YVR Airport & Sea Island Developments Discussion

[thenoflyzone]

Originally Posted by Klazu

It's interesting but I read yesterday that Helsinki Airport is actually accelerating their building projects now that there is less disruption to airport operations and flights are mostly grounded there as well. Now is the time to catch up to growth of the past decade before the demand will ultimately pick up again.

The main difference between HEL and YVR is that Helsinki's project started in 2014, is 70% complete and has a total price tag of only $1 billion Euros. The financing for the entire project has most likely been secured in its entirety already. The Finnish government even pitched in $200 million euros.

https://www.finavia.fi/en/about-finavia/development-airports/invests-in-helsinki

Compare that to YVR's mega project, which was in its infancy, and had a total cost of over $9 billion. No way in hell YVRAA has that kind of money just sitting in the bank.

Pier D extension already cost $300 million, and they've already invested over $500 million in other expenses in the project they are canceling. So that's over $800 million invested in the last couple of years. Now with revenues drying up, this decision was inevitable.

Also, pretty sure Finavia (HEL airport operator) doesn't pay rent to the Finnish government. Canadian airport authorities are in a bit of a pickle at the moment, unlike anywhere else on earth. Let's see what Trudeau will announce in a few weeks. Supposedly industry specific help is on the way.

[casper]

Originally Posted by thenoflyzone

....

Also, pretty sure Finavia (HEL airport operator) doesn't pay rent to the Finnish government. Canadian airport authorities are in a bit of a pickle at the moment, unlike anywhere else on earth. Let's see what Trudeau will announce in a few weeks. Supposedly industry specific help is on the way.

I would disagree with the statement that Canadian airports are in a unique situation. Other airports need to buy land. Heathrow has had to buy the land they plan to build their third runway on.

Canadian airports were given the existing property and building, only being asked to pay rent on that land.

[officedweller]

Originally Posted by Klazu

It's interesting but I read yesterday that Helsinki Airport is actually accelerating their building projects now that there is less disruption to airport operations and flights are mostly grounded there as well. Now is the time to catch up to growth of the past decade before the demand will ultimately pick up again.

On the flip side, I read that YUL (Montreal Trudeau Airport) will have problems funding its contribution to the REM station there, just when tunnelling is supposed to start.

[thenoflyzone]

Originally Posted by casper

I would disagree with the statement that Canadian airports are in a unique situation. Other airports need to buy land. Heathrow has had to buy the land they plan to build their third runway on.

Canadian airports were given the existing property and building, only being asked to pay rent on that land.

Private airports can lean on equity owners when times are tough. Not the case for our airport authorities.

Like i said, a bit of a pickle unlike anywhere else on earth.

Originally Posted by officedweller

On the flip side, I read that YUL (Montreal Trudeau Airport) will have problems funding its contribution to the REM station there, just when tunnelling is supposed to start.

All Canadian airports are in the same sinking boat, especially the likes of YVR and YUL, both of which have multi billion dollar projects that just started, with no revenue left to fund it. Forget about the projects. In a few months, if financing isn't secured, they will barely be able to keep the runway lights on at night.

Grab the popcorn. The next few weeks/months will be interested, especially if Trudeau's upcoming speech doesn't include any industry specific funding.

[jollyburger]

CORE project is shelved while resources focused on cargo and other immediate projects:

With $525 million already spent, the Vancouver Airport Authority is halting a large-scale infrastructure project due to the impact COVID-19 has had on the aviation industry.

The airport announced Wednesday it’s putting an end to its CORE Program, part of a multi-year capital program, just a day after letting the construction company know of its intentions.

It’s the latest in a number of steps the airport authority has taken to reduce operating and capital costs to protect its long-term financial health, said the airport authority in a statement. Instead, they will focus their resources on projects that meet their more immediate needs.

The CORE Program was designed when YVR was experiencing double-digit growth.

The program included a central utilities building, which would have housed one of largest geoexchange systems in Canada, slated for completion by 2022.

Geoexchange is a heating and cooling system that uses the earth’s renewable energy found just below the surface. It would have been integrated throughout YVR to heat and cool the airport’s structures.

The central utilities building was being built on the airport’s former value parking lot. That site was also earmarked for a ground transportation centre including a new parkade, both of which are also part of the CORE Program.

Those facilities are no longer needed due to the decline in air travel, according to the airport authority.

In a statement, Tamara Vrooman, who took over as president and CEO of Vancouver Airport Authority on July 1, said cancelling the project was a “difficult but necessary decision.”

“We simply do not need the capacity this project brings for the foreseeable future and need to prioritize our resources elsewhere,” she said.

“I want to emphasize that making this decision is one more step in preserving the ongoing financial stability of Vancouver Airport Authority so that we can continue to serve our community and focus our resources on the immediate needs of the airport.”

Those resources will go instead towards projects that support the recovery of the aviation industry such as trials for health screening and testing, and improving data and technology infrastructure.

The airport will also enhance YVR’s cargo facilities and other projects that are “best completed when the airport is less busy, such as airfield infrastructure,” according to Wednesday’s announcement.

Vrooman gave notice on Tuesday to the construction company, EllisDon Corporation, of their intention to terminate the CORE Program.

The airport authority and EllisDon will finalize wind-down arrangements, with the intent work will be finished on the site by Nov. 30.

The project will be halted in its current state.

The CORE Program can be restarted in the future when additional capacity is required, and it will cost hundreds of millions of dollars more to complete, according to a YVR spokesperson.

https://biv.com/article/2020/09/yvr-terminates-major-infrastructure-project-due-covid-19

[s211]

Can I admit to being unclear on one point: are they mothballing the current parking garage construction?

[jollyburger]

Originally Posted by s211

Can I admit to being unclear on one point: are they mothballing the current parking garage construction?

Yes it's mothballed.

[teriyaki]

Going to be quite the unsightly mess for some years in the parkade area there. Shame, but necessary given their finances and projections I'd imagine.

Atleast we'll have Pier D to hold us over

[jollyburger]

Originally Posted by teriyaki

Going to be quite the unsightly mess for some years in the parkade area there. Shame, but necessary given their finances and projections I'd imagine.

Atleast we'll have Pier D to hold us over

They said they might do something to make things prettier in he meantime.

[Nites]

https://www.youtube.com/watch?v=XJEiEiQ4znY

[Metro-One]

So they are just going to leave all those parkades half complete? Some of them looks as if they are at too far from completion.

This sucks, but we all knew airports would be the hardest hit regarding this pandemic. Guessing it will take about a decade or so before this program (or whatever it evolves into) proceeds again?

Would be a good time for the feds to replace the traffic lights with interchanges leading up to the airport though. Reduced traffic makes for faster construction, and then ready just as things start picking up again.

[connect2source]

Originally Posted by teriyaki

Going to be quite the unsightly mess for some years in the parkade area there. Shame, but necessary given their finances and projections I'd imagine.

Atleast we'll have Pier D to hold us over

Agreed. A huge and very visible unsightly mess for years to come! It will remain a reminder and a symbol of a terrible year for the aviation industry until work is started again, hopefully sooner rather than later.

[Denscity]

The international gate expansion got completed recently no?

[s211]

And in airplane news, I just booked some domestic travel over Christmas with AC and the designated plane was a 737 MAX8. Inching closer?

[Orcair]

Originally Posted by s211

And in airplane news, I just booked some domestic travel over Christmas with AC and the designated plane was a 737 MAX8. Inching closer?

Schedule hasn't been updated yet.

[connect2source]

Originally Posted by Denscity

The international gate expansion got completed recently no?

Yes it will get finished but remain unused until demand warrants.

https://dailyhive.com/vancouver/vancouve...-parkade-utilities-geoexchange-cancelled

[connect2source]

Originally Posted by s211

And in airplane news, I just booked some domestic travel over Christmas with AC and the designated plane was a 737 MAX8. Inching closer?

Zero indication from Transport Canada as to when the MAX will fly again, I'm sure your designated aircraft will be changed as you departure nears, doubt the MAX will fly in 2020.

[s211]

Originally Posted by Orcair

Schedule hasn't been updated yet.

Flight AC 243 on December 28th.

[Denscity]

Originally Posted by connect2source

Yes it will get finished but remain unused until demand warrants.

https://dailyhive.com/vancouver/vancouve...-parkade-utilities-geoexchange-cancelled

Ah good.

[Orcair]

Originally Posted by s211

Flight AC 243 on December 28th.

Sorry, didn’t mean to imply the flight doesn’t exist. Rather I meant that AC generally only finalizes the schedule 1-2 months before a flight... before then it’s just a general idea or placeholder. Hence all of the flight/schedule change notifications...