Viewing cable 04MONTREAL701, AEROPORTS DE MONTREAL ANNUAL REPORT 2003

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131251Z May 04

UNCLAS SECTION 01 OF 02 MONTREAL 000701 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
DEPARTMENT FOR WHA/CAN 
 
OTTAWA FOR ECON AND DHS/ICE AND DHS/BCBP 
 
E.O. 12958: N/A 
TAGS: EAIR ECON CA
SUBJECT: AEROPORTS DE MONTREAL ANNUAL REPORT 2003 
 
REF: A) 2003 Montreal 1076 (NOTAL) 
 
B) 2002 Montreal 0412 (NOTAL) 
 
¶1. (U) Summary. Aeroports de Montreal (ADM) Corporation 
President and Chief Executive Officer (CEO) James Cherry and 
Chairman of the Board Pierre Martin rolled out the ADM 2003 
annual report at a May 6, 2004 public meeting held at the 
International Civil Aviation Organization Headquarters in 
Montreal. The meeting highlighted the ADM Corporation's 
strategic growth plan that focuses on three core sectors: 
passenger traffic, air cargo and industrial development. 
Montreal-Trudeau Airport will serve as the hub for domestic, 
transborder and international passenger traffic, while 
Montreal-Mirabel Airport will be revamped into an industrial 
and all-cargo airport. CEO Cherry emphasized that passenger 
volume (8.9 million) and cargo volume (242,193 tons) had 
increased by 1.5% and 3.9%, respectively, from the 2002 
numbers. Cherry stated that ADM optimistically anticipates 
a fifteen percent (15%) increase in passenger volume in 
2004, mostly as a result of increased numbers of flights 
from low-cost carriers. He also reported several 
international charter carriers plan to offer new, direct, 
weekly flights between Montreal and a few European capitals; 
domestically, additional flights between Montreal and Quebec 
City are on the horizon. A preliminary proposal to improve 
passenger accessibility to Montreal-Trudeau is anticipated 
for completion in June 2004. End summary. 
 
¶2. (U) ADM is the corporation responsible for the 
management, Operation and development of Montreal-Trudeau 
Airport (MMA) (formerly known as Dorval International 
Airport) and Montreal-Mirabel Airport (MMA). In 1992, ADM 
entered a 60-year lease with Transport Canada to manage both 
facilities. 
 
¶3. (U) Board Chairman Martin opened the public meeting by 
announcing that passenger and cargo volume increased and 
that the Phase I project to expand MTA was completed on 
schedule and within budget. He reported the Phase II 
project, expansion of the international jetty, is thirty- 
seven percent (37%) complete. 
 
¶4. (U) ADM's three-point growth plan focuses on passenger 
traffic, air cargo and industrial development. In January 
2004, ADM signed an agreement with charter carrier Air 
Transat, ADM's second largest carrier (after Air Canada), to 
relocate its head office, its aircraft maintenance center 
and aircraft to MTA. ADM expects all charter flights from 
Montreal to be operating out of Montreal-Trudeau by late 
¶2004. A new international and transborder arrivals complex 
which will contain a new Canadian Customs hall and baggage 
claim area is scheduled to open in November 2004, followed 
by the inauguration of a new international jetty in July 
¶2005. ADM plans to launch an international request for 
proposals to redevelop MMA, to make use its terminal, hotel 
and administrative buildings. 
 
¶5. (U) In addition to highlighting that 8.9 million 
passengers (1.5% increase) and 242,193 tons of cargo (3.9% 
increase) transited the ADM facilities in 2003, on the 
environmental side, CEO Cherry emphasized that the noise 
footprint at the Montreal facilities is now fifty percent 
(50%) below the 1995 reference area. He stated the number 
of citizens affected by the noise footprint fell to seventy 
percent (70%) below the 1995 reference level. ADM 
management expects the commissioning of a new thermal power 
plant at MTA to cut the airport's energy consumption by 
fifty percent (50%). 
 
¶6. (U) CEO Cherry anticipates as much as a fifteen percent 
(15%) increase in passenger traffic stemming from 
international charters that will offer flights to new, 
weekly destinations between Montreal and a few European 
capitals. He specifically mentioned the following 
international charters: Thomas Cook (to/from London), Zoom 
Airlines (to/from London and Paris), Air Plus Comet (to/from 
Madrid) and Transaero (to/from Moscow). Domestically, ADM 
expects an increase in flights offered by Air Labrador 
between Montreal and Quebec City. 
 
¶7. (U) ADM management underscored that its primary 
concern relates to municipal taxes, to the tune of 21.3 million 
Canadian dollars (CAD) in 2003 (the MTA portion - 18 million 
CAD). CEO Cherry stated that Montreal pays the highest per 
passenger tax compared to all the other Canada airports, 
approximately 2.21 CAD per passenger. ADM management 
reported that it signed an agreement with the City of 
Montreal that will limit some tax growth for the next three 
years, but added the corporation seeks "a permanent, 
equitable basis" for determining its tax contributions. 
ADM's second priority concern is the amount of rent paid to 
Transport Canada (4.8 million CAD in 2003). The third 
priority issue is passenger accessibility to MTA. A 
preliminary proposal to improve road access and city and 
intercity rail connections to the MTA is planned for 
completion in June 2004. A related impact study is 
scheduled for completion by August 2004. ADM expects a 
final proposal will be ready in November 2006, to integrate 
a rail connection to MTA -- the anticipated construction 
completion date is in the 2007-2008 period. 
 
¶8. (SBU) On May 11, 2004, as a followup to ADM's public 
meeting, post's Principal Officer contacted CEO Cherry to 
inquire whether the Phase II plans will address the long- 
standing concern of Department of Homeland Security 
personnel at the Pre-Flight Inspection Facility; that is, 
lack of screening of passengers and baggage prior to the DHS 
inspectors' interviewing and pre-clearance of passengers. 
Cherry responded that Phase II plans do not address the DHS 
employees' concern, but he hinted that the Phase III 
proposals (June 2004) may accelerate renovations that would 
respond to the DHS employees' concern. 
Allen