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Lecture 4

Management and Organizational Studies 1022F/G Lecture Notes - Lecture 4: De-Ice, Human Resources, Nav Canada


Department
Management and Organizational Studies
Course Code
MOS 1022F/G
Professor
Suzanne Kearns
Lecture
4

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04 Airports and Security
Airport organization
726 airports in Canada
Until 1990s, Canadian government operated airports. It was too expensive
1992, transport Canada handed it over to local authorities (National airport policy – NAP)
Nationally significant airports are part of national airports system (NAS) – 27 major
To be classified as an NAS airport, airport has to be located in capital city of have traffic
of 200k passengers or more, annually.
Government owns NAS airports, but they are managed by Canadian airport authorities
(CAA)
CAA operate under the following principles
oManagement of airports transferred in 2003
oCAA = not for profit
oBoard members represent local community, don’t include government employees
or elected reps
oThere are federal and provincial government representation on the board of
directors
oMethod of appointment and renovation of appointments to the board of directors
is specified
oAnnual general meeting is open to the public
oAll contracts exceeding 75k are awarded through a competitive big process
oCAAs have established community consultative committees
oPublic has access to CAAs key business documents
oCAA has performance review conducted by outside reviewer at least once every
five years
Airports and the Environment
Aircraft noise and engine emissions = impact on environment
New aircrafts are 50% quieter than 10 years ago
Canadian airports are becoming environmentally friendly
oToronto has co-generation system that feeds energy back into the grid
oMontreal has new lighting systems that save 80% of the energy used by
incandescent bulbs and has installed novel heating and air conditioning units that
combine electricity and natural gas and recapture emissions
oVancouver is using solar panels
oVictoria has rules limiting idling times for taxis and is planting gardens in parking
lots to improve air quality
oChemicals used are handled responsibly
Facts
oAviation = responsible for 2% of CO2 emissions from fossil fuel
oTransport = 3rd largest global greenhouse gas emission, tied with agriculture
oAviation = responsible for 12% Co2 emissions from all transport sources

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o80% of emissions are from passenger flights exceeding 1.5k km.
oAircraft today = 70% more fuel efficient than 40 years ago
Canadian Airports Council
Canadian Airports Council (CAC) reps Canadian airports
Created in 1992, purpose is to lobby Canadian government on issues of interest to
airports
CAC has 49 members that rep 180 airports across Canada, including all NAS airports and
majority of smaller airports with scheduled passenger ops
Deals with matters of importance such as:
airport rent
oGovernment charges local authorities rent for airport properties
oNAS airports are forced to charge additional fees to airlines and passengers
liberalized air policy: open skies
oAllows airline to pick up passengers in their home country, land to drop off and
pick up more passengers in a foreign country and continue to drop them off in a
third country. That is currently not allowed
free trade zones
oCAC advoacates development of free/foreign trade zones to meet the needs of a
globalized society
oFTZs = facilities that allow materials from a foreign country to be stored or
processed free of duty or taxes prior to being
Shipped to antoher country
Imported into the domestic economy
oImprove competitiveness as hubs of trade and exports
oAttract trade and transportation, concept is associated with economic success and
growth throughout the world
oCanada is the only G8 country that does not have a true FTZ program
oAdvantages to FTZ
Improved cash flow
Reduction or elimination of duties
Fewer quota restrictions
Avoidance of inverted tariffs
Access to economic initiatives
arrivals duty free
oAllows international travellers to purchase products free of duty upon arrival at
their destination
oCanadian federal duty free laws allow for sale of duty free gods only to travellers
who are leaving Canada
oCAC believes that arrivals duty free (ADF) would encourage passengers to
purchase duty free goods upon arrival in Canada
oBelieved that ADF would benefit Canadian economy by increasing sales and
creating jobs
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