N.L. government needs to pay up to give international flights liftoff, says St. John's airport CEO

The CEO of St. John's International Airport says government funding may be the key to bringing transatlantic flights back to Newfoundland and Labrador — and the province's tourism minister says the idea isn't out of the question.

During a St. John's Board of Trade event focused on air access, airport CEO Dennis Hogan said he wants the provincial government to consider offering a revenue guarantee.

"Given the changes that are taking place in the airline sector globally, revenue guarantees have become part of the potential package that's reviewed when airlines make decisions on where they are going to establish different routes," he said while speaking with reporters Monday.

Newfoundland and Labrador lost its transatlantic route to London in 2019, when Air Canada temporarily grounded all of its Boeing 737 Max aircraft due to safety concerns.

Hogan initially said the only current international route is a seasonal flight to Florida. On Thursday, the airport authority clarified his statement, saying the airport also has year-round service to St-Pierre-Miquelon, seasonal routes to Florida and seasonal routes to Mexico, Jamaica, Cuba and the Dominican Republic. 

Hogan said Newfoundland and Labrador is in competition with other provinces for air service — and other provincial governments are paying up.

For example, earlier this year, the government of Saskatchewan announced a revenue guarantee worth $2.2 million for a WestJet route from Saskatoon to Minneapolis.

Newfoundland and Labrador's tourism minister, Steve Crocker, said his government would consider offering a revenue guarantee but there are no immediate plans to do so.

"It's investing on the success of a route," he said. "If you believe in your route, when you go to negotiate or have a conversation with an airline, you can say we would look at a revenue guarantee because we're confident that this route would work."

In this year's budget, the provincial government allocated $1.5 million to support air travel in Newfoundland and Labrador.

Crocker said he had a meeting with Air Canada on Monday and, along with Premier Andrew Furey, met with WestJet's president last week.

"We have a commitment as a government to getting out there and getting on their radar," he said.

Very early days

Hogan said the airport authority is in discussions with several airlines about potentially bringing back international destinations — but it could take years for any routes to begin.

He said hydrogen development in Newfoundland and Labrador has led to some discussions with German airlines.

"It's very early days when it comes to that," he said.

Hogan said as of December, the airport was up to 74 per cent of its pre-pandemic passenger volume, which was 1.5 million visitors in 2019.

AnnMarie Boudreau, CEO of the St. John's Board of Trade, said air access can be a problem for businesses in Newfoundland and Labrador — especially on the island.

"Not having a direct flight to Europe — that's challenging for business," she said. "When you are running your business from Newfoundland and Labrador and you have to go to Halifax or go to Toronto for you to get to Europe, that's money, it's lost time, it's lost productivity."

Boudreau said members want to see more domestic options in addition to international flights.

"If you are going to run your business, grow your business, collaborate with others outside the province, being able to come and go from Newfoundland and Labrador is critical for business success," she said.

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