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H A L I FA X I N T E R N AT I O N A L A I R P O R T A U T H O R I T Y ANNUAL REPORT

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O UR P EO P L E – Jamie Wilkins, Tom Murray, Delbert Geddry, Bill Crosman, Jerry Staples, Twila Grosse, Charles Clow, Melvin Dinney, Leigh Robinson, David Snow, Art Nowen, Rhonda Brassard, Kim Oakley, Carl Brown, Tom Antonio, Joanne Fabrizi, Joyce Carter, Paul Baxter, William Cowan, Andy Lyall, Reginald Beeler, Stephanie Gorman, Nicole Burchell-Isenor, Lee Nolter, Chris Collier, John Melbourne, Gary Christian, Timothy Fisher, Sherrie Clow, Joey Young, Donald Lajoie, James Moulton, Arnold Wood, Todd Hickey, Blair Christian, Michael Hartlen, Ivan Frame, Garry Parsons, Richard

Garson, Matthew McDonald, Daniel Chandler, Rachael Robinson, Sean Dempsey,

Michael Samson, Paul Hood, Joseph MacLean,

Stephen Fudge, Dan Tanner, Marlene More, Vernon Myers, Reginald Verge,

Leonard Brown, Shawn DeLong, Paul Tuttle, Joey

MacPherson, Barry Woynar, Janet Menzies, Catherine Huddleston, Danny

Chaplin, Kim Keeling, Todd Ball, Kristopher Stevens,

Catherine Towers, Cecillia Anderson, Scott Roberts, Tony McMillen,

Alex Skinner, Karen Harrie, Donna Anderson, Paula

Cannon, Tara Wheaton, Sandi Nicholson, Marcia Connolly, Tonya McLellan, Clayton Maynard, Kevin Boutilier, Michael Healy, William D. Turple, Douglas Kinsman, James Tanswell, Kellie Hannam, Gordon Duke, Douglas Meek, Kelly Martin, Tim Leeman, Jack Weir, Judy Snair, Peter Khattar, Esther MacDonald, Kelly Zwicker, Peter Sworin, Peter Snair, Janet Ingraham, Leonard MacDonald, Jane Scott, Kenneth Bayers, Douglas Eisan, Paul Dalrymple, Lydia Bowie, Richard Wyatt, Tom Ruth, Allan Pace, Milly Hardwick, Drake Clarke, Robert Hewitt,

Keith Conner, Troy Appleby, Robert Clarke, Cathy

Walker, Gerry Rygiel, Peter Spurway, Wayne DeCoste, Ron

Conway, William Wellwood, Clifford Gillie, Jonathan

Heffernan, Bruce Gaudet, Deborah MacLeod, Jeff MacMillan, Gary

Porter, Larry Naugle, Jennifer Delorey Lyon, Timothy

Bull, Terry Hilchey, Alastair Cox, Howard Rose, Stephen Whalen, Harry

McMullen, Ashley Barnes, Ruth Stoddard, Mark

Bowser, David Dawe, Kim Porter, Stephen Bezanson, Donald Myers, Franklin

Leavitt,

Gregory

Shackleton,

Anita

Chisholm,

Michael Hatfield, Marcel Laforest, Steven Hilchie, Brian Thomas, Dan Pride, Alan

Carragher, Norman Ross, Roxanne Hilchie, David Brown, Edward Dempsey, Kevin Mosher, Jeremy Carrier, Thomas Maguire, Brian Gillette, Michael MacEwan, Dean Letto, Carol Mackie, Kenneth Champion, Mike Maxwell, Michael Walker, Malcolm Phippen, Shawn Hicks, Robert Silver, Nancy Fong, Peter Hilton, Robert Ettinger, Steven Nelson, Richard Boutilier, Alan O’Leary, Burton Wright, Joyce Hoskin, Derek Forrest, Richard Gooding, Tim Zinck, William A. Turple, Mark Urquhart, Anil Mohan, Karen Sinclair

(AS OF DECEMBER 31, 2009).


H A L I FA X I N T E R N AT I O N A L A I R P O R T A U T H O R I T Y

Mission

Strategic Priorities

Connecting Nova Scotia to the world through flight.

Halifax International Airport Authority has identified eight strategic goals that support its mission and vision.

Vision

Culture of Superior Service Create a culture in which all of our employees and partners deliver superior service.

Great people delivering the best airport experience in the world.

People Strategy Create opportunities for success through employee engagement, development and experience. Safety and Security Implement an enterprise risk management plan, protecting and enhancing corporate reputation, in a fully integrated culture of safety and security. Revenue Diversification Accelerate revenue diversification.

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Aggressive Air Service Growth Aggressively pursue new passenger and cargo air services with an emphasis on transborder and international routes. Environmental Excellence Take a leadership role in environmental excellence. Improved Facilities and Services Improve facilities and services to optimize the airport experience, capabilities and processes. Proactive Advocacy Strengthen the advocacy program to influence public opinion and government policy.

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Message from the Chair By effectively navigating the most profound global economic downturn in recent history, the Halifax International Airport Authority (Airport Authority) did more than prove its mettle in 2009. Halifax International Airport Authority delivered. While “delivering” is what we do every day at Atlantic Canada’s gateway airport, doing so within the uncertain and uncharted flight path of 2009 made our achievements even more gratifying. By drawing on the Airport Authority’s core strengths – outstanding people, a measured approach to financial management and a commitment to superior customer service – we set and successfully met an ambitious trajectory. 2009’s achievements were driven by qualities that consistently distinguish the Airport Authority both as an outstanding organization and the keeper of a powerful economic engine for the region. Qualities like conviction. Rather than delaying or pulling back on key capital and operational initiatives, in 2009 the Airport Authority chose to stay the course. In so doing, we delivered on eight major capital projects – all of which came in on or under budget, and on time. Today, our $82-million groundside redevelopment program, featuring one of the most technologically advanced parking structures in Canada, is complete. By year-end, Nova Scotia seafood exporters were already taking advantage of the airport’s new multi-tenant cargo facility.

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And our new combined services complex – housing the Airport Authority’s emergency response services and airfield maintenance teams – will open as planned in 2010. I am pleased to report that the Airport Authority ended the year with a well-earned surplus, thanks to a culture of skilful and prudent financial management, where assumptions are carefully considered and progress against strategy closely monitored. These results were reaffirmed by an independent performance review. As part of our ground lease with Transport Canada, the Airport Authority is required to undergo a management, operation and financial assessment every five years. According to the report prepared by Chris Lowe Planning & Management Group, the Airport Authority operates the airport in a safe and efficient manner, through effective financial and management controls, information systems and management practices. At the core of our successes in 2009 is a sense of mutual respect and shared purpose demonstrated by Airport Authority employees and the 5,500 people who make up the Halifax Stanfield International Airport (HSIA) community. Building this pride of accomplishment took on a new energy in 2009, driven by the Airport Authority’s vision of “Great people delivering the best airport experience in the world.” And deliver we did.

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“ By drawing on the Airport Authority’s core strengths – outstanding people, a measured approach to financial management and a commitment to superior customer service – we set and successfully met an ambitious trajectory.” In a time where the term “world class” is often an empty cliché, HSIA is setting global standards for airport customer service. For the seventh year in a row, HSIA was named the best airport for customer satisfaction in its class (under five million passengers) in the 2009 Airport Service Quality passenger ratings. HSIA was also ranked by passengers as the second-best airport in North America, regardless of size, behind Austin, Texas. When you consider that HSIA contributes more than $1.27 billion to the Nova Scotia economy, our airport is more than simply YHZ on a baggage tag. As a major economic, fiscal and employment generator, it’s a powerful asset to Halifax, to the province and, indeed, to Atlantic Canada. Add to that our state-of-the-art facilities and infrastructure, growing international passenger and cargo connections, and features like U.S. preclearance and the new multi-tenant cargo facility, it’s clear: Halifax Stanfield International Airport is the region’s economic air gateway to the world. As the Airport Authority goes about managing this vital infrastructure, we are fortunate to have a group of dedicated men and women – our Board of Directors – steer2 0 0 9

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ing our organization. Their contribution and leadership is key to our success. In 2009, we welcomed two new members to our Board of Directors: Marie Mullally, President and CEO of the Nova Scotia Gaming Corporation, and Robin Wilber, President of Elmsdale Lumber Company Limited. Together as partners, our Board of Directors and Executive Management Team helped pilot the Airport Authority through an often turbulent, although ultimately successful, 2009. Working with colleagues of this calibre – amazingly talented individuals committed to the values and vision of the Airport Authority – is a privilege, and I thank each of them. In the end, one word best describes 2009: exceptional. Thanks to exceptional people from across the airport community working as a team under exceptional circumstances, we delivered positive results. For any business, that’s the securest of all foundations. For the Airport Authority, that’s the strength we take forward into 2010.

Bob Winters Chair of the Board of Directors

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Message from the President & CEO “ Halifax Stanfield International Airport’s impact reaches beyond the airport itself. As it succeeds, it creates opportunities that benefit the entire Atlantic region.” In engineering, it’s called tensile strength: the ability to stretch under pressure. In many respects, the global economic downturn that defined 2009 tested the tensile strength of every business in every sector, including Halifax International Airport Authority (Airport Authority). At the beginning of 2009, when the depth and breadth of the financial crisis became clear, the Airport Authority Board of Directors and Executive Management Team made a pivotal decision: to continue delivering on key capital and operational initiatives. By adjusting our strategic plan and revising revenue forecasts, the Airport Authority – with the active engagement of employees – stayed on vision and on strategy. And we did so while maintaining our exemplary standards for safety, security and service.

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In an unsettling and uncertain year, one marked by retrenching and reconfiguring across the economy, the Airport Authority countered the trend. Not only did we realize a respectable surplus and maintain our A+ credit rating, thanks to careful stewardship and collective perseverance, we: t Opened

our new five-level, 2,300-space parkade in March, featuring an enclosed over-road pedway with Nova Scotia’s first and only moving sidewalks

t Made

capital improvements to the main and second floor levels of the terminal building, including a direct link from the new pedway to U.S. preclearance check-in

t Continued

construction of our $27 million combined services complex and our portion of a joint project to build a new $15 million state-of-the-art, multi-tenant cargo facility – both due to open officially in 2010

t Invested

$11 million to complete the fifth year of our six-year airfield restoration program

In an industry especially sensitive to economic fluctuation, Halifax Stanfield International Airport (HSIA) saw new passenger routes and increased international cargo traffic in 2009. After an initial drop of 11.5 per cent in the first quarter compared to 2008, overall passenger growth started to pick up late in the year – a positive trend we see continuing in 2010.

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Porter Airlines and WestJet added new routes, which helped contribute to a three per cent increase in domestic traffic in the fourth quarter. Once finalized, Canada’s air transport agreement with the European Union negotiated this past year will create new nonstop flight options between Europe and the United States through Halifax. In a year when international air cargo activity was down 10 per cent worldwide, HSIA bucked the global trend. In 2009, the airport welcomed new dedicated air cargo services – both scheduled and charter wide-body freighters – more than doubling the airport’s international air cargo business.

Driving economic success in Atlantic Canada HSIA handles more than half of all air passengers and cargo in the region. That makes it more than just an airport. It’s the primary air gateway for Atlantic Canada. Whether you consider that each cargo shipment of lobster represents upwards of $500,000 of export value or that the airport delivers $1.27 billion annually – or over $100 million every month in economic benefits – HSIA’s impact reaches beyond the airport itself. As it succeeds, it creates opportunities that benefit the entire Atlantic region.

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Delivering a new kind of airport When your vision is to have “Great people delivering the best airport experience in the world,” everyone plays a role. That’s why over the course of 2009, we made building commitment to this new vision a priority, especially among our partners – the almost 5,500 airline, security, customs, retail, front-line, transportation, and food and beverage personnel who work alongside our own 180 Airport Authority employees and 100 volunteers. Every day, partners and employees alike – directly and indirectly – interact with thousands of people. By embracing this vision and using it as our measure of success, we can create a new kind of airport experience – one that’s less stressful and more comfortable for all passengers and guests, and brings the pleasure back into air travel. For the Airport Authority, 2009 will be remembered as the year when, despite an unforgiving economy, we optimized results. And we did so thanks to the source of our tensile strength: our people. As we look forward with optimism to 2010, I want to recognize our employees, volunteers, partners and members of our Board of Directors. Their determination, adaptability, creativity and commitment enabled Halifax International Airport Authority to succeed. Thanks to you, we delivered.

Tom Ruth President & CEO

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In the airport business, infrastructure and traffic are two sides of the same coin. Outstanding facilities – and the advantages they provide – are vital to growing new passenger and air cargo traffic. Anticipating and accommodating the changing needs of our customers, from travellers to the airlines themselves, means we build with a focus on the future. Together, infrastructure and traffic are the “the goods” of an airport, and in 2009, the Halifax International Airport Authority delivered on both.


Delivering the Goods In a year of global contraction, Halifax International Airport Authority expanded. In a year of uncertainty, we stayed on strategy.

Signed, Sealed and Delivered In 2009, Halifax International Airport Authority delivered on major capital commitments set out in its 2009 business plan, including: t$PNQMFUJPOPGUIFUISFFZFBSHSPVOETJEF redevelopment program and related projects, featuring: - A 2,300-space parkade connected to the terminal building with an enclosed over-road pedway, including Nova Scotia’s first moving sidewalks

The result? Despite the economic downturn, we worked with our airline partners to add new routes and start new service, while delivering $64 million in capital projects, on time and on budget. In 2009, we created new capacity, all designed with one purpose: to grow business by delivering superior customer service.

- A direct link from the new pedway to U.S. preclearance check-in

Today, our passengers and visitors enjoy the convenience and comfort of an inviting, fully renovated terminal, and new groundside facilities, complete with a signature 2,300-space parkade. Atlantic Canadian exporters are delivering to the world, thanks to new international air cargo service. And our airline customers know that Halifax Stanfield International Airport’s airside services and infrastructure meet the highest international standards of safety and quality.

- Separate curbs on the upper road for U.S.-bound passengers and ground transportation services

That’s what we call delivering the goods.

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- Terminal building modifications to accommodate the new pedway, as well as four new escalators, two elevators, and a two-storey glass curtain wall - Separate upper and lower roads for picking up and dropping off passengers, doubling the capacity for traffic in front of the terminal

- Glass canopies over the pick-up and drop-off areas t4JUFJOGSBTUSVDUVSFEFWFMPQNFOU JODMVEJOHDPOTUSVDUJPO of a parking apron, to support the 40,000 square foot multi-tenant cargo facility, due to officially open in 2010 t$POTUSVDUJPOPGUIFNJMMJPODPNCJOFETFSWJDFT complex, designed to house the Airport Authority’s emergency response services and airfield maintenance teams, and scheduled to open in early 2010 t$PNQMFUJPOPGUIFýGUIZFBSPGPVSTJYZFBSBJSýFME restoration program, including restoration of two-thirds of the main taxiway and half of the apron in front of the terminal building, plus installation of centre-line lighting to meet international low-visibility operating standards

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What a difference a year makes. Back in 2008, the international Airport Service Quality passenger ratings ranked Halifax Stanfield International Airport (HSIA) 128th out of 140 airports worldwide for availability of parking. Today, passengers rate HSIA third in the world. The reason? Our new five-level, 2,300-space parkade: the centrepiece, and major component, of our groundside redevelopment program. Opened in March 2009, this showcase facility offers passengers and visitors the year-round comfort of cov-

ered parking and easy access to the terminal – including a glassed-in pedway featuring Nova Scotia’s first moving sidewalks and direct access to our U.S. preclearance facility. For maximum customer convenience, a stateof-the-art electronic toll collection system provides the widest and most advanced choice of payment options possible, including – in the first partnership of its kind for Halifax Harbour Bridges – the popular MACPASS. By any measure, the Airport Authority’s three-year, $82-million groundside redevelopment program redefined both the

In 2009, the Airport Authority completed the fifth year of its six-year airfield restoration program, with two-thirds of the main taxiways and the apron in front of the terminal building having been restored.

New service contributed to an increase of over 100 per cent in international cargo activity in 2009. In March, the Airport Authority opened its 2,300-space parkade, featuring an enclosed over-road pedway with Nova Scotia’s first and only moving sidewalks.

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The Airport Authority’s new combined services complex, due to open in early 2010, will house its emergency response services and airfield maintenance teams, and will be built to LEED* standards.

public face and physical footprint of the airport. In 2009, we added the finishing touches to this ambitious initiative, including separate upper and lower roads for passenger pick-up and drop-off, plus another project to create a new two-level corridor for the north end of terminal, complete with a stunning floor-to-ceiling glass curtain wall. As well, space was created in the terminal for new retail shops and services. In November, the Airport Authority issued a request for proposals to introduce new amenities for the airport’s 15,000 daily visitors. New operators will soon join the Halifax Stanfield Merchants Association, whose members strive to offer travellers and guests a wide range of first-rate products, services, and food and beverage choices. In the airport business, you build for the future. With the completion of our groundside redevelopment program, we have facilities to comfortably accommodate another million passengers annually – enough capacity to serve us well for years to come.

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Delivering from groundside to airside The Airport Authority also delivered on its planned airside capital projects in 2009. While less visible to the public than our groundside improvements, these initiatives are vital to maintaining the integrity – and ultimately, the safety – of this critical infrastructure. By the end of 2009, the fifth year of our six-year airfield restoration program was complete, with two-thirds of the main taxiway and half of the apron in front of the terminal building having been restored, and centre-line lighting installed to meet international low-visibility operating standards. Construction of the new combined services complex also progressed on schedule. The project will replace two aging facilities with one modern, LEED-standard* building that will house our emergency response services and * LEED: Leadership airfield maintenance teams together under one roof. For in Energy and our airline partners and passengers, the complex – due Environmental Design to open in early 2010 – will bring these essential services closer to where they’re most needed. Airport Authority President & CEO, Tom Ruth meets with Incheon International Airport’s Mina Choi, Director-International (left) and C.W. Lee, President & CEO while on a trade mission to Seoul, South Korea in November.

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Flyglobespan introduced weekly summer seasonal service from Halifax to Glasgow, Scotland in May.

In 2009, Porter Airlines expanded to a year-round operation, WestJet added new same-day service to Vancouver through London, Ontario, and Air Canada and Jazz continued to serve the region through their major hub in Halifax.

Putting down routes for the future When the global economy takes a downward swing, so does airline travel – and the revenues they generate. That’s why the Airport Authority took steps early on to mitigate the effects of the recession with an aggressive strategy to grow both passenger and air cargo service. And our efforts paid off. On the passenger side, WestJet added a new same-day service to Vancouver through

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London, Ontario. Porter Airlines expanded its summer season Ottawa-Toronto City Centre service to a yearround operation and added daily service to St. John’s with four flights per day. Flyglobespan introduced weekly summer seasonal service from Halifax to Glasgow, Scotland in May, and Starlink Aviation operated service to Yarmouth and Portland, Maine from February until November. Our largest airline partners, Air Canada and Jazz, headquartered at HSIA, continued serving the region

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through their major hub operations in Halifax. CanJet Airlines, owned by IMP Group International Inc. – one of Canada’s 50 Best Managed Companies – entered into a five-year partnership agreement with tour operator Transat Tours Canada to charter CanJet narrow-body Boeing 737-800 aircraft. The Airport Authority partnered with Gateway Facilities Inc. who constructed a 40,000 square foot multi-tenant cargo facility – also the new home for airport operations of anchor tenant FedEx.

In 2009, HSIA processed 3,417,164 passengers. While this represents a 4.5 per cent drop in passenger traffic from our record in 2008, signs of recovery were evident by the end of the year. With each quarter, our numbers steadily strengthened; by the fourth quarter, traffic was up 1.4 per cent compared to the last quarter of 2008. Based on these promising trends, we’re projecting a 2.6 per cent increase in passenger numbers for 2010.

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We took on a number of marketing initiatives in 2009. For example, in October, the Airport Authority hosted Altitudes East – its fifth air access forum. Officials from airlines, airports, and the aviation industry came together in Halifax to network, learn and foster air service partnerships. In November, Airport Authority President & CEO, Tom Ruth joined government and business leaders from the transportation and education sectors on a trade mission to Vietnam to promote the airport’s competitive advantages. From there, he travelled to South Korea to build on newly established air cargo links. For our region’s exporters, particularly in the highvolume, high-value seafood business, easy access to international markets is paramount. For the Airport Authority, ensuring this access by growing our cargo capacity is a strategic priority, and we were delighted to welcome two new air cargo carriers in 2009: Ohio-based ABX Air and Korea’s Asiana Cargo. Between them, ABX and Asiana offered regularly scheduled freighter service throughout the week to major European and Asian destinations – opening the world to Atlantic Canadian shippers. Although HSIA’s 2009 total cargo activity of 26,910 metric tonnes was down approximately 3.7 per cent compared to 2008, these new carriers helped increase our international air cargo by more than 100 per cent over the previous year’s numbers. To further support air cargo growth, Gateway Facilities Inc. is putting the finishing touches on a 40,000 square foot multi-tenant cargo facility. It’s one of largest and most advanced of its kind north of Miami, and will serve as a draw for new air cargo activity.

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Air Service Scheduled and Charter Passenger Services

Scheduled and Charter Passenger Air Carriers

17 Domestic Destinations

12 Transborder (USA) Destinations

16 International Destinations

21 Passenger Air Carriers

11 Cargo Carriers

Calgary, AB Charlottetown, PE Deer Lake, NL

Atlanta, Georgia Boston, Massachusetts Chicago, Illinois

Bermuda – Hamilton Cuba – Cayo Coco, Holguin, Santa Clara, Varadero

Air Canada Air Canada Jazz Air Georgian

ABX Air Air Canada Asiana Airlines

Edmonton, AB Fredericton, NB Gander, NL Goose Bay, NL Hamilton, ON London, ON Moncton, NB Montréal, QC Ottawa, ON Saint John, NB St. John’s, NL Sydney, NS Toronto, ON Yarmouth, NS

Detroit, Michigan Ft. Lauderdale, Florida Newark, New Jersey New York (JFK), New York New York (LGA), New York Orlando, Florida Portland, Maine St. Petersburg, Florida Washington (IAD), DC

Dominican Republic – Puerto Plata, Punta Cana France – Paris Germany – Frankfurt Iceland – Reykjavik Jamaica – Montego Bay Mexico – Cancun St. Pierre et Miquelon United Kingdom – Glasgow, London (Gatwick), London (Heathrow)

Air St. Pierre Air Transat American Airlines CanJet Airlines Condor Flugdienst Continental Airlines Corsair Delta Air Lines Flyglobespan Icelandair Northwest Airlines Porter Airlines SkyService Airlines Starlink Aviation Sunwing Airlines Thomas Cook (UK) United Airlines WestJet

CargoJet Challenge Air Cargo Icelandair Kelowna Flightcraft (Purolator) Korean Air Cargo Morningstar Express (FedEx) Prince Edward Air Worldwide Perishables Canada

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Five-Year Forecast A C T U A L

F IVE -Y E A R F OR E C A S T

*

YEAR

2007

2008

2009

2010

2011

2012

2013

2014

Passenger Volume

3,469,062

3,578,931

3,417,164

3,505,185

3,656,790

3,799,185

3,925,597

4,055,453

Per cent Change

2.7 %

3.2 %

-4.5 %

2.6 %

4.3 %

3.9 %

3.3 %

3.3 %

Total Aircraft Movements

89,251

89,033

88,477

90,335

93,316

96,302

98,902

101,375

Per cent Change

3.6 %

-0.2 %

-0.6 %

2.1 %

3.3 %

3.2 %

2.7 %

2.5 %

Capital Expenditures

$ 20,542

$ 78,211

$ 63,659

$ 28,900

$ 13,243

$ 10,127

$ 11,970

$ 11,596

$ 4,093

$ 3,825

$ 3,290

$ 4,220

$ 4,411

$ 4,608

$ 4,811

$ 5,022

($ 000’s)

Rent Payable to Transport Canada ($ 000’s)

* The forecast figures indicated are subject to change pending completion of the ongoing development of an updated Master Plan and 10-Year Capital Plan. 2 0 0 9

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When it comes to superior customer service, the best airports in the world measure themselves against Halifax Stanfield International Airport. Year after year, we continue to set the global standard, driven by our commitment to delivering excellence in customer service. That’s our promise.


Delivering on a Promise Want to know the secret of Halifax Stanfield International Airport’s world-recognized customer service? It’s in the positive approach: from the moment you step into the building to the time you reach your gate, you’re met by friendly, courteous people, each one willing to answer a question or lend a hand. It’s all in the comforting details: a blanket and a cup of tea for a weary, storm-stayed traveller, or the ease of booking a flight through the airport’s new web site.

Delivering the world’s best customer service Once again, Halifax Stanfield International Airport (HSIA) is setting the world standard for airport customer service. In the 2009 Airport Service Quality (ASQ) passenger ratings, our airport earned two awards: ‹-VY[OLZL]LU[OZ[YHPNO[`LHY!-PYZ[PUV]LYHSSWHZ ZLUNLYZH[PZMHJ[PVUMVYHPYWVY[Z^VYSK^PKLPUP[Z JSHZZ\UKLYÄ]LTPSSPVUWHZZLUNLYZ ‹:LJVUKPU[OL)LZ[(PYWVY[5VY[O(TLYPJHJH[LNVY` :PUJLP[ÄYZ[Z[HY[LKWHY[PJPWH[PUNPU[OL(:8 WYVNYHTPU/:0(OHZLHYULKH[V[HSVM H^HYKZ!ÄYZ[WSHJLZL]LUZLJVUKWSHJLHUK[^V [OPYKWSHJLÄUPZOLZ

Most of all, it’s in the obvious pride of purpose shared by every member of the airport community. From Halifax International Airport Authority’s employees and volunteers to retail partners, airline employees to service staff, together we’re one team, embodying one vision: “Great people delivering the best airport experience in the world.�

;OLYPNVYV\Z(:8YH[PUNZWYVNYHTHUPUP[PH[P]LVM (PYWVY[Z*V\UJPS0U[LYUH[PVUHSTLHZ\YLZZLWHYH[L LSLTLU[ZVMWHZZLUNLYHPYWVY[L_WLYPLUJL\ZPUN KH[HNLULYH[LK[OYV\NOJ\Z[VTLYZ\Y]L`Z0U  HPYWVY[Z^VYSK^PKLWHY[PJPWH[LKPU[OLZ\Y]L` PUJS\KPUN(TZ[LYKHT:JOPWOVS)LPQPUN+HSSHZ +LU]LY/VUN2VUN:LV\S0UJOLVUHUK:PUNHWVYL HUK*HUHKPHUHPYWVY[ZPU*HSNHY`,KTVU[VU 4VU[YtHS6[[H^H8\LILJ*P[`;VYVU[V=HUJV\]LY HUK>PUUPWLN

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In July, Hudson Group opened a Travel + Leisure store featuring luggage and travel accessories, maps and travel guides.

In December, the Airport Authority launched its new flyhalifax.com web site.

Travellers and visitors stay connected and productive at HSIA with free Wi-Fi service.

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“Let’s face it: air travel can be stressful sometimes,” says Kelly Martin, Customer Relations Manager for Halifax International Airport Authority (Airport Authority). “Flight delays, missed connections, or heavy traffic on the way to the airport can make even the most seasoned traveller a little anxious. However, if you can put a smile on someone’s face, it changes the whole experience.” At Halifax Stanfield International Airport (HSIA), that’s the essence of our promise. For the thousands of people who pass through our doors every day, from all over the world – whether arriving, departing or en route to somewhere else, our goal is simple: To make their time with us as relaxing, enjoyable and stress-free as possible.

there, coordinating responses and following them through to completion. Thanks to our HSIA advisory council, established in 2009, we can stay attuned to travellers’ needs. In essence a virtual focus group, the 150-member council – made up of airport customers – provides us with valuable and topical feedback through regular e-mail surveys. Planning air travel was made even easier in 2009 with the launch of the Airport Authority’s new web site. Visitors can check flight availability to any destination, compare prices on multiple sites, and book their flight online from the comfort and convenience of their home, office or anywhere they have Internet access.

Building on a promise With completion of the groundside redevelopment program, we transformed the public face of the airport. Every element of our wonderful new facility, from the design and features of the parkade to the flow of passengers through the spacious, bright terminal building, is designed to enhance visitor convenience, comfort and ease. In an operation as complex as an airport, all sorts of operational issues – big and small – crop up every day. Resolving them quickly and efficiently is paramount. Our new airport service centre, opened in 2009, provides a centralized system for doing just that. From “There’s a light bulb burned out” to “At what gate should we park this aircraft?” our airlines and partners need only call one number, once. Our airport service centre takes it from H A L I F A X

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Airport Authority airfield and terminal maintenance crews keep airport vehicles and infrastructure running in top notch shape.

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Airport Volunteers are the heart and soul of our customer service team, helping the airport achieve world’s best in overall passenger satisfaction in its class for seven straight years.

Meeting the needs of our Francophone customers is a priority for the Airport Authority. So, we appointed an Official Languages Act champion to move us closer to full compliance under the Act. In 2009, the Office of the Commissioner of Official Languages completed an audit – the first such audit of an airport authority in Canada. We look forward to receiving the report and its recommendations, which we expect will set the standard for the delivery of French-language services in airports across Canada.

Setting the standard for the world Every year, the prestigious Airport Service Quality ratings define service delivery excellence in our industry worldwide. The results are based on passenger surveys and are independently managed. For an amazing seventh straight year, HSIA was ranked the world’s best in overall passenger satisfaction for airports under five million passengers. How does a relatively small airport like HSIA emerge as a global leader in customer service? “The answer is simple: it’s our people. They are our greatest asset and the reason why we continue to achieve worldwide recognition,” says Tom Ruth, Airport Authority President & CEO. “Year after year, these awards are a testament to the genuine pride of purpose shared by everyone, in every role, across the entire airport community – a pride built on a foundation of ongoing training, feedback, motivation and recognition for exceptional service.”

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Without doubt, HSIA’s treasured volunteer hosts – who celebrated their ninth anniversary in 2009 – are the heart and soul of our customer service team. Dubbed the “Tartan Team” for their distinctive Nova Scotia tartan vests, these dedicated ambassadors are at the airport every day, offering a warm, friendly welcome and a helping hand to travellers and visitors alike.

Delivering the Halifax Stanfield International Airport difference We believe an airport can be more than simply a transition point for passengers on their way to or home from somewhere else. Thanks to our signature strengths – outstanding people, services and facilities – we’re constantly recreating our airport as something more: a calming oasis for both travellers and visitors. As Kelly Martin says, “We want people to look forward to arriving at our airport. We want to deliver a positive and enjoyable travel experience.” That’s the Halifax Stanfield International Airport difference.

In 2009, the Airport Authority opened its airport service centre to centralize operational calls and deal efficiently with their resolution.

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Think of values as the compass of an organization. Inherent in all of our corporate values is a commitment to safety, security and service. Using this commitment as a base, our values guide our thinking, shape our strategic direction and frame our decisions. Even through the economic uncertainty that defined 2009, Halifax International Airport Authority stayed true to this compass and clear direction.


Delivering on Our Values Our corporate values and culture define who we are and how we operate – from our industry leadership in risk management to our commitment to environmental excellence. Our values guide how we approach our relationships, with Halifax International Airport Authority (Airport Authority) colleagues, with our airline and retail partners and beyond – as leaders in building a better community. Our values drive the Airport Authority’s vision: “Great people delivering the best airport experience in the world.”

Delivering safety first Safety and security: In airport operations, these are top priority. For the Airport Authority, ensuring the safety of everyone we encounter, in any way, under any circumstance, is a core value that influences every decision and every action. In the process, we’re creating one of the safest and most secure airports anywhere.

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The nature of our business is complex and inherently risky, so anticipating and managing all manner of risk is paramount. Several years ago, the Airport Authority embarked on a comprehensive initiative to identify, assess and put in place the means to manage the full range of potential hazards across our entire operation. The result? In 2009, the Airport Authority became a leader in implementing an enterprise risk management policy. This means we’re fully aware of the risks, and have clear systems in place to deal – effectively, quickly and decisively – with any possible situation. On the aviation side of our operations, our Safety Management System (SMS) identifies and reduces those hazards that could cause an accident or damage an aircraft – from birds or wildlife on the airfield to debris being swept up into an aircraft engine. A Transport Canada program implemented by the Airport Authority, SMS complements the broader enterprise risk management initiative, as both focus on reducing risk through corrective action. In 2009, the Airport Authority successfully completed Phase Two of the four-phase SMS program, and is preparing to move on to Phase Three in 2010. Our culture of safety means the Airport Authority looks for ways to deliver more than what’s required. For example, our new fire hall – due to open in 2010 as part of the combined services complex – will meet the International Civil Aviation Organization’s standard for crash response, the highest such standard in the world.

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Delivering environmental excellence The Airport Authority goes green – from its award winning falconry program to its new environmental management system.

The Airport Authority started using natural gas in 2009 to heat the terminal building.

Airport Authority employees give back as they present Feed Nova Scotia with a donation cheque in December.

20

Achieving environmental excellence is a cumulative process: the combination of hundreds of thousands of actions – large and small – every day, by everyone across the airport community. In 2009, the Airport Authority continued building on its green momentum. For example, we took steps to develop a comprehensive Environmental Management System (EMS) for the airport, which will be phased in over the next two to three years. Similar to SMS, EMS identifies activities that could have a negative impact on the environment and develops processes to better manage these activities, striving for continual improvement. As well, we teamed up with Clean Nova Scotia to encourage drivers to reduce idling and we continued working with our airline partners to replace hydrocarbon-fuelled ground equipment with battery powered vehicles. Then there’s our combined services complex – a stateof-the-art, energy efficient facility that will be home to the airport’s emergency response services and airfield maintenance teams. The complex will be built to Leadership in Energy and Environmental Design (LEED) specifications, marking the first building of its kind for the airport. LEED Canada identifies six categories of environmental sustainability that need to be followed for certification. One of our biggest environmental accomplishments came with the change-over from oil to natural gas. While the Airport Authority’s agreement with Heritage Gas was

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signed in 2008, the actual service started in 2009. Not only is the terminal building now heated with natural gas, many of the airport’s hangar line tenants have also converted.

Delivering on our commitment to the community The Airport Authority believes a great airport is more than a physical asset. Delivering the best airport experience in the world takes engaged, committed people, from our

A top priority – the Airport Authority’s safety management system focuses on reducing risk through corrective action.

A U T H O R I T Y


employees to our partners across the airport community. In 2009, we continued nurturing and building these core relationships. On the employee side, changes from the new collective agreement, ratified in 2008 and signed in 2009, were implemented. As part of this agreement, a new job evaluation process was introduced, replacing the previous federal government model. This new process better aligns job descriptions with the type of work being done today in our organization. Building a strong, open and productive relationship with all employees is a shared priority at the Airport Authority. In 2009, we continued working towards this goal through several initiatives, including a two-day session in April where, with the assistance of skilled negotiators from Human Resources and Skills Development Canada, both parties explored alternatives to a more productive relationship. For the Airport Authority, developing the leadership potential of our managers and supervisors throughout the organization is more than a “nice to do.” It’s a strategic imperative. That’s why we partnered with a leading learning organization and introduced our Active Leadership Program. Designed for employees in leadership or supervisory positions, this program will be cascaded through the organization over the next several years. For travellers and visitors, our retail partners are on the front lines of delivering the airport experience. That’s why it’s important we ensure our tenants are provided with every chance to be successful. In 2009, we undertook several initiatives, including revitalizing the Halifax Stanfield 2 0 0 9

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Committed to building strong, open and productive relations between union and management personnel, the Airport Authority undertook several initiatives, including an Active Leadership Program.

Merchants Association and developing a new marketing plan for our retailers – all designed to help build productive and mutually beneficial relationships between the Airport Authority and our business partners. Year after year, Airport Authority employees distinguish themselves as passionate, caring community builders. Whether as volunteers or fundraisers, our committed team of employees pulls together, time after time, to make a difference. For example, despite the economic downturn in 2009, our United Way workplace campaign raised over $22,200, while our team in the annual Manulife dragon boat festival raised $5,400 for amateur sport in Nova Scotia – the third highest amount from across the corporate community. Whether supporting community organizations through our union-management sponsored Humanities Fund, partnering with Air Canada on its annual Dreams Take Flight initiative for disadvantaged children, or donating funds to Feed Nova Scotia, Airport Authority employees take pride in giving back to their community.

In 2009, the Airport Authority signed a new collective agreement with its unionized staff, and introduced a new job evaluation process.

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@3AC:BA

In the face of a turbulent 2009, Halifax International Airport Authority stayed on strategy, successfully delivering on all major capital projects, growing our business, and ending the year with a financial surplus. And we accomplished this by drawing on our trademark strengths: prudent planning supported by engaged, committed people who know what needs to be done to deliver results.


Delivering Results When the full impact of the global financial downturn became clear in early 2009, Halifax International Airport Authority took action. Instead of waiting out the recession, we immediately responded by revising our revenue forecasts and adjusting our business plan, without compromising safety, security and service. With the support of our employees, Halifax International Airport Authority (Airport Authority) successfully navigated the economic downturn – and its impact on air traffic – with an aggressive air service growth strategy and a review of every aspect of our business to reduce expenses from plan and optimize revenues. And it worked. While passenger numbers may have taken a hit at the beginning of 2009, we managed the impact, ending a challenging year with a respectable $3.3 million surplus and looking forward with optimism to 2010.

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Delivering economic growth in Nova Scotia When you consider that Halifax Stanfield International Airport contributes more than $1.27 billion to the Nova Scotia economy, it’s more than an airport. As a major economic, fiscal and employment generator, the airport is a powerful asset to Halifax, to the province and, indeed, to the Atlantic region. Looking at the entire airport community – airlines, air freight firms, the Airport Authority, retailers, aviation service providers, and other companies supporting the air transportation industry – the cumulative economic impact of Halifax Stanfield International Airport is similar to that of a town: Total Provincial Benefit t$1.27 billion in gross output t$340 million (since 2000) in renovation and new construction tMajor tourism gateway to Nova Scotia Wages and Salaries t$455.8 million in total wages and salaries t $199 million direct (airport-related activity) t $109.5 million indirect (generated by a sector that supplies raw materials associated with direct economic activity) t $147.3 million induced (generated by individuals employed in direct or indirect sectors) Fiscal Impact tAirport community employees pay $55 million in personal income tax to the province of Nova Scotia tAirport community employees spend almost $21 million in retail sales tax Employment (full-time equivalent) t12,575 jobs attributable to the airport – equal to 2.8% of Nova Scotia’s total employment t 5,490 direct Source: HSIA 2008 Economic Impact t 3,020 indirect Report, prepared by Chris Lowe Planning t 4,065 induced & Management Group, September 2009

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Early in 2009, it became clear the revenue and expenditure assumptions upon which the Airport Authority had originally built the year’s business plan would not hold. The deepening recession, including record-high oil prices and the credit crisis, was already taking its toll. By the end of the first quarter of 2009, passenger traffic through Halifax Stanfield International Airport (HSIA) had fallen by 11.5 per cent. The Airport Authority took immediate action. We re-forecast our budget early in 2009, making further adjustments mid-way through the year. Based on these new revenue

forecasts, we then revised the 2009 business plan. From the outset, we chose to protect key strategic initiatives and continue delivering on major capital projects. To do so, we engaged our employees to identify and help realize operational cost savings, without compromising our industry-leading standards of safety, security and service – and without resorting to mandated targets. Our objective in 2009 was simple, although ambitious: To get through the year with a positive bottom line. And we succeeded. In 2009, the Airport Authority earned revenues

Standard & Poor’s once again affirmed the Airport Authority’s A+ credit rating.

Following the opening of the parkade in March, the vehicle rental companies relocated to their convenient new home on the lower level. Halifax Stanfield International Airport is a major economic, fiscal and employment generator contributing more than $1.27 billion to the Nova Scotia economy.

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of $62.1 million, up from $54.4 million in 2008. The opening of the airport’s 2,300-space parkade in March 2009, including a newly-constructed vehicle rental concession within the parkade, provided an enhanced level of service to customers and helped contribute positively to the Airport Authority’s 2009 financial results. Revenues from Airport Improvement Fees (AIF), collected from airline passengers travelling through HSIA and used to support capital improvements at the airport, totalled $18.2 million in 2009, up from $13.2 million in 2008. The AIF is an important source of revenue to the Airport Authority which, along with debt and operational surpluses, allows us to provide the infrastructure needed to grow the airport for the economic well-being of the region. On March 1, 2009, to support enhanced infrastructure requirements, we increased the AIF from $10 to $15 per departing passenger. At $15, HSIA’s AIF is still among the lowest of the international airports in Canada. After a disappointing first quarter, passenger traffic numbers steadily strengthened over the course of the year. While 2009 ended with 3,417,164 passengers, down 4.5 per cent from the record in 2008, these results were better than the average Canadian decline. More significantly, in the fourth quarter of 2009, passenger numbers were up 1.4 per cent over the last quarter of 2008, suggesting that the worst of the recession was behind us. Based on these trends, the Airport Authority currently forecasts passenger traffic to increase by 2.6 per cent in 2010. Total expenses in 2009 were $58.8 million, compared to $54.8 million in 2008. Several increases over the previous year are tied to strategic initiatives and the cost of 2 0 0 9

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operating new infrastructure such as the parkade. These increases are offset by expense reductions in general and administrative due to cost-cutting initiatives. Ground lease rent, payable to the federal government, was reduced by $0.5 million from 2008; however effective January 2010, under a revised rent formula which is tied to gross revenue, ground lease rent is expected to increase by roughly $1 million year over year. Overall, revenues exceeded expenses by $3.3 million. This surplus will be retained and reinvested in airport operations and development. We worked cooperatively with Halifax Regional Municipality (HRM) to renew our development grant agreement, which determines how our property taxes will be calculated for the next five years. Under the agreement, HRM taxation revenue will grow while we enjoy stability and predictability in our property tax expense. We are pleased to report that Standard & Poor’s, our credit rating agency, once again affirmed our A+ credit rating. In its report, the agency complimented the Airport Authority on being an organization with its finger on the pulse, one that reacts quickly to changing circumstances and is prepared to do what needs to be done to minimize losses. Ultimately, the Airport Authority’s successful navigation of a challenging year is a testament to the power of teamwork. Throughout the organization, our people pulled together strategically and creatively to reduce expenses and optimize revenues. Thanks to their diligence and collective commitment, Halifax International Airport Authority is well-positioned at the leading edge of the coming economic recovery. Together, we delivered results.

In 2009, revenues exceeded expenses by $3.3 million – this surplus is retained and reinvested in airport operations and development by the Airport Authority.

Following a weak first quarter, passenger numbers strengthened over the course of the year, ending with 3,417,164 passengers, down 4.5 per cent from the record in 2008.

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Financial Statements 26

AUDITORS’ REPORT To the Directors of the Halifax International Airport Authority We have audited the balance sheet of the Halifax International Airport Authority [the “Authority”] as at December 31, 2009 and the statements of operations and changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Authority’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the Authority as at December 31, 2009 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

Halifax, Canada February 22, 2010

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Chartered Accountants


F I N A N C I A L S TAT E M E N T S

[in thousands of dollars]

Balance Sheet

2009 $

2008 $

3,130 5,650 716 781 10,277 305,089 4,127 1,406

445 4,959 594 765 6,763 253,774 4,127 829

320,899

265,493

– 20,014 1,546 56,080 77,640 149,357 1,439 228,436

1,202 22,259 1,540 80 25,081 149,426 1,882 176,389

92,463

89,104

320,899

265,493

A S S E TS

Current Cash Accounts receivable Inventories Prepaid expenses

As at December 31

Capital assets, net [note 3] Debt Service Reserve Fund [note 4] Accrued benefit asset [note 7]

L IA B IL ITIE S A ND NE T A S S E TS

Current Bank overdraft Accounts payable and accrued liabilities Deferred revenue Current portion of long-term debt [note 4] Long-term debt [note 4] Security deposits Commitments [note 6] Contingencies [note 10]

Net assets Equity in capital assets [note 5]

See accompanying notes

On behalf of the Board:

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Director

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F I N A N C I A L S TAT E M E N T S

[in thousands of dollars]

Statement of Operations and Changes in Net Assets Year ended December 31

2009 $

2008 $

14,327 9,785 9,003 8,496 1,992 235 67 43,905 18,219 62,124

13,605 8,733 9,154 6,224 1,948 146 1,378 41,188 13,167 54,355

15,386 14,921 12,436 7,727 3,714 3,290 1,371 58,845

14,229 13,825 10,379 6,969 4,225 3,825 1,350 54,802

3,279 89,104 92,383 80 92,463

(447) 89,471 89,024 80 89,104

REVENUES

Terminal and passenger security fees Concessions Landing Fees Parking Rental Other Interest Airport improvement fees [note 5]

EXPENSES

Salaries, wages and benefits Materials, services and supplies Amortization Interest on long-term debt [note 4] General and administrative Ground lease rent Property taxes

Excess of revenues over expenses (expenses over revenues) for the year Net assets, beginning of year Net assets Amortization of deferred financing costs Net assets, end of year [note 5] See accompanying notes

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A I R P O R T

A U T H O R I T Y


F I N A N C I A L S TAT E M E N T S

[in thousands of dollars]

2009 $

2008 $

3,279

(447)

12,436 (577)

10,379 (454)

(3,511) 11,627

7,140 16,618

(63,659) (63,659)

(78,211) (78,211)

56,000 (1,202) (81) 54,717

– 1,202 (81) 1,121

2,685 445 3,130

(60,472) 60,917 445

O P E R ATIN G A C T I VI TI E S

Statement of Cash Flows Year ended December 31

Excess of revenues over expenses (expenses over revenues) for the year Items not affecting cash: Amortization Accrued benefit asset Net change in non-cash working capital balances related to operations Cash provided by operating activities IN V E S TIN G A C TIVI TI E S

Expenditures on capital assets Cash used in investing activities FIN A N C IN G A C TI VI TI E S

Proceeds of long-term debt (Repayment of) increase in bank overdraft Decrease in deferred rent Cash provided by financing activities Net change in cash during the year Cash, beginning of year Cash, end of year See accompanying notes

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December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

30

1. GENERAL

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Halifax International Airport Authority [the “Authority”] was incorporated on November 23, 1995 as a corporation without share capital under Part II of the Canada Corporations Act. On February 1, 2000, the Authority signed a 60-year ground lease with Transport Canada and assumed responsibility for the management, operation and development of the Halifax Robert L. Stanfield International Airport [the “Airport”]. Excess revenues over expenses are retained and reinvested in airport operations and development. The Authority is a dynamic and multi-faceted aviation enterprise connecting Nova Scotia to the world through flight. The Halifax Robert L. Stanfield International Airport is the largest airport in Atlantic Canada, and the region’s gateway to the world. The Authority is governed by a Board of Directors whose members are nominated by the Halifax Regional Municipality, the Province of Nova Scotia and the federal Government, as well as the Halifax Chamber of Commerce. The nominated members can also appoint additional members who represent the interests of the community. The Authority is exempt from federal and provincial income tax, federal large corporations tax, and Nova Scotia capital tax.

The Authority’s financial statements have been prepared in accordance with Canadian generally accepted accounting principles. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities at the date of the financial statements and the reported amounts of certain revenues and expenses during the year. Actual results could differ from those estimates.

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Inventories Inventories consist of materials, parts and supplies and are stated at the lower of cost, determined on an average cost basis, and net realizable value. Ground lease The ground lease with Transport Canada is accounted for as an operating lease.

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N O T E S T O F I N A N C I A L S TAT E M E N T S

December 31, 2009 [all amounts listed in tables are in thousands of dollars]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Capital assets Capital assets are recorded at cost including interest on funds borrowed for capital purposes, net of contributions and government assistance, and are amortized over their estimated useful lives on a straight-line basis at the following rates: Computer hardware and software Leasehold improvements Machinery, equipment, furniture and fixtures Vehicles

20% - 33% 2.5% - 10% 5% - 20% 5% - 17%

Construction in progress is recorded at cost and is transferred to leasehold improvements when the projects are complete and the assets are placed into service. Revenue recognition Landing fees, terminal fees, parking revenues and passenger security fees are recognized as the airport facilities are utilized. Concession revenues are recognized on the accrual basis and calculated using agreed percentages of reported concessionaire sales, with specified minimum guarantees where applicable. Rental revenues are recognized over the terms of the respective

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leases, licenses and permits. Airport improvement fees [“AIF�] are recognized when originating departing passengers board their aircraft as reported by the airlines. Deferred revenue consists primarily of a portion of the common-use terminal equipment fees required for future capital acquisitions. These revenues are recognized as the related capital acquisitions are in use. Employee benefit plans The Authority sponsors a pension plan on behalf of its employees which has defined benefit and defined contribution components. In valuing pension obligations for its defined benefit component, the Authority uses the accrued benefit actuarial method prorated on services and best estimate assumptions. Pension plan assets are valued at current market values. The excess of the accumulated net actuarial gain or loss over 10% of the greater of the accrued benefit obligation and the fair value of the plan assets is amortized over the average remaining service life of employees. Defined contribution component amounts are expensed as incurred.

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December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Financial instruments The Authority’s financial instruments consist of cash, Debt Service Reserve Fund, accounts receivable, accounts payable and accrued liabilities and long-term debt. Accounts receivable are classified as loans and receivables and are accounted for at amortized cost. Cash and the Debt Service Reserve Fund are classified as held-for-trading and are recorded at fair value with realized and unrealized gains and losses reported in earnings in the period during which they arise. Accounts payable and accrued liabilities and long-term debt are classified as other liabilities and are accounted for at amortized cost with gains and losses reported in earnings in the period during which they arise. The Authority has no held-tomaturity or available-for-sale financial assets. Transaction costs are capitalized and added to the cost of financial assets and liabilities not classified as held-for-trading. Derivative financial instruments and hedges Derivative financial instruments, including interest rate swaps, may be used from time to time to reduce exposure to fluctuations in interest rates. Hedging relationships that meet stringent documentation requirements, and can be proven to be effective both at the inception and over the term of the relationship qualify for hedge accounting.

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The effective portion of the change in the fair value of hedging derivatives is recorded in accumulated unrealized changes in net assets and reclassified to earnings in the same period the related hedged item is realized. Any ineffective portion of the change in fair value of hedging derivatives is recognized in net earnings in the reporting period. Derivative financial instruments that are not designated by the Authority to be in an effective hedging relationship or where documentation and effectiveness requirements are not met, will be carried at fair value with the changes in fair value, including any payments and receipts made or received, being recorded in interest and financing costs in the reporting period. Realized and unrealized gains or losses associated with derivative financial instruments, which have been terminated, de-designated from a hedging relationship or cease to be effective prior to maturity, will be deferred in net assets and recognized in the period in which the underlying hedged item is realized. In the event a designated hedged item is sold, extinguished or matures prior to the termination of the related derivative financial instrument, any realized or unrealized gain or loss on such derivative financial instrument will be recognized in the statement of operations.

A U T H O R I T Y


N O T E S T O F I N A N C I A L S TAT E M E N T S

December 31, 2009 [all amounts listed in tables are in thousands of dollars]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Derivative financial instruments and hedges (continued) Deferred financing costs amounting to $2.761 million relate to a cash flow hedge, which was discontinued before the end of the original hedge term. The balance of these costs was allocated to net assets on January 1, 2007, the date the hedge was discontinued. The deferred costs are being amortized over the remaining term of the previously hedged instruments. The amortization related to the current year is $80,000 [2008 – $80,000] and cumulative amortization to date is $240,000. Accounting Policies Adopted in 2009 Capital disclosures Effective January 1, 2009, the Authority adopted the Canadian Institute of Chartered Accountants [“CICA”] Handbook Section 1535: Capital Disclosures. This standard requires an entity to disclose their objectives, policies and processes for managing capital, including quantitative data about what it regards as capital; whether it has complied with any externally imposed capital requirements and, if not, the consequences of such non-compliance. The adoption of this Section did not have an impact on the financial results other than the inclusion of additional disclosure in note 8.

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EIC-173, Credit risk and the fair value of financial assets and financial liabilities On January 20, 2009 the Emerging Issues Committee [“EIC”] issued EIC 173 Credit risk and the fair value of financial assets and financial liabilities. The abstract concludes that an entity’s own credit risk and the credit risk of the counterparty should be taken into account when determining the fair value of financial assets and financial liabilities, including derivative instruments. This abstract is to apply to all financial assets and liabilities measured at fair value in annual financial statements for periods ending on or after January 20, 2009. The adoption of this abstract did not impact the Authority’s financial results. Financial instruments – disclosures In June 2009, the CICA Handbook amendments to Standard 3862: Financial Instruments – Disclosures were adopted to include additional disclosure requirements about the fair value measurement of financial instruments and to enhance liquidity risk disclosures. The adoption of this amendment did not impact the Authority’s financial results.

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December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

3. CAPITAL ASSETS

Capital assets consist of the following: 2009

Computer hardware and software Leasehold improvements Machinery, equipment, furniture and fixtures Vehicles Construction in progress

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H A L I F A X

2008

Cost $

Accumulated amortization $

Net book value $

Net book value $

6,466 299,065

5,756 33,261

710 265,804

1,120 180,701

9,190 8,620 29,851

4,285 4,801 –

4,905 3,819 29,851

3,597 4,496 63,860

353,192

48,103

305,089

253,774

I N T E R N A T I O N A L

A I R P O R T

A U T H O R I T Y


December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

4. LONG-TERM DEBT

Long-term debt consists of the following:

5.503%, non-amortizing Series A Revenue Bonds due July 19, 2041. Interest payable semi-annually in arrears on January 19 and July 19 of each year until maturity, which commenced on January 19, 2007. Term credit facility, bearing interest at the quoted bankers’ acceptance rate plus 27.5 bps on the first $30 million and at the quoted bankers’ acceptance rate plus 100 bps on the remaining $50 million, convertible to a term loan on or prior to October 31, 2011. Transport Canada deferred rent, non-interest bearing, repayment in monthly installments of $6,700 which commenced in 2006. Less current portion Less transaction costs net of accumulated amortization

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2009 $

2008 $

150,000

150,000

56,000

482 206,482 56,080 1,045

563 150,563 80 1,057

149,357

149,426

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December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

4. LONG-TERM DEBT (CONTINUED)

Bond issue In July 2006, the Authority completed a $150 million Revenue Bond issue. The $150 million 5.503% Series A Revenue Bonds are due on July 19, 2041. The net proceeds from this offering were used to finance the Capital Plan and for general corporate purposes. The bonds are direct obligations of the Authority ranking pari passu with all other indebtedness issued under the Master Trust Indenture. Credit facilities The Authority has authorized credit facilities with the Canadian Imperial Bank of Commerce, which provide the Authority with a $4.3 million revolving operating facility, a $80 million revolving term credit facility, and a $10.2 million letter of credit facility. These facilities are secured under the Master Trust Indenture and are available by way of overdraft, prime rates loans, or bankers’ acceptances. As at December 31, 2009, $10.2 million of the letter of credit facility had been committed, with $8.1 million designated to the Operating and Maintenance Reserve Fund, and $2.1 million designated to pension plan funding regulations.

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A I R P O R T

Reserve funds Pursuant to the terms of the Master Trust Indenture, the Authority is required to establish and maintain with a trustee a Debt Service Reserve Fund. The balance within this fund must be equal to at least 50% of annual bond debt service costs. As at December 31, 2009, the Debt Service Reserve Fund included $4.1 million [2008 – $4.1 million] in interest-bearing deposits held in trust. These trust funds are held for the benefit of bondholders for use in accordance with the terms of the Master Trust Indenture. The Authority is also required to maintain an Operating and Maintenance Reserve Fund of approximately $8.1 million. The balance in the Operating and Maintenance Reserve Fund must be equal to at least 25% of certain defined operating and maintenance expenses for the previous fiscal year. Approximately $8.5 million will be required to fund the Operating and Maintenance Reserve Fund in 2010. The Operating and Maintenance Reserve Fund may be satisfied by cash, letters of credit, or the undrawn availability under a committed credit facility. Capitalized interest Interest on long-term debt amounting to $908,000 [2008 – $1,345,000] was capitalized as part of construction in progress during the year.

A U T H O R I T Y


December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

5. AIRPORT IMPROVEMENT FEES

The AIF is used to fund the cost of the Authority’s capital program and related financing costs, along with debt and operational surpluses. Operational surpluses consist of excess revenue over expenses before depreciation and interest. On January 1, 2001, the Authority implemented an AIF of $10 per local boarded passenger. On March 1, 2009, this fee was changed from $10 to $15 per passenger. The AIF is collected by the air carriers for a fee of 6% under an agreement between the Authority, the Air Transport Association of Canada, and the air carriers serving the Halifax Robert L. Stanfield International Airport. Under the agreement, AIF revenue may only be used to pay for the capital and related financing costs as jointly agreed with air carriers operating at the Halifax Robert L. Stanfield International Airport.

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A summary of the AIF collected and capital and related financing expenditures are as follows: 2009 $

2008 $

19,385 (1,166) 18,219 67 18,286

14,029 (862) 13,167 1,378 14,545

Capital expenditures funded by AIF Interest expense funded by AIF

63,659 7,727 71,386

78,222 6,921 85,143

Excess of expenditures over AIF revenue Excess of expenditures over AIF revenue, beginning of year Excess of expenditures over AIF revenue, end of year

53,100

70,598

204,033

133,435

257,133

204,033

AIF revenue (net): AIF revenue AIF collection costs Interest on surplus funds Net funds received

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December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

5. AIRPORT IMPROVEMENT FEES (CONTINUED)

6. COMMITMENTS

From January 1, 2001 to December 31, 2009, the cumulative capital expenditures funded by AIF totalled $371,203,000 [2008 – $299,817,000] and exceeded the cumulative AIF revenue by $257,133,000 [2008 – $204,033,000].

Transfer agreement Effective February 1, 2000, the Authority signed a 60year ground lease with Transport Canada which provides for the Authority to lease the Halifax Robert L. Stanfield International Airport. A 20-year renewal option may be exercised, but at the end of the term, unless otherwise extended, the Authority is obligated to return control of the Halifax Robert L. Stanfield International Airport to Transport Canada. Lease payments are based on a percentage of gross revenues on a progressive scale. On May 9, 2005, the Government of Canada announced the adoption of a new rent policy which resulted in reduced rent over the long term for Canadian airport authorities, including the Authority. In 2006, this new rent policy began to be phased in. The new formula will achieve its full impact in 2010. The estimated lease obligations over the next five years are approximately as follows: $ 2010 4,220 2011 4,411 2012 4,608 2013 4,811 2014 5,022

Net assets of the Authority as at December 31 are as follows: 2009 $

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2008 $

Net assets provided by AIF Net assets provided by other operations Opening adjustment to net assets

49,951

51,827

45,033 (2,521)

39,878 (2,601)

Net assets, end of year

92,463

89,104

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A I R P O R T

A U T H O R I T Y


December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

6. COMMITMENTS (CONTINUED)

7. PENSION PLAN

Long-term debt – bond issue The $150 million Series A Revenue Bonds yield interest of 5.503% per annum, payable on January 19 and July 19 of each year until maturity. The interest due over the next five years is as follows: $ 2010 8,255 2011 8,255 2012 8,255 2013 8,255 2014 8,255

The Authority sponsors a pension plan [the “Plan”] on behalf of its employees, which has defined benefit and defined contribution components. The defined benefit component is for former Transport Canada continuing full-time employees who were employed by the Authority on February 1, 2000 and previously participated under the Public Service Superannuation Act [“PSSA”] Plan. These employees had the option to elect to become members of the defined contribution component in lieu of the defined benefit component. All other employees became members of the defined contribution component. An actuarial valuation has been prepared as of January 1, 2009 for purposes of funding the Plan. A measurement date of December 31, 2009 has been used for the purposes of the financial statements. The existing Government of Canada pension plan assets and accrued benefit obligations for certain employees have been transferred to the Authority. The pension transfer agreement between Transport Canada and the Authority was finalized during 2004 and the total pension liability has been transferred, fully funded, to the Authority.

Construction in progress At December 31, 2009, the Authority had outstanding contractual construction commitments amounting to approximately $5.8 million [2008 – $22.6 million].

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December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

7. PENSION PLAN (CONTINUED)

The following table provides information concerning the plan assets, accrued benefit obligation, funded status and prepaid (accrued) pension costs of the Plan as at December 31:

Plan assets Accrued benefit obligation Funded status – plan (deficit) surplus Unamortized net actuarial gain (loss) Accrued benefit asset

2009 $ 24,175 (24,897) (722) 2,128 1,406

2008 $ 20,990 (19,224) 1,766 (937) 829

The significant actuarial assumptions adopted in measuring the Authority’s accrued pension benefits are as follows: 2009 2008 % % Discount rate 6.25 7.50 Expected long-term rate of return on plan assets 6.75 6.75 Rate of compensation increase 4.00 4.00 Other information related to the Authority’s defined benefit component is as follows:

Employer’s contribution Employees’ contributions Benefits paid

Equity securities Fixed income securities Real estate securities

2009 $ 1,030 182 556

2008 $ 830 176 600

2009 % 51 39 10 100

2008 % 42 47 11 100

Pension expense for 2009 amounted to $378,000 [2008 – $301,000] for the defined contribution component and $436,000 [2008 – $375,000] for the defined benefit component.

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A U T H O R I T Y


December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

8. CAPITAL RISK MANAGEMENT

The Authority is a corporation without share capital and, accordingly, is funded through operating revenues, AIF revenue, reserve funds, the debt capital markets and its bank credit facility. Aeronautical charges are set each year to cover the projected operating costs, after consideration of the projected air traffic and passenger activity and non-aeronautical revenues. Any funds generated by the Authority are used to cover costs within its mandate. The Authority’s objective for managing capital is to acquire and maintain sufficient capital to safely and effectively manage the Airport’s operations. The Authority aims to manage capital to deliver worldclass facilities and services to the travelling public. The capital managed by the Authority is composed of long-term debt. As at the December 31, 2009, the balance outstanding, excluding any current portion, was $149,357,000 [2008 – $149,426,000]. The Authority’s indebtedness is secured under the Master Trust Indenture, and supplemented from time to time with established common security and a set of common covenants by the Authority for the benefit of its lenders. The covenants that the Authority must meet include two specific coverage tests for operating expenses and debt service payments. The gross debt service covenant states that the total revenue, including 2 0 0 9

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the revenue account balance at the beginning of the year, must at least cover operating expenses, including interest and principal payments. The debt service covenant states that the net revenues for that specific year must be at least 1.25 times the total interest and principal payments for that year. As at December 31, 2009, the Authority was in compliance with all covenants outlined in the Master Trust Indenture. In accordance with the Master Trust Indenture, two reserve funds must also be maintained: a Debt Service Reserve Fund and an Operating and Maintenance Reserve Fund. As at December 31, 2009, the Authority satisfied the requirements of both of these reserve funds. 9. FINANCIAL INSTRUMENTS

Fair value The Authority’s financial instruments consist of cash, Debt Service Reserve Fund, accounts receivable, accounts payable and accrued liabilities and long-term debt. The difference between the carrying values and the fair market values of the financial instruments, excluding long-term debt, are not material due to their short-term maturities. The carrying amount of the current portion of long-term debt approximates its fair value given its nature and mix of floating interest rates and short-term nature. The fair value of the bonds was calculated to be $146,276,000.

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December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

9. FINANCIAL INSTRUMENTS (CONTINUED)

Risk management The Authority is exposed to a number of risks as a result of the financial instruments on its balance sheet that can affect its operating performance. These risks include interest rate risk, liquidity risk, credit risk, and concentration risk. The Authority’s financial instruments are not subject to foreign exchange risk or other price risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Authority is subject to interest rate risk relating to its Debt Service Reserve Fund, and term credit facility. The Authority manages its interest rate risk through the use of fixed-rate financing where applicable. The Authority has entered into fixed rate long-term debt, and accordingly, the impact of interest rate fluctuations has no effect on interest payments until such time as this debt is to be refinanced. However, changes in prevailing benchmark interest rates and credit spreads may impact the fair value of this debt. The Authority’s most significant exposure to interest rate risk relates to its term credit facility. The Authority’s term credit facility, which is in place for the financing of construction costs related to the Authority’s Capital

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Program, is subject to floating interest rates. Management believes that the impact of interest rate fluctuations on construction costs is not material. The Authority’s Debt Service Reserve Fund is subject to changes in interest rates. Management believes that the impact of interest rate fluctuations on the Debt Service Reserve Fund is not representative of the Authority’s exposure as interest income is not essential to the Authority’s operations. These funds are intended for reinvestment in airport operations and development, and not for purposes of generating interest income. If interest rates had been 50 basis points [0.50%] higher/ lower and all other variables were held constant, including timing of expenditures related to the Authority’s capital expenditure programs, the Authority’s earnings for the year would not have been significantly impacted. Liquidity risk The Authority manages its liquidity risk by maintaining adequate cash and credit facilities, by updating and reviewing multi-year cash flow projections on a regular and as-needed basis, and by matching its long-term financing arrangements with its cash flow needs. The Authority has ready access to sufficient financing as well as committed lines of credit through credit facilities with a major Canadian bank. The future annual payment requirements of the Authority’s obligations under its long-term debt are described in note 6.

A U T H O R I T Y


December 31, 2009

N O T E S T O F I N A N C I A L S TAT E M E N T S

[all amounts listed in tables are in thousands of dollars]

9. FINANCIAL INSTRUMENTS (CONTINUED)

10. CONTINGENCIES

Credit and concentration risks The Authority is subject to credit risk through its accounts receivable, which consist primarily of current aeronautical fees and AIF owing from air carriers. The Authority performs ongoing credit valuations of receivable balances and maintains an allowance for potential credit losses. The Authority’s right under the Airport Transfer (Miscellaneous Matters) Act to seize and detain aircraft until outstanding aeronautical fees are paid mitigates the risk of credit losses. The majority of the Authority’s accounts receivable are paid when they are due. A significant portion of the Authority’s revenues, and resulting receivable balances, are derived from air carriers. The Authority derives approximately 54% [2008 – 55%] of its landing fee and terminal fee revenue from Air Canada and its affiliates. Management believes, however, that the Authority’s long-term exposure to any single airline is mitigated by the fact that approximately 80% of the passenger traffic through the airport is origin and destination traffic and therefore other carriers are likely to absorb the traffic of any carrier that ceases operations. In addition, the Authority’s unfettered ability to increase its rates and charges mitigates the impact of these risks.

The Authority may, from time to time, be involved in legal proceedings, claims and litigation that arise in the ordinary course of business which the Authority believes would not reasonably be expected to have a material adverse effect on its financial condition.

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Corporate Governance Halifax International Airport Authority (Airport Authority) is governed by a Board consisting of a maximum of 14 directors nominated by the following entities: Federal Government

2

Provincial Government

1

Halifax Regional Municipality

4

Halifax Chamber of Commerce

3

Airport Authority Board of Directors

4

Generally, a director may serve no more than a total of nine years from the date of transfer, February 1, 2000. Collectively, directors are expected to possess knowledge relating to the aviation industry, air transportation, business, finance, administration, law, government, engineering, labour organizations, and the interests of consumers. The Board oversees the conduct and operation of the Airport Authority; reviews and approves corporate strategies, plans and financial objectives; appoints the Chief Executive Officer; assesses the performance of the Board and the Chief Executive Officer; ensures effective communication with the nominators and the community; and ensures the effectiveness of the Airport Authority’s internal controls and systems in preserving and enhancing the Airport Authority’s assets and pursuing its mission. The Board

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meets as often as is required to carry out its responsibilities and maintains three standing committees that make recommendations to the Board with respect to matters within their jurisdiction: the Governance Committee, chaired by Ken Streatch; the Audit Committee, chaired by Jamie Baillie; and the Capital Projects Committee, chaired by Wadih Fares. The Airport Authority has adopted conflict of interest guidelines to govern the conduct of, and the disclosure and avoidance of conflicts of interest for, all officers and directors. These disclosures are updated as required. During 2009, the Governance Committee of the Board reported that there were no breaches of the conflict of interest guidelines by any officer or director of Halifax International Airport Authority. Compensation of the senior officers and directors of the Airport Authority is reviewed annually. Amounts paid to Airport Authority officers and directors during 2009 follow.

A U T H O R I T Y


Board of Directors Total Compensation Chair: J.R. Winters

$ 60,450

Vice Chair: P. McDonough

$ 31,750

Secretary: J. S. Cowan

$ 29,313

DIRECTORS: J. Baillie

$ 21,050

W. Fares

$ 20,250

P. Gurr*

$ 2,400

J. Hunt

$ 14,050

F. Matheson**

$ 2,726

M. Mullally***

$ 7,425

C. Newcombe

$ 16,450

R. Rideout**

$ 4,326

R. J. Scott

$ 14,450

F. Smithers**

$ 3,526

K. Streatch

$ 21,450

R. Wilber***

$ 6,625

M. Wood-Tweel

$ 14,913

Executive Compensation The salary range for the President & CEO and for the Vice Presidents of the Airport Authority during 2009 was $107,400 to $250,000. In addition to base salaries, annual bonus payments totalling $232,048 were paid during the year. Bonus payments are contingent on individual and corporate achievements. Contracts in excess of $98,725 Halifax International Airport Authority, in accordance with its lease with Transport Canada, is required to report all contracts in excess of $98,725 ($75,000 in 1994 dollars adjusted by the Consumer Price Index) that were entered into during the year and that were not awarded on the basis of a public competitive tendering process. During 2009, the Airport Authority did not enter into any contracts of this type.

* Mr. Gurr resigned from the Board effective December 2008. The compensation represents fees incurred in 2008 and paid in 2009 according to the Airport Authority’s quarterly payment schedule. ** Mr. Matheson, Mr. Rideout and Mr. Smithers terms ended January 2009. *** Ms. Mullally and Mr. Wilber joined the Board effective April 2009.

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Board of Directors J. Robert Winters, QC – Chair Robert is counsel to Burchell MacDougall, Barristers & Solicitors of Truro and Chair of Napwick Holdings Limited, a private holding company. He is past Chair of the Board of Regents of Mount Allison University, and currently serves as a member of a number of corporate advisory boards. Peter McDonough, QC – Vice Chair Peter is a Senior Partner at McInnes Cooper, and has been in practice for over 30 years in the areas of property development and real property (commercial and residential). He has served on the Board of Governors of Dalhousie University, Nova Scotia College of Art & Design, Nova Scotia Special Olympics, and the YMCA. As well, he has been the Vice Chair of the Halifax Industrial Commission and President of the Dalhousie Alumni Association, and is the founding President of the Dalhousie Black & Gold Club.

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A U T H O R I T Y

James S. Cowan, QC – Secretary to the Board Jim is a member of the Senate of Canada where he serves as the Leader of the Opposition. He is also a partner of the law firm Stewart McKelvey. He was the Chair of the Board of Governors of Dalhousie University from 2000 to 2008 and past Chair of the Atlantic Provinces Transportation Commission. Upon his appointment to the Senate in March of 2005, Jim resigned from the Board but continues as Secretary, a position that he has held since 1995.


Board of Directors (continued) Jamie Baillie – Director Jamie is President & CEO of Credit Union Atlantic. Prior to joining the Credit Union, he held various leadership roles in Nova Scotia business and government, including three years as Chief of Staff to the Premier, and as a Partner with Robertson Surrette. He holds a Bachelor of Commerce from Dalhousie University as well as a Chartered Accountant (CA) designation. Jamie’s leadership in both the public and private sectors has been recognized in each of the past three years as one of Atlantic Canada’s Top 50 CEO’s. He is a member of the Board of Governors of Dalhousie University and of the Junior Achievement Nova Scotia Business Hall of Fame. He currently sits on the Board of Directors of Neptune Theatre, Equifax Canada and the Public Service Pension Investment Board, and is co-chair of the 2008 Metro Halifax United Way Campaign.

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Wadih M. Fares P. Eng. – Director With over 25 years of experience, Wadih currently serves as President and CEO of W.M. Fares Group, a building design, project management development firm. He has led his team of professional engineers, architects, planners and supporting staff to the successful completion of many major projects, including hospitality, multi-unit residential and commercial projects throughout Canada. In addition to his work, Wadih is very committed to giving back to the community through a variety of roles, including Honourary Consul of Lebanon for the Maritime Provinces for the past 12 years, Capital Campaign Chair for the Bella Rose Theatre Project, and founder and honourary member of the Canadian Lebanese Chamber of Commerce. Wadih currently sits on the Board of Directors for the Waterfront

47


Board of Directors (continued) Wadih M. Fares P. Eng. – Director (continued) Development Corporation Limited, The Atlantic Institute for Market Studies, Pier 21 Society, and is also a member of the Dalhousie University Board of Governors and the Minister’s Immigration Advisory Council. Wadih has been recognized for his many achievements over the years. In 2009, he was awarded an Honorary Doctorate in Commerce from St. Mary’s University; was presented with the Order of St. Gregory by his Excellency Archbishop Youseff Khoury, an honour conferred upon him by Pope Benedict XVI; received Atlantic Business Magazine’s Top 50 CEO Award; and was the Champion in The Salvation Army Great Stocking Stuffer campaign. Wadih holds a Bachelor of Engineering degree from the Technical University of Nova Scotia and a Diploma of Engineering from Dalhousie University.

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Jeffrey R. Hunt – Director Jeff is a Partner with the Truro office of Patterson Law. He is Chair of the firm’s Litigation Group, with a practice in areas of insurance, employment and general litigation. He has been with Patterson Law since 1992 and a Partner since 1997. Jeff is the Past Division Chair of the United Way of Colchester County Campaign Cabinet, Past Member of the Parish Council and Finance Committee for St. John’s Anglican Church, Board Member and Past Chair of the Bridges Program for Family Counselling, and a Board Member of the Honourable G. I. Smith Memorial Trust. In 2009, Jeff was appointed to the Election Commission of Nova Scotia.

A I R P O R T

A U T H O R I T Y


Board of Directors (continued) Marie Mullally, FCA, MBA – Director Marie Mullally, FCA, MBA, in her nineyear tenure as President and CEO of the Nova Scotia Gaming Corporation (NSGC), has led NSGC in providing more than $1 billion to the Nova Scotia government and becoming recognized as a world leader in responsible gambling programming. Ms. Mullally has served as a member of a number of private, notfor-profit and public sector boards. In 2007, she received a Fellow Chartered Accountants designation and in 2008 was named CA of the Year. Ms. Mullally has also been named one of Atlantic Canada’s Top 50 CEO’s. Cheryl Newcombe – Director Cheryl joined the HIAA Board in July 2005. She is the Controller of Canadian Gold Seafood in Enfield. Cheryl is also on the Halifax Regional Plan Advisory Board, the Board of Beacon House, and is the past Chair of the Halifax Regional Water Commission.

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Robert J. Scott – Director Bob is Executive Vice President of Glenora Distillers International Ltd. and is a former Director of the Small Business Development Corporation for the province of Nova Scotia. He is also a member of the Advisory Board for the proposed Aros Na Mara Marine Science Centre in Iona, Cape Breton. Ken Streatch – Director Ken has over 30 years of senior management experience in both business and government. He is the President and CEO of Sunberry Cranberry Producers Inc., and Chairman of the Board of Atlantic Canada Cranberries Inc. and Atlantic Mist Cranberry Inc. Ken has held a number of portfolios with the government of Nova Scotia, including Minister of Transportation and Communications and Minister of Economic Development.

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Board of Directors (continued) Robin Wilber – Director Robin is President of Elmsdale Lumber Company Limited, a position he has held for over 30 years. He is responsible for the management of day to day operations of the sawmill, and provides leadership and direction to upwards of 60 staff. Robin is also Partner in Wilber & Fenton, a housing development company and Corridor Developments, a residential rental development. He is Executive Director of the Maritime Lumber Bureau, lumber grading committee and Chairman of the national and international promotional committee, and a founding member of the East Hants & District Chamber of Commerce.

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A U T H O R I T Y

Michele A. Wood-Tweel, FCA, CFP, TEP – Director Michele is CEO and Executive Director of the Institute of Chartered Accountants of Nova Scotia (ICANS). Before joining ICANS, she practiced with KPMG LLP for over 20 years in the areas of personal taxation and financial planning. Michele is Chair of Saint Mary’s University Board of Governors and of the University’s Executive and Governance Committees. She is a member of the Board of Trustees of the IWK Health Centre Foundation and a Director of Efficiency Nova Scotia Corporation. Michele has previously served on the Boards of the Halifax-Dartmouth Bridge Commission, The Royal Nova Scotia International Tattoo Society and the Halifax Chamber of Commerce.


DELIVERING


online annual report: www.hiaa.ca/annualreport/2009 1 Bell Boulevard, Enfield, N.S. B2T 1K2 Tel: 902.873.4422 Fax: 902.873.4750

www.flyhalifax.com


HIAA 2009 Annual Report