ONWARD UPWARD

ONWARD 

and 

UPWARD 

HALIFAX INTERNATIONAL AIRPORT AUTHORITY 

2005 ANNUAL REPORT


and 



2005 ANNUAL REPORT 

CONTENTS 

Left and Cover: 

Architectural renderings 

of Arrivals area upon completion 

of U.S. pre-clearance facility. 

Message From the Chair 4 

Message From the President & CEO 

6 

Improving Facilities and Services 9 

Leveraging Technology 10 

Enhancing Customer Service 13 

Increasing Air Service 15 

Strengthening Community Partnerships 19 

Sustaining Financial Stability 20 

Financial Statements 22 

2005 Board of Directors 29 

Corporate Governance 32 

Five-Year Forecast 34


and 


‘Onward and Upward’ is a 

phrase most often heard when 

transitioning from the completion 

of one phase to the next. In the 

case of Halifax International 

Airport Authority, the organization 

has moved onward from 

expansion, technology and 

runway upgrades completed in 

2005 and upward in anticipation 

of U.S. pre-clearance, in-transit 

facility, and common use 

technology in 2006. 

Construction has brought its own 

challenges but the results are 

worth it. Necessary infrastructure 

and runway safety improvements, 

new common use technology, 

and the south-end commuter 

expansion have served to further 

solidify us as a world-class, 

passenger-focused airport. These 

are just a few of the milestones 

that will help the Airport continue 

upward momentum in 2006. 

Message 

From the Chair 

HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT 

In keeping with tradition, this annual report will look Vice President Operations, Peter Clarke. From February to 

back over the past 12 months and recount the year’s many August, Peter held both positions, demonstrating leadership 

activities. We believe this year’s theme ‘onward and upward’ during that time, and assisting Eleanor as she immersed 

is fitting – it not only acknowledges where we’ve come herself in her new role. 

from, but also aptly describes our desire to continue striving 

In 2005 there were changes to the Board of Directors. 

for excellence. 

In June, we welcomed new member Cheryl Newcombe. 

During 2005 we laid the foundation for significant terminal Cheryl is Comptroller of Lighthouse Lumber Wholesalers 

expansion, as well as new leadership, welcoming Eleanor Limited, and replaces Bernie Miller as the Board nominee 

Humphries as President & CEO in August. 

from the Halifax Regional Municipality. 

Prior to joining Halifax International Airport Authority The year marked the end of Bernie’s term as Chair of the 

(HIAA), Eleanor was the President & CEO of Credit Union Board, a position he held for 10 years. The entire Board 

Atlantic (CUA). She holds her Bachelor of Science and her extends their sincerest gratitude to Bernie for his tireless 

Masters in Business Administration degrees, both from dedication to the Authority over his distinguished and 

Dalhousie University. She has also obtained the Executive prolific tenure as Chair. As well, a special thanks to Bernie 

Management designation from McGill University and her for stepping in, once again, on an operational level as 

FICB (Honours). She has been honoured on three occasions interim Chief Executive Officer from February to August. 

as one of the Top 50 CEOs in Atlantic Canada and received a Bernie remains on the Board as a nominee of the Board itself, 

Distinguished Alumni Award from Armbrae Academy in 2004. the position vacated by Jim Cowan when he was appointed 

to the Senate in March. Congratulations to Jim on this 

We would also like to recognize the tremendous efforts of 

well-deserved accomplishment, and our kindest thanks 

our interim President & Chief Operating Officer, and current



 

for his exemplary service to the Board since its inception 

in 1995. We truly appreciate his decision to continue his 

association with us as Secretary to the Board. 

We also thank and acknowledge retiring Board members 

Stephen Wallace, another one of our original members, and 

Carole Cushing, who joined the Board in 2004, for their 

respective service and contributions to HIAA. 

Throughout 2005 and early in 2006, a number of issues 

arose that the Board will watch closely over the coming 

year, and will no doubt have an impact on our industry 

in the future. In May, the federal government announced 

a new rent policy for federally-owned airports effective 

January 1, 2006. While we have always promoted, and 

will continue to promote, the elimination of airport rent, 

the new policy gives us a reasonable long-term solution 

and methodology that can be applied across the country. 

This reduction in airport rent is a compromise solution, but 

one that will mean a reduction in rent for HIAA. 

In November, the governments of Canada and the United 

States announced amendments to the 1995 Open Skies 

Agreement. These amendments, to take effect in 

September 2006, will provide greater access and pricing 

flexibility for carriers in both countries. This is an exciting 

development for our industry and one that will result in 

increased traffic at airports nation wide. 

In early 2006, the election of a new federal government 

has led to the appointment of a new Minister of Transport, 

Infrastructure and Communities, the Honourable Lawrence 

Cannon. We have also seen several changes on the 

provincial front with the Honourable Rodney MacDonald 

becoming Premier and the appointment of new cabinet 

ministers. We will continue to work with officials at all levels 

of government to keep them well informed, garner their 

support, and together, achieve our vision for our Airport 

and our community. 

I am pleased to have been a part of the Airport community 

during the past year, and look forward to my new role as 

Chair, as we journey onward and upward together. 

Frank Matheson

Message 



 

From the President & CEO 

Eleanor Humphries 

My arrival in August 2005 coincided with major renovations 

both within the air terminal building and to airport runways. 

And while my first six months have been memorable, I can 

already see that these changes made in 2005 have set the 

stage for an exciting future. 

The theme of this year’s annual report ‘onward and 

upward‘ is particularly fitting as we look back on 2005 – a 

year that was defined by changes inside and outside the 

air terminal building in preparation for the arrival of U.S. 

pre-clearance in Halifax. 

U.S. pre-clearance is one of the most significant 

announcements for the Airport, and is slated to open in 

2006. The addition of U.S. pre-clearance provides an 

opportunity to increase routes to and from the United 

States. The ability for more direct and efficient travel will 

benefit both tourism and business, and will positively 

impact economic growth in both Nova Scotia and the 

Atlantic region. 

To facilitate the opening of U.S. pre-clearance we have 

expanded the north-end of the terminal and constructed 

a new wing to the south-end of the building. We have 

added more departure gates and implemented new 

technology and tools throughout the Airport to provide 

the traveling public and our airline partners with improved 

and more efficient facilities. 

But in 2005 we also faced challenges. 

In July, at a critical phase in our runway reconstruction 

project, when the Airport’s instrument landing system was 

unavailable to pilots, we experienced weather conditions 

that caused major inconvenience for visitors. 

During the first two weekends of July, the Airport was 

engulfed by dense fog for upwards of 14 hours. Flights were 

delayed. Passengers were impacted. Travel plans were affected. 

We learned a lot in 2005 about our responsibilities to the 

traveling public, and these lessons have been taken to heart 

as we prepare for the 2006 phase of runway rehabilitation and 

complete the air terminal building renovations. 

What sets our Airport apart is the commitment of the 

whole Airport community to address challenges, as much 

as we celebrate achievements. I would like to thank our 

management team and all our employees and volunteers 

who worked hard during the summer of 2005, and who 

put customers first throughout the year. 

Everything we do at the Airport is geared toward ensuring



 

that airline passengers – our guests – have the best 

experience possible while they are in our terminal. 

We also know that when visitors to our province arrive 

at the Airport, it is often the first impression they have of 

Nova Scotia. We take this responsibility very seriously. 

And to make this happen, every day we look at new 

ways to leverage the best available technology. Every day 

we explore new ways to partner with other businesses, 

our community, stakeholders and retailers. Every day 

we look for new ways to improve customer service for 

passengers. The Airport community is working together to 

build a transportation facility that goes beyond service to 

travelers, by offering amenities and services that appeal 

to the surrounding community and make the Airport a 

destination itself for all to visit and enjoy. Very significant 

strides were taken in 2005 to prepare for the next stage 

of our evolution. 

We have been recognized with three top place finishes 

in the AETRA airport customer satisfaction survey for 

the second year in a row. Against such world renowned 

airports as London (Heathrow), Sydney (Australia), Beijing, 

Denver and Amsterdam, as well as other Canadian airports 

including Vancouver, Edmonton, Ottawa and Toronto, 

Halifax International Airport was rated as the best airport 

in the Americas of any size for overall satisfaction, the best 

domestic airport in the world, and placed first worldwide 

with under five million passengers. 

One of the milestones of 2005 was the celebration of the 

renamed Robert L. Stanfield Terminal Building in honour 

of one of Nova Scotia’s most distinguished native sons, 

the Right Honourable Robert L. Stanfield, who passed 

away on December 16, 2003. An official ceremony unveiling 

the new name was held in the Airport’s Observation 

Flight Deck on September 9, 2005. While Stanfield never 

sought honours or such recognition during his lifetime, the 

Robert L. Stanfield Terminal Building at Halifax International 

Airport serves as a fitting tribute to his integrity and 

principles that made our province and country stronger. 

I’m proud to have joined the Halifax International Airport 

community. 

My vision for the Airport’s future is one without limits. The 

opening of U.S. pre-clearance, new construction, including 

a new hotel and parking facilities, and the completion of 

runway upgrades, are just the beginning. The year 2005 

set the stage for our journey onward and upward.

Our staff has risen to 

the challenges that a 

larger facility presents. 

Charles Clow 

PROJECT COORDINATOR

Improving HALIFAX 

INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT 

Facilities and Services 

Bigger, better and safer – that was the focus of HIAA’s 

Airport Improvement Program during 2005. 

Throughout the year, the terminal building expansion 

program was in full swing. To the south, the terminal was 

transformed into a dedicated commuter facility, housing 

three new jet bridges, 12 new gates, a rotunda feature with 

terrazzo floor, larger waiting areas, improved ground 

access to aircraft, and more room for new retail shops and 

passenger services. To the north, work progressed on the U.S. 

pre-clearance and in-transit facilities, scheduled to open 

in October 2006. 

A new Park’N Fly service opened in February with an 

additional 1,000 parking spaces, offering passengers more 

choice and a 24-hour shuttle to the terminal. 

In September, HIAA, along with airports across the country, 

installed new state-of-the-art baggage processing 

technology, resulting in increased efficiencies in baggage 

processing for the airlines and ground service providers, 

along with increased overall baggage handling capacity. 

Working with the Canadian Air Transport Security Authority, 

this equipment enables new screening procedures for 

checked baggage to ensure passenger security. 

“With all of this development comes increased responsibility 

for operation and maintenance,” says Peter Clarke, Vice 

President Operations. “Our staff has risen to the challenges 

that a larger facility presents because they know that 

growth means success for our business.” 

Also in 2005, HIAA began the first phase of its multiyear 

airfield rehabilitation program. This work is vital to 

maintaining the integrity and operation of Airport runways 

that are reaching the end of their lifecycle, to ensure safety 

and meet regulatory standards. In July, at a critical phase in 

the project when the Airport’s instrument landing system 

was unavailable to pilots, severe and unanticipated dense 

fog caused major flight delays and cancellations. Going 

forward, HIAA is committed to keeping the traveling public 

informed about potential impacts of construction activity.

Leveraging HALIFAX 

INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT 10 

Technology 

As our facilities expand, so does our horizon. Throughout 

the planning and construction phases of our Airport 

Improvement Program, priority was given to utilizing 

technology to modernize facilities, improve processes, and 

maximize efficiencies. 

“This year we installed systems that made a real difference 

in the way we operate – improvements that will have a 

direct impact on the experience of our airline partners, 

our tenants, and our guests,” says Michael Healy, Vice 

President Infrastructure & Technology. 

Much of this work was focused on bringing in a system 

of Common Use Terminal Equipment. In the past, most of 

the equipment at the Airport had been proprietary to the 

airlines themselves – everything from check-in systems 

to loading bridges were operated by the airlines. Other 

advancements include new security systems, information 

technology fibre optics, and a public address system, with 

more enhancements to come. 

“Now the Airport has shifted to technically advanced 

systems run by us. In 2005 we initiated programs to take 

over ticket counters, gates, loading bridges, and now we 

operate and maintain them on behalf of all the airlines,” 

says Healy. “The result – better service for our passengers 

and more flexible operations for our airline partners.”

This year we installed systems 

that made a real difference 

in the way we operate. 

Malcolm Phippen 

MAINTENANCE

It’s our people that really make 

the difference at this Airport. 

Kelly Martin 

Customer Relations Manager

Enhancing HALIFAX 

Customer Service 


In Nova Scotia, the one thing you can count on is the 

weather. Snowstorms, hurricanes, fog, rain. We have it 

all. In all kinds of weather, for all kinds of reasons, airline 

passengers spend unanticipated time in airports. “It’s our 

job to make that wait as comfortable as possible,” says 

Kelly Martin, Customer Relations Manager. 

“You’d be surprised how much we’ve learned about 

keeping airline passengers happy. Something as simple 

as a bottle of water or a deck of cards can make the 

wait a little more bearable,” says Martin. That is why the 

Airport Authority stocks necessities such as blankets, baby 

food and other supplies, and makes movies available to 

help entertain delayed passengers. 

“And most importantly, we have a team of volunteers who 

seem to know exactly what to say, or when to offer help,” 

says Martin. “In times when there are delays and it seems 

like passengers are most in need of a friendly face, they’re 

there, doing what they can to make the wait easier.” 

Launched in 2000, HIAA’s Volunteer Host Program proved 

to be an invaluable asset again in 2005, with almost 

100 volunteers logging more than 15,520 hours serving 

passengers and visitors. The tartan-vested volunteers 

are on hand daily to meet and greet visitors, providing 

information about and directions to facilities, services and 

retail stores. They also provide extra assistance to people 

with special needs. These volunteers are the first and last 

impression for many visitors to Nova Scotia. 

The Airport’s commitment to customer service is what sets 

us apart. And it’s a major reason why the Airport has been 

recognized internationally for its quality service with three 

top place AETRA customer service rankings for the second 

year running. Halifax International Airport was rated as 

the best airport in the Americas of any size for overall 

satisfaction, the best domestic airport in the world, and 

placed first worldwide with under five million passengers. 

This annual survey was conducted by the International 

Air Transport Association and co-sponsored by Airports 

Council International. 

“We work closely with our volunteers, Visitor Information 

Centre, airlines, and retail partners to uphold a high 

standard of customer service. We’re the first airport in 

North America to achieve Superhost status – a worldwide 

recognition of customer service. We’ve had colleagues 

from around the world visit our Airport to learn what we’re 

doing right. Other airports might have more resources 

and more facilities, but it’s our people that really make 

the difference at this Airport,” says Martin.

Richard Garson 

AIR SERVICE SPECIALIST

Increasing HALIFAX 


Air Service 

HIAA is committed to improving service to both carriers and 

passengers alike. For the sixth consecutive year since 

management of the Airport was transferred from the federal 

government to the community, landing and terminal fees were 

not increased. HIAA is sensitive to the financial pressure 

on the entire industry to meet changing market demands, 

and will continue to maintain the decreased domestic 

landing and terminal fees introduced in January 2005. 

Improved and expanded air service and new partnerships 

marked our air service development efforts in 2005. 

Air Canada and Air Canada Jazz improved service to both 

Boston and Goose Bay by upgrading turbo prop service 

to regional jets. CanJet added frequencies to Toronto, 

St. John’s and Deer Lake. CanJet and WestJet introduced 

daily service to winter vacation destinations. Also in 2005, 

WestJet added daily direct service to Calgary and increased 

frequency to Toronto and St. John’s. 

In 2005 we became partners with Finnair, as they began 

technical service stops between Finland and winter sun 

destinations. 

Zoom added a Belfast seasonal service to Halifax on a trial 

basis in 2005, and announced a year round weekly service 

between London (Gatwick) and Halifax. 

Provincial Airlines, Condor, Northwest Airlines, Thomas Cook, 

American Eagle, Canadian Affair, and Continental Airlines all 

increased service through Halifax. 

On March 11, 2005, Jetsgo’s bankruptcy meant the loss 

of 19 flights a week to Toronto. While this is a well served 

route from Halifax, losing a carrier is always disappointing 

for the Airport and the community. 

By the end of the year, the total number of passengers 

processed through the Airport remained level with 2004 

at 3.2 million. While air cargo activity was down 17 per 

cent over 2004, due to the loss of MK Airlines and Polar 

Air Cargo focusing on China routes, positive developments 

included the return of Icelandair Cargo and Air Canada’s 

dedicated freighter in October. 

HIAA entered into a partnership with the Nova Scotia 

Department of Tourism, Culture and Heritage in 2005,

Increasing 

HALIFAX INTERNATIONAL AIRPORT AUTHORITY 2005 ANNUAL REPORT 16 

Air Service 

continued 

to raise awareness and develop additional air service to 

European destinations. 

As well, HIAA’s business development team organized its 

second Air Access Forum, bringing together some 150 

participants representing airlines, airports and business 

partners, to meet and discuss growth opportunities. 

“What’s most important for us is that we understand the 

needs of the carriers, and match that with the needs of 

our community stakeholders. This forum and the many 

others we attend around the world, provide us with an 

opportunity to consult and determine the right services 

to bring to Halifax,” says Jerry Staples, Vice President 

Marketing & Business Development. 

New retail outlets, a car rental service centre currently 

under construction, land development projects, and other 

new amenities are all part of the plan to improve services. 

“We feel a responsibility to our community, and to the 

region, to be ambassadors and to provide the services this 

area needs as it grows. With U.S. pre-clearance on the 

horizon, and the recent developments on the Canada-U.S. 

Open Skies Agreement, the stage is set for positive growth 

at Halifax International Airport. When the region grows, 

we grow,” says Staples.

Airlines and Direct Destinations in 2005 


SCHEDULED PASSENGER SERVICES 

16 Domestic 

Destinations 

Calgary, AB 

Charlottetown, PE 

Deer Lake, NL 

Fredericton, NB 

Gander, NL 

Goose Bay, NL 

Hamilton, ON 

Moncton, NB 

Montreal, QC 

Ottawa, ON 

Quebec, QC 

Saint John, NB 

St. John’s, NL 

Stephenville, NL 

Sydney, NS 

Toronto, ON 

CHARTER AIR CARRIERS 

5 Charter Air Carriers 

Air Transat 

Condor Flugdienst 

Skyservice 

Thomas Cook (UK) Airlines 

Zoom Airlines 

6 Transborder (USA) 

Destinations 

Boston, Massachusetts 

Detroit, Michigan 

Newark, New Jersey 

New York (JFK), New York 

Orlando, Florida 

St. Petersburg, Florida 

3 International 

Destinations 

Hamilton, Bermuda 

London (Heathrow), 

United Kingdom 

St. Pierre et Miquelon 

CHARTER PASSENGER SERVICES 

15 International Destinations 

Cuba 

Camaguey 

Cayo Coco 

Holguin 

Varadero 

Dominican 

Republic 

La Romana 

Puerto Plata 

Punta Cana 

Germany 

Frankfurt 

Munich 

CARGO CARRIERS 

7 Cargo Carriers 

Air Canada 

CargoJet 

Icelandair 

Kelowna Flightcraft 

Morningstar Express 

Prince Edward Air 

Provincial Airlines 

Jamaica 

Montego Bay 

Mexico 

Cancun 

United 

Kingdom 

Belfast 

Glasgow 

London (Gatwick) 

Manchester 

SCHEDULED PASSENGER 

AIR CARRIERS 

7 Domestic Air Carriers 

Air Canada 

Air Canada Jazz 

Air Georgian 

CanJet Airlines 

Jetsgo (discontinued in March 2005) 

Provincial Airlines 

WestJet Airlines 

6 Transborder (USA) Air Carriers 

American Eagle 

Air Canada Jazz 

CanJet Airlines 

Delta Airlines 

Continental Express 

Northwest Airlines 

1 International Carrier 

Air St. Pierre

HIAA values 

its role in the 

community, and 

its employees 

are actively 

involved as well. 

Joyce and John Patriquin 

VOLUNTEER HOSTS

Strengthening HALIFAX 


Community Partnerships 

HIAA values its role in the community, and its employees 

are actively involved as well. 

In 2005, HIAA employees raised over $12,000 for such 

organizations as the United Way; Nova Scotia amateur 

sport, entering a team in the annual dragon boat race; 

Breast Cancer Research, participating in a casual day 

promotion; and the Parker Street Food and Furniture 

Bank, by donating school supplies and food. Through 

its Community Outreach Program, HIAA supported over 

200 organizations with close to $137,000 in corporate 

donations, as well as promotional items and public display 

space in the terminal building. 

Through the Humanities Fund, members of the Union of 

Canadian Transportation Employees Local 80829 contribute 

$.01 for each hour worked and HIAA doubles that 

contribution. In 2005 the Humanities Fund donated $6,750 

to seven organizations chosen from employee suggestions. 

In June, HIAA signed on as one of the first members 

of Nova Scotia’s Come to Life campaign charter, pledging 

to promote Nova Scotia and its attributes wherever they 

do business. HIAA is also an active member of the 

Halifax Gateway Council, a not-for-profit organization 

established to promote growth in the transportation 

sector and related industries in the region. In 2005, the 

Council completed two major studies – a Strategic Plan 

and an Economic Impact Study – setting the stage for 

further advocacy and activities that will help position 

Halifax as an international gateway to the world. 

Again in 2005, Halifax International Airport hosted the 

Nova Scotia International Air Show (NSIAS). Through ongoing 

consultation between the NSIAS Organizing Committee, 

HIAA, and all airlines, this community event was successfully 

held with minimal disruption to commercial activity. 

To better understand the community we serve, all HIAA 

employees underwent diversity training in 2005. As well, 

our Employment Equity/Diversity Action Team completed 

an employment systems analysis, which will form the basis 

of an employment equity plan. 

As a responsible member of the corporate community, HIAA 

follows best practices for the environment, with ongoing 

attention to water treatment, and workplace health and 

safety, with a focus on reducing workplace injuries. Airport 

security is always a priority, and in 2005, HIAA developed 

iWatch, a unique airport community-wide security action 

program. The iWatch program was developed to build and 

sustain an active security culture within the Airport community, 

by increasing employee awareness, understanding and 

reporting of suspicious activity.

Sustaining 

Financial Stability 


Halifax International Airport is a significant economic 

force for the region. In November, HIAA released the 

results of an economic impacts study conducted by SGE 

Acres Limited. The report concluded that the Airport and 

its aviation community generated $1.135 billion in gross 

output in 2004, and achieved consistent growth over the 

past 15 years. 

“As the Airport operator, HIAA plays a major role in the 

Airport’s impact on our economy,” says Joyce Carter, Vice 

President Finance. “We initiate construction, capital 

improvements, and bring in new business, but it is the 

contribution of the entire Airport community that makes 

Halifax International Airport such an economic driver.” 

For HIAA’s part, 2005 was a year marked by construction, 

technology improvements and better airline service. In the 

long term, it has set the stage for the services that we will 

provide to both air carriers and passengers. 

Financial Overview 

Operating revenue for 2005 was $34.4 million compared 

to $33.2 million in 2004. A number of factors contributed 

to this increase in revenue. Positive impacts included the 

opening of a Park’N Fly lot in February, representing an 

additional $617,000 in revenue, and a gain of $1.2 million 

due to the elimination of the Transport Canada final 

chattels repayment, as announced in May by the federal 

government under the new rent policy. This was offset by 

several factors negatively impacting revenue, including 

shifts in air service by major carriers, the bankruptcy of 

Jetsgo, and the reduction of international cargo flights. 

Airport Improvement Fee revenue in 2005 was $11.7 

million, up slightly from $11.4 million in 2004. 

Operating expenses increased in 2005 to $32.4 million 

compared to $30.0 million in 2004. These increased 

expenses are mainly related to the operation of Park’N Fly, 

increases in amortization due to a larger asset base, 

property taxes under the transition year of our development 

grant agreement with Halifax Regional Municipality 

(to stabilize after 2005), contract salary increases, and 

inflationary increases in the cost of goods and services. 

Looking ahead, 2006 will be a year of building our 

future and managing our growth. We will complete the 

air terminal building expansion, including the opening 

of U.S. pre-clearance. As well, we will commence the 

planning and design for a parkade, develop and implement 

a comprehensive revenue diversification strategy, develop 

and introduce an integrated risk management strategy, 

and complete a succession planning framework. An 

ambitious financial plan is in place for 2006, and does 

not include any change in general terminal and aircraft 

landing fees.

It’s the contribution 

of the entire Airport 

community that makes 

Halifax International 

Airport such an 

economic driver. 

Twila Grosse 

SUPERVISOR MANAGEMENT ACCOUNTING


Financial Statements 

Auditor’s Report 

Balance Sheet 

To the Directors of 

Halifax International Airport Authority 

We have audited the balance sheet of Halifax International Airport Authority 

as at December 31, 2005 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. 

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. 

In our opinion, these financial statements present fairly, in all material respects, 

the financial position of the Authority as at December 31, 2005 and the results 

of its operations and its cash flows for the year then ended in accordance with 

Canadian generally accepted accounting principles. As required by the Canada 

Corporations Act, we report that, in our opinion, these principles have been 

applied on a basis consistent with that of the preceding year. 

In thousands of dollars 

Year ended December 31 

ASSETS 

Current 

Cash 

Accounts receivable 

Inventories 

Prepaid expenses 

Capital assets [note 3] 

LIABILITIES AND NET ASSETS 

Current 

Accounts payable and accrued liabilities 

Deferred revenue [note 9] 

Current portion of long-term debt [note 4] 

Long-term debt [note 4] 

Accrued benefit liability [note 7] 

Security deposits 

Net assets 

Equity in capital assets [note 5] 

2005 

$ 

6,065 

5,380 

320 

570 

12,335 

117,935 

130,270 

24,227 

736 

26,081 

51,044 

724 

46 

1,887 

53,701 

76,569 

2004 

$ 

8,779 

2,944 

329 

500 

12,552 

63,328 

75,880 

7,937 

226 

1,303 

9,466 

1,885 

-- 

1,603 

12,954 

62,926 

Halifax, Canada 

February 10, 2006 

Chartered Accountants 

Commitments [note 6] 

See accompanying notes 

130,270 

75,880 

On behalf of the Board: 

Director 

Director


Statement of Operations and Changes in Net Assets 


Statement of Cash Flows 



2005 

$ 

2004 

$ 


2005 

$ 

2004 

$ 

REVENUES 

Landing fees 

Terminal and passenger security fees 

Concessions 

Parking 

Rentals 

Other [note 4] 

Airport improvement fees [note 5] 

OPERATING EXPENSES 

Salaries, wages and benefits 

Materials, services and supplies 

General and administrative 

Ground lease rent 

Amortization 

Property taxes 

8,595 

8,291 

7,789 

5,368 

2,018 

2,299 

34,360 

11,707 

46,067 

11,042 

9,061 

3,412 

4,361 

3,361 

1,187 

32,424 

9,227 

8,759 

7,580 

4,390 

2,093 

1,167 

33,216 

11,437 

44,653 

10,683 

8,001 

3,428 

4,240 

2,795 

861 

30,008 

OPERATING ACTIVITIES 

Excess of revenues over expenses 

Items not involving cash: 

Amortization 

Net change in non-cash working capital 

balances related to operations 

Cash provided by operating activities 

INVESTING ACTIVITIES 

Expenditures on capital assets 

Cash used in investing activities 

FINANCING ACTIVITIES 

Proceeds of long-term debt 

Repayments of long-term debt 

Cash provided by (used in) financing activities 

(Decrease) increase in cash 

Cash, beginning of year 

13,643 

3,361 

3,949 

20,953 

(48,581) 

(48,581) 

26,000 

(1,086) 

24,914 

(2,714) 

8,779 

14,645 

2,795 

231 

17,671 

(12,438) 

(12,438) 

427 

(3,265) 

(2,838) 

2,395 

6,384 

Excess of revenues over expenses 

Net assets, beginning of year 

13,643 

62,926 

14,645 

48,281 

Cash, end of year 

6,065 

8,779 

Net assets, end of year [note 5] 

76,569 

62,926 

See accompanying notes 

See accompanying notes


Notes To Financial Statements 

December 31, 2005 

1. General 

The 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 

International Airport. Excess revenues over expenses are retained and reinvested in airport 

operations and development. 

The Authority is a dynamic and multi-faceted aviation enterprise that provides air access to the 

world, facilitates personal and business connections and promotes regional economic growth. 

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 corporation tax, 

and Nova Scotia capital tax. 

2. Significant Accounting Policies 

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. 

Inventories 

Inventories consist of materials, parts and supplies and are stated at the lower of cost determined 

on an average cost basis and estimated replacement cost. 

Ground lease 

The ground lease with Transport Canada is accounted for as an operating lease. 

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 as follows: 

Assets 

Rate 

Computer hardware and software 20% - 33% 

Leasehold improvements 2.5% - 10% 

Machinery, equipment, furniture and fixtures 5% - 20% 

Vehicles 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 lives of respective 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 concession revenue for minimum guarantees and license 

fees received in advance of services being rendered. 

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.


3. Capital Assets 

4. Long-term Debt 


Computer hardware and software 

Leasehold improvements 

Machinery, equipment, furniture 

and fixtures 

Vehicles 

Construction in progress 


Computer hardware and software 

Leasehold improvements 

Machinery, equipment, furniture 

and fixtures 

Vehicles 


Cost 

$ 

2,472 

72,100 

4,025 

7,609 

43,537 

129,743 

Cost 

$ 

1,935 

49,080 

3,363 

6,180 

11,228 

Accumulated 

Depreciation 

$ 

1,587 

5,542 

1,514 

3,165 

-- 

11,808 

Accumulated 

Depreciation 

$ 

1,273 

3,528 

1,110 

2,547 

-- 

2005 

$ 

Net Book 

Value 

$ 

885 

66,558 

2,511 

4,444 

43,537 

117,935 

2004 

$ 

Net Book 

Value 

$ 

662 

45,552 

2,253 

3,633 

11,228 


Halifax Regional Municipality deed transfer tax loan, 

unsecured, non-interest bearing, repayable in monthly 

installments of $5,633. 

Canadian Imperial Bank of Commerce Construction 

installment loan, bearing interest at prime rate less 65 

basis points. 

Transport Canada deferred rent, non-interest bearing, 

repayable in monthly installments of $6,700 commencing 

in 2006. (See note (d) below) 

Current portion of long-term debt (See note (b) below) 

2005 

$ 

-- 

26,000 

805 

26,805 

26,081 

724 

2004 

$ 

6 

-- 

3,182 

3,188 

1,303 

1,885 

(a) Credit Facilities 

The Authority has authorized credit facilities with the Canadian Imperial Bank of Commerce 

for $78 million, which, in the event of default, will be secured by an Agreement containing 

a fixed mortgage by way of sublease of the Authority’s interest in the lease with Transport 

Canada, and a security interest in all of the other assets of the Authority. This security is not 

registered, recorded or filed in any public registry until an event of default has occurred. The 

credit facilities consist of an operating line of credit to a maximum of $3.0 million bearing 

interest at prime rate less 70 basis points. A demand installment loan to finance construction 

costs is available to a maximum of $75.0 million and bears interest at prime rate less 65 

basis points. 

71,786 

8,458 

63,328 

(b) Current Portion of Long-Term Debt 

The terms of the construction installment loan only require repayment as agreed by the Bank 

and the Authority. The loan amount is shown as current, as repayment terms have not been 

agreed upon and although not expected, the loan could be demanded. This amount will form 

part of a long-term financing arrangement which the Authority is currently in the process of 

negotiating.




continued 

4. Long-term Debt (continued) 

(c) Capitalized Interest 

Interest on long-term debt of $260,596 (2004 - $24,060) was capitalized as part of 

construction in progress during the year. 

(d) Forgiveness of Debt 

During 2005, Transport Canada agreed to forgive $1.2 million (2004 - $nil) of debt. 

This amount is included in other revenue. 

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

In thousands of dollars 2005 

$ 

Net assets provided by airport improvement fees 

Net assets provided by other operations 

Net assets, end of year 

50,366 

26,203 

76,569 

2004 

$ 

38,659 

24,267 

62,926 

5. Airport Improvement Fees 

On January 1, 2001, the Authority implemented an AIF of $10 per local boarded passenger to 

fund the cost of a major capital program. These fees are 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 Halifax International Airport. Under the agreement, AIF revenues 

may only be used to pay for the capital and related financing costs as jointly agreed with air 

carriers operating at the airport. 

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

6. Commitments 

Transfer agreement 

On May 9, 2005, the Government of Canada announced the adoption of a new rent policy 

that will result in reduced rent for Canadian airport authorities, including Halifax International 

Airport Authority. This reduced rent will be phased in over four years beginning in 2006, with 

the new formula achieving its full impact in 2010. The new formula is based on percentage 

of gross revenues on a progressive scale. The Authority finalized the amendment to its ground 

lease with Transport Canada in December 2005. 


AIF revenue (net): 

AIF revenue 

AIF collection costs 

Expenditures 

Excess of expenditures over AIF revenue 

Excess of expenditures over AIF revenue, beginning of year 

Excess of expenditures over AIF revenue, end of year 

2005 

$ 

12,459 

(752) 

11,707 

50,398 

38,691 

21,034 

59,725 

2004 

$ 

12,299 

(862) 

11,437 

14,859 

3,422 

17,612 

21,034 

Rent payable under the old ground lease with Transport Canada included base rent calculated 

on a formula reflecting annual passenger volumes, annual revenues, and predetermined base 

operating costs. Base rent was calculated on a capped passenger volume formula subject 

to adjustments for inflation. The estimated lease obligations over the next five years are 

approximately as follows: 

2006 $4,271 

2007 4,093 

2008 3,825 

2009 3,290 

2010 3,500 


At December 31, 2005, the Authority had outstanding contractual construction commitments 

amounting to approximately $11.0 million (2004 - $3.0 million). 

From January 1, 2001 to December 31, 2005, the cumulative capital expenditures totaled 

$110,091,000 (2004 - $59,693,000) and exceeded the cumulative amount of AIF revenue 

by $59,725,000 (2004 - $21,034,000).


7. Pension 

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. However, 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 

will become members of the defined contribution component. An actuarial valuation has been 

prepared as of January 1, 2003, for purposes of funding the Plan. 

The existing Government of Canada pension assets and accrued benefits obligation 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. As at December 31, 2005, $11,691,000 

(2004 - $6,258,000) in assets had been transferred to the Authority for pensionable service 

prior to the effective date of February 1, 2000. 

The following table provides information concerning the accrued benefit obligation, plan assets, 

funded status and prepaid (accrued) pension costs of the plan as at December 31, 2005: 

The significant actuarial assumptions adopted in measuring the Authority’s accrued pension 

benefits are as follows: 

2005 

% 

2004 

% 

Discount rate 

Expected long-term rate of return on plan assets 

Rate of compensation increase 

5.25 

6.75 

4.00 

Other information related to the Authority’s defined benefit component is as follows: 


Employer contribution 

Employees’ contribution 

Benefits paid 

2005 

$ 

573 

205 

93 

Pension expense for 2005 amounted to $136,000 (2004 - $90,000) for the defined 

contribution component and $618,000 (2004 - $579,000) for the defined benefit component. 

6.25 

7.00 

4.00 

2004 

$ 

579 

204 

81 

In thousands of dollars 2005 

$ 

Plan assets 

Accrued benefit obligation 

Funded status – plan (deficit) surplus 

Unamortized net actuarial (loss) gain 

Accrued benefit liability 

18,785 

(20,147) 

(1,362) 

(1,316) 

(46) 

2004 

$ 

11,135 

(10,992) 

143 

143 

-- 

Equity securities 

Fixed income securities 

Real estate securities 

Other 

2005 

% 

57 

31 

8 

4 

100 

Plan Assets 

2004 

% 

63 

33 

4 

-- 

100




continued 

8. Financial Instruments 

Fair value 

The Company’s primary financial instruments consist of cash, accounts receivables and accounts 

payable and accrued liabilities. The difference between the carrying values and the fair market 

values of the primary financial instruments are not material due to their short term maturities. 

At December 31, 2005, the fair value of long-term debt was $641,000 (2004 - $2,900,458) 

relative to the carrying value of $724,000 (2004 - $3,188,581). 

The fair values of long-term debt were estimated based on the present value of contractual 

future payments of principal and interest, discounted at the current market rates of interest 

available to the Authority for similar debt instruments. 

Credit risk 

The Authority is subject to credit risk through its accounts receivable. A significant portion of the 

Authority’s revenues, and resulting receivable balances, are derived from airlines. The Authority 

performs ongoing credit valuations of receivable balances and maintains reserves for potential 

credit losses. 

9. One-Time Marketing Grant 

In 2005, the Authority received a one-time marketing grant from the Government of Nova 

Scotia in the amount of $600,000. The grant can be used to undertake specific marketing 

activities to increase the air connections and routes between the United Kingdom, Germany, 

the Netherlands and Nova Scotia, that use Halifax International Airport. The grant is being 

amortized to income as expenses are incurred. As at December 31, 2005, $102,000 has been 

credited to income, with the remaining $498,000 credited to deferred revenue. 

10. Comparative Figures 

The comparative financial information has been reclassified to conform to the presentation 

adopted for 2005.

2005 Board of Directors 


Chair: 

Bernard F. Miller 

Vice Chair: 

Frank Matheson 

Secretary: 

James S. Cowan 

Director: 

Norbert Comeau 

Director: 

Carole Cushing 

Director: 

Paul Gurr 

Director: 

Peter McDonough 

Director: 

Cheryl Newcombe 

Director: 

Roy Rideout 

Director: 

Robert J. Scott 

Director: 

Fred Smithers 

Director: 

Ken Streatch 

Director: 

Stephen L. Wallace 

Director: 

J. Robert Winters 

Executive Management 

President & CEO: Eleanor Humphries Vice President Finance: Joyce Carter Vice President Operations: Peter Clarke 

Vice President Infrastructure & Technology: Michael Healy 

Vice President Marketing & Business Development: Jerry Staples 

Director Human Resources: Lydia Bowie 

Director Communications & Public Affairs: Gina Connell 

Corporate Counsel: John MacLean


Board of Directors 

continued 

Bernard F. Miller – Chair 

Bernie has been Chair of the Airport Authority Board for the past 10 years. He was the 

Authority’s chief negotiator during the transfer negotiations with Transport Canada 

which brought the airport under local control, and also served as the Airport’s CEO 

for much of the first year after transfer. He assumed the CEO role again in 2005 from 

February until August. He retired as Chair at the end of 2005 and will continue to 

serve on the Board as past Chair in 2006. Bernie previously enjoyed a 35-year 

career with Air Canada, where he held a number of senior executive positions. He 

retired from the airline in 1991 as Vice President, In-Flight Service for Air Canada’s 

worldwide operations. 

Frank Matheson – Vice Chair 

Frank is President and CEO of Homburg Canada Inc., an international real estate 

company with holdings in residential, commercial, industrial, and retail properties. 

Frank is a past Chair of the Halifax School Board and the Halifax Forum Commission, 

and has served on many community and industry-related boards and commissions. 

Frank became Chair of the HIAA Board on January 1, 2006. 

James S. Cowan, QC – Secretary to the Board 

Jim is a member of the Senate of Canada and partner of the law firm Stewart McKelvey. 

He is the Chair of the Board of Governors of Dalhousie University and past Chair of the 

Atlantic Provinces Transportation Commission. Upon his appointment to the Senate 

in March of 2005, Jim resigned from the HIAA Board, but continues as Secretary, a 

position he has held since 1995. 

Norbert Comeau – Director 

Norbert had a lengthy career as a school administrator with the Provincial Acadian 

School Board. He has served as a member of the Nova Scotia Human Rights Commission 

and chaired the organizing committee for FANE (Acadian Federation of Nova Scotia). 

He has always been active as an entrepreneur and provided leadership to numerous 

organizations in the community of Clare. 

Carole Cushing – Director 

Carole is the former Senior Vice President and Managing Director and Atlantic Division 

Manager for BMO Nesbitt Burns Inc., where she was responsible for the Private Client 

Division in the four Atlantic Provinces, and provided leadership to ten branch managers 

throughout the region. Carole has served as Chair of the Board of Governors of Mount 

Saint Vincent University, Trustee of the IWK Grace Health Centre Foundation, and Chair 

of the IWK’s Investment Committee. 

Paul Gurr – Director 

Paul is the former President for Labatt Breweries Atlantic, and serves on a number of 

professional and community boards, including the Halifax Chamber of Commerce, the 

advisory board of the Frank H. Sobey Faculty of Commerce at Saint Mary’s University, 

and the Canadian Centre for Ethics in Public Affairs. He also participates on the Board 

of Governors for Junior Achievement, and the Executive Forum of Nova Scotia. Paul is 

currently a full-time business graduate student at Saint Mary’s University.


Peter McDonough, QC – Director 

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 and Design, Special Olympics, and the YMCA. He was the Co-Chair of the Halifax 

Industrial Commission and is the founding President of the Dalhousie Black and 

Gold Club. 

Cheryl Newcombe – Director 

Cheryl joined the HIAA Board in June 2005. She is the Comptroller of Lighthouse 

Lumber Wholesalers Limited in Dartmouth, a position she has held since 2002. Cheryl 

is also on the Board of Beacon House and is the immediate past Chair of the Halifax 

Regional Water Commission. Cheryl is a nominee of Halifax Regional Municipality. 

Roy Rideout – Director 

Roy is past Chairman and CEO of Clarke Inc., a publicly traded company in the 

transportation industry. He is also a Director of Oceanex Income Fund, Fortis Inc. and 

NAVCANADA. Prior to 1988, Roy held senior executive positions with both Eastern 

Provincial Airways and Canadian Airlines International for 15 years. Roy is a chartered 

accountant. 

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. 

Fred Smithers – Director 

Fred is the President and CEO of the Secunda Group of Companies, and the Honorary 

British Consul for the Maritime Provinces. He is a Director of ProGear, a golf club 

manufacturing company, and President and Owner of Granite Springs Golf and Country 

Club. He sits on the Board of Directors of Barrington Wind Energy, the IWK Hospital 

for Children, and the World Wildlife Fund of Canada, and is on the Board of Governors 

for Saint Mary’s University. 

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. Ken has held a number of 

portfolios with the government of Nova Scotia, including Minister of Transportation 

and Communications and Minister of Economic Development. 

Stephen L. Wallace – Director 

Stephen is President of the Bedford-based consulting firm Terrain Group Inc. He is a 

former Director of the Nova Scotia chapter of the Urban Development Institute and 

past President of the Consulting Engineers of Nova Scotia. 

J. Robert Winters, QC – Director 

Robert is counsel to Burchell MacDougall, Barristers & Solicitors of Truro, Nova 

Scotia, and Chairman of Napwick Holdings Limited, a private holding company, past 

Chairman of the Board of Regents of Mount Allison University, and a member of the 

advisory boards of the Bragg Group of Companies and Inland Technologies Inc.


Corporate Governance 

Halifax International Airport Authority is a dynamic and multi-faceted aviation enterprise 

that provides air access to the world, facilitates personal and business connections, 

and promotes regional economic growth. 

The 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 

HIAA 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 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 Robert Winters; the 

Audit Committee, chaired by Roy Rideout; and, the Capital Projects Committee, chaired 

by Peter McDonough. 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 2005, the Governance Committee of the Board reported that there were no 

breaches of the conflict of interest guidelines by any officer or director of the Airport 

Authority. 

Compensation of the senior officers and directors of the Airport Authority is reviewed 

annually. Amounts paid to the Airport Authority’s officers and directors during 

2005 follow.


Board of Directors Total Compensation 

Chair: B. F. Miller * $71,800 

Vice Chair: F. Matheson $31,500 

Secretary: J. S. Cowan $37,479 

Directors: 

N. Comeau $20,000 

C. Cushing $19,200 

P. Gurr $11,305 

P. McDonough $22,400 

C. Newcombe $3,728 

R. Rideout $22,200 

R. J. Scott $19,200 

F. Smithers $12,800 

K. Streatch $19,200 

S. L. Wallace $22,531 

J. R. Winters $17,600 

*During the period February 1, 2005 to July 31, 2005, Mr. Miller, as Chair of the Board, 

assumed the additional responsibilities of the CEO of the Airport Authority. 

Executive Compensation 

The salary range for the President & CEO and for each of the Vice Presidents of the 

Airport Authority during 2005 was $98,800 to $250,000. 

In addition to base salaries, annual bonus payments totaling $170,000 were paid during 

the year. Bonus payments are contingent on individual and corporate achievements. 

Contracts in excess of $92,600 

Halifax International Airport Authority, in accordance with its ground lease with Transport 

Canada, is required to report all contracts in excess of $92,600 ($75,000 in 1994 

dollars adjusted for Consumer Price Index) which were entered into during the year 

and that were not awarded on the basis of a public competitive tendering process. The 

following contracts were in excess of $92,600 and were awarded without public tender: 

• Terminal Systems International, Inc. for a gate management system in the amount 

of $119,250. 

• Miller Waste Systems for international waste management services for five years 

with $118,220 paid in year one. 

For the above two contracts, systems or services are of a proprietary nature with one 

qualified supplier. 

• Royal Canadian Mounted Police for policing services for five years for $3,579,527. 

For the above contract, the supplier previously and satisfactorily performed service 

which represented a cost saving.


Five-Year Forecast 

The following table outlines the passenger traffic and aircraft movements forecasted 

over the next five years. These are the key drivers to our financial success, which will 

enable us to provide the best airport facilities and services to the public and our 

customers as we move onward and upward. 

A C T U A L 

F I V E - Y E A R F O R E C A S T 

Year 

2003 2004 2005 2006 2007 2008 2009 2010 

Passenger Volume 2,973,187 3,242,389 3,229,111 3,347,330 3,510,633 3,677,451 3,788,473 3,899,079 

Per cent Change 4.2 % 9.1 % -0.4 % 3.8 % 4.9 % 4.8 % 3.0 % 2.9 % 

Total Aircraft Movements 88,228 89,845 86,393 89,935 93,533 96,151 98,363 100,625 

Per cent Change 3.8 % 1.8 % -3.8 % 4.1 % 4.0 % 2.8 % 2.3 % 2.3 % 

Planned Capital 

Expenditures ($ 000’s) 

Rent Payable to Transport 

Canada ($ 000’s) 

$ 8,598 $ 15,268 $ 57,881 $ 72,793 $ 57,511 $ 15,715 $ 18,483 $ 21,013 

$ 3,191 $ 4,240 $ 4,361 $ 4,271 $ 4,093 $ 3,825 $ 3,290 $ 3,500

1 Bell Boulevard, Tel: 902.873.4422 

Enfield, Nova Scotia Fax: 902.873.4750 

B2T 1K2 

www.halifaxairport.com

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