As the COVID-19 pandemic continues to hit all countries\nhard, the airport industry is not being spared, with an unprecedented and\nunexpected drop in passenger traffic. ADM A\u00e9roports de Montr\u00e9al, like other\nCanadian airports, is therefore taking extraordinary measures to ensure the\nsurvival of its airport sites, which are important engines of economic\ndevelopment for the city and Qu\u00e9bec as a whole. At the same time, it is\ncontinuing to work with public health organizations and air carriers to\nfacilitate the final safe repatriation of travellers and to enable essential\ntravel in Canada and abroad.<\/p>\n\n\n\n
While it is impossible to accurately predict the full impact\nof COVID-19, ADM is nevertheless working to make forecasts about the decline in\npassenger traffic based on the information currently on hand. For example, it\nexpects that the numerous flight cancellations will have the following\nrepercussions:<\/p>\n\n\n\n
The number of travellers is expected to decrease by a\nminimum of 80% in the second quarter of 2020 (April-June) compared with the\nprevious year.<\/p>\n\n\n\n
A loss of revenue of approximately 35% ($250 million) is\nprojected compared to what had been anticipated for 2020. The drastic drop in\npassenger volumes is having an impact on both airport improvement fee revenues\nand aeronautical revenues. Non-aeronautical revenues from commercial and\nparking operations are also being impacted. At the same time, some costs have\nincreased, such as those related to more frequent cleaning and disinfection of\nthe airport terminal building.<\/p>\n\n\n\n
A budget review exercise has been carried out in light of\nthese forecasts. The financial strategy is based on three objectives: to\nmaximize cost reduction; to reduce the capital projects budget to a bare\nminimum by focusing on projects that safeguard key assets; and to adjust the\nworkforce to provide essential services to fewer and fewer passengers and\nusers.<\/p>\n\n\n\n
Transport Canada’s announcement of a 10-month rent waiver\noffers a welcome temporary relief for ADM, but the amounts freed up –\napproximately $38 million – are not sufficient to preserve the organization’s\nsustainability and other measures need to be taken.<\/p>\n\n\n\n
Exceptional measures to be deployed in the short term\ninclude the following:<\/p>\n\n\n\n
The full use of the Canada Emergency Wage Subsidy Program,\nwhich will compensate a portion of the salaries of approximately one-third of\nADM’s employees who hold positions considered “non-essential” in the\ncurrent context. Although they will not be required to provide full work\nperformance, they will maintain their employment relationship for the duration\nof the program.<\/p>\n\n\n\n
“ADM needs to\nmake difficult decisions that will allow it to continue to manage its assets\nresponsibly,” said Philippe Rainville, President and CEO of ADM A\u00e9roports\nde Montr\u00e9al. “The assistance received from the federal government through\nthe Emergency Wage Subsidy Program is helping to ensure the maintenance of quality\njobs for our workforce and we are extremely grateful for this. I would like to\nthank ADM employees and union partners who have agreed to make a collective\neffort on their overall compensation to avoid layoffs.”<\/p>\n\n\n\n
Mr. Rainville concluded: “While no one can speculate on\nwhat the future holds, one thing remains unchanged: the remarkable dedication\nand mobilization of our employees and all industry players will be demonstrated\nmore than ever as soon as airplanes are able to start landing and taking off again\nfrom YUL in Montr\u00e9al. The wellbeing of the entire community and our economy\ndepends on it.”<\/p>\n","protected":false},"excerpt":{"rendered":"
As the COVID-19 pandemic continues to hit all countries hard, the airport industry is not being spared, with an unprecedented and unexpected drop in passenger traffic. ADM A\u00e9roports de Montr\u00e9al, like other Canadian airports, is therefore taking extraordinary measures to ensure the survival of its airport sites, which are important engines of economic development for […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[114],"tags":[],"class_list":["post-15242","post","type-post","status-publish","format-standard","hentry","category-international-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/15242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/comments?post=15242"}],"version-history":[{"count":1,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/15242\/revisions"}],"predecessor-version":[{"id":15243,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/15242\/revisions\/15243"}],"wp:attachment":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/media?parent=15242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/categories?post=15242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/tags?post=15242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}