Canada worldwide

John C. Munro Hamilton International Airport, which serves a catchment area with a population comparative to Greater London, is surrounded by a booming industrial growth area and along with its own regional natural attractions, is just an hour’s drive to one of the world’s most famous sites, Niagara Falls. Driving for an hour in the other direction will take you to the bustling downtown metropolis of Toronto. Toronto-Hamilton is also one of Canada’s principal cargo airports with an ever expanding number of freight businesses becoming tenants. For International Airport Review, Karen Medweth, Director of Air Service Development and Marketing reviews why Toronto–Hamilton International Airport is rapidly becoming known as the secondary hub for access to Toronto and Southern Ontario.

The airport holds a unique status as the only airport that is privately owned and operated in Canada. Hamilton International Airport Limited is part of the airport management company Vancouver Airport Services’ (YVRAS) diverse portfolio of 19 airports in seven countries around the globe. Others include Liverpool John Lennon Airport in the UK, Lynden Pindling in Nassau, Bahamas and Larnaka and Pafos Airports, Cyprus.

As a YVRAS operating subsidiary, Hamilton International Airport Limited is responsible for the management, operation and development of the airport under a 40-year lease with Hamilton City Council and has an option to renew at the end of the term in 2036. Led by CEO Richard Koroscil, the management team has ambitious plans to make Hamilton the low-cost gateway to the Southern Ontario region by maximising local industry, a highly populated catchment area and planned regional economic developments. The airport is already making great strides towards its goals. It is determined to retain its status as the largest (by volume) multimodal cargo facility in Canada, and aims to increase passenger numbers to over two million by 2020.

Canada’s leading multimodal hub

Toronto-Hamilton has experienced strength – ening cargo commerce over the past three years. In 2010 the airport bucked the downward global trend with cargo handling figures indicating flights increased by 14 per cent compared with 2009 and ad–hoc cargo flights increased by 33.8 per cent year on year. “These figures really demonstrate our potential for cargo growth and development,” says Medweth. “We can offer companies a unique combination of benefits – we’re open 24/7, 365 days a year with no slot restrictions, there is excellent access to the national highway network with the major markets in eastern USA and Canada accessible overnight by road feeder service. Our pricing structure is more cost-effective than our nearest neighbour Toronto-Pearson, which is also becoming increasingly congested. Combined these make us an attractive option for freight companies,” says Medweth.

The airport has been successful in attracting the major package integrators with tenants including leading companies such as Purolator, which handles the express service for Canada Post, DHL which transferred its transborder services to Hamilton in 2009, and UPS which has a full sorting facility. One of Canada’s principal cargo companies, Cargojet, which acts on behalf of a number of third party operators, formed a strategic alliance with LOT Polish Airlines in late 2009, and now provides the only direct cargo service between North America and Poland. “Much of the current cargo activity is focused on distributing small packages as a result of the main consolidators but we plan to grow the larger freight movements through future development,” comments Medweth.

A 60,000 sq.ft. multi-tenant cross-dock cargo facility is planned which will increase capacity, operate independently from the main cargo tenants at the airport and provide exceptional benefits for international freight forwarders and cargo carriers. With direct apron access and airside truck-level loading the facility will bolster the existing cargo traffic enabling transporter cargo, time sensitive goods, perishable cargo, food, medical supplies and refrigerated goods swift and easy access into and out of the region. “This will take our cargo offering to the next level and will support our vision for Toronto-Hamilton to be the number one inter-modal air freight gateway in Canada with cargo volumes expected to exceed 500,000 tonnes by 2020,” said Medweth on the planned expansion.

The attraction for passengers Toronto-Hamilton also has a strong proposition for both leisure and business travellers with Medweth and her team arguing that they understand what airlines need from an airport, and know how to maximise the catchment area to best effect. During 2010 Hamilton handled over 380,000 passengers through scheduled and charter aviation services, flying them to 10 non-stop destinations and providing connection options to over 30 cities. Currently low-fare carrier WestJet is the leading airline at the airport and has been operating there since 2000. The airport is focused on growing a network of routes, carriers and destinations that will appeal to the local catchment area which features over 2.4 million passengers within a 50 minute drive and 8.4 million within 90 minutes. Medweth comments, “this is one of the most densely populated areas in the North Americas, so offers huge potential. The current terminal footprint can handle up to 1.5 million passengers annually so we have considerable capacity for growth. We already have plans designed for a terminal that could handle five million passengers, as well as the permissions necessary to operate it.” The new terminal will feature the introduction of boarding bridges, increased wide-body capability and will continue to support the quick passenger transit times, and fast aircraft turn arounds that Toronto-Hamilton offers today. As demand increases Toronto-Hamilton will move ahead with the construction of the new facility.

The anticipated growth is driven by a number of key features making Toronto-Hamilton an attractive airport to passengers and airlines alike. The overall aim of the airport, to offer a warm and welcoming service is exemplified in the smiley orange coloured ‘hi’ logo which demonstrates the management team’s professional but calm approach to the business. “We want our passengers to be relaxed, happy and find travelling through the airport a convenient and positive experience. That begins with the management team having the right approach,” says Medweth about the ethos at the airport. “The airport itself is relatively small so every detail has to be right and it is essential that we maintain high customer satisfaction rates if we’re to continue to achieve our expansion plans.” Considerable investment has been made to improve passenger facilities and infrastructure. Details include new signage making it easier for customers to find their way, cable TV installed in the children’s area, and the installation of some beautiful local art works. “We’ve aimed to make the environment relaxing for everybody passing through whether departing, arriving or working here,” says Medweth. Toronto-Hamilton has invested in, and developed the ‘sense-of-place’ concept which features photographs and artwork based on Hamilton’s Niagara Escarpment which is a recognised World Biosphere site. It allows passengers an opportunity to explore the landscape through a series of art, water features and themed displays while waiting for their flight.

Yet the terminal layout still facilitates quick transit times. “For passengers arriving on an international flight it is possible to clear customs and be in their car in under 45 minutes,” states Medweth. The visitors’ car park is conveniently located adjacent to the terminal which means easy access for passengers, and it is also very competitively priced. “We’ve tried to price the parking so that leaving a car at the airport is a feasible part of the holiday cost. Together these details ensure an excellent customer experience which results in more passengers electing to travel from Toronto-Hamilton. As a result, we saw 2010 winter sun routes improving on 2009, and summer schedules outperforming the year before too. We are also seeing an increasing number of business passengers flying through Hamilton who maximise our proximity to Toronto and also the breadth of our local industry,” she says.

Routes expanded

To attract an increasing number of airlines a significant investment of $163m has been made in the airport infrastructure by Hamilton International Airport Limited and its tenants, since 1996. Runway 06/24 was extended to 10,000ft to accommodate wide-body aircraft up to 747-400s. CAT II ILS was installed to increase accessibility and reliability in inclement weather, and an asphalt overlay on two taxiways has extended their useful lives. Landing fees are also more competitive than at other nearby airports, which with rising fuel prices, can be a major attraction as all airlines look to manage their increased costs. The airport currently offers 13 stands, one with wide-body capability which Medweth anticipates will attract a number of transatlantic international services. “FlyGlobespan, ran a successful UK Hamilton route and experienced an average of 80 per cent load factor. The airline also had five more routes planned here, so we know the demand exists. Hamilton really is the ideal airport for European transatlantic carriers wanting to fly to this part of Canada.”

Joining the existing carriers and routes from WestJet, CanJet, Flair Air and Canadian North 2011 has seen the introduction of new routes with WestJet recently announcing twice weekly flights to Las Vegas for the Autumn period and Hola Sun returning to the airport to run Cuban winter leisure flights. The airport is also now looking to Europe. “This region of Canada has large ethnic populations , many of whom are first or second generation Canadians and still have strong connections with friends and relatives in Europe. For Europeans wanting to visit this region the spring and summer offer an ideal time to discover just how beautiful it is, and Hamilton is a much more convenient starting point for exploring the Golden Horseshoe area than Pearson. We plan to really expand our European offering and are already in discussions with a number of operators who can see the benefits of the airport, says Medweth”. The Caribbean offering has also proved popular with the ‘snow–birds’ the affectionately named Canadian travellers who are keen to avoid the bitter winters and head south for heat and sun. “We know that these winter destinations are increasingly popular and will implement a wider range of routes and schedules for next winter.”

Economic contributor

Hamilton also brings impressive economic benefits to the region. When Hamilton International Airport Limited took over management of the airport in 1996 the airport was operating at a CAD$1 million loss, but now generates annual profits at no cost to the tax payer. Employees at the airport and surrounding businesses have risen from 300 to 3000, and routes and passenger numbers have continued to perform well. Most importantly Hamilton has been working with the City of Hamilton on an ambitious land development project – the Airport Employment Growth District (AEGD), for which the airport would be the anchor tenant. The complete area consists of 830 hectares and is estimated to generate up to 30,000 jobs when established. With the proximity to the airport, future tenants are anticipated to consist of hybrid prestige and light industrial business, such as freight forwarders, logistics, transport companies and customs brokers. The plan was adopted by Hamilton City Council in autumn 2010 and continues to progress positively bringing additional economic resource to the existing heavy industry. Car manufacturing, steel plants and the bases of some of Canada’s most recognised brands such as Tim Hortons are located in the area. “We expect that the new businesses will demand easy transport and regular flights not just to other Canadian cities like Montreal, but to other key business destinations such as New York, Boston and Chicago, a regional shuttle would be a great asset to them,” suggests Medweth about other potential routes.

Toronto-Hamilton’s contribution to the region is not just economic. Its corporate and social philosophy has seen focus given to educational initiatives too. “We realise that contributing to programmes that develop young people for future aviation careers is of benefit to the surrounding community, and hopefully us too. The airport currently collaborates with local college, Mohawk, to further develop its aviation offering by establishing a flying school with pilot training. In addition, a new aircraft mechanic programme was implemented in 2010 and is offered as an apprenticeship scheme. “This was very well received in its first year and this year Mohawk has seen more than twice the number of applicants, than places, which demonstrates there’s a real need for this kind of scheme,” says Medweth. With land north of Toronto city designated as greenbelt, so limiting future airport development, and the majority of population and industrial growth to the west, Hamilton is well positioned to implement its plans for growth. Demonstrating its continued commitment Hamilton International Airport Limited, its partners and tenants have announced future investment of $CAD200 – $300 million dollars to improve the overall infrastructure. With the fresh approach from the management team, its focus on customer service and the continued financial and social investment Hamilton is on track to achieve its goal of being the secondary hub for Toronto and the rest of Southern Ontario.

About the Author

As John C. Munro Hamilton International Airport’s Director of Air Service Development and Marketing since February 2010, Karen Medweth has directed her focus on strategic partnerships, attracting new passenger and cargo services and developing supporting marketing and communications programmes. With 15 years experience in the aviation industry, Karen began her career with deHavilland Canada before moving to the parent company, Bombardier. Karen also worked for two other aircraft manufacturers, Embraer and BAE Systems, before spending over eight years working abroad in the United Kingdom for aviation consultant, IBA Group Ltd., and two regional airports, London Southend Airport and Newquay Cornwall Airport. A native of Toronto, Karen holds Bachelor and Master degrees in Applied Science and Engineering (Aersospace) from University of Toronto and a Master of Business Administration from Universitiet Nijenrode in the Netherlands.