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The airports in Regina and Saskatoon qualify for a new federal funding program announced Tuesday to support Canadian airports struggling during the COVID-19 pandemic.
The Airport Relief Fund has $64.8 million to support 22 qualifying airports across the country. The money is to help these airports maintain operations and mitigate the risk of insolvency.
The amount of money the airports in Regina and Saskatoon will receive is not specified in the announcement, but it is explained there is a funding formula based on the airport’s 2019 revenues.
“Based on the formula they’ve provided, it appears we’re going to be in line for about $2.6 million in funding,” said Regina Airport Authority CEO James Bogusz, who calls it “very welcome news.”
During the Regina Airport Authority’s annual general meeting last week, it was learned that its revenue was down 52.3 per cent in 2020 compared to the previous year.
The biggest risk to the airport was ongoing liquidity, which does not generate enough revenue to pay its debts. Expenses exceeded revenue by $12 million and the airport is now being run on a line of credit.
While Regina’s airport did receive $1.2 million from the Canada Emergency Wage Subsidy and $114,000 for 10 months of rent relief, it was not enough to address its growing debt.
“Coming into June or July, we’re going to be into a situation where we’re in debt over $5 million and that becomes quite a concern for the authority,” said Bogusz at the time of that meeting.
The airport was hopeful the federal government would come through with funding to provide short-term support. Bogusz said the $2.6 million will cover about two months of operating expenses.
Longer term, the airport authority has a recovery plan, which includes non-aviation-based revenue, such as food and beverage, parking, rental cars, advertising and leasing its land.
He is also hopeful to receive additional funding through the Airport Critical Infrastructure Program. The Regina Airport Authority is applying for funding for runway paving, which needs to be done every 12 to 15 years. Because of the downturn due to the pandemic, that project has not yet been started.
“We’re hoping we can apply for some funding for a project that’s going to be valued between $25 (million) and 30 million,” said Bogusz.
He said if the downturn continues, the Regina airport will need further federal assistance, but he’s optimistic travel across Canada will resume sometime soon.