2 va 011 an ancouv nnual ver ai and s rport sustai t auth nabil

VA
ANCOUVER AIRPORT AUTHORITY
2 0 1 1 A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T
Vanco
ouver Airport Authority is a community-based, not-foor-profit organization that manages
Vanco
ouver Internattional Airport (YVR). Canad
da's second b usiest airportt, YVR served 17 million
passe
engers in 2011
1, facilitated 258,000
2
takeo
offs and landi ngs on our ru
unways and ha
andled
224,00
00 tonnes of cargo.
c
Sixty-three airlines serve YVR, coonnecting peo
ople and businesses to 111
1
destin
nations worldwide. We are committed to
o creating an airport that B
British Colum
mbia can be
proud
d of: a premier global gatew
way, local eco
onomic generrator and com
mmunity contrributor.
This annual
a
and su
ustainability re
eport capture
es and commu
unicates the A
Airport Autho
ority’s results
in 201
11. Organized along our fou
ur sustainabillity pillars, th is report provvides you - ou
ur
stakeholders and customers
c
- with
w information about all aaspects of ou
ur business:
s financial statements and information o
on financial performance,
The Economic report includes
custtomer satisfaction results and the destinations we seerve.
The Environmentt report provid
des information on the Airrport Authorityy’s environme
ental
prog
grams, perforrmance targe
ets and results.
The Governance report outline
es Board and Executive leaadership, info
ormation on o
our
subs
sidiary compa
anies and govvernance pracctices.
The Social reportt highlights em
mployee prog
grams and ressults, and the
e Airport Auth
hority’s
com
mmunity engagement practtices.
80 Years of Creating Connections
Vanco
ouver Internattional Airport’s story began with a singlle runway and
d a small, woo
od-frame
admin
nistration building that wellcomed 1,072 passengers in 1931. Eightty years laterr, YVR is
Canad
da’s second busiest
b
airport, serving 17 million passeengers on more than 258,0
000 flights in
2011. From its warr-time expans
sion in the 194
40s, to the jett era of the 19960s, Expo pre
eparations in
the 19
980s and the millions of athletes, passengers and vissitors of the 22010 Winter G
Games, YVR is
a gate
eway that connects British Columbia’s history
h
and itss people.
“Few cities on the North Americcan continent can boast an
n airport and sseaplane harbour as
magnificent in its conception
c
an
nd with such a wonderful fu
uture ahead a
as can Vancou
uver,”
exclaiimed the 1931
1 opening celebrations bro
ochure. But m
more than Van
ncouver’s airp
port, YVR is
British Columbia’s
s airport. With
h distinctive art
a and architeecture reflecttive of our pro
ovince’s
natural beauty and
d dynamic culture, YVR is a place where visitors are w
welcomed to B.C. and
where
e residents arre welcomed home.
A 1931 opening cellebrations pos
ster also toutted Vancouverr as the gatew
way to Asia th
hanks to its
strate
egic location. Yet, no longer is the airport’s geograph
hic location th
he competitive
e advantage itt
once was.
w
With imp
proved techno
ology, aircraftt can now travvel much fartther, flying fro
om Asia
beyon
nd YVR to othe
er airports. Our airport is up
u against som
me serious co
ompetition. A
As a significan
nt
emplo
oyer and econ
nomic generator for the region, it is ourr job to ensure
e YVR is well--positioned to
o
attrac
ct new service
es and routes and to conne
ect our comm
munity to the rrest of the world for the
next 80
8 years.
Message from Mary Jordan
Chair
Much has changed
d in British Co
olumbia since 1927 when faamous aviator,
Charles Lindbergh
h, declared tha
at he would not
n land at Van
ncouver durin
ng
his No
orth American tour becaus
se the young city
c did not haave a proper
airporrt. Over the ye
ears, our neig
ghbouring com
mmunities of Vancouver an
nd
Richm
mond have gro
own and pros
spered, with rail, road and shipping
conne
ections to the world expand
ded by air serrvice to destin
nations aroun
nd
the gllobe.
As the
e City of Vancouver celebra
ated its 125th anniversary in 2011, Vanccouver Interna
ational Airporrt
also celebrated
c
its 80th year and it is hard to imagine how
w either would
d have developed into
world-class destinations withou
ut the other. As
A we opened our doors to the commun
nity this past
summ
mer to celebra
ate YVR’s mile
estone, 10,000 members oof the public ccame to celeb
brate with us. It
broug
ght home to me
m that, while YVR is imporrtant to passeengers and bu
usinesses that rely on our
conne
ections, we arre also an inte
egral member of the comm
munity and a ssource of prid
de for the
people who use and visit our airrport.
Our 80th anniversa
ary wasn’t the
e only milesto
one in 2011; o n Septemberr 11, the Unite
ed States
Consu
ul General dedicated a plaq
que to the enttire airport coommunity, recognizing the
e outstanding
efforts of everyone
e at YVR during the re-routing of aircraftt following the Septemberr 11, 2001
terrorrist attacks. At
A that time, YVR
Y accepted 8,500 diverte d passengerss - more than any other
Canad
dian airport. Everyone
E
invo
olved demonstrated compaassion, flexibiility and opera
ational
excelllence, about which
w
the airp
port and surrounding com munities can be very proud.
Anoth
her important milestone for the Airport Authority and
d our neighbo
ouring commu
unities this
past year
y
was the completion
c
off the Ground Run-up
R
Encloosure. This much-anticipatted structure
will re
educe the noise generated in the comm
munity by prop
peller engine run-ups by ha
alf. It is
imporrtant for the Airport
A
Authorrity to be a go
ood neighbourr, and we are proud to be tthe first
airporrt in Canada with
w such a fa
acility.
Vanco
ouver Internattional Airport is a place tha
at fosters con
nnections - it connects bussinesses to
opporrtunities worldwide, and friends and fam
mily to each o ther around tthe globe. As a major
emplo
oyer, the airport is also con
nnected to ou
ur economy. M
More than 23,000 people co
ome to work a
at
400 businesses eve
ery day at YVR
R, and we take
e that respon
nsibility seriou
usly. It is impo
ortant that we
e
mainttain our world
d-class status
s and we strivve to bring moore routes and airlines to Y
YVR for the
beneffit of our locall communities
s and the province.
On be
ehalf of the Bo
oard of Directtors, I would like
l
to extend my thanks and appreciation to the
entire
e Airport Auth
hority team for continuing to
t deliver a grreat custome r experience and
opera
ational excelle
ence. Togethe
er we are mak
king YVR an aairport that Brritish Columb
bia can be
proud
d of.
Mary B. Jordan
Chair
Board
d of Directors
Message from Larry Berg
President and Chief Executive Officer
From welcoming new
n routes an
nd airline parttners to celeb
brating 80 yea
ars in
the co
ommunity, 2011 was a grea
at year for Vancouver Interrnational Airp
port. It
was also
a
a year wh
here the Airpo
ort Authority looked
l
at how
w Vancouver
Intern
national Airpo
ort needs to position itself for future succcess in an
increa
asingly compe
etitive industrry.
The th
heme for this year’s annua
al report is ‘Ce
elebrating 80 Years of
Conne
ecting British Columbia’ which
w
I think aptly capturess our achievem
ments and miilestones in
2011. Since its ince
eption, Vancouver International Airport has connecte
ed British Columbia to the
world—it’s the core of our busin
ness. The Airp
port Authorityy works hard to expand B.C
C.’s
conne
ectivity by brin
nging in new routes
r
and ne
ew carriers beecause we kn
now that more
e air service
means more jobs and
a economicc growth for our
o province. T
The addition o
of China Soutthern Airliness’
new service
s
to Gua
angzhou, Chin
na and its all-cargo servicee to Shanghai are example
es of this
growtth. The carrier’s Guangzho
ou to YVR routte generates 444 jobs at the
e airport, $2.2
2 million in
wages
s and contributes $3.5 million to Canada’s GDP annu
ually. As well,, the all-cargo
o Shanghai
servic
ce opens up new opportuniities for B.C. businesses
b
too export products ranging from fresh
seafood to heavy equipment to the
t growing Chinese
C
markket.
While focusing on new routes and airline parrtners is impoortant to our b
business, so ttoo is our
contin
nued connection to the com
mmunities we
e serve. As pa rt of YVR’s 800th anniversary
celebrations, we opened our doors to a young
g storyteller w
who lived at the airport forr 80 days and
80 nig
ghts as part of a program called
c
Live@YV
VR. He used ssocial media channels to sshowcase the
many interesting people,
p
busine
esses and ope
erations at ou
ur airport. Live@YVR was a success
becau
use it shared little-known facts
f
about YV
VR—from the types of carg
go going to Assia to the
people who make up
u our Green Coat volunteer program—
—with a huge a
audience, rea
aching more
than 115
1 million pe
eople worldwide.
Last year,
y
we also experienced an event that tested our em
mergency ope
erations. On O
October 27,
2011 we
w responded
d to an incident that we pla
an for but hop
pe never happ
pens — the crrash of
North
hern Thunderbird Air Flight 204. The aviation commu
unity at YVR iss close knit an
nd this
accide
ent touched each
e
and everry one of us. And
A while I hoope we never experience an
nother
incide
ent like this, I am proud of the coordinatted response of everyone involved in this tragic
accide
ent.
Throu
ughout 2011 we
w focused on
n planning forr the future. W
With global fin
nancial uncerttainties and
airporrts such as Se
eattle, Calgarry, Toronto an
nd Chicago co mpeting for A
Asia-Pacific trraffic, the
Airport Authority concentrated its
i energy on strategies to ensure that YYVR remains competitive
and poised for the future. For Va
ancouver Inte
ernational Airrport to expan
nd its role as a gateway to
Asia, we
w must build
d connections
s and enhance existing com
mpetitive adva
antages—sup
perior service
e,
low co
osts, a community with a history
h
of strong family and
d trade ties to
o Asian marke
ets—and build
d
new advantages
a
in terms of spe
eed and efficie
ency. We musst ensure thatt connection ttimes are
short enough to make routings through YVR a preference for our custo
omers. Today, it takes a
travelller 90 minute
es to connect between an international and domesticc flight. This cconnection
time needs
n
to be re
educed to 60 minutes, and that means improving ourr processes a
and facilities tto
quickly transfer pa
assengers and
d luggage bettween flights.
Anoth
her way the Aiirport Authoriity remains co
ompetitive is by holding ae
eronautical fe
ees and
charg
ges steady. To
o that end, the
e Airport Auth
hority develop
ped the Gatew
way Incentive Program,
which
h freezes an airline’s landin
ng and termin
nal fees at 20 10 levels for ffive years. Th
his incentive,
which
h encourages airlines to ad
dd capacity at no additionall cost, along w
with our continued
advoc
cacy for more liberal aviation policies, encourages fu
urther service
es and growth
h at YVR.
Conne
ections are th
he foundation of our busine
ess and the fu
uture of YVR. I have alwayss been proud
of ourr connection to
t our commu
unities, to ourr business parrtners and to our custome
ers. And I
believve our custom
mers feel the same
s
way. Fo
or the second year in a row
w, YVR was named Best
Airport in North Am
merica in the Skytrax World Airport Awaards. The awa
ard is based o
on an
independent and highly-regarde
ed survey of more
m
than 11 million passe
engers worldw
wide. In
addition, the Airport Authority’s own surveys show a 90 peer cent custom
mer satisfaction rating again, our highest rating for the
e second year in a row.
For th
he Airport Autthority, 2011 was
w a year in which we exp
panded servicces, connecte
ed with our
comm
munities and defined
d
a strategy for Vanccouver Internaational Airporrt’s success o
over the next
10 yea
ars. This coming year I look forward to our
o continued
d work on building a betterr airport for
our prrovince as we
ell as celebratting another milestone:
m
th e Airport Auth
hority’s 20th a
anniversary.
Larry Berg
Presid
dent and Chie
ef Executive Officer
O
Vanco
ouver Airport Authority
VANCOUVER AIRPORT AUTHORITY
2011 ECONOMIC REPORT
Our Business
Finan
ncial and Operrating Highlig
ghts (2002-20
011)
Year
Revenue
(millions)
Operating
O
Expenses
E
(millions)
Grou
und
Lease
(millio
ons)
Excess of
Revenue
over
Expenses
(millions)
Net
Assets
(millions)
Capital
Exxpenditures
foor the Year
(millions)
Passsengers
(m
millions)
Airccraft
Runway
Take
e-offs
an
nd
Land
dings
Cargo
Handled
d
(thousands
of tonnes)
(thoussands)
2011
369.3
275.9
34..8
59.1
1,087.9
59.9
17.0
25
58
223.9
9
2010
368.7
280.8
33..2
56.0
1,028.8
71.2
16.8
25
55
228.4
4
2009
359.1
256.7
65..6
38.8
972.8
226.6
16.2
25
58
197.5
5
2008
373.8
236.3
65..6
81.8
934.0
233.1
17.9
27
79
211.7
7
2007
368.3
212.2
65..6
89.5
852.2
289.7
17.5
27
75
226.2
2
2006
363.8
190.2
65..7
107.8
762.3
315.9
16.9
27
71
222.7
7
2005
329.8
176.7
78..7
74.4
654.6
137.6
16.4
27
75
223.7
7
2004
276.9
158.5
73..9
44.5
580.2
123.0
15.7
27
70
229.9
9
2003
246.0
154.1
66..3
25.6
535.6
55.0
14.3
25
50
214.9
9
2002
248.5
142.7
66..3
39.5
510.0
44.7
14.9
25
58
235.0
0
Our Customers
Amids
st turbulence in the globall economy, YV
VR welcomed 17 million passengers in 2
2011,
representing a 1.5 per cent incrrease over the
e previous yeaar. Visit the fa
acts and statisstics page on
our website
w
for dettailed passenger, cargo an
nd aircraft takke-off and lan
nding numberrs.
Vanco
ouver Interna
ational Airporrt Passengers
s (2002-2011 )
Passen
ngers
14.9
1
2002
15.7
6.4
16
16.9
200
05
2006
17.5
17.99
16.2
16.8
17.0
2010
2011
14.3
2003
2004
2007
20088
2009
CUSTOMER CARE
The safety and security of our airport, our passengers and
d our employe
ees is our num
mber one
priority. The Airporrt Authority is
s committed to excellence in safety, seccurity and envvironmental
management and we
w take everyy measure to ensure operaations at Vanccouver Interna
ational Airporrt
meet the highest standards.
s
Provid
ding the help and informattion our custo
omers need iss central to crreating a positive travel
experrience. The Airport Authority’s award-winning Green Coat volunteer program ccontinued to
expan
nd in 2011, rea
aching 404 vo
olunteers. Colllectively speaaking more th
han 26 langua
ages to help
customers from arround the worrld, Green Coat volunteerss logged a tota
al of 72,000 se
ervice hours in
2011, an increase of
o over 2,500 hours from 2010.
Caring for our custtomers and providing an outstanding ai rport experie
ence are centrral to our
business philosoph
hy and econom
mic success. The Airport A
Authority usess quarterly cu
ustomer
satisfaction surveyys conducted by an indepen
ndent consultting firm to trrack customer service at
YVR. Our
O customerrs recognized our commitm
ment, giving YYVR a 90 per ccent satisfaction rating in
surveys of more than 3,250 pass
sengers in 20
011.
Overa
all Customer Satisfaction Ratings (2002
2-2011)
Cusstomer SSatisfacttion
87%
8
88%
90%
88%
8
87%
85%
866%
87%
2002
2
2003
2004
20
005
2006
2007
20008
2009
90%
90
0%
2010
20
011
SIMPL
LIFIED PASSE
ENGER TRAV
VEL
The Airport
A
Authorrity knows tha
at our custom
mers want to g
get through YV
VR quickly and easily. In
addition to NEXUS and expedited pre-board screening
s
lan
nes, programss such as off--site and onsite se
elf-service ch
heck-in and Automated
A
Border Clearan ce put passen
ngers on the ffast track.
In 201
11, the Airport Authority an
nd Canada Bo
order Servicess Agency (CBS
SA) continued
d to expand
the Au
utomated Borrder Clearancce program, which
w
offers rreturning Can
nadian citizens and
permanent residen
nts use of a se
elf-service kio
osk to quicklyy and easily clear the border. Eight
additional kiosks were
w
added to
o the Customs
s Hall in 2011 , bringing the
e total number of kiosks to
20. More than one million eligib
ble passengerrs used Autom
mated Borderr Clearance in
n 2011 – an
increa
ase of 56 per cent over 201
10 usage.
To red
duce passeng
ger wait times
s for security screening, th
he Airport Autthority facilita
ated dedicated
d
lanes for NEXUS ca
ard holders at all domesticc and internattional securitty screening p
points. The
NEXU
US lanes are one
o part of the
e Government of Canada’ss Beyond The Border progrram that will
also eliminate
e
the process of du
uplicate bagga
age screening
g for passeng
gers connecting at U.S.
airporrts from YVR over the next three years.
FACIL
LITIES
Follow
wing on the delivery of majjor constructiion projects in
n 2009, the Grround Run-Up Enclosure,
South
h Runway lighting project and
a public add
dress system upgrade werre completed in 2011.
The Ground
G
Run-U
Up Enclosure (GRE) is a 67-- by 80-metree enclosure th
hat reduces noise from
engine run-ups conducted as pa
art of regularr aircraft main
ntenance. The
e facility is loccated at YVR’ss
South
h Terminal and cuts engine
e run-up noise
e heard in neaarby residenttial neighbourrhoods by up
to 50 per cent.
Part of
o a three-yea
ar project on the
t south airfield, the Soutth Runway lighting project involved
hase of this
upgra
ades to ensure safe operations in low vis
sibility condittions. The thirrd and final ph
projec
ct was comple
eted on time and on budge
et.
AIL, SHOPS AN
ND SERVICES
S
RETA
The Airport
A
Authorrity’s award-w
winning comm
mercial prograam continued
d its success iin 2011,
winning the best aiirport concession program
m in North Am
merica for the second conse
ecutive year.
With YVR’s
Y
wide arrray of retail options,
o
sales
s at shops, resstaurants, serrvices and duty free saw a
10 per cent increas
se in 2011 ove
er 2010. Ten new
n stores an
nd services op
pened in 2011 including a
Boutiq
que iStore and British Colu
umbia’s first Victoria’s
V
Seccret.
The Airport
A
Authorrity continued its popular summer
s
progrram, Take Offf Fridays, in 2
2011.
Featu
uring a varietyy of terminal activities
a
such
h as live enterrtainment, prroduct sampling and specia
al
offers
s in both the International and
a Domesticc Terminals, T
Take Off Frida
ays increased
d overall saless
at YVR
R by more tha
an 14 per centt on the days the program was offered.
Connecting Our Economy
Vanco
ouver Internattional Airport is an importa
ant economicc engine for B
British Columb
bia and
Canad
da. In 2011, th
he Airport Autthority reported the result s from its eco
onomic impacct assessmen
nt,
highlighting how YV
VR generates
s thousands of jobs, million
ns of dollars in tax revenue
e and billions
of dolllars in wages
s and gross do
omestic product (GDP) fro m its daily op
perations and construction
projec
cts. For exam
mple, YVR gene
erates $1.9 billion in added
d value or GD
DP which acco
ounts for abou
ut
one per cent of B.C
C.’s total econ
nomy.
Opera
ations at YVR support 23,60
00 direct jobs in areas incl uding the airlline industry, corporate
aviatio
on, ground transportation,, retail and pu
ublic safety. F
Four hundred businesses a
and agencies
opera
ate at YVR with
h more people working at the airport th
han live in Prince Rupert an
nd Williams
Lake combined.
Our economic asse
essment found that one daily internatio nal flight crea
ates between 150 and 200
jobs at
a the airport as well as another 400 dire
ect jobs for h otels, tourist attractions, rrestaurants
and shops.
While Vancouver In
nternational Airport
A
is a sig
gnificant sourrce of employyment, it is alsso a key facto
or
in kee
eping B.C.’s economy comp
petitive: 47 pe
er cent of the world’s econ
nomy is accesssible by dailyy,
non-s
stop schedule
ed service from
m YVR. This connectivity
c
heelps local ind
dustries, comp
panies and
schoo
ols reach morre customers,, investors and suppliers faaster, ultimattely enabling local
businesses to pros
sper in a globa
al marketplacce.
Our Destinations
B.C.
CANADA
MEXICO
Anahim Lake
Bella Bella
Bella Coola
Camp
pbell River
Castle
egar
Como
ox
Cranb
brook
Dawson Creek
1
Fort Nelson
N
Fort St.
S John
Gange
es Harbour
Kamlo
oops
Kelow
wna
Lyall Harbour
Maple
e Bay
Masse
et
Minerr’s Bay
Monta
ague Harbourr
Nanaimo
Nanaimo Harbour
Pentic
cton
Port Hardy
H
Port Washington
W
Powell River
Prince
e George
Prince
e Rupert
Qualic
cum Beach
Quesn
nel
Sands
spit
Seche
elt
Silva Bay
Smith
hers
Telegraph Harbourr
Terrace
Tofino
o
Trail
Victorria
Victorria Harbour
Williams Lake
Calgary
Edmonton
Fort McMurray
Montreal
Ottawa
Regina
Saskatoon
Toronto
Whitehorse
e
Winnipeg
Yellowknife
e
Can
ncun
Hua
atulco C
Ixta
apa/Zihuatane
ejo
Man
nzanillo C
MazzatlanC
Mexxico City
Pue
erto Vallarta
San
n José del Cab
bo
U.S.A.
Anchorage
Atlanta
Chicago
Dallas
Denver
Detroit
Honolulu
Houston
Kahului (Ma
aui)
Kona (Hawa
aii)
Las Vegas
Lihue (Kaua
ai)
Los Angele
es
Minneapolis
JFK)
New York (J
Newark
unty
Orange Cou
Palm Sprin
ngs
Phoenix
Portland
Salt Lake City
C
San Diego
San Francis
sco
Seattle
ASIA
China
Beijjing
Che
engdu*
Gua
angzhou
Hon
ng Kong S.A.R
R.
Sha
anghai
She
enyang*
Japan
Tok
kyo
South Korea
oul
Seo
Philippines
nila
Man
Taiwan
Taip
pei
EUROPE
OCEANIA
France
Paris C
Australia
Sydney
Germany
Dusse
eldorf C
Frank
kfurt
Munic
ch C
New Zealand
Auckland
Netherlands
Amste
erdam
Switzerland
hC
Zurich
United Kingdom
Glasgow, Scotland C
Londo
on, England (G
Gatwick) C
Londo
on, England (H
Heathrow)
Manchester, Engla
and C
LATIN AMERICA
Costa Rica
Liberiia C
Cuba
Santa
a Clara C
Varad
dero
Dominican Republic
Puerto Plata C
Punta
a Cana C
Jamaica
Monte
ego Bay
Panama
Panam
ma City C
*Planned forr the summer oof 2012
1
One stop en
n route
C
Charter se
ervice only; mayy have a
stop en routte
Key Initiatives in 2011
To continue to expa
and YVR as a global gateway, the Airporrt Authority fo
ocused on sevveral key
initiattives in 2011.
Gatew
way Competitiiveness
To be successful in
n an increasin
ngly competitive market, w
we need to be a low-cost, h
high-value
airporrt that will encourage air carriers
c
to enh
hance servicees to YVR. Devveloped in 2010, the
Gatew
way Incentive Program makes YVR more
e attractive too airlines by frreezing landing and
terminal fees at 20
010 levels for five years. In 2011, we neg
gotiated and rreached agree
ements with
22 airrlines to incre
ease capacity on flights through YVR by 330 per cent ovver five yearss.
China
a: Enhanced Services
S
and China
C
Transit Trial
China
a is a key market for Metro Vancouver and British Co lumbia, and tthe Airport Au
uthority
contin
nues to encou
urage travel between
b
Asia and
a North Am
merica. In 2011, we welcom
med China
South
hern Airlines’ inaugural flig
ght from Guan
ngzhou, Chinaa to Vancouve
er. This new sservice to and
d
from Guangzhou is
s Canada’s firrst, and only, non-stop
n
fligh
ht to Guangdo
ong, China’s m
most populou
us
provin
nce. Guangzhou is a key hu
ub for foreign trade in Chin
na and we antticipate that the new thrice
eweeklly service willl contribute $3.5
$
million to
o British Colum
mbia’s GDP a
annually.
The Airport
A
Authorrity’s advocacyy efforts continued in 20111 including wo
ork with Cana
ada Border
Servic
ces Agency (C
CBSA) on a program that makes
m
it easieer for Chinese
e nationals to connect
through Canadian airports. The China Transit Trial enablees Chinese na
ationals travelling from
speciffic Chinese cities to transitt through YVR
R en route to tthe United Sta
ates without a visa.
Financial Planning
The soundness of the
t Airport Au
uthority’s fina
ancial plannin
ng is reflected
d in our consisstently high
creditt ratings, whic
ch are among
g the best in the world. Botth Standard & Poor’s and D
Dominion
Bond Rating Servic
ce confirmed the Airport Authority’s rat ings at AA an
nd AA (Low), rrespectively, in
2011.
Otherr than the Hon
ng Kong International Airport which is rrated AAA, the
e Airport Auth
hority shares
this second highes
st AA rating with three othe
er airports: Loos Angeles In
nternational A
Airport,
Chicago’s O'Hare International Airport
A
and Oklahoma
O
Cityy’s Will Rogerrs World Airpo
ort.
Financial Review
The Airport
A
Authorrity earns reve
enue from thrree main sourrces:



Aerona
autical revenu
ue: The Airport Authority ccollects landin
ng and termin
nal fees to
recove
er the operating and capita
al costs relateed to airline operations. Th
his revenue
amoun
nted to $121.6
6 million in 20
011, a decreasse of $1.2 milllion from $12
22.8 million in
n
2010. In
I 2011, the Airport
A
Authorrity introduced
d the Gateway Incentive Prrogram (GIP),,
a five-year program
m that freezes
s total aerona utical charge
es at 2010 leve
els for
individ
dual airlines, regardless
r
of actual lande d weight and aircraft capa
acity. This
reduce
es the margin
nal cost of an additional flig
ght to zero for an airline pa
articipating in
n
the GIP
P and provide
es an incentive to expand ccapacity at YVR
R. Despite a 3 per cent
tariff rate
r
increase in 2011 for airlines that did
d not choose to participate
e in the GIP,
decrea
ases in capacity by those carriers lead tto the decreasse in aeronau
utical revenue
e.
Non-aeronautical revenue: This includes reveenue from con
ncessions, su
uch as duty
free an
nd car rentals
s, as well as car
c parking, ccontributions, and terminal and land
rents. Revenue from
m these sourcces increased
d to $158 milllion in 2011, u
up from $156.3
million
n in 2010, due
e mainly to the
e commencem
ment of a land lease with a new tenant
and an
n increase in contributions
c
from the Can
nadian Air Tra
ansport Security Authority
(CATSA
A) towards the Airport Authority’s securrity-related capital projectts.
Airporrt Improvement Fee (AIF): The
T revenue eearned from a
aeronautical and nonaerona
autical source
es is not sufficient to coverr both the cossts of operatin
ng the airportt
and the required ca
apital projects
s. To fund cap
pital projects, the Airport A
Authority
collectts an AIF. Total revenue ea
arned from th
he fee in 2011 was $89.7 million, up 0.2
per cent from $89.6
6 million in 20
010.
Non-A
AIF revenue goes
g
towards covering the costs of operrating the airp
port, which include salaries,
wages
s and benefits
s, materials, supplies
s
and services, payyments in lieu
u of taxes and insurance. In
n
2011, these costs decreased
d
to $136.1 million from $141.44 million in 20010. These de
ecreases were
mainlly due to the absence
a
of costs related to
o the preparattion for and o
operation of YV
VR during the
e
2010 Olympic
O
and Paralympic
P
Winter
W
Games as well as hoosting the World Route Devvelopment
Forum
m, both of which were incurred in 2010.
The Airport
A
Authorrity also uses a portion of itts revenue to pay rent to th
he federal govvernment,
which
h amounted to
o $34.8 million in 2011, up from $33.2 m
million in 20100. The increasse in rent wass
the re
esult of an adjjustment in 2010, which re
educed the airrport’s revenu
ue in the calculation of its
groun
nd lease paym
ment.
The to
otal cash needed to pay forr capital proje
ects can exce ed the amoun
nt available affter payment
of ope
erating costs, ground lease
e and interestt costs. In theese situationss, debt financing is required
d.
The Airport
A
Authorrity takes a co
onservative ap
pproach to deebt levels and strives to ach
hieve a
reaso
onable balance between de
ebt and source
es of revenuee. Debt carriess an annual in
nterest
payment, which in 2011 amountted to $31.6 million,
m
down ffrom $32.9 m
million in 2010
0.
As req
quired under generally acccepted accounting principlles and in the statement off operations,
the co
osts of capitall projects are spread over the useful lifee of the projects, as oppossed to being
recognized as total cash paid for the projects
s in the curre nt year. This spreading of cost over the
useful life is reflec
cted as amortization on the
e statement o f operations, which is a no
on-cash
ge. Total amorrtization in 20
011 amounted
d to $108.1 miillion.
charg
The Airport
A
Authorrity realized $0.2
$
million in dividend reveenue as a ressult of interesst earned on
cash held
h
within Va
antage Airporrt Group (form
merly YVR Airp
port Servicess Ltd.).
The Airport
A
Authorrity realized a $0.2 million gain on dispoosal of capitall assets no longer in use.
Total excess of revvenue over expenses, which includes am
mortization, w
was $59.1 milllion in 2011,
up fro
om $56.0 million in 2010. When
W
amortization, a non-ccash item, is removed, the
e Airport
Autho
ority generate
ed $176.7 milllion of net cas
sh flow, prior to its investm
ment in capita
al projects and
d
repayyment of debt as described below.
During 2011, the Airport Authorrity invested $59.9
$
million iin capital projjects. The cap
pital projects
includ
ded airside sla
ab replaceme
ents, the Grou
und Run-Up E
Enclosure, ho ld baggage sccreening,
public
c address system upgrade, redevelopment of A-Pier and B-Pier, ssouth airfield low visibility
upgra
ades, supplem
mental aircrafft de-icing tru
ucks and Taxiw
way U upgrad
de.
In ord
der to pay for these capital projects, the following am
mounts were u
used:
 Net ca
ash flow (exclu
uding AIF) of $90.6 million .
 Net AIF in the amou
unt of $86.1 million.
m
These
e amounts in total were sufficient to payy for the 2011 capital proje
ect costs. During 2011, the
Airport Authority re
epaid the rem
maining $50.2 million on itss bank facilityy borrowings that had been
n
used to fund prior years’ capitall expenditures. This left $666.6 million in
n cash availab
ble to pay for
capita
al projects in 2012 and onw
ward.
Unaudited Non-Consolidated Financial Statements
of Vancouver Airport Authority
Financial statemen
nts for Vancou
uver Airport Authority’s
A
op
perations at Vancouver Inte
ernational
Airport are provide
ed in the Unau
udited Non-Consolidated S
Statements.
Audited Consolidated Financial Statements of
Vancouver Airport Authority
Financial statemen
nts for all ope
erations of Vancouver Airpoort Authority, including Vantage Airportt
Group
p (formerly YV
VR Airport Serrvices Ltd.) an
nd YVR Projecct Manageme
ent Ltd., are p
provided in the
e
Audite
ed Consolidatted Statements.
VANCOUVER AIRPORT AUTHORITY
2011 ENVIRONMENT REPORT
Vanco
ouver Internattional Airport’s Environme
ental Managem
ment Plan de
etails accountabilities for
enviro
onmental management initiatives within
n the Airport A
Authority; it a
also describess
enviro
onmental poliicies and prog
grams around
d key sustainaability issues overseen by the Airport
Autho
ority’s Environ
nment Departtment.
Our current Enviro
onmental Man
nagement Pla
an spans a fivee-year time p
period from 20
009 to 2013.
The plan outlines six
s strategic priorities
p
for the Airport Au
uthority:
 Manage aircraft noise
missions
 Reduce em
nergy
 Reduce en
aste
 Reduce wa
am
 Implementt a communiccation, awareness, recogniition and educcation progra
p
 Continually improve envvironmental programs
This report
r
will pro
ovide details on
o a number of initiatives tthat were imp
plemented in 2011 to
suppo
ort these priorities.
Manage Aircraft Noise
The Airport
A
Authorrity aims to minimize noise
e disturbance to the community caused by aircraft
opera
ations. Efforts
s include publlished Noise Abatement
A
Prrocedures and
d a five-year Noise
Management Plan that outlines specific initia
atives aimed aat improving the noise envvironment
aroun
nd the airport.
The Airport
A
Authorrity received 787
7 noise com
mplaints from 321 individua
als in 2011, a 35 per cent
decre
ease from 2010. An annual survey of Metro Vancouve r residents w
who were aske
ed if they are
bothered by aircraft noise in the
eir home show
wed that 83 p er cent of ressidents were n
not annoyed
by airrcraft noise. This
T
is consistent with prevvious years’ su
urvey results. For more information, se
ee
the Noise Managem
ment and 2011 results sections on our w
website.
In 201
11, the Airport Authority bu
uilt Canada’s first Ground R
Run-Up Enclo
osure (GRE). Located at
YVR’s Airport South, the GRE reduces noise from
f
run-upss performed b
by propeller aircraft to
neighbouring comm
munities by up to 50 per ce
ent. The $10- million facilitty uses aerodyynamic design
combined with sou
und absorbing
g panels and louvered
l
ventts channels noise up instea
ad of out.
Reduce Emissions
The Airport
A
Authorrity aims to re
educe emissio
ons by workin
ng with our bu
usiness partners to reduce
e
vehiclle and aircraft emissions, by
b promoting alternative foorms of transsportation to a
and from Sea
Island
d, by improvin
ng airport infrrastructure to
o allow for low
w-emission prractices and b
by raising
aware
eness of clean
n air practices.
CANADA LINE
As part of its comm
mitment to sustainable transportation aand connectivity, the Airporrt Authority
investted $300 million in the Sea
a Island portio
on of the Canaada Line rapid
d transit system, which
began
n operations in August 2009. Approxima
ately 16 per ceent of passengers and 16 p
per cent of Se
ea
Island
d employees used
u
the Cana
ada Line to acccess YVR in 22011.
CYCLING INFRASTRUCTURE IMPROVEMENTS
Severral new bike paths
p
on Sea Island
I
were built in 2011 in
n addition to improvementss that include
ed
an offf-road connec
ction from the
e Arthur Laing
g Bridge to Teempleton Station, an off-ro
oad pathway
conne
ecting Temple
eton Street to Burkeville, and
a on-street bike lanes allong Inglis Ro
oad. A detailed
map of
o Sea Island’s bike routes is available on
o our websit e.
GREEN COMMUTER PROGRAM
The Airport
A
Authorrity offers its employees
e
a $50
$ per montth financial in
ncentive to tak
ke public
transit, bicycle, wa
alk or carpool to work. The Green Comm
muter Program
m had 181 participants in
2011, reducing the amount of single-occupan
an 882,000 kilometres—orr
nt vehicle trip
ps by more tha
more than 156,000
0 kilograms off carbon dioxide emissionss.
HYDROGEN TECHNOLOGY DEMONSTRATION
The tw
wo-year Cana
adian Hydroge
en Airport Pro
oject concludeed in 2011, which showcassed hydrogen
vehiclles and hydro
ogen fuelling infrastructure
i
e from a Vanccouver-based waste source.
IMPROVING FLEET EFFECIENCY
The Airport
A
Authorrity continues to improve our fleet by re placing olderr, larger vehiccles with
appro
opriately-sized
d fuel-efficien
nt models. In 2011, seventeeen new lightt-duty vehicle
es were
introd
duced to the fleet: three ele
ectric utility vehicles,
v
threee hybrid-elecctric vehicles and 11
compact fuel-efficient vehicles. In addition to
o introducing these vehicle
es, five old and inefficient
vehiclles as well as
s two buses were
w
retired.
NEW GROUND POWER UNITS AND PRE-CONDITIONED AIR
Groun
nd power unitts and pre-conditioned air supply allow aircraft engin
nes to be fullyy shut down
while parked at the
e airport. All of
o YVR’s move
eable gates a re equipped w
with ground p
power units,
and six gates were
e upgraded to meet the nee
eds for increaased power fo
or new, largerr aircraft in
2011. In addition, the Airport Authority replacced seven old
d pre-conditio
oned air units with new
enviro
onmentally friendly units.
TAXI INCENTIVES
The Airport
A
Authorrity offers a significant annual discount on licensing ffees to taxi op
perators with
low-e
emission vehic
cles. In 2011, 64 per cent – or 337 of thee 525 taxis - o
of the fleet serving YVR
were hybrid-electrric vehicles.
Reduce Energy
The Airport
A
Authorrity promotes resource-efficient operatiions and identifies ways to reduce
consu
umption of natural gas, die
esel, gasoline, water and ellectricity at th
he airport. We
e have a long-term goal to impro
ove electricity efficiency, which has resu
ulted in cumulative savingss of more than
$9 million dollars in
i electricity costs
c
since 19
999. In 2011, tthe Airport Au
uthority reducced electricall
energ
gy consumptio
on per square
e metre by 1.3
3 per cent. Wh
hile this was a good achievvement, it felll
short of our target to decrease energy
e
consu
umption by tw
wo per cent.
HVAC OPTIMIZATION
The heating ventila
ation and air conditioning
c
(HVAC) system
ms at YVR typically use a ca
arbon tray
filtration method to
o absorb hydrrocarbons, a by-product
b
off jet fumes. A newer technology using a
carbo
on canister filttration system
m was studied
d and installe d. This new fiiltration syste
em will reducce
opera
ations and ma
aintenance costs by 20 per cent, which i n turn will inccrease energyy efficiency
and im
mprove air qu
uality.
SMART HEATING AND COOLING
The Airport
A
Authorrity continues to reduce its natural gas cconsumption through the u
use of solar
hot water, lowered
d night room temperatures
t
s, CO2 sensorss, improved sscheduling and system
tune-ups. The care
eful managem
ment of our he
eating system
m enables the boilers to be turned off
throughout the sum
mmer, using outside
o
air for space heati ng.
SMART LIGHTING
Chang
ging technolo
ogies, new con
ncepts and op
perating proceedures, and tterminal reno
ovations resullt
in ene
ergy conserva
ation opportun
nities. In 2011
1, an area-by--area approacch was taken to identify
lightin
ng that could be turned offf at times by schedules,
s
ph
hotocells, mottion detectorss or eliminate
ed
altoge
ether. Additionally, a pilot project launched in 2010 th
hat programm
med terminall lighting in
accorrdance with pa
assenger gate
e schedules was
w expanded
d in 2011.
Reduce Waste
The Airport
A
Authorrity oversees a series of programs aimeed to reduce w
waste and increase
ers.
recycling by Airporrt Authority em
mployees, airrport tenants and passenge
CONSTRUCTION MATERIAL REUSE AND RECYCLING
Reuse
e and recyclin
ng of construcction debris at YVR has alw
ways been a source of pride
e for the
Airport Authority. In 2011, we re
eused or recycled 98 per ceent of the 18,4403,000 kilograms of
construction waste
e generated. Most
M
of this material
m
camee from the demolition of tw
wo old unused
d
buildings at the airrport and from
m an apron slab replacemeent project.
LOOKING FORWARD: COMPOST STUDY
The Airport
A
Authorrity is always on
o the lookou
ut for new wayys to reduce tthe amount of waste we
send to the landfilll. In 2011, we conducted a study to see h
how much of our remaining garbage
could be composte
ed. We found that
t
approxim
mately 59 per cent of what is currently ssent to the
landfill is compostable materiall. These resullts will provid
de focus to our waste reducction efforts in
the ye
ears to come.
MAINTENANCE RECYCLING
An additional 80,00
00 kilograms of used wood, metals and other miscellaneous debrris associated
with YVR
Y maintena
ance activities
s were recycle
ed in 2011 by sending bins full of these items to a
Richm
mond sorting facility instea
ad of the landffill.
PAPER TOWEL RECYCLING
In 201
10, the Airport Authority co
ommissioned a waste auditt which showed that 90 per cent of YVR’’s
d recycling alll of these pap
washrroom waste is
s used paper towels. In 2011, we started
per towels, a
simplle initiative that increased our overall te
erminal recycling rate from
m 37 per cent in 2010 to 40
per ce
ent in 2011.
QUEST FOOD EXCHANGE PARTNERSHIP
The airport commu
unity continue
ed to support Quest Food E
Exchange thro
oughout 2011, donating
almos
st 1,000 kilograms of food to people in need
n
in the coommunity. Wh
hile this is a tremendous
beneffit to those in need, it also helps YVR red
duce waste frrom unpurcha
ased retail ite
ems. In
addition, Vancouve
er Airport Authority employyees also join ed Quest’s Ch
hristmas ham
mper drive in
2011, donating and
d assembling more than 50
00 hampers foor the holidayy season.
Communication, Awareness, Recognition and
Education
The Environmenta
E
l CARE program (Commun
nication, Awarreness, Recog
gnition and Education) is a
an
invitattion to the airrport commun
nity, including
g employees, business parrtners and passsengers, to
help create
c
a susta
ainable airporrt.
CLEAR SKIES AWARDS
The Airport
A
Authorrity’s second annual
a
Clear Skies Awardss were held during Environ
nment Week,
with the 2011 awarrd presented to The Fairmo
ont Vancouveer Airport Hotel for recyclin
ng over 6500
kilogrrams of food scraps
s
every month, installling 2500 LED
D light bulbs in the hotel, g
growing food
for the Globe Resta
aurant in a local communitty garden and
d adopting Ma
acDonald Bea
ach Park for a
quarterly beach cle
eanup.
EMPLOYEE TRAINING
Many employees within
w
the Airp
port Authorityy require train
ning on topicss such as spilll response an
nd
noise management to effectively do their jobs. In 2011, neew training mo
odules were p
prepared and
d
delive
ered to our Airfield and Em
mergency Servvices departm
ment.
ENVIRONMENTAL TIP OF THE MONTH
Contin
nuing in 2011, the Environm
ment Departm
ment publisheed monthly en
nvironmentall tips for
Airport Authority employees, de
elivered throu
ugh bulletin booards and the
e company inttranet. For
example, tips for 2011 included saving paperr, volunteering
g with an envvironmental organization
and selecting susta
ainable seafood.
ENVIRONMENT WEEK
The Airport
A
Authorrity held its an
nnual Environ
nment Week p
public celebra
ation again in 2011 with the
e
theme
e Choose to ReUse
R
. Emplo
oyees and pas
ssengers weree challenged to spin a triviia wheel, playy
eco-p
plinko and to take
t
the comp
post challenge. A select grroup of compa
anies and nott-for-profits
were also on hand to provide exxpert advice in
n answering q
questions abo
out reducing, reusing and
recycling.
LUG-A-MUG
After learning that about 57 perr cent of the materials
m
in th
he public area
a waste conta
ainers were
dispos
sable coffee cups,
c
the Airp
port Authorityy’s Green Team
m conducted a campaign ffor employeess
to use
e re-useable mugs.
m
Approxximately 200 employees
e
toook the Lug-A
A-Mug challen
nge to avoid
dispos
sable cups for one month. Today, our employees aree now using 265 fewer disp
posable cups
per week,
w
or rough
hly 13,780 few
wer cups per year.
y
WORKING WITH AIRPORT BUSINESSES
The Airport
A
Authorrity took an acctive role in promoting susstainability witth our many b
business
partners in 2011. Most
M
notably, all the shops and restauraants inside ou
ur terminals w
were given a
series
s of Going Gre
een at YVR presentations and
a signs. Ma ny businesses used this in
nformation to
reduc
ce their own waste,
w
energy consumption
n and water u se.
Continuous Improvement of Environmental
Management
While the Airport Authority’s
A
key environmen
ntal priorities are reductio ns in energy, emissions
and waste,
w
there is
s a lot more to
o minimizing the environm
mental impactt of an airportt. The Airport
Autho
ority strives fo
or continual im
mprovement in the followi ng program a
areas:
ENVIRONMENTAL IMPACT ASSESSMENT AND SUSTA INABLE BUILDING DESIGN
The Airport
A
Authorrity’s sustaina
able design gu
uidelines are used to ensure all new faccilities
nmental man
incorp
porate energyy efficiency, water
w
efficienccy and environ
nagement into
o building
design. All airport facility permits are subject to an enviroonmental review under the
e Airport
Autho
ority’s environ
nmental impact assessmen
nt program. I n 2011, all 1667 facility perm
mit
applic
cations receivved were revie
ewed by the Environment
E
d
department, ffor both envirronmental
issues
s and archeollogical and historical impa
acts. Large prrojects and those that are
enviro
onmentally se
ensitive are monitored
m
regularly by the Environment department to ensure
mitiga
ation efforts are
a implemen
nted as planne
ed.
HAZARDOUS MATERIALS
The Airport
A
Authorrity maintains
s a Hazardous
s Materials Maanagement P
Program that aims to
reduc
ce and control the use of da
angerous goo
ods at YVR. In 2011, the Airrport Authority focused on
upgra
ading our petrroleum storag
ge tank systems, replacing
g old infrastru
ucture and ad
dding new
safeguards against accidental releases.
r
With
h 1.3 billion littres of jet fue
el passing thro
ough YVR eacch
year, effectively preventing and responding to fuel spills iss vital. There were three fu
uel spills over
100 littres in 2011. In each case, the fuel was contained an d cleaned up before reach
hing
waterrways or sens
sitive habitat.
WATER QUALITY
As part of our measurement of water quality, the Airport A
Authority colllects water sa
amples to
asses
ss airport storrm water quality, monitor total
t
suspend
ded solids and
d turbidity in rrunoff from
construction sites, groundwaterr cooling system outfall an
nd to ensure tthe successfu
ul containmen
nt
of de--icing fluid. In
n 2011, 350 wa
ater samples were collecteed, of which 1181 were to ch
heck for deicing fluid
f
containm
ment. Two sam
mples exceed
ded the Canad
dian Glycol Gu
uideline limit of 100 parts
per million.
m
WILDLIFE MANAGEMENT & NATURAL HABITAT
Our wildlife
w
manag
gement progrram has four components:
c
habitat mana
agement, mon
nitoring,
movement of birds
s through hara
assment tech
hniques and, w
where there is a safety risk
k to aviation,
killing
g of birds. In 2011,
2
447 bird
ds were killed
d in 216 bird-sstrikes with aircraft. Bird sstrikes pose a
significant safety risk to passengers. In order to prevent b
bird strikes, a
approximatelyy 577,000 bird
ds
were moved away from aircraft operating are
eas using pyrrotechnics, sirrens, lights, p
propane
canno
ons and specially trained border
b
collies. While habitaat manageme
ent and harasssment
techniques are the
e primary toolls used, killing
g occurs wheen the officer perceives willdlife behaviorr
to be a safety risk. This may con
nsist of an imm
mediate risk to an approacching aircraftt, or a potentia
al
or chrronic risk that has increased to unaccep
ptable levels. In 2011, 516 birds were kiilled by contro
ol
officers, a 74 per cent reduction
n from 2010.
2011 Environmental Performance Indicators
The Airport
A
Authorrity is committed to operating YVR in a m
manner that m
minimizes its impact on the
e
enviro
onment, both natural and urban.
u
The following table summarizes environmenttal
performance indica
ators and res
sults for 2011..
Obje
ective
REGU
ULATORY COM
MPLIANCE
Comp
mply with envirronmental
legisslation and reg
gulations
GLYC
COL EXCEEDA
ANCES
Minim
mize pollution
n that resultss from
airpoort-related acctivities
WAST
TE DIVERSION RATES:
TERM
MINAL AND SATELLITE
S
FACILITIES
Decrrease the amo
ount of solid waste
w
sent for disposal
WAST
TE DIVERSION RATES:
CONS
STRUCTION WASTE
W
Decrrease the amo
ount of solid waste
w
sent for disposal
ENER
RGY: ELECTR
RICITY
Redu
uce energy co
onsumption
NOIS
SE ANNOYANC
CE
Minim
mize aircraft noise disturb
bance
on th
he communityy
Measure
2011 Targett
2011 Ressults
Num
mber of violatio
ons of
environmenta
e
al
regulations
Number of watter
sam
mples exceed
ding
Canadian
C
Glyccol
Guid
deline of 100 parts
p
perr million of glycol
Perrcentage of waste
dive
erted from lan
ndfill
from
m Airport Auth
hority
facillities and satellite
locations
Perrcentage of waste
dive
erted from lan
ndfill
from
m Airport Auth
hority
construction projjects
Perce
entage of year over
ye
ear reduction of
energ
gy consumption/m2
0
0
0
2
G
Greater than 32%
40%
%
G
Greater than 75%
98%
%
2% reduction
1.3% reduction
80%
83%
%
Percentage of
o
com
mmunity indica
ating
the
ey have not be
een
annoyed by aircraft
noise (as perr
Community Survvey)
VANCOUVER AIRPORT AUTHORITY
2011 GOVERNANCE REPORT
Our Governance Process
The Airport
A
Authorrity’s compreh
hensive goverrnance proced
dures are con
ntained in the
e Board of
Directtors’ Governa
ance Rules an
nd Practices Manual,
M
which
h is available on our website. The
Manual includes:
 Administra
ative guidelines
R
forr the Board, Board Chair, P
President & CEO and Direcctors
 Terms of Reference
 Conflict of interest guidelines
nce evaluation
n process for the Presiden
nt & CEO and Board of Dire
ectors
 Performan
ompensation
 Director co
bility and trans
sparency practices
 Accountab
s, Terms of Re
eference and membership for each of th
he Board’s co
ommittees:
 Guidelines
Finance an
nd Audit, Gove
ernance, Hum
man Resourcees and Compe
ensation and Planning and
Developme
ent.
Board of Directors
Our Board
B
has up to
t 15 Directorrs with nine appointed by eeight nominatting entities w
with key ties to
o
the lo
ocal community. Up to five additional Dirrectors may b
be appointed by the Board from the
comm
munity at large
e. The President and Chieff Executive Offficer also serrves as a Dire
ector.
Director
Representative Capacity
(Nominating Entity)
Mary Jordan
Larry Berg
Brian Bentz1
Chaiir, Director Att Large
Pres
sident and Chief Executive Officer
Instiitute of Chartered Accounttants of
Britiish Columbia
Gove
ernment of Ca
anada
Director At Large
e
Director At Large
e
City of Richmond
Instiitute of Chartered Accounttants of
Britiish Columbia
Director At Large
e
Asso
ociation of Pro
ofessional En
ngineers and
Geos
scientists of British
B
Colum
mbia
The Vancouver Bo
oard of Tradee
City of Richmond
umbia
The Law Society of
o British Colu
City of Vancouverr
Metrro Vancouver (GVRD]
Director At Large
e
City of Vancouverr
Asso
ociation of Pro
ofessional En
ngineers and
Geos
scientists of British
B
Colum
mbia
Gove
ernment of Ca
anada
Georg
ge Cadman
Josep
ph Caron1
Graha
am Clarke2
Peterr Dhillon2
Rhys Eyton2
Rusto
on Goepel
Kenne
eth Goosen1
Grayd
den Hayward
Howard Jampolskyy1
Carol Alter Kerfoott
Philip
p Owen2
Wilson Parasiuk
Gerri Sinclair1
Tamara Vrooman1
2
John Watson
W
Peterr Webster
Term
Expiry
Committee
Memberships
(see key
below)
2013
n/a
2014
b, c
2014
2014
2011
2011
2011
a, c
d
d
a, d
a, b
2013
2014
b, d
d
2012
2014
2012
2011
2014
2014
2014
2011
a, c
d
b, c
b, d
a, d
d
a
a, d
2012
b, d
1 Mr. Bentz
B
and Ms. Sin
nclair joined the Board in April 20
011; Mr. Goosen, Mr. Jampolsky aand Ms. Vrooman
n
joined the Board in May 2011; and Mr. Caron
C
joined the Board in Septem
mber 2011.
2 Mr. Clarke,
C
Mr. Dhillo
on, Mr. Eyton, Mrr. Owen and Mr. Watson
W
retired frrom the Board in
n May 2011.
a
a
b
c
d
Finance and Au
udit Committee
Governance Co
ommittee
Human Resourrces and Com
mpensation Co
ommittee
Planning and Development
D
Committee
The Executive Committee
The Airport
A
Authorrity’s senior executive team
m oversees th
he effective op
peration and m
management
of Van
ncouver International Airpo
ort.
Larry Berg
Don Ehrenholz
E
Tony Gugliotta
G
Steve Hankinson1
Glenn
n McCoy
Miche
ele Mawhinne
ey
Kevin Molloy
Anne Murray
Micha
ael O’Brien
1
Pres
sident and Ch
hief Executivee Officer
Vice
e President, Engineering
E
Senior Vice President, Marketting and Busin
ness Develop
pment
Vice
e President, Operations
O
Vice
e President, Finance
F
and C
Chief Financial Officer
Vice
e President, Human
H
Resou rces
Vice
e President, Simplified
S
Passsenger Trave
el and Chief In
nformation
Officcer
Vice
e President, Community
C
an
nd Environme
ental Affairs
Corporate Secrettary and Vice President, Sttrategic Plann
ning and Lega
al
Servvices
Steve Hankinson joine
ed The Executive Committee in November 2011.
Subsidiaries
YVR PROJECT MANAGEMENT
YVR Project
P
Manag
gement (YVRP
PM) is a whollly owned subssidiary of Vancouver Airporrt Authority
established in 2005
5 to oversee major
m
expansion projects aat YVR.
VANTAGE AIRPORT GROUP
Vantage Airport Grroup (Vantage
e), formerly kn
nown as YVR A
Airport Servicces Ltd. (YVRA
AS),
introd
duced its new brand in Deccember 2011. Vantage marrkets the expe
ertise, operating
philos
sophies and le
eading-edge systems
s
deve
eloped at YVR . Vantage is jo
ointly owned by Vancouverr
Airport Authority and Citi Infrastructure Investors (CII). Vaantage’s portffolio consists of 13 airportss
in six countries and
d its network of airports welcomed
w
morre than 33.4 m
million passen
ngers in 2011.
Our Planning Process
The Airport
A
Authorrity has a five--tiered planniing process too guide airporrt operations and
develo
opment in the
e short, mediu
um and long terms.
t
The Sttrategic Plan provides the fundamentall
directtion—the Miss
sion, Vision and Values—fo
or the organizzation.
The Master
M
Plan lo
ooks forward 20 years to en
nsure the besst allocation o
of YVR resourrces. The
Maste
er Plan process includes a significant public consultaation program
m and evaluattes potential
airside, terminal, and
a ground acccess and parrking develop
pment optionss based on comprehensive
sustainability criteria that are divided into fou
ur areas: Govvernance, Eco
onomic, Enviro
onmental and
d
Social. The Airport Authority’s most
m
recent Master
M
Plan aand accompan
nying Land Usse Plan, YVR:
Your Airport
A
2027 Master
M
Plan is available on
n our website .
The Capital
C
and Fin
nancial Plans
s determine th
he funding an d timing of aiirport infrastrructure
develo
opments. The
e annual Business Plan outlines the Air port Authorityy’s objectivess and initiative
es
for the coming year.
Corporate Governance Report
PART ONE – CORPORATE GOVERNANCE
I.
Introductio
on
The Airporrt Authority’s Board of Dire
ectors and maanagement re
egard effectivve corporate
governance as critical to the proper execution of iits responsibiilities. Corporrate
governance refers to the process of establishing sstructures, po
olicies and prrocedures to
ensure ade
equate stewardship of the business and
d affairs of the
e Airport Auth
hority. This
includes ensuring the fiinancial viabillity of the bussiness.
The Board’s fundamenttal role is to ensure
e
that th
he Airport Autthority fulfills its objectivess
in a safe, efficient
e
and reliable
r
mann
ner. Its respon
nsibilities incllude oversigh
ht, review and
approval of the Airport Authority’s
A
sttrategic plan, long-term fin
nancial plans and annual
budgets. Maintaining
M
th
he integrity of internal conttrols, assuring prudent pla
ans are in
place for Board
B
renewa
al and manage
ement successsion and making sure tha
at there is a
policy to en
nable effectivve communica
ations with em
mployees, bussiness partne
ers and the
communityy are also crittical Board fu
unctions.
II.
Compositio
on of the Board
Except for the Presiden
nt and Chief Executive Officcer (CEO), all Directors are
e independentt
and have no
n direct or in
ndirect materiial relationsh ip with the co
ompany or its subsidiaries..
Each is ind
dependent of managementt and free from
m any interesst, business o
or other
relationship that could, or could reas
sonably be peerceived to, in
nterfere materially with the
e
Director’s ability to exercise indepen
ndent judgment and act witth a view to th
he best
interests of
o the Airport Authority. The Airport Aut hority’s Presiident and CEO
O is not
independent by virtue of his position in managem ent.
The Airporrt Authority’s by-laws perm
mit a maximum
m of 15 Direcctors. As desccribed
previously, nine Directo
ors are appoin
nted by Nomin
nating Entitie
es, up to five D
Directors are
appointed by the Board from the com
mmunity at la rge and, as noted above, o
one seat on the
Board is held by the Pre
esident and CEO
C of the Air port Authorityy.
The follow
wing organizattions—Nominating Entitiess—appoint Dirrectors:
 The Asssociation of Professional
P
Engineers
and Ge
eoscientists of
o British Colu
umbia - One D
Director
 City of Richmond - One Director
 City of Vancouver - One Director
 Governnment of Canada – Two Dirrectors
 Metro Vancouver – One Director
 The Institute of Chaartered Accouuntants of Brittish Columbiaa - One Directtor
 The Laaw Society of British Colum
mbia - One Dirrector
 The Vaancouver Board of Trade – One Directorr
The Board maintains a Skills and Experience Mat rix, which is rreviewed annually, that
identifies specific
s
skill sets
s
and expe
ertise that thee Board requires in order to support
manageme
ent in reviewing and appro
oving strategyy and evaluating risk and opportunities.
The Matrixx is used to he
elp identify ga
aps in the Boaard’s expertisse and as a tool in recruitin
ng
Director ca
andidates.
Directors normally
n
servve a three-yea
ar term and aare eligible for re-appointm
ment subject tto
a limitation
n that no pers
son may serve
e as a Directoor for more th
han nine years. To balance
the need fo
or renewal an
nd continuity, there is a lim
mited exceptio
on allowing a Director to
serve for one
o additionall year if otherrwise the num
mber of individ
duals ceasing
g to be
Directors in a given year would be more
m
than two .
The Board usually meetts six times annually. Com
mmittees gene
erally meet at least four
times a yea
ar.
III.
Committee
es of the Boarrd
The Financ
ce and Audit Committee
C
en
nsures that th
he Airport Autthority has a rigorous
system of internal contrrols and finan
ncial reportin g and is in compliance with applicable
laws and regulations
r
as
s they relate to
t financial di sclosure.
The Governance Committee is respo
onsible for enssuring that Board governa
ance practicess
enhance corporate perfformance and
d meet acceptted levels of ttransparency and
accountability.
The Human Resources and Compens
sation Comm
mittee oversee
es human reso
ources and
compensation policies and
a ensures that
t
there is a plan for the developmentt and orderly
succession
n of executive
e and other ke
ey employees .
The Planning and Devellopment Com
mmittee assistts the Board in fulfilling itss responsibilitty
for long-ra
ange planning
g including strategic, mastter and capita
al plans. It revviews the
plans, scop
pe, schedule and budget fo
or major capittal projects.
IV.
Code of Co
onduct for Dirrectors
All Directo
ors of the Airp
port Authorityy are required
d to comply with Rules Con
ncerning
Conflicts of
o Interest. These require that Directorss avoid involve
ement in situa
ations of
conflict of interest.
Every Director of the Airport Authority is required
d to file a disclosure statem
ment upon
becoming a Director. Th
hereafter, eacch Director m
must file an an
nnual disclosu
ure statement,
which is re
eviewed by the
e Chair, the President
P
and the Corporatte Secretary a
and the Airport
Authority’s
s external aud
ditors. In addiition, any Direector may revview the statements upon
request to the Corporatte Secretary.
The Airporrt Authority’s by-laws require that it rep
port annually in writing on the Directorss’
compliance with its con
nflict of interest guidelines . The Airport Authority con
nfirms that all
Directors have
h
complied in full with the
t Rules Con
ncerning Conflicts of Interrest.
PART TWO - EXECUTIVE AND BOARD COMPENSATION
I. Executive Compe
ensation Philo
osophy
The objectives of th
he Airport Autthority’s execcutive compen
nsation progrram are:
1.
2.
To
T remain com
mpetitive in th
he marketplace and attracct and retain tthe caliber of executive
required
r
to en
nsure the Airp
port Authorityy remains a gllobal leader; and
To
T motivate our executives
s to achieve bu
usiness resullts and reinforce accountability to our
customers
c
and our commu
unity.
The key elements of
o our executive compensa
ation program
m are base salary and incentive
compensation. Ince
entive compe
ensation is dependent on a chieving the ffollowing corp
porate and
individ
dual performance objectives:
Incentive Measures

Non-Aeron
nautical Revenues: To incrrease non-aerronautical revvenues.

Variable Operating Costts: To improve
e the Airport Authority’s net operating m
margin which
h
is defined as revenue (e
excluding airp
port improvem
ment fees) lesss operating ccosts.

Customer Service: To im
mprove the an
nnual satisfacction score on
n the custome
er satisfaction
n
survey. Th
he survey is based on passenger evalua tions and is cconducted qua
arterly by an
independent external firm.

Communitty Relations: To
T enhance th
he relationshiip with, and overall satisfaction levels
from, our community.
c
This
T
is measu
ured annuallyy using surveyy results whicch rate the
overall imp
pression of th
he Vancouver Airport condu
ucted by an in
ndependent e
external firm.

Return on Capital Assetts: To earn a reasonable leevel of return on capital asssets.

Excess Revvenue over Exxpenses: To achieve
a
a desiired level of rrevenue and ccontrol over
expenses to
t generate fu
unds available
e for capital rreinvestment or debt reducction.

Individual Objectives: Each
E
executive
e has four strretch goals to
o achieve. The
e goals are
established at the begin
nning of each year through
h consultation
n with the Chief Executive
Officer.
Comm
mencing in 2009, the execu
utive incentive
e program alsso measures ssustained perrformance
over the
t longer terrm (3 years) based
b
on two key
k financial measures listed above: re
eturn on
capita
al assets and excess reven
nue over expenses.
Execu
utive Compensation Peer Group
G
In dettermining exe
ecutive pay levvels, the Airpo
ort Authority is compared to select privvate sector
companies from a variety of industries acros
ss Canada, inccluding other major domesstic and
intern
national airports. Where ap
pplicable, a siize adjustmen
nt is made to the compenssation data forr
the Aiirport Authoriity’s revenue in relation to the comparaator firms’ revvenues.
Marke
et Positioning
g
The Airport
A
Authorrity targets co
ompensation at
a the median
n of the peer g
group with the opportunityy
for pa
ay to exceed median
m
when individual and
d corporate p
performance e
exceeds expe
ectations.
II. Exe
ecutive Compensation Review Process
The Airport
A
Authorrity’s policy is for the Huma
an Resourcess and Compen
nsation Comm
mittee to retaiin
an ind
dependent compensation consultant
c
to provide markket compensa
ation data, wh
hich is one
factorr used to inforrm compensa
ation decision
ns, as well as assistance w
with incentive plan design
and in
nformation on
n trends in executive pay. The
T Committeee then recom
mmends to the Board the
compensation of th
he CEO and th
he executive team
t
after co nsidering the
e market data, as well as
individ
dual and corp
porate perform
mance.
In 200
09, the Board established a compensation task force to conduct a comprehenssive review of
execu
utive pay. To assist
a
with this review, the Airport Authoority retained the services of an
independent compensation cons
sultant, Towe
ers Watson. B
Based on the rresults of thiss review, the
an Resources and Compen
nsation Comm
mittee updated
d the compen
nsation philossophy,
Huma
develo
oped a compe
ensation fram
mework and modified
m
the in
ncentive program to align more closely
with the Airport Au
uthority’s business strategyy.
As the
e Authority moves forward with a new growth strateg
gy, the incenttive program w
will be
review
wed to reinforrce alignmentt with the stra
ategy.
III. Executive Comp
pensation
The salary range fo
or the Preside
ent is $368,00
00 to $552,0000, with a midp
point of $460,,000. The
Presid
dent participa
ates in a shorrt-term incenttive program that has a tarrget opportun
nity of 55 per
cent of
o base salaryy and a maxim
mum opportun
nity of 83 per cent of base ssalary.
The salary range fo
or Senior Vice
e Presidents is $196,000 too $294,000 with a midpointt of $245,000.
The salary range fo
or the Vice Prresidents is $168,000 to $2252,000 with a midpoint of $210,000.
Vice Presidents
P
participate in a short-term in
ncentive prog ram that has a target oppo
ortunity of 30
per ce
ent of base sa
alary and a maximum oppo
ortunity of 45 per cent of sa
alary.
As ind
dicated earlier, the executiives have long
ger term perfformance measures (3 yea
ars) based on
two key financial measures.
m
A review of these measures w
will occur in e
early 2012.
IV. Dirrectors’ Remuneration
Each year, the Governance Com
mmittee obtain
ns independe nt compensation advice to
o provide
market compensattion data on which
w
Directors’ remuneraation decisions are based.
The President
P
and CEO, who is an
a employee of the Airportt Authority, iss not remunerrated for
servic
ces as a Direc
ctor.
The re
emuneration for non-mana
agement Dire
ectors is:
Annual Retainer
Chair
C
Committee
C
Ch
hair
Other
O
Directoors
Board and Committee
meeting atttendance fee
e
Other mee
eting fee
$115,000
$ 26,000
$ 20,000
$1,000
$ 500
Subject to approval from the Go
overnance Com
mmittee, Direectors are reimbursed for all reasonablle
out-of-pocket expe
enses. Out of town travel expenses incu
urred to attend
d to the busin
ness of the
Airport Authority must
m
be pre-approved by th
he Chair in th e case of Dire
ectors and byy the
Goverrnance Comm
mittee Chair in
n the case of the
t Chair. Traavel expensess for attendan
nce at Board
and Committee
C
me
eetings are no
ot reimbursed
d unless the D
Director resid
des outside th
he Metro
Vanco
ouver Regiona
al District.
The to
otal remunera
ation paid durring 2011 to each
e
Director was as follow
ws:
M. Jordan1
$115,000
G. Hayward
$47,000
B. Bentz2
$30,000
H. Jampolskky2
$21,500
G. Cad
dman
$45,000
C. Kerfoot
$50,500
$8,000
P. Owen3
$18,000
$17,000
W. Parasiukk
$41,500
$17,000
G. Sinclair2
$28,500
J. Carron2
G. Cla
arke
1, 3
P. Dhillon3
R. Eytton
3
$17,000
T. Vrooman
3
R. Go
oepel
$40,000
J. Watson
K. Go
oosen2
$21,500
P. Webster
2
$20,500
$18,500
$45,000
1
During
g the year, Ms. Jo
ordan also receivved remuneration in the amount of $24,000 from Vantage Airport Group for servin
ng
on its Board
B
of Directorrs. During the period that Mr. Clarke served on th
he Airport Authorrity Board, he alsso received
remune
eration of $10,417 from Vantage Airport Group for serving on its B
Board of Directorrs.
2
Mr. Be
entz, Mr. Caron, Mr. Goosen, Mr. Jampolsky, Ms. Sinclair and Ms.. Vrooman joined
d the Board durin
ng 2011.
3
Mr. Clarke, Mr. Dhillon, Mr. Eyton, Mr.. Owen and Mr. Watson
W
retired frrom the Board in May 2011.
In add
dition to the above remune
eration, Directtors were reim
mbursed for e
expenses tota
aling $2,254 in
2011.
PART THREE - PURCHASING POLICIES
I.
Conflict of Interest and Confidentiality
All Airport Authority em
mployees and consultants m
must comply with the Airpo
ort Authority's
Conflict of Interest Guid
delines.
II.
Environme
ental and Safe
ety Considera
ations
The Airporrt Authority is committed to
o meeting or exceeding an
ny laws or reg
gulations
concerning
g both environ
nmental prote
ection and woorkplace safe
ety. During the
e purchasing
process, suppliers are encouraged
e
to offer, and th
he buyer will seek out, envvironmentallyy
ontractors and
d suppliers w
will be require
ed to abide by
responsiblle products orr services. Co
all Airport Authority saffety and envirronmental rulles and regula
ations.
III.
Insurance
No contrac
ctor shall com
mmence work
k on the airpo rt site until evvidence of adequate
insurance and WCB covverage is provvided.
IV.
Acquisition
n Methods
Best Value
e Purchasing
Best value
e purchasing is assessed in
n terms of leg
gal and financcial risks as w
well as timing
of delivery, quality, pricing, life cycle costs includiing warrantie
es, operating a
and
maintenan
nce costs, disp
posal and anyy other costs aassociated with ownership
p, function and
use.
Competitivve Submission
ns
In general, the procurem
ment of goods, services an
nd constructio
on service contracts will be
awarded fo
ollowing a com
mpetitive process.
The Airporrt Authority will provide information to aall proponentss including:
 wrritten competitive specifica
ations;
 proposed terms
s and conditio
ons;
 wh
hether alterna
atives will or will not be coonsidered;
 an
n indication off the evaluatio
on criteria thaat will be used
d to assess th
he offers.
If a site vis
sit or contracttor meeting is
s required pri or to submisssion closing time, the
Airport Authority will en
nsure all prop
ponents are in
nvited. At the conclusion of the meeting
g,
the Airportt Authority will prepare and distribute m
minutes of the
e meeting, an
nd issue in
writing anyy required addenda to all contractors.
c
Submissions will be recceived in acco
ordance with tthe instructio
ons given by th
he Airport
Authority. The Airport Authority
A
rese
erves the righ t to accept orr reject late or incomplete
submissions. Following
g the submission closing ti me, submissiions are open
ned by
Purchasing and Contraccting Services
s in the preseence of a witness. All subm
missions are
initialed, and date and time
t
stamped
d at time of re ceipt and ope
ening.
Exceptions
s
Exceptions
s to this policyy may be mad
de in the circu
umstances de
escribed in the list followin
ng
the table in
n Part Four. The
T persons with
w the approopriate signin
ng authority w
will state in
writing upo
on what grounds the excep
ption is being made.
PART FOUR - REPORT ON SINGLE-SOURCE CONTRAC TS IN EXCESS OF $100,000
The ta
able below reports contraccts for the purrchasing of gooods and servvices in excesss of $128,556
6
($100,000 in 2000 dollars)
d
award
ded during 20
011, which weere not award
ded on the bassis of a
competitive proces
ss.
Aggregate Contract
Value
Contractor
Description oof Contract
Reasons*
$4,248,733
$
City of Richm
mond
RCMP secu
urity services
1
$3,024,108
$
Blast Deflecttors Inc.
Ground Run
n-Up Enclosure (GRE) construction
1
$2,208,648
$
Liberty Airpo
ort Systems
Inc.
Airfield ligh
hting control an
nd monitoring ssystem
(ALCSM) an
nd surface movvement guidance and
control systtem (SMCGS) u
upgrades
1
$1,758,800
$
Booz and Co.
Managemeent consulting
1
$900,771
Staples Adva
antage
Janitorial ssupplies
7
$816,000
COBUS Indus
stries
Two used aapron buses
1
$761,457
Vanderlande
e Industries
Canada
Project def inition report rregarding baggage
design for tthe high-speed
d baggage back
kbone
project
4
$638,934
Sierra System
ms
Project ma nagement for IIT projects
4
$450,000
Potters Cana
ada
Runway rub
bber and paint removal; pavement
marking an
nd painting
4
$448,435
Hobart Ground Power
Ground pow
wer units
1,3,7
$436,540
B.C. Ambulance Services
Paramedic services
1
$403,850
Pro Sound
Five year su
upport for publlic address (PA
A) system
7
$402,276
Compugen In
nc.
Microsoft liicenses and su
upport
1
$397,005
Simple Way
Five year su
upport for voice announceme
ent system
1
$375,920
Oracle Corpo
oration
Oracle softw
ware
1
$348,000
Vancouver Aquarium
Aquarium m
management
7
$332,406
Motorola Sollutions
Motorola poost-warranty ssupport for Sma
artNet II
system
1
$328,006
ADB Airfield Solutions Ltd.
North field electric centre
e equipment up
pgrade
1
$294,000
Edmonton Regional Airportt
EG)
Authority (YE
Two used d
dual-canopy airrstairs
1
$285,000
RFS Canada
$260,000
Vancouver Airport Fuel
Facility Corporation
Leasing of copiers and prrinters through Ricoh
Canada Incc.
Instrumentt landing system
m (ILS) deflector
screens forr new aviation ffuel tank installlation
$246,225
InterVistas Consulting
C
Inc.
Customer sservice and serrvice quality su
urveys
5
2
7
Aggregate Contract
Value
Contractor
Description oof Contract
$238,017
John Bean Technologies
Supply of e ight portable w
water cabinets
1
$215,232
URS Canada Inc.
Ground Run
n-Up Enclosure (GRE) detaile
ed design
4
$211,350
KPMG
2010 audit aand related services
4
$205,442
Oracle Corpo
oration
Oracle dataabase enterprisse
1
$190,188
Mannington Mills
Carpet sup ply
7
$184,750
IBM Canada
Custom Us e Self-Serve (C
CUSS) self-tagg
ging
grade kit
expansion aand bagtag upg
1
$182,443
Gage Babcocck and
Associates Ltd.
L
Engineering
g services
3
$179,000
Stantec Arch
hitecture Ltd.
Concept deesign for transb
border baggage
e buffer
project
7
$177,641
Aeroplan Canada Inc.
Aeroplan m
miles issued at YVR parking
1
Canadian Eng. Products &
Sales Ltd.
Airport Wildllife
Management International
Upgrade off Domestic Term
minal and Interrnational
Terminal booiler control syystem
1
Raptor trap
pping and documentation
4
$160,858
Safegate Gro
oup
Safegate ai rcraft guidanc e system
3
$158,342
Tele-projects
s International
Inc.
Engineering
g services
4
$157,481
Babcock Airp
ports
$149,800
Kasian Archiitecture Ltd.
$148,458
ESC Automation Inc.
$148,000
Securiguard Services Ltd.
Service, tessting and licenssing of airside vehicles
7
$130,187
Camfil Farr
Filter upgraade program
7
$176,000
$167,250
Reasons*
Baggage coontrol system aand baggage na
avigation
system sup
pport
Project def inition report aand building de
esign for
baggage baackbone projecct
Design and
d install a direcct digital contro
ol (DDC)
system
*Reas
sons are explain
ned below.
Reaso
ons for exceptions:
1.. The goods or services are
a of a proprietary nature or there is on
nly one qualiffied supplier;
2.. The urgency of a safety, security or critical
c
operatting need so rrequires;
3.. In compliance with a prroduct or equiipment standaardization pro
ogram;
4.. When the supplier
s
has satisfactorily
s
performed prrevious relate
ed services th
hat provided a
cost saving
g to the Airport Authority;
5.. The essenttial partnersh
hip of the tran
nsaction exist s between a m
major third pa
arty (for
example, airlines,
a
hotells, cruise ship
p lines) and th
he supplier;
6.. The value of the producct or service does not warraant the cost a
and time requ
uired to invite
competitivve submission
ns;
7.. The supplier has been awarded
a
a con
ntract for a siimilar producct or service b
by the Airport
Authority as
a the result of
o a competitiive process w
within the prevvious five (5) yyears.
1
4
4
PART FIVE - GUIDELINES FOR CORPORATE GOVERNA NCE
The Airport
A
Autho
ority chooses to report against National Policy 58-201 Corporate G
Governance
Guidelines and the accompanyying National Instrument 588-101 Disclossure of Corpo
orate
Gove
ernance Practtices.
The following
f
tablle demonstrates how Vanccouver Airportt Authority meets these Co
orporate
Gove
ernance Guide
elines.
Vanco
ouver Airport Authority
Corporate Governancce Disclosure
1.
Guideline
e
The Boarrd of Directors
s
Disclose:
 Indep
pendent Direcctors and whe
ether or
not majority
m
are in
ndependent.

Direc
ctors who are not independ
dent and
expla
ain.

If Independent Dirrectors hold regularly
sched
duled meeting at which me
embers of
mana
agement are not
n in attenda
ance.

If the Chair of the Board is an
Indep
pendent Direcctor, the identtity of the
Chairr and his or he
er responsibilities.

Disclose the attendance record
d of
Direc
ctors.
Disclossure

All Directtors are indep
pendent with the
exception
n of the Presid
dent and CEO
O, who as
an emplo
oyee and executive officer o
of the
Airport Au
uthority is not independent.

Independent Directorss held an in ca
amera
session, w
without the prresence of
managem
ment, at everyy regular Board and
Committe
ee meeting in
n 2011, i.e., at six
regular B
Board meeting
gs and 20 Com
mmittee
meetingss. In addition, the Finance a
and Audit
Committe
ee, which consists entirelyy of
independent directors, holds separate in
camera ssessions with the External Auditor
and the In
nternal Audito
or at each me
eeting
they atten
nd.

Mary Jord
dan, the Chair, is an Independent
Director. The Chair’s T
Terms of Refe
erence
can be found at Tab 4 iin the Board’ss
Governan
nce Rules and
d Practices Ma
anual.

The Chairr’s Terms of R
Reference are
e
reviewed annually by tthe Governancce
Committe
ee.

Director a
attendance iss reviewed annually by
the Goverrnance Comm
mittee. In 2011
1, there
were 30 m
meetings of th
he full Board and
Board Committees. Inccluding all of these
meetingss, the Board had an overalll average
attendancce rate of 94 p
per cent.
Vanco
ouver Airport Authority
Corporate Governancce Disclosure
2.
3.
Guideline
e
Board Ma
andate
 Disclose the text of
o the Board’s
s written
mand
date.
Position Descriptions
D
Disclose:
 Whetther the Board
d has develop
ped
writte
en position de
escriptions for the
Chairr, and the Cha
air of each Bo
oard
Comm
mittee.

4.
Whetther the Board
d and CEO ha
ave
develloped a writte
en position de
escription
for th
he CEO.
Orientatio
on and Contin
nuing Education
Briefly de
escribe:
 Whatt measures th
he board takes to orient
new Directors
D
regarding the role of the
Board
d, its committtees and its Directors
D
and the nature and
d operation of the
corpo
oration’s business.

Whatt measures th
he Board take
es to
provide continuing
g education fo
or its
Direc
ctors and how
w the Board en
nsures its
Direc
ctors maintain
n the skill and
d
know
wledge necess
sary to meet their
t
obligations as Dire
ectors.
Disclossure

The Admiinistrative Guidelines and T
Terms of
Reference for the Board of Directorrs can be
found at T
Tabs 2 and 3 rrespectively in the
Board’s G
Governance R
Rules and Practices
Manual.

The Term
ms of Referencce for the Cha
air (Tab
4), Guidellines for Committees (Tab 15b) and
Terms of Reference fo
or each individ
dual
Committe
ee (Tabs 15c tto 15f) can be found in
the Board
d’s Governancce Rules and Practices
Manual.
The Airpo
ort Authority tthinks the lattter two
provide sufficient guidance to Comm
mittee
Chairs.

The Term
ms of Referencce for the Pre
esident
and CEO can be found at Tab 5 in th
he
Board’s G
Governance R
Rules and Practices
Manual.

The orien
ntation and co
ontinuing educcation
programss are describe
ed in Tab 8 Diirector
Developm
ment and Educcation Plan in
n the
Board’s G
Governance R
Rules and Practices
Manual.

The Board undertook a
an extensive rreview of
the orienttation and con
ntinuing educcation
program in 2011 and in
nstituted a ne
ew
Aviation 1101 course for all new direectors
including an introduction to the industry,
presentattions from each Vice President and
an overvie
ew of key issu
ues facing the
e Airport
Authority in the near to
o medium terrm. An
orientatio
on checklist iss prepared for each
new Direcctor and the ccompleted list is
circulated
d to the Goverrnance Comm
mittee.
The Education and Devvelopment prrogram is
reviewed annually by tthe Governancce
Committe
ee.
Vanco
ouver Airport Authority
Corporate Governancce Disclosure
5.
Guideline
e
Ethical Business Cond
duct
Disclose:
 Whetther the Board
d has adopted
da
writte
en code of conduct; how an
n
intere
ested party may
m obtain a copy; and
how the
t Board mo
onitors compliance
with its
i code.
Disclossure

The Code
e of Conduct fo
or Directors a
and Rules
Concerning Conflicts o
of Interest can
n be
found at T
Tab 7 in the B
Board’s Goverrnance
Rules and
d Practices M
Manual.

The Finan
nce and Auditt Committee is
charged w
with ensuring
g that the confflict of
Interest g
guidelines are
e strongly ma
aintained
and reviews this matte
er annually.
Each Dire
ector is requirred to file an annual
disclosurre statement; the statemen
nts are
reviewed by the Chair, President an
nd
Corporate
e Secretary and available ffor review
by any Dirrector upon rrequest to the
e
Corporate
e Secretary.
The by-laws require an
n annual statement on
Directorss’ compliance with its confllict of
interest g
guidelines. Se
ee Part One, S
Section IV
of this rep
port.

Any steps
s
the Board takes to en
nsure
Direc
ctors exercise
e independentt
judgm
ment in consid
dering transa
actions
and agreements
a
in
n respect of which
w
a
Direc
ctor or executtive officer has a
material interest.

Should a Director enga
age in an activity
which ma
ay be construe
ed as a conflict, the
Director m
must make fu
ull disclosure to the
Chair who
o will rule on the conflict in
n writing.
It would b
be a very rare
e occurrence ffor a
Director o
or Executive tto have a material
interest in
n a transactio
on or agreement being
considere
ed by the Board; should this occur,
the Director or executive will not re
eceive
written m
material and w
will recuse him
m or
herself frrom the Board
d discussion a
and
decision m
making.

Any other
o
steps th
he Board takes to
encou
urage and pro
omote a cultu
ure of
ethical business conduct.

The Chairr has appointe
ed the Corporrate
Secretaryy to serve as tthe Designate
ed Officer
for the ad
dministration of rules for A
Airport
Authority employees cconcerning Co
onflict of
Interest.

The Board adopted a formal Whistleblower
Policy in 22004 and revised the policyy in 2009;
copies of the policy are
e available up
pon
Vanco
ouver Airport Authority
Corporate Governancce Disclosure
Guideline
e
Disclossure
request to
o the Corpora
ate Secretary. In
porting,
addition tto internal cha
annels for rep
the Whisttleblower Policy includes a
an option
to report via a third party hotline telephone
number o
or website.
Vanco
ouver Airport Authority
Corporate Governancce Disclosure
6.
Guideline
e
Nomination of Directors
Disclose:
 The process
p
by wh
hich the Board
d
identifies new Dire
ector candidates.


Disclossure

See Part One, Section II, of this repo
ort. The
Board ma
ay appoint up to five Directtors from
the Comm
munity at larg
ge. The Governance
Committe
ee, which is composed entirely of
Independent Directorss, acts as the
Nominating Committee and is responsible
for the re
ecruitment and recommendation of
Candidate
es to the Board for its
considera
ation to fill at--large positio
ons.

The Governance Comm
mittee is tasked with
annually reviewing the
e Board’s Skillls and
Experiencce Matrix to e
ensure that it
continuess to be aligned with the nee
eds of the
business.. The Governa
ance Committtee then
reviews the skills, kno
owledge and a
attributes
of current Directors—as well as the
eir age
and lengtth of tenure—
—in order to id
dentify
current and upcoming gaps.

The Governance Comm
mittee is tasked with
seeking p
potential cand
didates who w
would
contribute the necessa
ary skill sets and
experiencce to the Boarrd. It may eng
gage
assistancce from an extternal consulltant to
help with this process. The Committtee then
considerss potential candidates and makes
recomme
endations to the full Board.

For Direcctor positions appointed byy
Nominating Entities, th
he Chair revie
ews the
Board Ma
atrix with the Entity and disscusses
the skills and experien
nce currently required
by the Board and requests that the Entity
keep this in mind in making its appo
ointment.

The Governance Comm
mittee’s Term
ms of
Reference can be foun
nd at Tab 15d in the
Board’s G
Governance R
Rules and Practices
Manual.
Whetther or not the
e Board has a
nominating committee compos
sed
entire
ely of Indepen
ndent Directors.
If the Board has a nominating
comm
mittee, describe the respon
nsibilities,
powe
ers and operation of the nominating
comm
mittee.
Vanco
ouver Airport Authority
Corporate Governancce Disclosure
7.
Guideline
e
Compens
sation
Disclose:
 The process
p
by wh
hich the Board
d
deterrmines the co
ompensation for
f
Direc
ctors and officcers.

See Part Two - Executive and Board
d
Compenssation of this rreport.

Whetther or not the
e Board has a
comp
pensation com
mmittee comp
posed
entire
ely of Indepen
ndent Directors.

The Human Resourcess and Compen
nsation
Committe
ee is compose
ed entirely of
Independent Directorss.

If the Board has a compensation
mittee, describe the respon
nsibilities,
comm
powe
ers and operation of the committee.

The Human Resourcess and Compen
nsation
ee’s Terms off Reference can be
Committe
found at T
Tab 15d in the
e Board’s Govvernance
Rules and
d Practices M
Manual.

Towers W
Watson was en
ngaged by the
e Human
Resource
es and Compe
ensation Committee to
provide in
ndependent compensation advice
with rega
ard to the execcutive compensation
plan. The mandate is ssummarized in Section
III of this report.

8.
Disclossure
If a co
ompensation consultant orr advisor
has at
a any time sin
nce the beginning of
the corporation’s most
m
recentlyy
comp
pleted financia
al year, been retained
to ass
sist in determ
mining compensation
for an
ny of the issue
er’s Directors
s and
office
ers, disclose the
t identity off the
consu
ultant or adviser and summ
marize
the mandate
m
for which
w
they havve been
retain
ned.
Other Boa
ard Committe
ees
 Disclose whether or not the Board has
stand
ding committe
ees other than audit,
comp
pensation and
d nominating
comm
mittees and describe their function.
T
The Board alsso has a Planning and Development
C
Committee. Itts Terms of R
Reference can
n be found
aat Tab 15f in tthe Board’s G
Governance Ru
ules and
P
Practices Man
nual.
Vanco
ouver Airport Authority
Corporate Governancce Disclosure
9.
Guideline
e
Assessments
 Disclose whether or not the Board, its
comm
mittees and in
ndividual Dire
ectors are
regullarly assessed
d with respecct to their
effectiveness and contribution and
a
descrribe the proce
ess used for the
asses
ssment.
Disclossure



This is an
n annual process, which is set out in
Tab 10 – T
The Board Evvaluation Proccess in
the Board
d’s Governancce Rules and Practices
Manual.
The Board undertakess an overall re
eview of
Board and Committee effectivenesss through
the use of a questionnaire supplem
mented
with interrviews by a third party conssultant
engaged tto conduct the annual review.
The Board also comple
etes an Individual
Peer Evaluation Questionn
naire
Director P
annually; results are tabulated by a third
party consultant and d
discussed with
h the
individuall Director and
d the Board Chair only.
VANCOUVER AIRPORT AUTHORITY
2011 SOCIAL REPORT
Our People
Our people are crittical to our su
uccess. With 396
3 employeees, of whom 3305 are memb
bers of the
Public
c Service Allia
ance of Canad
da (PSAC), the
e Airport Auth
hority strives to create a w
workplace
where
e employees truly
t
enjoy an
nd are fulfilled
d by their jobss.
The average age off an Airport Authority
A
employee is 44.6, with an avera
age length of service of
10.5 years.
y
Our volluntary five-ye
ear average turn-over ratee is 4.2 per ce
ent, with a con
nsistently high
average attendance rate of 96 per cent. The Airport
A
Authoority’s annual voluntary turrn-over rate
decre
eased from 2.6
6 per cent to 1.8 per cent in 2011.
As our organization
n grows and develops,
d
it is
s necessary too evaluate wh
hat the Airport Authority
stands for. In 2011, we embarke
ed on a comprrehensive vis ioning processs with leaderrs from all
deparrtments, out of
o which came
e a set of fourr corporate vaalues that will guide our co
orporate
culturre. Our new corporate valu
ues are:
We promote collaboratiion and teamw
work
We accept accountabilitty
f creativity
We strive for
We have a passion for results
r
Investing in Our People
One of
o the ways we
e maintain a highly
h
skilled and efficient workforce is by investing in the
develo
opment of our team memb
bers, listening
g to feedback
k and recognizzing their outsstanding
contributions.
CAREER DEVELOPMENT
To enable a cross-functional and flexible team, the Airporrt Authority’s skilled trade employees
are en
ncouraged to develop proficiency in a se
econd trade. IIn 2011, appro
oximately 62 per cent of
our maintenance
m
trades group were
w
dual-ticketed or in th
he process of becoming dual-ticketed.
Additiionally, the Airport Authoriity supported apprenticesh
hip training fo
or 14 tradespe
ersons in
2011.
The Airport
A
Authorrity maintains
s a target of 35
5 hours of traaining per employee on ave
erage during
normal work hours
s each year. In 2011, we exxceeded this ttarget with an
n average of 4
45 hours of
training and apprenticeship hou
urs per emplo
oyee. We also offer up to $ 20,000 tuition
n
reimb
bursement on
n the successfful completion of educatio n programs o
outside of norrmal work
hours
s.
We prrovide a numb
ber of training
g options from
m online and d
departmental training to ccorporate and
d
extern
nal training options to our employees in
n the areas off leadership a
and performan
nce
management; busiiness acumen
n; personal pe
erformance; ccommunicatio
ons and relationships;
computer and tech
hnical training
g; and health and safety. W
We also facilita
ated employe
ee training and
educa
ation through management skills assessment and trraining, and on-the-job skills and
knowledge develop
pment.
Airport Authority Employee
E
Tra
aining (2007-- 2011)
Total training
t
and
appren
nticeship hours
s
Averag
ge training/app
prenticeship
hours per full-time equivalent
e
positio
on
2007
21,698
2008
22,985
20009
16,6695
2010
16,4662
2011
17,200
0
58
55
40
42
45
COMMUNICATION
onment that supports
s
and develops ourr employees improves our organization’’s
Fostering an enviro
ew performan
nce managem
ment program
m whereby
business results. In 2011, we introduced a ne
oyees establis
sh specific ob
bjectives that align with teaam objectivess as well as th
he Airport
emplo
Autho
ority’s annual business plan. In addition, an individuaal developmen
nt plan is crea
ated
collab
boratively betw
ween each em
mployee and their
t
manageer. The new prrogram highlights the
Airport Authority’s philosophy th
hat open com
mmunication, ccoaching and a feedback-rrich
enviro
onment suppo
ort our emplo
oyees and enh
hance our bussiness.
To furrther commun
nicate with ou
ur employees
s, all-employeee meetings a
are also held ttwice annuallly
and in
nclude update
es from Airport Authority managers
m
and
d executives o
on business results and
objecttives. Employyees are invite
ed to ask ques
stions, provid
de feedback and share info
ormation with
other employees and the manag
gement team.
RECOGNITION
The success of ourr employees is critical to th
he success off our organiza
ation. The Airp
port Authorityy
strong
gly believes in
n rewarding employees
e
wh
ho, through th
heir actions and achieveme
ents, have
made an outstanding contribution to our colllective successs. From indivvidual recogn
nition and
award
ds programs to
t departmen
ntal safety awards, we belieeve in a cultu
ure that suppo
orts and
recognizes our employees’ achievements.
Health and Safety
The health and safety of our em
mployees is on
ne of the Airpoort Authority’ss top prioritie
es. We adhere
e
to the
e highest standards for employee health
h and safety, aand we work hard to contin
nually improvve
our sttrong safety culture.
c
Health and safety strategies
s
incclude:
 Proacttive occupatio
onal health an
nd safety man
nagement sysstem processe
es
 Rigoro
ous construction safety ma
anagement prrogram
 Develo
opment of a competency-b
based safety t raining strate
egy
 Robust disability management and return-to--work programs
 Ongoin
ng health survveillance and monitoring p
programs
 Emplo
oyee and Family Assistance
e Program, offfering confidential, person
nalized
guidan
nce and couns
seling
WELLNESS
The Airport
A
Authorrity’s Wellness Program, now in its tent h year, is an iincentive-bassed program
that promotes
p
phys
sical fitness, nutrition and overall welln
ness. The prog
gram is oversseen by a joint
emplo
oyee-manage
ement Wellness Committee
e which provi des guidance
e and leadership for
emplo
oyer-sponsorred wellness programs
p
and
d initiatives.
SAFETY INITIATIVES
The Airport
A
Authorrity recognizes that a key aspect of a saffe workplace is ongoing prroactive risk
asses
ssment of ourr work environ
nment. The Authority
A
emp
powers emplo
oyees to identify hazards in
n
our workplace,
w
and
d as a result, reducing the frequency an
nd severity of injuries and h
health
proble
ems in our da
aily work. Ourr comprehens
sive safety inittiatives exten
nd beyond ourr employees to
includ
de tenants, co
ontractors and
d major service providers, as well as travellers. These initiatives
includ
de:









Adhere
ence to regim
mented safety managemen t system prin
nciples for risk assessment
Complliance with all regulatory requirements
r
under the Ca
anada Labourr Code Part II
Submission of annu
ual departmen
ntal safety gooals and objecctives
A strin
ngent contractor safety pre
e-qualification
n process and
d safety orientation for all
contra
actors
Ongoin
ng public safe
ety inspections
Regula
ar departmen
ntal safety ins
spections
A standardized roott-cause analyysis accident aand incident iinvestigation program
A comprehensive co
omputer-based safety training system ffor recurrent training
Accura
ate and readilly-accessible health and saafety informa
ation for all em
mployees
r
we had
d no health an
nd safety non--compliancess from either Human Resources and
As a result,
Skills Development Canada or WorkSafeBC
W
in 2011.
To continually improve our heallth and safetyy initiatives, th
he Airport Autthority holds monthly
meetiings of emplo
oyee, management and employer repressentatives. Co
ommittees incclude the Join
nt
Occup
pational Safetty and Health Committee, comprised
c
of employee an
nd employer
representatives wo
orking together to identify and resolve ssafety and hea
alth issues; and the Policyy
Occup
pational Safetty and Health Committee, a senior-leve l joint committee which pa
articipates in
the de
evelopment of occupationa
al health and safety policiees and programs.
Regullar review of health
h
and sa
afety program
ms helps the A
Airport Authorrity identify ke
ey areas of
impro
ovement along
g with strong health and sa
afety perform
mance areas. Hazardous m
materials,
chemical handling and storage, WHMIS revie
ew, and noise hazard warning signage w
were some of
the prrograms revie
ewed in 2011.
LOST-TIME INJURIES
One of
o the ways we
e measure he
ealth and safe
ety performan
nce is by track
king any injurries that
occurrred on the job
b that resulte
ed in an emplo
oyee missing work. There were only two
o lost-time
injurie
es in 2011, wh
hich resulted in nine lost-ttime days at t he Airport Au
uthority. Our ttarget for each
of the
ese indicators is zero.
Airport Authority Health
H
and Sa
afety Key Perrformance Ind
dicators (200
02-2011)
Lost‐tim
me Injurries
6
5
4
3
2
2002
2
2003
2
2004
2005
3
2
06
200
2007
2008
20009
2
2
2010
2011
Respect and Equality
WORKFORCE DIVERSITY
The Airport
A
Authorrity wants a workforce
w
thatt reflects the vvibrancy and diversity of th
he
comm
munities we se
erve. We com
mply with the Employment
E
E
Equity Act to e
ensure fair em
mployment
practiices across our organizatio
on.
A
Authorrity reports its
s workforce demographicss to the federa
al governmen
nt, showing
The Airport
how each
e
of the de
esignated grou
ups is represented within vvarious occup
pational classsifications.
Demo
ographic data are taken fro
om a survey supplied to ea ch employee to complete vvoluntarily in
confid
dence. As suc
ch, numbers are
a based upo
on employeess’ self-identification as a m
member of a
designated group.
EMPLOYMENT EQUITY
Comp
posed of emplloyees from various
v
departtments, the E
Employment E
Equity Commiittee works
closely with Human Resources on initiatives to raise awarreness of dive
ersity issues a
and extend
opporrtunities in a fair
f and inclus
sive manner. The committ ee met three times in 2011. Airport
Autho
ority represen
ntatives attend
ded various workshops
w
preesented by Hu
uman Resourrces and Skillls
Devellopment Cana
ada’s Racism--Free Workpllace Strategy to gain insigh
hts and best p
practices with
h
respe
ect to employm
ment equity, including:



Trainin
ng for Trainerrs: Building In
nclusive Workkplaces
Mastering Aboriginal Inclusion
Challe
enges Facing Visible
V
Minorities and Straategies for Ch
hange
The Airport
A
Authorrity regularly offers comprehensive, onssite training to our employyees on variou
us
topics
s including dis
sability aware
eness and res
spect in the w
workplace.
A num
mber of emplo
oyment equityy initiatives were undertakken in 2011 inccluding a stud
dy to addresss
the un
nderrepresen
ntation of visib
ble minorities
s in our mana gement group. As a resullt, many of the
e
study’s recommendations will be
b implemented in 2012. F
Furthermore, internal com
mmunications
on em
mployment equity were highlighted on a new corpora te intranet site, as well ass the signing o
of
a new
w Employmentt Equity Policy.
On an
n ongoing basis, the Airport Authority ad
ddresses the issue of work
kplace diversity by
distrib
buting all Airp
port Authorityy employment postings to a variety of ou
utreach organ
nizations in
our co
ommunity, inc
cluding the B.C. Paraplegic Foundation , Immigrant S
Services Socie
ety, the United
Native
e Nations, We
estern Institutte of the Deaff, Women in A
Aviation and th
he Canadian A
Association of
Professionals with Disabilities. We also partn
ner with the G
Greater Vanco
ouver Businesss Leadership
p
ork (GVBLN) to
t promote em
mployment op
pportunities w
with the Airpo
ort Authority.
Netwo
THE ACCESSIBLE AIRPORT
The Airport
A
Authorrity is a world leader in cre
eating accessiible air termin
nal facilities. We have a
facilities design po
olicy that speccifies the high
hest applicablle building code requireme
ents with
respe
ect to access for
f people witth disabilities, and we utilizze an indepen
ndent access consultant to
o
review
w all new construction and
d retail projects. Features oof our accesssible airport in
nclude:
 Low-pile carpets,
c
high-contrast path
hways and speecially design
ned unisex wa
ashrooms
eaf), closed ca
aptioning
 Visual paging, TTY/TTD (Telecommunications Devvice for the De
decoders and
a visual fire
e alarm strobes
 Tactile maps and distinct and consistent floor treaatments to identify locations within the
terminals
Community Investment
Our community invvestment prog
gram is guide
ed by three fo cus areas: family and com
mmunities,
First Nations cultu
ure and emplo
oyee-driven giving. An onli ne application
n system acce
essible at
www.yvr.ca provide
es a central portal
p
for requ
uests. Driven by guideliness and criteria, the Airport
Autho
ority provides support in the form of don
nations, sponssorships and gifts-in-kind. The Airport
Autho
ority targets approximately
a
y one per centt of excess of revenue overr expenses fo
or community
investtment contrib
butions, includ
ding in-kind donations.
d
In 201
11, the Airport Authority prrovided $648,0
000 to 68 cha rities or community organ
nizations
through our comm
munity investm
ment program
m, and contrib uted an estim
mated $72,000
0 of in-kind
donattions to 20 org
ganizations.
Majorr funding conttributions in 2011
2
included the annual YYVR Golf for K
Kids tourname
ent and
auctio
on, Richmond Hospital Fou
undation, Cele
ebration of Lig
ght fireworkss festival, Que
est Food
Excha
ange and an employee-driv
e
ven United Wa
ay campaign. The 2011 em
mployee-driven United Wayy
campaign raised more
m
than $73
3,000 which th
he Airport Autthority match
hed for a totall contribution
of $14
46,000.
Given the broad scope of the community and families cateegory, the Airport Authorityy continued to
o
narrow the focus of
o its giving in 2011 to groups that suppoort accessibility and the en
nvironment.
Initiattives supporte
ed in 2011 inccluded Quest Food Exchang
ge, Fraser Rivver Discoveryy Centre,
Naturre Conservanc
cy of Canada, Vancouver Adaptive
A
Snow
w Sports, Rich
hmond Centre
e for Disabilityy,
and Rogers
R
Santa Claus Parade
e in aid of the Greater Vanccouver Food B
Bank.
Additiionally, coin collection
c
kios
sks in the pos
st-security areeas of the Domestic and In
nternational
Terminals encoura
age passengers to donate loose
l
change to charity. More than $13,000 was
collec
cted in 2011 fo
or distribution
n to local charities.
Connecting With Our Communities
80TH ANNIVERSARY CELEBRATIONS
To celebrate 80 yea
ars in the com
mmunity, the Airport Authoority hosted a two-day open house which
includ
ded a photo gallery spanning the Interna
ational and D omestic Term
minals, familyy
eaways,
a
vin
enterttainment, giv
tage aircraft flypast and evven an airside
e ballet featuring our
airfielld firefighting
g emergency vehicles.
v
In add
dition the com
mmunity open house, the Airport
A
Authorrity also delive
ered the succcessful
th
Live@
@YVR contest as
a part of ourr 80 annivers
sary celebratiions. The conttest called for storytellerss
to live
e at YVR for 80
0 days and 80
0 nights, show
wcasing the m
many aspects a
and stories att the airport.
Live@
@YVR was a resounding succcess, attracting 96 contesstant video entries and gen
nerating more
e
than 420
4 media sto
ories and interviews.
QUEST FOOD EXCHANGE
As a community-ba
c
ased organiza
ation, we know
w that conneccting with ourr communities – our
neighbours, our em
mployees and our business
s partners – iss key to the A
Airport Authorrity’s
contin
nued success. In 2011, we proudly launcched a $100,0000 supporting partnership
p with Quest
Food Exchange (Qu
uest), becoming the not-for-profit’s officcial transporttation sponso
or. Quest
collec
cts and distrib
butes overstock, mislabele
ed or near-ex piry productss that would o
otherwise go tto
waste
e and diverts that
t
food to people who need it.
As Qu
uest’s official transportatio
on sponsor, th
he Airport Autthority donate
ed $50,000 in 2011 and willl
donatte another $50,000 in 2012 as part of its community i nvestment prrogram. Our ffinancial
comm
mitment will allow
a
Quest to
o purchase a second
s
refrig erator truck ffor its fleet, thereby
enabling the organ
nization to ach
hieve its targe
et to collect $
$9.2 million worth of food – which
translates to 3,234
4 tonnes of wa
aste diverted from
f
landfillss – over the next two yearss.
Our first year in pa
artnership with Quest was a successful one. Businesses and partn
ners from
across YVR joined the
t Airport Au
uthority in supporting Quesst including, HMS Host, Hu
udson Group
and The Fairmont Vancouver
V
Airport Hotel. The
T combined
d effort of man
ny resulted in
n more than
$239,000 in financiial and product donations, in addition too approximate
ely 600 hours of volunteer
time.
YVR’S SCHOOL PROGRAM – THE FUTURE LANDS HER E
Dema
and for the successful The Future Lands
ds Here schooll outreach program saw th
he Airport
Autho
ority continue this free prog
gram for 10 weeks
w
in the ffall of 2011. M
More than 1,70
00 Grade 4-6
students from 43 Metro
M
Vancouver schools experienced
e
a n interactive,, guided tour of YVR with a
focus on safe air trravel and airp
port operation
ns at YVR. Thee program recceived top ma
arks from
teachers, 100 per cent
c
of whom would recom
mmend the prrogram to other classes.
COMMUNICATIONS
The Airport
A
Authorrity is committed to providing open, hon est and timelly communica
ations to our
stakeholders. We keep
k
business
s partners an
nd the commu
unity informed
d about airport operations
using a number of communicatiions tools, inccluding:

www.yvr.ca, YVR’s webs
site with more
e than 11,0000 visitors per d
day






www.yvrco
onnections.co
om, the Airporrt Authority’s community-ffocused blog
The Airporrt Authority’s Twitter accou
unt, @yvrairpoort, with more
e than 5,000 ffollowers
YVR Air Ma
ail, a monthly electronic ne
ewsletter disttributed to 6,2252 subscribe
ers
Presentations to municipal councils and commun
nity groups
Timely and
d accessible media
m
relation
ns
The Airporrt Authority’s annual publicc meeting
COMMUNITY SURVEY
As part of our publlic consultatio
on activities, each
e
year we undertake a community survey,
condu
ucted and com
mpiled by an external
e
consultant. The su
urvey explore
es overall imp
pressions of
the Aiirport Authoriity and the im
mpact YVR has
s on the comm
munity, and se
eeks recomm
mendations forr
impro
oving services
s and communications.
11, overall impressions of YVR
Y were verry positive, witth approximately 83 per ce
ent of Metro
In 201
Vanco
ouver residents giving the airport
a
a ratin
ng of 4 out of 5 or higher, u
up from 82 pe
er cent in 2010
0.
Overall I
O
Impressiion of Vanco
ouver Intternational Airp
port 74%
7
77%
80%
82%
778%
77%
82%
83%
2010
0
2011
71%
61%
2002
2
2003
3
2004
2005
06
200
2007
2008
22009
Employees in the Community
The Airport
A
Authorrity’s presiden
nt, vice presid
dents and me mbers of our management team lend
their time
t
and expe
ertise to a wid
de range of bo
oards and cou
uncils, serving the commu
unity and
advoc
cating for change to benefitt the industryy, region and p
province. Add
ditionally, man
ny employeess
volunteer their tim
me and talents
s to local community organ
nizations.
In 201
11, Airport Authority repres
sentatives served on moree than three d
dozen boards,, councils and
d
comm
mittees, includ
ding Airports Council Interrnational; B.C . Aviation Cou
uncil, Greaterr Vancouver
Econo
omic Council; International Air Transport Association
n; Richmond Chamber of Commerce;
Touris
sm B.C.; The Internationall Air Cargo As
ssociation; Vancouver Boarrd of Trade; a
and Volunteerr
Richm
mond.