalization of Canada’s international air policy, which is currently leaving Canadian air carriers, airports and communities at a significant competitive disadvantage.

We’re also mindful of the cost pressures faced by airlines, and although airport costs are only a small portion of airlines’ costs — about four per cent — we are striving to keep them as low as possible.

By working together, government, airlines and airports can do much to help the aviation industry recover and prosper.

Your Airport Community Newspaper MAY 2003 ISSUE • VOL. 10 • NO. 7 YVR SKYTALK, the official newspaper of the Vancouver International Airport, is published monthly by Westco Marketing Ltd. for the more than 26,000 people who make up the airport community at YVR. No portion of this publication may be reproduced in whole or part without the written permission of the publisher.

Publisher: Patrick Stewart Associate Publisher: Joan Stewart Editorial Liaison: Ralph Eastman Editorial Board: John Korenic, Heather Madden-Johns, Ralph Eastman,Ali Hounsell, Kim Abrams, Erin Sills Contributing Writers: Arnold Klappe, Phil Melnychuk, Jim Jorgenson Creative / Production: James Martin Photography: Jim Jorgenson

VANCOUVER OFFICE: Suite 306 - 5400 Airport Road South Richmond, BC V7B 1B4 Tel (604) 736-6754 • Fax: (604) 736-6750 Email: jstewart@westerndriver.com Printed on Recycled Stock using vegetable based inks Please recycle this product.

ASSOCIATION OF AIRPORT PUBLICATIONS P.O. Agreement #1676261

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Air Canada Outlines Restructure ast month, Air Canada representatives met with of each of the unions representing employees at the mainline carrier to provide an overview of certain highlights of a preliminary business plan for a restructured airline, which is subject to further development and approval

by Air Canada’s Board of Directors later this month.

Overview A general overview was presented of the overall revenue environment for the airline and the industry, which continues to be under tremendous pressure and also served as a basis for the request for immediate relief measures pending negotiations of new labour agreements.

Following on the impact of the war with Iraq, SARS continues to have a significant impact, not only on Asian routes but also on the airline’s entire network and in particular its Toronto hub. In view of the deteriorating revenue outlook going forward and other factors, the company’s financial advisors have estimated the aggregate improvement required to the company’s operating results on a consolidated basis to be approximately $2.4 billion annually to ensure a sustainably profitable and financeable entity.

Restructing Plan This is targeted to be achieved through the following revenue and

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cost improvements in the restructuring plan: • Product Strategy - Reposition the airline to provide a high frequency/simplified product, offering customers enhanced value and service.

• Fleet - Re-gauge the fleet to support a revised domestic/transborder network and revenue model; introduce new aircraft with 70 to 110 seats using competitive work rules and pay rates.

• Operating costs - Reduce operating and financial costs to achieve sustained profitability and fund new, smaller gauge aircraft critical to the plan’s success. This will include labour cost reductions, renegotia-

tion of operating leases to current market rates and other cost reduction initiatives in areas such as product distribution resulting from technological advances.

• Liquidity - Adequate to repay, upon exit, any portion of the DIP loan from General Electric Capital Canada Inc. and the CIBC/ Aerogold facility, establish an appropriate level of liquidity upon emergence from CCAA and finance the fleet changes.

• Corporate Structure - Reorganize the corporate structure to have each business unit be competitive and self-sustaining as stand-alone entities and as a means of attracting

equity and debt financing.

Pension Deficit The presentation outlined a revised overall labour/management cost saving requirement of $770 million (before benefits improvements) at the mainline carrier as an element of the $2.4 billion annual improvement required to consolidated operating results post-restructuring. This represents an increase over a previously stated requirement of $650 million in cost savings as it reflects a deteriorated revenue environment and the product and fleet modifications contemplated in the new business model.

The company also reviewed with the unions the situation regarding the pension deficit and outlined its objectives including: • Reducing solvency deficits to a manageable level, • Making employer contributions more certain; thereby eliminating volatility, and • Providing Plan members with pension benefits greater than they would receive in the event of pension plan termination.

The Company also outlined at a high level some alternatives that could achieve these objectives, including: • Reducing the benefit formula and maximum pensions by 10 per cent; • Increasing early retirement to age 60 with a reduction of four per cent per year (vs. current three per cent per year before age 55); and • Changing the Final Average Earnings from 36 months to 60 months.

This would improve the solvency ratio by approximately 15 per cent and would thereby reduce the solvency deficit. In addition, the company discussed as an option going forward a defined contribution plan providing

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Plan

“We are confident the union leadership shares our view that failure to restructure Air Canada is not an option.”

certainty of company contributions.

Timelines The following timelines were proposed to achieve cost reduction objectives: May 1: Discussion of immediate relief measures with Air Canada unions May 5: Commencement of financial due diligence; distribution of presentation to Unions’ financial advisors; start of labour negotiations at mainline May 6: Presentation of Restructuring Plan highlights, discussion of immediate relief measures and start of negotiations with Jazz unions May 26: Target date for completion of labour negotiations June 15: Deadline for ratification and execution of Memorandums of Understanding June 30: Implementation of all

labour cost savings.

“The overview of the elements of our restructuring plan outlined today to union representatives should be viewed as a basis to commence meaningful discussions with stakeholders rather than as a final plan,” said Calin Rovinescu, chief restructuring officer.

“The increased labour/management cost reduction target of $770 million (before benefits improvements) is a reflection of both the current deteriorated revenue environment and the consequential reduction in capacity going forward. While some form of salary reductions will be required, in recognition of the personal difficulties these impose on our employees, the company will focus on obtaining the maximum cost savings through work rule changes and other productivity enhancements. We are confident the union leadership shares our view that failure to restructure Air Canada is not an option,” he said.

Aircraft Maintenance Included at BC Skills Competition L ast month, aircraft maintenance students put their skills to the test at B.C. Institute of Technology’s (BCIT) Aerospace and Technology Campus in Richmond.

The aircraft maintenance competition was one of 31 contests held at this year’s three-day BC Skills Competition and marked the first time that aircraft maintenance was included in the event. BCIT students made a clean sweep of this new category: Brian Semple won Gold, James Elliott took Silver, and Neil Myhre the Bronze award.

The aircraft maintenance students tested their sheet metal and electrical skills by building an instrument panel. BCIT aviation and aerospace instructor Richard Johnstone, chairman of Skills Canada BC’s aircraft maintenance competition said of the

competition, “It’s nice to showcase our talents and recognize our young people — up and coming engineers.”

Skills Canada BC has been operating since 1994, with the primary focus being the coordination of regional and provincial skills competitions. This year, BCIT faculty members coordinated carpentry, mechanical CAD, plumbing and refrigeration contests at the April 16, Vancouver Convention and Exhibition Centre event.

Regional, provincial and national skills competitions provide valuable experience to more than 40,000 Canadian youth annually.

BCIT’s aerospace and technology campus near Vancouver International Airport is the largest English-speaking aerospace training centre in Canada.

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First Ship in Vancouver Kicks Off 2003 Cruise Season ast month, Holland America kickstarted the Vancouver cruise ship season when its 1,380-passenger ms Amsterdam made the first cruise ship call in Vancouver for the 2003 season on April 25. The 61,000ton cruise ship is Holland America’s flagship in its 12-ship fleet. Built in 2000, the 780-foot-long, 105.8-foot-wide ms Amsterdam embarked later in the day on a four-day Pacific Northwest cruise.

Holland America operates six ships from Vancouver and is a leader in Alaska cruising. Ninety-seven calls

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will be made in Vancouver during the 2003 season by Holland America to embark and disembark passengers

sailing to Alaska. The economic impact is estimated at direct spending of $90 million and includes passenger and crew spending, hiring of 200 staff, port income, scheduled shipyard

repair and maintenance and local provisioning that includes everything from dairy products and fish to flowers and piano tuning.

The winner of the 10th consecutive “Best Overall Cruise Value” award from the World Ocean & Cruise Liner Society (WOCLS), the Holland America Line offers the only trip cancellation program in the industry that offers cash back for cancelling for any reason prior to 24 hours before departure.

For more information, consult a travel agent, or call 1-877-SAIL-HAL (877-724-5425) or visit www.hollandamerica.com.

2003 Vancouver Cruise Season Roster Holland America returns with seven vessels sailing Vancouver’s waters with the Amsterdam, Maasdam, Ryndam, Statendam, Veendam, Volendam and Zaandam.

Princess Cruises fleet of six vessels include the Coral Princess, Dawn Princess, Island Princess, Pacific Princess and Sun Princess.

Royal Caribbean International retrurns with the Legend of the Seas, Radiance of the Seas and Vision of the Seas.

Celebrity Cruises is deploying three ships this season: the Infinity, the Mercury and the Summit.

Carnival Cruises is deploying one vessel, the Carnival Spirit.

Norwegian Cruise Lines returns again this year with the Norwegian Sky, the Norwegian Sun and the Norwegian Wind.

Radisson Seven Seas returns with the Seven Seas Mariner.

American West Steamboat Co. arrives this year with the Empressof the North.

Cruise West is bringing back the Spirit of Oceanus.

Crystal Cruises returns with the Crystal Harmony.

Hapag-Lloyd arrives with the Europa.

Japan Cruise Line is deploying the Pacific Venus.

Mitsui O.S.K. Lines returns with the Nippon Maru.

Peace Boat Cruise Line arrives with the Topaz.

ResidenSea visits the Port of Vancouver for the first time with the World.

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YVR’s New Satellite Facility to Improve Cruiseship Passenger Process tarting this month, a new Satellite Facility (SF) infill will be opened at Vancouver International Airport (YVR) to improve the arrival and transfer process for cruiseship passengers. The facility will be staffed by Northwest, Alaska, Horizon and American Airlines.

Additionally, Princess, RCCL, Celebrity and Holland America cruiselines have agreed to work closely with YVR and the airline carriers to ensure proper separation of passengers and baggage from the Vancouver Port to the infill.

If government approval is granted to Air Canada for an “Onboard Check-in” pilot program this summer, those passengers sailing on either RCCL or Celebrity cruise lines will be able to use the infill for security screening and Federal Inspection Service processing.

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The new SF at YVR will operate from May 30 to mid-September to facilitate cruise passengers who have purchased transfers from cruiselines through YVR, direct from the port.

Operating hours will coincide with peak passenger hours between 9:00 a.m. and 1:00 p.m. Friday through Monday.

With the cruise industry a leading economic benefit to the British Columbia economy, the Airport Authority’s SF is an initiative that will improve the cruise passenger processes at the airport. In addition, YVR has recently integrated carousel 12/14 in the In Transit Pre-clearance Facility. This will allow the U.S. baggage claim area to be utilized for cruise baggage staging This year cruise students will be hired during the summer to help with the staging of baggage in the East Concourse area.

Vancouver Cruise Ship Business Facing Challenges in 2003 A fter two decades of consecutive growth, Vancouver’s cruise business is projected to decline in 2003. This year, the Port of Vancouver will welcome 33 ships from 16 cruise lines on an estimated 305 sailings.

In 2002, Vancouver hosted 342 sailings and 1,125,252 revenue passengers.

“In addition to a changed travel industry, we are experiencing increasingly tough competition from the Port of Seattle and other U.S. ports,” said Captain Gordon Houston Vancouver Port Authority (VPA) president and CEO. “U.S. ports are actively funding infrastructure development that threatens both our cruise business and our cargo business, present and future.”

Houston said the VPA is working on new cruise initiatives and calling for improvements to the Canada Marine Act to facilitate future investment.

“We believe the Port of Vancouver’s cruise sector is one of the brightest opportunities for job creation and economic regeneration in B.C. today, but we cannot afford to take the cruise sector or other sectors for granted,” Houston said. “We must overcome present-day challenges to prepare for future jobs and growth by advocating changes to the Canada Marine Act and by forging new initiatives.”

The VPA is part of a consortium of coastal communities and ports that have come together to form the BC Ports and Destination Group (PDG).

The PDG is developing a business and marketing strategy to help diversify and enhance the province’s cruise industry by developing a ‘made-inB.C.’ cruise vision.

“There is no question that the cruise industry has potential,” Houston said. “By 2020, we estimate the cruise sector alone could grow by as much as 80 per cent. But nothing is guaranteed and the competition we face is fierce.”

The Port of Vancouver is ‘homeport’ to the Vancouver-Alaska cruise.

According to an economic impact survey conducted by the North West CruiseShip Association, each Alaskabound cruise ship that passes through the Port of Vancouver generates 14 local jobs and $1.5 million in local economic benefits.

The Port of Vancouver is Canada’s largest and most diversified port, trading more than $29 billion in goods with 90 trading economies each year. Port activities generate a total of 62,000 jobs and contribute $1.6 billion annually to Canada’s GDP. Last year, 62.8 million tones of cargo were shipped through the Port of Vancouver.

The addition of the SF is meant to provide a number of benefits to cruise passenger going through YVR. These benefits will include: • Expedited processing of passengers;

• Unparalled customer service; • Elimination of added congestion at the Transborder check-in area, and at US Immigration and Customs point; • Seamless transfer for passengers

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from pier to airport; • Fewer lineups for travellers; • More time for passengers to enjoy the new retail outlets that will be opening in the Transborder Departures area of the airport.

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YVR Airport Services Finalises Jamaican Contract he Government of Jamaica and MBJ airports Limited have signed all closing documentation for the management and development of the Sangster International Airport in Montego Bay, Jamaica. The formal transfer of operations to MBJ Airports Limited occurred on Saturday, April 12, 2003.

The MBJ Airports consortium includes YVR Airport Services Ltd. (YVRAS), Agencias Universales S.A., Ashtrom Group Ltd., and Dragados Concesiones de Infraestructuras S.A. Under the 30-year contract the partners will, among other things, expand the terminal building as well as other related facilities in order to enhance the overall level of service provided to customers at the airport.

Simultaneously, the financing for the project was completed with the International Finance Corporation,

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DVB Bank and First Caribbean Bank through an A – B loan structure.

“This transaction represents a major milestone for our company and confirms our commitment to airport development in the Caribbean basin,” said Frank O’Neill, president and chief executive officer for YVRAS. “We are particularly proud of achieving a simultaneous financial and commercial close, requiring exceptional cooperation between our consortium, the Government of Jamaica and our senior lenders. Given the current state of the airport and airline business, the start of the concession term signals a positive outlook for Jamaica.”

YVRAS is owned by the Vancouver International Airport Authority and CDC Capital Partners.

The company has contacts for 14 airports in five countries to provide management, technical and advisory services. The subsidiary also provides

Frank O’Neill, president and CEO, Vancouver Airport Services Ltd. business planning, air terminal planning and design, financial, retail, project management and training services for airports around the world.

Hawkair Adds Destinations, Improves Schedules H awkair has announced enhancements to its flight schedules starting May 12, 2003. In partnership with TK Air, Hawkair will be offering through-fares from Masset to Vancouver with a connection at Digby Island.

TK Air’s Cabin Class Twin Engine Piper Navajo will make the trip from Masset to Digby Island in just 24 minutes. Flights are timed to connect with Hawkair’s Dash 8 service from Digby to Vancouver, and both segments can be purchased with a call to Hawkair’s reservations office.

Overnighting the eight-seat air-

craft in Masset allows a 7:30 a.m. departure to connect with Hawkair’s 8:30 a.m. flight to Vancouver.

A second flight meets the midday, and a third flight meets deplaning passengers on Hawkair’s 7:00 p.m. arrival.

Residents of Prince Rupert and Masset can travel between those towns on their choice of up to three flights daily.

Flights to Terrace are available Thursdays and Saturdays from Masset or Prince Rupert, and flights from Terrace to Masset are offered every Thursday and Sunday.

With the Best!

BE SURE TO ASK FOR YOUR YVR DISCOUNT!

Hawkair staff will take care of reservations and check-in. Call 1866-429-5247 to book.

Hawkair and TK Air, neighbours at the Terrace-Kitimat Airport for 10 years, are locally owned airlines with experienced flight crew.

Improved Scheduling Hawkair has also announced improvements to its schedules in Dawson Creek, Smithers and Prince Rupert. Residents of Dawson Creek and area requested a schedule allowing for a full business day in Vancouver. Starting May 12, an 8:00 a.m. departure and 5:45 p.m. return will be offered weekdays. Leisure travellers will have a choice of two flights southbound on Fridays and two flights back north on Sundays.

Residents of Smithers, in the heart of the Bulkley Valley and the business centre for surrounding industry, towns and villages, enjoyed a popular midday flight tested last summer and fall. These midday flights will be offered, starting May 12.

North coast residents will be provided with a later morning departure on weekends, with the Saturday and Sunday flight times moving from 8:30 a.m. to 9:30 a.m., starting May 17.

Hawkair flies modern, 37-seat Dash 8s from Vancouver’s south terminal to the northern B.C. communities of Prince Rupert (with connecting service to Masset, QCI), Terrace-Kitimat, Smithers and Dawson Creek.

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Air Canada Receives Awards at 2003 Airline of the Year Event ast month, the OAG Airline of the Year 2003 Awards took place at a glittering ceremony at the Park Lane Hilton, London. The ceremony marking the 21st anniversary of the awards was attended by number of senior figures from the aviation industry.

In his keynote speech, Eddie Bell, chairman of OAG, praised the resilience of the industry in the face of the conflict in Iraq and stressed the importance of the aviation industry for international trade. Commenting on the awards Bell said: “The OAG Airline of the Year Awards are an opportunity for us to publicly recognize and celebrate the highest standards in the global air travel industry.

“OAG has been a friend and col-

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league of the airlines for more than 70 years. These awards, voted for by our frequent flyer customers, provide a fitting opportunity for us to demonstrate our continuing support through these difficult times.”

It was an excellent year for the Asia Pacific region. In addition to the prestigious Airline of the Year title, Singapore Airlines took home another five awards: Best International First Class, Best Economy/Coach Class, Best Trans-Atlantic Airline, Best Airline Based in Asia and Best Europe to Far East/Australasia Airline.

Air Canada was nominated in six categories: Best Airline Based in North America, Best Trans-Atlantic Airline, Best Executive/Business

Class, Best Economy/Coach Class, Best Frequent Flyer Program and Best Airline Web site. The airline picked up two awards; Best Airline Web site and, for the second consecutive year Best Frequent Flyer program.

Last year, Air Canada also picked up the Best Airline Based in North America Award, which was presented

to Midwest Airlines this year.

Singapore’s Changi Airport topped a very strong shortlist, which included Dubai International, Amsterdam’s Schiphol and Hong Kong International, to take the title of Best Airport for the eighth consecutive year.

In total 47 airlines and five airports competed for 19 regional and

global awards.

OAG is the leading source of flight schedule information, operating the world’s most comprehensive and up-to-date schedules database. It is an independent company based in the UK and USA, with regional offices in Asia. Customers of OAG include airlines, airports, business travellers and travel organizers.`

Security Vigilance Rewarded

By Marcia Strang wo plane watchers have been praised for alerting airport officials after they witnessed a man trying to scale a security fence near the north runway.

Dave Henley, the first to see the man gaining unlawful access to the airport Restricted Area, immediately contacted airport security.

Wilfred Tennisen, who was also in the area, contacted the Air Traffic Control tower after seeing the man.

Henley, Tennisen and air traffic controllers kept a watchful eye on the man until security staff arrived on the scene. The man had been cut by barbed wire on the security fence, and was taken to hospital for a psychiatric evaluation.

For their efforts, both Henley and Tennisen received letters of commendation and a small reward to thank them for looking out for everyone’s security at Vancouver International Airport.

Ed Huggett of Jet Eagle Transfer was also praised after he intercepted a

T

RRSP-Eligible MIC Provides Investment Alternative

Advertorial

By Don Bergman

Ed Huggett of Jet Eagle Transfer was the recipient of a letter of commendation and reward for security vigilance at YVR. passenger who had accessed the ramp area by mistake. The passenger was escorted back to his airline representative after airport security confirmed he was not a security risk. As part of the airport security reward program, Huggett also received a letter of commendation and a reward.

Visiting Aircraft Actor/Director Robert Redford's Learjet in foreground with Gulfstream G-4 taxiing in background at YVR south. Redford was visiting "Hollywood North" on film business in late April.

When anyone in Canada sets out on an airline for a vacation, business trip or for work, they can feel quite confident in arriving secure and safe. However, when investing today many may not have that same sense of confidence.

Over the past while, the drop in value of many equity portfolios has rattled investors. Furthermore, it appears unsettled stock prices, stagnant bond markets, and low interest rates, may continue for a while yet.

It now makes sense for investors, planning for or trying to enjoy retirement, to be asking for investment alternatives with less volatility and a better return.

Consequently, it may be worthwhile to consider a real estate investment that’s been around for 29 years.

It is a tax-free Mortgage Investment Corporation also known as a MIC. The investment structure for an MIC was passed into federal law in 1973 under the Residential Mortgage Financing Act. The MIC was heralded back then as an opportunity for small investors to participate in the mortgage loan market. Yet, today surprisingly few have any knowledge of this type of RRSP-eligible real estate investment.

The details of this investment structure are spelled out in Section 130.1 of the Income Tax of Canada. The guidelines outlined in the act must be strictly followed or the MIC risks losing its tax exempt status.

Briefly, an MIC is a pool of investors that lends

money for the purchase or renovation of single family, multi-unit residential and commercial real estate. An MIC should not be confused with a Real Estate Investment Trust nor is it a mortgage broker. There are no brokerage fees.

An MIC pays out 100% of its net income to its preferred shareholders. These payments could be in the form of quarterly cash dividends. Investors can expect a return of between 6% and 10% per annum.

An investment in a MIC can be made directly with a mortgage investment company or through the trustee of an RRSP. Each MIC manages the tolerance to risk differently.

The management style, investment philosophy and strategy of an MIC should be closely scrutinized and clearly understood.

One indicator to look for is the return on investment.

Remember the old adage, “the higher the return the higher the risk.” Ask to see the company’s offering memorandum or prospectus before investing.

An MIC investment may not be for everyone. It’s not a get rich quick scheme. Liquidity, as with most real estate investments, can be difficult.

If you are retired or planning for retirement and want to supplement your income with a reliable quarterly cash dividend on preferred shares backed by the equity in real estate, an MIC investment may be for you.

Don Bergman is founder, president and portfolio manager for ACIC, an MIC that has paid its shareholders between 6% and 10% annually since 1998. For a free brochure call toll free 1-866-772-ACIC (2242) or visit the Web site at www.ACICinvestor.ca.

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Celebrate National Bike Month on Sea Island Aviation World Model Show 2003 A N N O U N C E M E N T

By Alison Grigg

id you know that June is Bike Month on the Lower Mainland?

There are plenty of ways to celebrate cycling as a form of recreation, fitness activity and transportation right here on Sea Island.

The first week of June brings the Commuter Challenge, a fun, friendly competition between workplaces that highlights the benefits of reducing vehicle trips to the workplace and introduces people to sustainable methods of transportation. The goal is to get as many people as possible to use sustainable modes of transportation, such as walking, bicycling, taking transit, and car/vanpooling. This includes encouraging people to switch from using single occupancy vehicles (SOVs), as well as celebrating those who choose sustainable transportation on a regular basis.

Increasing the use of sustainable transportation makes our region more livable by reducing traffic congestion, harmful vehicle emissions and improving employee and public health.

The Airport Authority and Fairmont Vancouver Airport are just two compa-

D WHEN: May 18 WHERE: 6080 Russ Baker Way, Richmond, BC CATEGORIES: • Prop-driven military • Jet-powered military • Civilian/commercial • Miscellaneous spacecraft and other flying machines • Senior division • Junior division (under 18 years of age) • People’s choice MODEL DROP-OFF: May 17, anytime or before 11:00 a.m. on May 18 MODEL PICK-UP: After 5:00 p.m. on May 18 or anytime on May 20 PRIZES: All categories will receive a ribbon and gift certificate OTHER EVENTS ON MAY 18: • Sale event. All models, accessories, and modeling books will be 20% off. All other items (except magazines and electronics) will be 10% off.

• Children’s model-building workshop, pen to all kids 12 years of age and under. Please see staff for details and pre-pay.

CONTEST RULES: • You may enter any number of models.

• You must be the builder of any model that you enter in the show.

• No pre-painted or die-cast models.

• Aviation World staff and their relatives may not be eligible for a prize in any category.

• All entries are anonymous until after final judging.

• All prize awards are final.

• Aviation World will make every effort to care for models, but cannot take responsibility for damages to them while on their premises.

Call (604) 718-7400 for additional information.

Aviation World 106-6080 Russ Baker Way Richmond, BC www.aivationworld.ca

Looking for a different kind of auto repair shop?

nies on Sea Island that have traditionally participated in the Commuter Challenge. To register your company in the Commuter Challenge, contact the Lower Mainland’s coordinating body, Better Environmentally Sound Transportation at 604-669-2860.

Next, mark Sunday, June 8, on your calendar without delay. Celebrate Bike Month by joining the City of Richmond and the Richmond Community Cycling Committee on its

The Value of Proper Vehicle Maintenance

By Bernie Pawlik hy maintain your car? Quite simply, it saves you money in the long run. While it may be tempting to put off maintenance to save a few dollars, especially when your car runs well, the apparent savings are false. A well-maintained car costs less overall because addressing its small needs a few times per year is much cheaper than repairing the large components when they fail.

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• Dealing with your concerns personally.

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SEE BIKE MONTH CONTINUED ON PAGE 11

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third annual “Island City, by Bike” tour. This cycling awareness event will feature long (25 km) and short (12 km) routes, both of which will start and finish at Sea Island School (corner of Miller Road and Templeton Road).

Participants can choose which group to ride with, but the idea is to look forward to delighting in a slow-paced, scenic ride with the whole family. The

on ow 04 N 0 ers d 2 Ordsigne na g in e en Take Redota Si Soon th Toy ing m Co

The goal with maintenance is to keep your car in near-new condition.

When a vehicle is kept in this state, there are several benefits: vehicle reliability, owner confidence and trust, along with enhanced resale value.

To realize these benefits, the most frequently required and least expensive maintenance service is to have your engine’s oil and filter changed.

During this procedure, the rest of your car will usually receive some important, needed attention as most shops will also check other fluid levels, tire pressures and lights.

Checking other fluids will ensure that your engine will run at its proper temperature and other expensive components, such as the transmission, are being properly lubricated.

Tires that are properly inflated will maximize fuel economy and safety.

Minor problems can be found and fixed before they turn into a major expense.

In future articles we will look at the value of other maintenance services for your vehicle.

Bernie Pawlik is the owner of Pawlik’s Automotive, an established automotive repair garage located within the airport community at 966 SW Marine Drive (604) 327-7112.

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MONEY MATTERS

By Peter Kutney

How to Give Your Kids a Head Start towards University f you’re hoping your children will pursue a higher education someday, get ready for a shock. When you take everything into consideration, the total cost for a diploma, or degree could be terrifying. In fact, the 19992000 student budget prepared by the Canadian Federation of Students allocates $9,260 for tuition, books, rent and food. Assuming inflation continues at three per cent per year, a fouryear undergraduate degree in 2015 will cost more that $67,000.

Government cutbacks mean that fewer loans are available, and with tuition costs constantly rising, competition for them will be fierce. If this trend continues, only the wealthy, those on scholarship and children whose parents planned ahead will be able to afford a higher education.

How will you pay for your kid’s education? There are three choices: pay after, during or before they begin. If you take out loans, you’ll pay after by paying back the loan plus interest. If you pay during, you’ll have to cope with the cost over a few years — not an easy proposition. This leaves one prudent option: Be prepared, and begin saving now.

Tax-deferred RESP One option to consider is a Registered Educations Savings Plan (RESP). An RESP is a governmentapproved plan that permits earning to compound on a tax-deferred basis.

While there is no tax deduction for the contributions, the tax deferral does enable the student’s money to grow quickly.

The big incentive, however, is the additional grant money contributed to the plan by the government. This grant, called the “CESG”, is equal to 20 per cent of the funds you put in, to a maximum of $400 per child per year.

When the money is withdrawn from the plan (at the discretion of the parent or other trustee), the income is recorded on the student’s tax return.

Since students usually do not earn much income, that means very little tax is payable Other types of RESPs are available without the same benefits. For exam-

I

Bike Month,

ple, the scholarship trusts offered by several organizations in Canada may not provide the same flexibility as a “self-directed” RESP from a mutual fund company or bank/trust company.

The self-directed plans allow investment in a broad range of equity and bond funds with variable contribution amounts. In addition, all the children in one family can be put under a single plan — rather than a separate account for each child.

So, what do you do if the student does not go to college or university?

First, there is the option of transferring the fund to another full-time student, which is particularly attractive if the student happens to be a brother or sister of the original beneficiary.

If that option fails, then the parent may roll the accumulated growth of the plan into their RRSP, provided contribution room exists.

A third option is for the RESP subscriber to withdraw the funds completely, in which case he/she will pay tax on the growth in the account (the capital is returned without consequences). In this situation, the 20 per cent federal grant must be repaid.

A maximum of $4,000 per year, per child can be contributed to an RESP, with a lifetime limit of $42,000 per child.

The most common question from parents is: “How much do I need to put in an RESP?” I suggest, as a rule of thumb, that $100 per month per child will be needed. That assumes a start date at age one or two and continuing for 18 years — assuming a 10 per cent rate of return, that will accumulate to over $60,000. It won’t pay for Harvard, but it will do well for most schools.

Does this seem complex?

Personally, I find the RESP rules make a 747 flight ops manual appear simple by comparison. So, it pays to consult a professional financial advisor to help you sort through the details.

Peter Kutney is a financial planner with Equinox Financial Group in Burnaby. He can be reached at 604438-1603 or at kutney@aebc.com.

CONTINUED FROM PAGE 7

short route will explore Sea Island and turn around at McDonald Beach Park, while the longer one will strike out to Steveston and reverse its course at Garry Point Park.

Plan to arrive at the school for the complimentary bike and helmet safety check being offered between 9:30 a.m. and 11:00 a.m., and the first 100 attendees will receive a safe-cycling souvenir. The rides depart from the school parking lot shortly after 11:00 a.m. The groups will reconvene at the school

about one hour later to enjoy refreshments and a raffle prize draw.

Trained tour leaders will be conducting the rides, so all you need to bring, other than your bike, is your helmet and a sense of humour (or adventure) in the off-chance that it rains. Your attendance will demonstrate support for efforts to improve facilities for cyclists and to enhance community livability.

If you would like more information, please contact Joan Caravan at the City of Richmond at 604-276-4035.

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RECREATION PROPERTIES WATERFRONT CABIN • Leased Land WEEKEND RETREAT OR INCOME PROPERTY Sunshine Coast location. Cedar exterior, finished in Ponderosa Pine interior w/deck & aluminum shake roof. Sleeps 6, has wood stove, electricity & gas stove. Furnished, 10 years old. Seasonal rental income exceeds costs. $48,950 o.b.o.

(604) 228-0625.

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