Toronto Completes Decade-Long Airport Enhancement

A 10-year, US$4.4 billion project to rebuild Canada's busiest airport and facilitate an estimated 40 million passengers projected by 2010 finished at the end of January. Capacity at Toronto Pearson International Airport now stands at 38 million passengers, said a representative of the airport management group. The airport has 97 bridged gates and 26 commuter aircraft positions.

"We've established with this development program a framework which can see some expansion. We'll now get through to about 38 million or 39 million. By adding Piers G and H and adding a sixth runway, we could probably get to roughly 48 million, which would happen by 2020 if our projections are right," said Steve Shaw, vice president of corporate affairs for the Greater Toronto Airports Authority. "We've redeveloped the airport and established a basis from which to grow as required."

Though terminal development was the program's main expense, the redevelopment covered everything from an improved baggage system, airport parking and rail transport between terminals. The airport remained open throughout the project.

"Almost 75 percent of the airport is new, while we've maintained Pearson as an operating airport," Shaw said.

Among key developments, a new runway was added and terminals one and two have been replaced with a larger combined terminal that hosts all of Air Canada's operations at the airport. Star Alliance member airlines and other international carriers operate out of the new terminal one. More than 50 airlines operate out of terminal three.

"One of the features for travelers is the ease of connections between sections. You could come in through domestic and leave internationally more conveniently. The building has been designed to be flexible. It's a building with space and light and is comfortable to be in. It's a new building, so it incorporates the latest in technology and provides the services we believe travelers need," according to Shaw.

Terminal three now offers eight new gates, an improved baggage system, self-serve kiosks and a new checkin counter, according to GTAA. The new Link train operates between the terminals and the airport's parking area. It is free of charge and operates 24 hours a day. GTAA estimates it moves between 10,000 and 12,000 people per day.

The new buildings can stand as-is for about five years under current projections, Shaw said, before additional expansion is needed. Toronto Pearson was ranked as the world's 29th-busiest airport in 2006 by Airports Council International. The airport handled nearly 31,000 passengers—up 3.5 percent over 2005. Carriers connect to more than 300 destinations around the globe.

The airport was named Best Global Airport for 2006 by U.K.-based Institute of Transport Management, in part due to its renovation and capacity increase. The number of air travelers around the globe is projected to double by 2020, according to ITM, severely straining the capacity of international airports.

"The journey is no longer the destination. Airports are judged in the most part by their efficiency and credited for the minimum time actually spent there," said ITM spokesman Patrick Sheedy in the release.

Shaw said the development project helps Toronto Pearson remain competitive among international airports.

Over time, growth in international and transborder volume through the airport is expected to grow at a faster rate than domestic volume, according to GTAA.

Announced March 12, he Open Skies agreement between U.S. and Canadian regulators , which allows Canadian and U.S. airlines to pick up passengers across the border as long as the flight continues to a third country, and the increase of global trade and travel is expected to spur international development.

Projects such as the airport development help the city of Toronto compete for large events, which in turn fuels hotel development, said Andrew Weir, vice president of communications for Tourism Toronto.

"It's an important part of expanding our infrastructure and our capacity to attract top international events and to continue to serve our markets," Weir said.

Toronto is shifting from a "drive market" to target more international arrivals by air. Extending the city's air lift helps to bring in international meetings and events.

"What's important is that we're putting ourselves in a position to meet the demand we're working so hard at generating," according to Weir. "The strength of the infrastructure is one of the big considerations that the organizer will look for in choosing a destination."

Toronto is becoming a favorite destination for U.S. corporate groups for a variety of reasons, Weir said, especially those holding their first international events abroad. Flights are direct and relatively short from many U.S. cities.

"As we do more overseas work and go deeper into the U.S., the air lift and capacity becomes more important. The experience of arriving at the airport—the art and other elements that have been built into the new facilitates—have an impact on how our destination is perceived. It's the first look, and it's the last look," Weir said.

"The thought, effort and investment that's been put into not only making the airport development work, but also making it part of the traveler experience, is going to pay dividends for a long time."

The increase in passenger activity, as well as the increased number of transient business travelers moving through the city, is fueling a building boom of new hotel properties.

"There are a lot of new luxury properties coming in the downtown core area," he said, "Around the airport, the area itself is going through an interesting renaissance as well."

According to Tourism Toronto, a study released in February by Runzheimer Travel Manager Network showed that standard per diems in Toronto were $200.99, compared with $393.42 for New York, $288.29 for Chicago and $241.50 for Philadelphia. Hotel occupancy near the airport was estimated at 68.5 percent for 2006 by PKF Consulting and rates at airport hotels averaged $115 for the year.