Question Period Note: Airports Capital Assistance Program Enhancement

What support is available to small Canadian airports?

• Through the Airports Capital Assistance Program, the Government of Canada provides $38 million per year to support safety-related capital investments at the country’s smaller passenger airports.
• In the 2020 Fall Economic Statement, the Government announced temporary enhancements to the Airports Capital Assistance Program to support airports in their recovery from the impact of COVID-19:
  o the injection of an additional $186 million in funding to be spread equally over the next two years;
  o an increase in the minimum federal cost-share to 50% for the same period; and
  o over the next two years (2021-22 and 2022-23), previously ineligible federally-owned airports with traffic of less than one million passengers per year will now be eligible for the Program.
• With the additional funding and flexibilities, the Government of Canada has announced over $205M in funding for 86 new projects starting in 2021-22, providing much-needed support to airports.

• The Airports Capital Assistance Program currently has an annual funding envelope of $38 million for eligible safety projects such as the rehabilitation of airside surfaces/lighting and heavy airside equipment. Expansions or upgrades are not eligible for funding.
• Since its creation, the program has invested over $1.14 billion in 1,170 projects at 199 airports across the country.
• To be eligible, an airport must receive year-round regularly scheduled passenger service with a minimum of 1,000passengers a year for the last three consecutive years, and not be federally-owned.
• Funding is currently provided on a cost-sharing basis. Airports with less than 50,000 passengers per year are funded 100% by the Government. There is a 5% reduction in funding level per 25,000 passengers up to 524,999 passengers.
• Eligible projects fall into three categories in descending order of priority:
  o Priority 1: Safety-related airside projects;
  o Priority 2: Heavy airside mobile equipment (safety related); and
  o Priority 3: Air terminal building/groundside (safety related).

Location: National