Calgary’s airport authority is tightening its belt to the tune of $12 million in deferred airport improvements in the wake of Air Canada filing for creditor protection.

Airport CEO Garth Atkinson told an annual general meeting in Calgary last week that the airport has reduced its 2003 capital expenditures as a result of several factors – including Air Canada’s unpaid tab of $5 million – that have the potential to depress air traffic levels in the near term or affect operations.

“These reductions are manageable and include the deferral of some maintenance projects into 2004 and the reprofiling of cash flows on our multi-year expansion program,” Atkinson said.

However, he noted that the airport authority met all key financial and operational objectives in 2002, and managed to record a 1.2-per-cent increase in passenger traffic, which represented “the most robust passenger market in Canada and perhaps North America.”

Total revenues in 2002 increased 3.7 per cent to $117 million and cash flow from operations remained constant at $52.5 million.

Direct operating expenses increased 4.8 per cent to $41.1 million. The main factors influencing operating expenses were expansions to the terminal complex and higher insurance costs, Atkinson said.

The airport enjoyed a growth spurt last year with $169 million in capital construction projects, which included:

* The completion of a new concourse that added more terminal space, aircraft aprons and loading bridges as well as new airline check-in positions.

* A major renovation of the main arrivals level.

* An addition to the car parkade that added more than 1,000 new stalls and is connected by Plus-15 to the new concourse.

* New signage on the arrivals, departures and main entrance roadways.

* Phase 1 of the courtyard infill project that provided additional airline check-in and processing space for U.S. departures as well as expansion of the Canadian Inspection Services area.

More than $10 million was also spent on numerous restoration, equipment and service improvement projects.

Atkinson took aim at the new Canada Airports Act tabled in Parliament last month, predicting it will increase the administrative burden and associated costs for airports – costs that will be passed along to airlines and passengers.

“In these challenging times, we are suggesting to the federal government that their finite resources could be better deployed to addressing more pressing matters,” he added, including the thorny issue of federal airport rents, which will cost the Calgary airport about $250 million by 2005.