In February of this year, the GTAA announced its 4-point action plan developed as a response to the economic situation currently facing our industry. Forecasts told us that our passenger levels were projected to be significantly lower this year than they were in 2008, and as a direct result, overall revenues would also be lower. Our first quarter results are showing just that; passenger traffic is down by 6.1 per cent compared to the same period in 2008. The good news is that our 2009 plans were very conservative, therefore our year-to-date results are positive to plan.

Although these slumps in air travel are cyclical and the numbers will return to previous highs, we can’t sit back and wait for that to happen. Our response to the situation was swift and broad. Take for example the work being done with respect to the air service rebate program, an initiative aimed at stimulating growth, increasing the competitiveness of Toronto Pearson, providing more choices for passengers, demonstrating the GTAA’s commitment to support airlines, and facilitating regional economic growth.
Airlines that meet eligibility requirements stand to save 50 per cent in their first year of operations and 25 per cent in the second. In general, those who could qualify for this rebate include new entrants, those who are already established at Toronto Pearson who wish to add new routes to underserved or unserved markets, and those who already operate out of Toronto Pearson but are up-gauging their aircraft (larger planes allowing for greater capacity).
Although it’s only been available for less than three months, the interest in the program has been tremendous and the results have been impressive. Since its announcement, more than a dozen airlines have contacted us to begin the initial discussions. Thus far, those who have been able to take advantage of the rebate program include:

• Emirates. The airline upgraded route capacity through the use of an Airbus 380 – first arrival was on June 1.

• WestJet. They have expanded their summer operations to a number of destinations within their network, including Montego Bay, Edmonton and Fort Lauderdale.

• Air India. Their service has grown from 3x weekly to daily Boeing 777 service which will be carried through their winter schedule.

• Icelandair. They have added approximately 39 more flights to their summer schedule with service to Reykjavik.

• Korean Air. The airline has grown from 3x weekly service using a Boeing 747 up to 5x weekly service aboard a Boeing 777.

• Turkish Airlines. This new entrant has added 3x weekly service to Istanbul on an Airbus 330 aircraft. Flights begin on July 11.

• Transaero. They are adding 12 additional summer flights to Moscow using a Boeing 767.

• Caribbean Airlines. Their year over year service to Port of Spain has grown to 2x daily service aboard a Boeing 737.

With the rebate program firmly established, the GTAA’s Marketing group have been tasked with creating a buzz in the industry. A comprehensive action plan has been developed to make it known to airlines that the GTAA is serious about getting their business to Toronto Pearson and that there’s never been a more attractive time to commence or increase service at Canada’s busiest airport. Through strategically placed online banner ads in trade publications and direct-to-business e-blasts, potential airline customers are driven to a specially created website (www.torontolandingfees.com) to learn more about the program and begin the online application process.

Information on new airline entrants and routes will be available on www.GTAA.com and in Toronto Pearson Today.