HIAA undertook a bondholder consent solicita- tion in late 2020 seeking permission from existing bondholders to waive certain debt compliance provisions contained within its master trust indenture for the years 2020 to 2022, which was approved. This provided HIAA with the flexibili - ty needed to address ongoing liquidity concerns given the continued uncertainty associated with the pandemic and when non-essential air travel can safely restart. HIAA recently closed a new $150 million private placement bond issue providing the addition- al liquidity needed to maintain operations and required capital investment over the next few years, as our industry recovers from the impact of the COVID-19 pandemic. Despite the significant loss in revenue, Halifax Stanfield remains open 24/7 to facilitate critical medical and military flights, unexpected emer - gencies such as flight diversions, and air cargo deliveries of important goods and supplies, such as vaccines. Although 2020 was not a record-breaking year for air cargo activity, cargo was affected to a lesser degree than passenger volumes. Cargo processed at Halifax Stanfield in 2020 was just under 33,000 metric tonnes, a decrease of 19 per cent compared to 2019. HIAA saw a modest increase in cargo flight landings in 2020 and the new Air Cargo Logistics Park continued to advance, with the construction of new aircraft parking aprons and a cargo ware- house facility. The Air Cargo Logistics Park was made possible with financial support totaling $18 million from the Federal Government through
the National Trade Corridors Fund, and $5 million from the Province of Nova Scotia, along with HIAA’s investment of $13 million. “While there was less overall aviation activity in 2020 than in years past, the work that’s done at Halifax Stanfield is critical to keeping our economy growing and communities connected,” said Carter. “We are incredibly proud of everyone in the Halifax Stanfield community for their per - severance, both personally and professionally, as we collectively navigate immense uncertainty and unknown territory.” “We are working together with a vision of a brighter future. We are staying the course.” Key Highlights from HIAA’s 2020 Annual Report: • In 2020, Halifax Stanfield served 995,426 passengers, down from 4,188,443 in 2019. Two-thirds of all 2020 passengers travelled between January and March. • Halifax Stanfield expected to have 17 airlines operating to 46 destinations in Canada, the U.S., the Caribbean, Mexico, and Europe.
Throughout the pandemic, the airport was served by only three airlines flying to eight domestic destinations. • HIAA’s total revenue in 2020 was $41.3 million, down from $114.4 million from 2019. • Expenses exceeded revenue by $40.1 million in 2020, an unprecedented change from the surplus of revenue over expenses of $7.5 million reported in 2019. • Halifax Stanfield responded quickly to the pandemic, implementing new health and safety enhancements inside the airport which have been reviewed and certified by Airports Council International, for meeting globally recognized best practices for healthy airports. • There is significant uncertainty around when air travel will start to safely recover, however, HIAA predicts it will take four to five years to return to 2019 levels.
is reinvested into the airport. The pandemic has eliminated surpluses and with dramatically reduced revenue we were left to rely on borrow- ing to support operations for the better part of 2020. We’ve taken the steps necessary to ensure we have adequate access to liquidity to continue to operate and provide service to the community until travel demand recovers and airport activity returns to a financially sustainable level.”
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JUNE 2021 • SPOTLIGHT ON BUSINESS MAGAZINE
SPOTLIGHT ON BUSINESS MAGAZINE • JUNE 2021
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