Cost reduction measures introduced
Saint John – The Saint John Airport is taking temporary steps to safeguard its long-term financial health, in the wake of flight suspensions by its airline partners.
The most recent analysis suggests Canada’s airports face a total potential loss of $2.2 billion this year, with NB airports projecting more than $16 million in operating losses from the impact of COVID-19.
“We’re in the midst of a global health and economic crisis, the likes of which we’ve never experienced,” said President and CEO Derrick Stanford. “We’re taking action to reduce what costs we can, so that we can be here for our employees, partners and communities in the years to come.”
The Saint John Airport is moving quickly to stem controllable spending and reduce operating costs as much as possible to respond to this unprecedented challenge. Measures include:
• Deferring more than $5 million in capital projects.
• Reducing its costs and variable spending, and cutting expenses by $1.3 million.
• Offsetting payroll expenses by exploring and exhausting all available government wage subsidy programs, and staffing only as necessary to meet the current, decreased demand.
• Taking advantage of the federal rent relief program as it applies to the Saint John Airport, saving up to $20,000.
• Limiting available services in the terminal, while keeping it open and accessible to tenants who observe public health directives on social distancing.
Additionally, the Saint John Airport has joined the Canadian Airport Council’s call for further federal financial relief to address immediate cash flow challenges and ensure it can continue to operate and recover from this crisis.
In the meantime, YSJ will maintain the same high standard of safe, secure operations. Runways will be open to provide essential services to medevac flights and other pandemic-related emergency services.
“We understand and support the difficult decisions of our airline partners, and our hearts are with all those – inside and outside of the aviation industry – who have been impacted by COVID-19,” Stanford said. “We’ll be here once we’ve successfully flattened the curve and are ready to fly again.”