Pearson Airport Upgrades, Aims For U.S. Passengers

<B>Pearson Airport Upgrades, Aims For U.S. Passengers</B>

By Carolyn Green

Air Canada is setting the stage to transform Lester B. Pearson International Airport into a facility that not only acts as a hub for domestic air traffic, but also will offer an alternative to U.S.-originating passengers for international travel.

Because of the acquisition by Air Canada of Canadian Airlines International, Air Canada and the Greater Toronto Airport Authority, a not-for-profit organization that operates Pearson, have spent about US$53.6 million since January upgrading facilities at the airport.

At Terminal 2, which had been Air Canada's home base, major changes were made to allow Air Canada and Canadian Airlines to service domestic and transborder passengers. As well, some airlines moved from the 36-year-old Terminal 1 into Terminal 3 to allow Air Canada and Canadian to set up international departure and arrival facilities in Terminal 1, which is near to Terminal 2. Canadian had been based in Terminal 3.

In total, 33 airlines changed terminals between March and June, including Delta Airlines and TWA, which both transferred to Terminal 3 from Terminal 1.

"Moving terminals like we've done is never an end in itself," said Rob Ramage, Air Canada's senior director of customer service, who oversaw the massive terminal reshuffling and refurbishment. "It's meant to support the schedule and it's meant to allow us to grow our schedule even more by having connection times that build Toronto into a choice airport for North America, not just an Air Canada airport in Canada."

Ramage said by using Terminals 1 and 2, instead of Terminals 2 and 3, connection times are reduced by about 15 minutes, a factor he believes is crucial to making Pearson a competitive hub for U.S. passengers traveling internationally.

The connection time between domestic and international is 40 minutes, while transborder passengers flying on an international flight require one hour.

Ramage said Pearson Airport also has appeal to U.S.-originating passengers because Air Canada has built up an extensive network of nonstop routes now flying to more than 50 U.S. cities. He sees the greatest potential to pick up U.S. business from anywhere south and west of Toronto, including: Detroit, Akron, Ohio, Albany, N.Y., Grand Rapids, Mich., Rochester, N.Y., and Louisville, Ky. U.S. passengers would consider flying through Toronto, he said, because it's less congested than many major facilities in the United States. And for passengers connecting through New York, most have to fly domestically to LaGuardia, and then drive across town to New York JFK.

Price is another advantage. For example, a full-fare return ticket between Albany and London on American Airlines through Boston or New York is US$3,162, compared with US$1,856 using Air Canada through Toronto.

David Gersovitz, a Toronto-based airline analyst, said the price difference results from a number of factors. In Canada, charter airlines have "had a depressing effect" on scheduled airlines' fares."It is cheaper simply because the Americans have had a higher fee structure for the business traveler for quite some time," he said. With the opening in 2003 of a new US$3 billion terminal, the addition of two runways bringing the total to six, and Air Canada's desire to significantly expand its international route structure, Gersovitz added, Pearson will become a more appealing alternative to U.S. passengers. Even now, he said, because Air Canada is a member of the Star Alliance, members of United Airlines' frequent flyer program can earn and burn the same number of points whether they fly Air Canada or United.

Meanwhile, as airlines and passengers await the opening of the new terminal, they must now get used to the many changes that have taken place. To facilitate easy transfer between Terminals 1 and 2, an underground tunnel, which had been closed since 1992, has been refurbished with new escalators at both ends and new moving sidewalks. A shuttle bus service between the two buildings also has been introduced.

In the domestic concourse at Terminal 2, six checkin counters were added to the existing 20 and another six will be added this summer bringing the total to 32. Later this year, the ticketing area will move to a new zone and 12 domestic checkins will be added.

Air Canada also is expanding the number of jet bridges to 49 from 46 in both terminals and is continuing to change signage throughout the two terminals to help passengers easily find their way around.

In Terminal 2, Air Canada moved the transborder checkin. Prior to the shuffle, Air Canada and United shared the area but United moved June 3 to a new area in the terminal, giving both carriers more space.

One of the largest projects was the construction of an international lounge in Terminal 1 to accommodate 220 passengers. In addition to a snack area, it has a business center, an entertainment center, library, showers and a cyber-caf&eacute;.

A new business class checkin was built in Terminal 1 as well as a separate area to handle stand-by passengers. A former Delta Air Lines lounge was transformed into a customer care lounge for unaccompanied minors or passengers who require special assistance.

While many projects already have been completed, Ramage said the transformation is ongoing. Late this year, Air Canada and Canadian will integrate their computer reservation systems.

The airline also plans to set up a program--still to be named--in which roving employees will be on the look-out throughout the airport for passengers who appear lost or in need of assistance.

And for high-yielding business class passengers who are top-tier frequent flyer plan members taking international flights from Terminal 1, a special "concierge" checkin area will be created away from the regular checkins. The elite checkin area will be adjacent to a bank of elevators that will take passengers directly to the new lounge.

Last year, Pearson handled 27.7 million passengers. Greater Toronto Airport Authority officials expect that number to rise more than 28 million in 2000. On a daily basis, 25,000 passengers pass through Terminal 2, while 5,000 go through Terminal 1.