Regina airport could be in debt by September

Regina’s airport could soon be in major debt unless the federal government provides some significant financial assistance.

“We just need to have support to cover our operating costs,” said James Bogusz, the president and CEO of the Regina Airport Authority. “We’re not even able to make enough money right now for basic things like staff wages and our power bill.

“We’re depleting our cash reserves and, to be very specific, coming to September — maybe if we’re lucky early October, but right at the end of the summer, early fall — we’re going to be in heavy debt.

“To recover from that debt will either require a significant cash injection from the government, forgivable loans, or — and this is what I don’t want to have to do as a CEO — raise fees and charges to pay this all back. That’s not going to help stimulate travel so I want to focus on some subsidy, not on putting this on the backs of future passengers.”

COVID-19 has decimated the airline industry and, by extension, airports. Bogusz said the pandemic has caused a huge drop in the number of flights into and out of YQR, which makes it virtually impossible to stay financially viable.

“Right now, we’re seeing at best five per cent of our pre-COVID passenger volumes,” he said. “We’re so far from a break-even position. We need to be near 70, 80 per cent at a bare minimum (and) hopefully working toward what we had pre-COVID.”

The corresponding drop in revenue has forced the airport to cut operating budgets and capital projects and to lay off 19 of its 51 staff members.

Bogusz said the airport has taken advantage during the pandemic of the federal government’s wage subsidy, but he noted that has been “of limited value at best.” He wants to see the feds do more for the aviation industry in the country.

“We are in a crisis right now and, in our case, our money is going to run out later this year and then we’ll be in heavy debt,” Bogusz said. “We just can’t see this go this direction for the long-term viability for our community’s airport.”

In Bogusz’s mind, much of the problem stems from the federal and provincial governments offering different recommendations and requirements for travellers. That has resulted in people staying home instead of moving about the country.

“The problem is the prolonged policy in terms of not having Canadians even travel domestically, or certainly (it’s) not recommended as a result of COVID and the various government recommendations that are in place today,” Bogusz explained.

“There’s no real way to kickstart things until that is lifted or at least recommendations (are in place) to travel safely.”

Until the governments get in line, Bogusz doesn’t think the industry will have a chance to recover. That could result in more layoffs and reductions throughout the aviation industry.

WestJet had to lay off more than 3,300 employees across the country due to the impact of COVID-19. Bogusz couldn’t say how many WestJet workers in Regina were affected, but noted the company plans to contract out the services it needs at the airport.

“Operating at five per cent or 10 per cent of pre-COVID levels, there’s just no business to be had there,” Bogusz said. “Obviously (airlines) can’t keep large amounts of staff on …

“It’s just an incredibly challenging time. We’ve got to get things back rolling again for our industry to start surviving.”

— With files from 980 CJME’s Dom Lucyk and Britton Gray