Airports Capital Assistance Program Enhancement
LOCATION: NATIONAL
Issue/Source: WHAT SUPPORT IS AVAILABLE TO SMALL CANADIAN AIRPORTS?
Date: MARCH 18, 2021
Suggested ResponseS
- The Airports Capital Assistance Program is a long-standing Government of Canada program that provides funding of $38 million per year to support safety-related capital investments at our country’s smaller passenger airports.
- Since its inception, the program has invested almost $786 million in 904 projects at 182 airports across the country.
- In the 2020 Fall Economic Statement, the Government announced temporary enhancements to the Airports Capital Assistance Program, which are intended to support airports in their recovery from the impact of COVID-19:
- First is the injection of an additional $186 million in funding to be spread equally over the next two years;
- Second is an increase in the minimum federal cost-share to 50% for the same period; and
- Third is that previously ineligible federally-owned airports with traffic of less than one million passengers per year will be eligible for Airports Capital Assistance Program funding, also for the next two years.
- The temporary enhancements to the Airports Capital Assistance Program are one of several targeted support measures put in place by the Government of Canada that are designed to provide much-needed support to airports.
BACKGROUND INFORMATION
- The Airports Capital Assistance Program (1995) currently has an annual funding envelope of $38M for eligible safety projects such as the rehabilitation of airside surfaces/lighting, heavy airside equipment. Expansions or upgrades, are not eligible for funding.
- To be eligible an airport must receive year-round regularly scheduled passenger service with a minimum of 1,000 passengers a year for the last three consecutive years, and not be federally-owned.
- Funding is currently provided on a cost-sharing basis. Airports with less than 50,000 passengers per year are funded 100% by the government. There is a 5% reduction in funding level per 25,000 passengers up to 524,999 passengers.
- Eligible projects fall into three categories in descending order of priority:
Priority 1: Safety-related airside projects;
Priority 2: Heavy airside mobile equipment (safety related); and
Priority 3: Air terminal building/groundside (safety related).