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YVR looks to develop airport lands to deal with COVID-19 financial woes

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From The Vancouver Sun đź”— link to source story

Canadian airports anticipate passenger numbers will not return to pre-COVID levels until 2025

David Carrigg  â€˘  January 24, 2022

People move their luggage at Vancouver International Airport (YVR) on Dec. 16, 2021.
People move their luggage at Vancouver International Airport (YVR) on Dec. 16, 2021. PHOTO BY ARLEN REDEKOP /PNG

The Vancouver Airport Authority is looking to develop its industrial land base in Richmond into a large trade and transportation hub, according to a report going to Vancouver City Council on Tuesday.

The report, to be presented by Vancouver International Airport CEO Tamara Vrooman, states the development will be done in consultation with the Musqueam Nation.

“To future proof our financial stability in service to the community, we are exploring ways to diversify our revenue streams and better utilize our significant industrial land base,” the report said.

“Through better utilization of the land on Sea Island, YVR can help meet the need for large trade and transportation related sites in support of B.C.’s economic recovery plans.”

Like for all airports around the world, COVID-19 has had a big effect on YVR passenger volumes.

The report states 2021 passenger levels were 72 per cent lower than in 2019 — the year before the pandemic arrived in B.C.

As a result, the airport has incurred continued operating losses that are being covered by debt.

“There is pent-up demand for travel, and we are seeing more passengers come through the airport as vaccination rates increase and travellers have more confidence to travel,” the report said. However, these numbers are still well below those reported in pre-pandemic years.

Statistics Canada data shows 10 times more international travellers moved through Canadian airports in December 2021 than in December 2020, but it was significantly less than 2019 levels.

Canadian airports expect passenger numbers will not return to pre-COVID levels until 2025.

To help deal with the projected continued deficits, YVR has consolidated terminal operations and struck a deal with the federal government to waive or defer rent payments. Transport Canada owns the land the airport operates on.

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