YUL Announces “Extraordinary Measures” To Ensure Continued Airport Operations

Anna Kroupina, Open Jaw

ADM Aéroports de Montréal says it is taking "extraordinary measures" to ensure its survival as the COVID-19 pandemic continues to hit all countries hard and trigger an unprecedented drop in passenger traffic.

YUL predicts that the number of travellers will decrease by a minimum of 80% in the second quarter of 2020 (April-June) compared with the previous year. That means a loss of revenue of approximately 35% ($250 million) is projected compared to what had been anticipated for 2020. 

"The drastic drop in passenger volumes is having an impact on both airport improvement fee revenues and aeronautical revenues," said Aéroports de Montréal in a statement. 

"Non-aeronautical revenues from commercial and parking operations are also being impacted. At the same time, some costs have increased, such as those related to more frequent cleaning and disinfection of the airport terminal building."

AMD says its financial strategy is based on three objectives: to maximize cost reduction, to reduce the capital projects budget to a bare minimum and to adjust the workforce to provide essential services to fewer passengers and users. 

"Transport Canada's announcement of a 10-month rent waiver offers a welcome temporary relief for ADM, but the amounts freed up - approximately $38 million - are not sufficient to preserve the organization's sustainability and other measures need to be taken," says the airport authority. 

The "exceptional measures" to be deployed in the short term include the following: 

  • The closure of runways 06G-24D, the aeroquay building, and approximately one third of the gates in the various jetties of the terminal. 
  • A 45% reduction in the capital budget, leading to the partial or complete halt of many construction projects. Projects that maintain safe and functional facilities, as well as those that are strategically more cost-effective to complete this year, are the only ones that will continue. 
  • The full use of the Canada Emergency Wage Subsidy Program, which will compensate a portion of the salaries of approximately one-third of ADM's employees who hold positions considered "non-essential" in the current context. Although they will not be required to provide full work performance, they will maintain their employment relationship for the duration of the program.
  • A 20% salary reduction for senior management and directors and 10% for members of the management team. 
  • A total review of the cityside program. ADM will focus on one priority, that of advancing the REM station. 
  • The elimination of professional and consulting expenses and the adjustment of contracts for external outsourcing resources. 
  • Cancellation of salary increases for non-unionized employees. 

 

"ADM needs to make difficult decisions that will allow it to continue to manage its assets responsibly," said Philippe Rainville, President and CEO of ADM Aéroports de Montréal. 

 

"The assistance received from the federal government through the Emergency Wage Subsidy Program is helping to ensure the maintenance of quality jobs for our workforce and we are extremely grateful for this."

Anna Kroupina

Anna Kroupina Journalist

Anna is OJ's newest member and she joins the team as a writer/reporter. She co-writes the daily news and covers events. Although she's new to the industry, pursuing a career path in travel/tourism has been a goal since her first family road trip to the Florida Keys sparked a desire to discover the world and this exhilarating, fast-paced industry.

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