The Regina Airport Authority (RAA) is increasing some of its fees starting April 1.. James Bogusz .The airport lost more than $15 million from the pandemic, higher interest rates, and severe inflation. Plus, a $26.7 million runway improvement project. The RAA was left with no choice but to raise fees, it said..RAA CEO James Bogusz told the Western Standard there's “a lot of information not as accurate as it could be out there” and wants the public to hear it “right from an airport CEO with what's actually happening.”.Bogusz described the issues with Air Canada and Sunwing as “short-term turbulence” and were not the cause of the fee increases..“The very disappointing cancellation, twice by Sunwing here in Saskatchewan, but also you're seeing them now doing it across Canada,” said Bogusz..The reason for the fee increase is “a long-term capital investment program” the RAA has undertaken with the runway project, according to Bogusz. .The government is picking up about half the runway fee and it was slated to start right when COVID-19 hit and delayed the project..“This is work we intended to do in 2020. But because of the pandemic, we just couldn't afford it. We were losing millions of dollars each year, we lost actually $15 million between 2020-21,” said Bogusz..Bogusz said now that air travel has started to pick back up, the RAA is confident to move forward with the runway project..“Now that the rebound is finally occurring in aviation, especially the last six months, we are now in a position that we can get moving on that project,” said Bogusz..However, due to the increase in borrowing costs, the RAA said it had no choice but to raise fees to service the debt and the runway project..“To be able to service the debt that we have today, as an airport, plus the borrowing of the extra $50 million, is necessitating a fee increase,” said Bogusz..Bogusz said the other primary driver of the fee increase is the inflation rate..“One last piece is inflation. So inflation has been unbelievable,” said Bogusz..Bogusz said “runaway inflation” is affecting everything at the RAA..“We have seen runaway inflation on labour, certainly on materials and supplies,” said Bogusz..“We're seeing other smaller projects coming in bid prices well above what we've anticipated. Even with factoring in what we're seeing you know, out there, and the cost of borrowing is very significant. What a different landscape that we're in today than even two years ago.”.The passenger facility fee increases to $30 from $20 per departing passenger..The landing and general terminal fees paid by airlines will increase by 5%.
The Regina Airport Authority (RAA) is increasing some of its fees starting April 1.. James Bogusz .The airport lost more than $15 million from the pandemic, higher interest rates, and severe inflation. Plus, a $26.7 million runway improvement project. The RAA was left with no choice but to raise fees, it said..RAA CEO James Bogusz told the Western Standard there's “a lot of information not as accurate as it could be out there” and wants the public to hear it “right from an airport CEO with what's actually happening.”.Bogusz described the issues with Air Canada and Sunwing as “short-term turbulence” and were not the cause of the fee increases..“The very disappointing cancellation, twice by Sunwing here in Saskatchewan, but also you're seeing them now doing it across Canada,” said Bogusz..The reason for the fee increase is “a long-term capital investment program” the RAA has undertaken with the runway project, according to Bogusz. .The government is picking up about half the runway fee and it was slated to start right when COVID-19 hit and delayed the project..“This is work we intended to do in 2020. But because of the pandemic, we just couldn't afford it. We were losing millions of dollars each year, we lost actually $15 million between 2020-21,” said Bogusz..Bogusz said now that air travel has started to pick back up, the RAA is confident to move forward with the runway project..“Now that the rebound is finally occurring in aviation, especially the last six months, we are now in a position that we can get moving on that project,” said Bogusz..However, due to the increase in borrowing costs, the RAA said it had no choice but to raise fees to service the debt and the runway project..“To be able to service the debt that we have today, as an airport, plus the borrowing of the extra $50 million, is necessitating a fee increase,” said Bogusz..Bogusz said the other primary driver of the fee increase is the inflation rate..“One last piece is inflation. So inflation has been unbelievable,” said Bogusz..Bogusz said “runaway inflation” is affecting everything at the RAA..“We have seen runaway inflation on labour, certainly on materials and supplies,” said Bogusz..“We're seeing other smaller projects coming in bid prices well above what we've anticipated. Even with factoring in what we're seeing you know, out there, and the cost of borrowing is very significant. What a different landscape that we're in today than even two years ago.”.The passenger facility fee increases to $30 from $20 per departing passenger..The landing and general terminal fees paid by airlines will increase by 5%.
