Regional airport does have plan

The Red Deer Regional Airport Authority has a solid long-term plan that includes expanding passenger service and lot development, says its chairman.

Randy Preece said the authority is working towards bringing more growth to the airport and its surrounding businesses.

Preece refutes much of a critical improvement plan report by the Red Deer Regional Airport Business Association.

He said the airport does have a strategy for success, but it takes time and money for some of the initiatives to begin.

The recently resurrected business association is recommending the authority boost its revenue by developing lots on airport land.

Preece said this is the authority’s aim as well, but it first requires road access be developed on the airport’s north side.

The authority has been negotiating with the county for some time on this issue, he said.

“We’re confident, as soon as they get the funding, this will happen,” Preece said. “It helps everybody, not just us. The county would love to help us sell out our land because their tax revenue will go up dramatically.”

The airport recently learned it will receive a $2.1-million federal grant for new airport lighting. The process took about five years.

Preece said government grants take time, but the end result is they will further improve airport infrastructure.

And that bodes well for attracting passenger service.

Preece said attracting WestJet or similar carriers is possible because that is what consumers want.

A consultant’s study from 2007 interviewed 1,000 Central Albertans to assess demand for passenger airline service.

Of those, 914 people who hadn’t yet used the airport said they would consider flying out of Red Deer if there were destinations or connection flights of interest to them.

And 930 people, or 70 per cent, would be willing to pay more to fly from Red Deer to the same destination offered by Calgary or Edmonton.

Those results run contrary to the business association’s survey of aviation consultants, airport users and 1,200 Red Deer area residents. It revealed that 68 per cent would not pay more for a ticket to fly out of Red Deer.

Preece said he is trying to get a copy of that survey.

And he maintained the airport authority is getting on top of its finances.

“We are running a deficit of about $70,000,” Preece said.

It is considering raising land-lease fees charged to businesses — a move that hasn’t been done for about five or six years.

“Part of that process involved consulting with our tenants,” Preece said.

He denied business association’s claims that administrative and contract service expenses are excessive.

Consultants have been hired for various work, but the authority hasn’t been responsible for these costs.

The airport’s key stakeholders — City of Red Deer, Red Deer County and Red Deer Chamber of Commerce — are now funding a business case study to determine the direction of the airport.

“The regional airport authority is paying nothing for that,” Preece said.

It has paid for consultants, the primary one being CEO Merv Phillips. He is paid $6,000 a month.

“We have budgeted $30,000 for an aviation consultant to prepare a proposal to take to Air Canada Jazz — to convince them to start high-volume scheduled service to Vancouver,” Preece said.

Preece said the only area he could agree within the association’s report centres on landing fees.

Like the association, the authority found that having landing fees would discourage aircraft from landing.

Preece wondered why some businesses haven’t approached the airport authority in the past.

Association chairman and interim president Grant Edwards said the association began meeting again after about a six-year lull because of concerns on how the airport was being managed.

Preece said he recognized some businesses may have concerns, so he encouraged representatives to attend airport authority meetings.

“If they are constructive concerns, we are more than willing to listen to them,” he said.

Edwards said he attended a meeting on March 13. He and other association members plan to attend the authority’s annual general meeting on April 24.

Contact Laura Tester at ltester@reddeeradvocate.com