With a $30 million expansion under its wing, Abbotsford International Airport (YXX) is preparing to become a major economic driver in the Fraser Valley.
Its next mission?
To entice new commercial airlines, aerospace and defence contractors and cargo handlers to invest in and develop the 100-hectare parcel of land next to the airport.
�We�ve just spent 30 million in anticipation of the demand that�s coming,� said Jean-Paul Laube, business development manager at YXX, �and now we have to make sure the demand comes.�
The recently completed expansion, which was a three-way investment between the airport, province and Ottawa, included a new 9,600-foot taxiway, expanded apron, and renovated terminal.
Laube called the upgrade a complete facelift, doubling the airport�s passenger capacity and allowing it to start attracting major aerospace companies.
Short-term business goals for the airport include an expansion of its annual net operating income to $2 million and a 15% to 20% increase in jobs by the end of 2013. (YXX is currently responsible for 2,000 direct jobs.)
Laube said YXX is already in talks with Westjet, Air Canada and other aerospace companies about increasing their presence in the Fraser Valley.
The airport, which is owned by the City of Abbotsford, is also thinking about ways it can develop the aerospace-zoned land next to its operations.
�The city and the airport are both very motivated, and you can translate that into willing to provide incentives to attract business,� said Laube.
One of those incentives comes in the form of a tax exemption for construction projects of at least $100,000 based on the increase in the property�s assessed value.
Laube said most of the 100-hectare parcel of land next to the airport is serviced, and YXX is seeking aerospace projects that include:
�painting and coating facilities,
�a National Research Council node; and
�software, simulation and other aerospace training capabilities.
YXX is also interested in competing with Vancouver International Airport in the air cargo business.
�That�s huge,� said Laube, who added that the airport plans to undertake a study next year as to how it could best get into the air cargo business.
Abbotsford Mayor George Peary sees the airport as one of the city�s key economic drivers.
�We�re open for business out there, and we�re out hustling looking for anybody who might be interested in business to give us a call.�
Peary added that the tax break should also help new businesses set up shop.
�It gives investors coming into our city creating jobs a bit of a break on their taxes as they�re starting up, which is often when companies are looking for reduced expenditures.�
YXX�s facilities have already paid off for one local company.
Cascade Aerospace, an Abbotsford-based aerospace and defence contractor, employs 650 people and said the expansion will help with its aircraft maintenance and repair contracts.
Company spokeswoman Lorna Hart said although the expansion won�t create direct growth for the company, further development at the airport would be good for business and the sector.
Laube, meantime, said several companies have contacted him in the last month inquiring about opportunities at the airport.
Although he wouldn�t divulge the details of the agreements YXX is working on, he said the airport is trying to develop an aerospace hub.
�So are we thinking about the potential for an aerospace industrial park, possibly an incubator? Yes. Will it happen? I sure hope so.���
