Aéroports de Montréal

Aéroports de Montréal

October 04, 2007 09:00 ET

Aeroports de Montreal Announces an Increase in Airport Improvement Fees

MONTREAL, QUEBEC--(Marketwire - Oct. 4, 2007) - Aeroports de Montreal (ADM) announced today that airport improvement fees (AIF) for passengers departing Montreal-Trudeau will increase by $5, to $20 plus sales taxes, effective January 4, 2008.

The sole purpose of the AIF is to finance investments in Canada's airports. ADM introduced its AIF in November 1997 and this is the first significant increase since July 15, 2001 - over six years ago - when they rose to $15.

"ADM has invested more than $1.1 billion in its airport infrastructures since 2000, including some $750 million to complete the Montreal-Trudeau modernization and expansion program," said ADM President Chief Executive Officer James C. Cherry. "In addition, we are doing $190 million worth of work this year, in particular on the new transborder departures area, and we are planning to invest another $600 million or so by 2012 to meet growing needs.

"Our debt has increased considerably in recent years because of our massive investments," Mr. Cherry continued. "Although we will likely have to issue new series of bonds in the near future, we also need to increase our cash flows in order to maintain healthy financial ratios."

Mr. Cherry also noted that the AIF finance only part of ADM's investments. In fact, with $451 million in AIF collected from November 1997 to the end of 2006, the balance of the investments made during this period - $834 million - was funded by debt and cash flows from operating activities. For example, AIF revenues for 2008 - calculated using the new $20 rate - are projected to be a little more than $100 million, while airport investments for the year will total $275 million, for a shortfall of $175 million.

It is also important to emphasize that Canadian airports receive no government grants and are required to pay rent to Transport Canada as well as municipal taxes.

About Aeroports de Montreal

Aeroports de Montreal is the local airport authority responsible for the management, operation and development of Montreal-Trudeau and Montreal-Mirabel international airports since 1992. The Corporation employs 600 persons at both airports and at head office.

For more information about Aeroports de Montreal and the Corporation's activities, consult our website at www.admtl.com.

Contact Information

  • Source and information:
    Christiane Beaulieu
    Vice-President, Public Affairs