Airport Improvement Fee to rise by $5
November 13, 2013 (Edmonton, AB) — The Airport Improvement Fee (AIF) at Edmonton International Airport (EIA) will increase by $5, bringing the fee to $30 per departing passenger. The new amount will apply to travel on or after July 1, 2014 for tickets sold on or after February 1, 2014.
Airport Improvement Fees are collected by the major airports in Canada to help offset the costs of infrastructure and capital projects such as runway improvements or construction of new facilities. With the new fees in place, Edmonton’s AIF will now match those across Alberta.
“As the fastest-growing major airport in Canada over the last 10 years, this increase will help fund the growth and maintenance capital plans that we need to reach our target of 10 million passengers per year by 2020,” says Reg Milley, President and CEO of Edmonton Airports.
EIA is a not-for-profit organization that does not receive any government funding. AIF funds are paid only by departing users of the airport, and are used for infrastructure development and improvement. Revenue from other sources, such as parking, concessions and real estate development, are reinvested in the airport to cover its regular operating costs and other expenses, including air service development.
EIA has a strong track record of managing all funding responsibly. This is particularly true with the AIF with EIA having recently undertaken a major expansion project to build a world-class terminal for the region, and delivering the project on time and under budget.
EIA is a major economic driver for Alberta, with total direct and indirect economic impact of $780 million in GDP, and $1.5 billion in economic output as of 2009. EIA also creates over 10,000 direct and indirect jobs.
About Edmonton International Airport:
EIA is Canada’s fifth busiest airport by passenger traffic and the largest major Canadian airport by land area. Canada’s fastest-growing major airport in 2012, EIA serves roughly 7 million passengers per year and offers non-stop connections to nearly 60 destinations across Canada, the US, Mexico, the Caribbean and Europe. For more information about Edmonton International Airport, visit www.flyeia.com.
Airport Improvement Fee
The Airport Improvement Fee (AIF) at Edmonton International Airport (EIA) is increasing from $25 to $30 for travel on or after July 1, 2014 for tickets sold on or after February 1, 2014.
What is an Airport Improvement Fee?
- Airport authorities across Canadian use airport improvement fees to expand and upgrade airport facilities.
- The Airport Improvement Fee is part of the price of an airline ticket purchased by all departing passengers from EIA. This collection method is typical of most airports.
- In Canada, airport authorities are independent not-for-profit corporations that do not receive government funding for the expansion and upgrading of facilities.
- The AIF is a user fee and the only mechanism that allows Canadian airport authorities to generate the necessary revenue to repay the borrowing costs on expanding and upgrading airports.
- As directed by the AIF Memorandum of Agreement, EIA’s AIF revenues can only be used on expansion and upgrading projects.
Why do we need the AIF increase?
- As the fastest-growing major airport in Canada over the last 10 years, EIA’s airport improvement fees need to be in line with its future needs.
- The Edmonton region’s growing economy needs a vibrant EIA with the capacity, services and amenities to attract new air service.
- EIA is expected to meet its current capacity of 10 million passengers per year by 2020. Further expansion and upgrading of facilities are to be funded by the Airport Improvement Fee.
- EIA is a major economic driver for Alberta, with a total economic impact of $780 million in GDP and $1.5 billion in economic output as of 2009, and a contributor of over 10,000 direct and indirect jobs.
How will these funds be used?
AIF funds are used only for costs related to infrastructure development and improvement. For example:
- Maintenance, including runway and apron resurfacing and paving, firefighting equipment and vehicle replacement and upkeep of parking facilities
- Terminal upgrades, including the upgrading of the north section
- Airfield improvements, including additional apron space and taxiways and preliminary work on EIA’s future third runway
- Parking and ground transportation upgrades, including parking lot expansion to meet anticipated passenger growth