Airports Wasting Our Money

[Guest]

AEFs, fees etc. are too high as is so why waste a lot of money on "fancy, artiste works" that do nothing to add to the basic function of an airport. Here is yet another example of wasted money that only results in a "feel good" for the airport operators. It is high time our airports got back to basics. Move the passengers in and out in a expeditious fashion! Why the hell does an airport need a "Luxury Mall"????

Visitors to Vancouver Airport's new luxury mall will be greeted by a 3,855 kilogram steel sculpture called SEI.

The public art installation by acclaimed visual artist Michael Nicoll Yahgulanaas is his largest work yet and one of his favourites.

"Sometimes when I walk away from a project I'm never quite sure. I'm always thinking I could have done things differently. This one is a slam dunk," Yahgulanaas told The Early Edition's Rick Cluff.

The sculpture, which took 18 months to complete, is named after the sei whale, one of the largest of its species. The arch of the stainless steel structure which rises four metres above ground is meant to represent the whale out of water.

"Consider the second largest mammal on the planet leaping out its natural habitat and into the air and then dashing back into the ocean."

Yahgulanaas is known by some as the father of the Haida Manga style — a form that combines indigenous imagery and Asian comic book style. He says it was that cross-cultural appeal that influenced the piece.

"One of the things that I'm really in search after some 20 years of being an artist is hybridity. I'm wanting to take my cultural inheritance as a Haida artist ... and find a way to connect to people who are not Haida."

He says the real beauty of the piece is that everyone will interpret it differently.

"The stainless steel is highly polished so it's like a mirror. I want people to stand up and see themselves in the piece.

"This is a very important piece... people who aren't used to having a relationship with art seem to be responding quite well."

http://www.cbc.ca/news/canada/british-columbia/michael-yahgulanaas-s-new-art-piece-sei-unveiled-at-vancouver-airport-1.3145562?cmp=rss

[CanadaEH]

It's not in the airport it's on sea island. I don't think the AA owns or runs it but they probably get rent frim the tenants.

[vanishing point]

Speaking of the new YVR mall, this little fiasco greeted those of us arriving for work this morning:

http://globalnews.ca/news/2102497/opening-of-a-new-outlet-mall-causes-major-traffic-problems-at-yvr/

What a mess. Heck of a thing when one is two miles from work and arrives 20 mins late.

[boestar]

When our outlet mall opened here they had to close the exit from the highway to traffic due to the rediculous volume of traffic. The parking lot was filled to capacity and cars lined area streets for 2 miles. All for ficticious deals. Call it an outlet and you will attract lemmings like a moth to a flame

[Thebean]

There was a time, say, 20 years ago, when outlet malls offered legitimate savings.

Now, they seem to offer substandard versions of the core product they originally were known for at a mild discount and offer a very questionable value proposition.

Interestingly, it is rare to see an Outlet Mall within walking distance of where the core brand is being sold.

Why sell cheap, discount Louis Vuitton bags when the real thing, with much higher margins, is being sold nearby.

If the discount branded Louis Vuitton bags are being sold like lemonade at a temperance picnic, demand for the real thing will wane. The solution is to either raise the price of the cheap product, thereby defeating the purpose of the discount branding exercise, or discount the price of the core brand to be competitive.

Sound familiar?

[Guest]

I stand corrected re who owns / paid for this deluxe mall but the headache generated by it is something else.

Lineups are expected to be long at the new designer outlet mall near YVR airport this weekend. After a record-setting opening day on Thursday, the new McArthurGlen Designer Outlet near the Vancouver Airport will likely attract more curious shoppers this weekend, leading to more traffic headaches.

On Thursday, the crush of shoppers created such a traffic nightmare along Grant McConachie Way that people trying to get to YVR were stuck in bumper-to-bumper traffic.

Officials suggest travellers flying out of YVR should use the Canada Line to get to the airport. Those driving to YVR should be sure to give themselves extra time.

Shoppers who plan on checking out the new mall are also encouraged to take public transit, as it is located next to the Canada Line’s Templeton Station.

McArthurGlen Designer Outlet was designed as a luxury shopping destination and offers 376,000 square feet of retail space.

[Guest]

From the following it does appear that YVR has money invested in the venture.....

McArthurGlen is co-developing the mall with the Vancouver Airport Authority and has long planned to open the facility’s 240,000-square-foot first phase this spring.

The company’s Richmond marketing manager Ally Day told Business in Vancouver May 7 that the opening has now been pushed into summer and that a specific date will be announced later this month.

“I don’t think it is going to be mid-market as we are very happy with the way leasing has progressed,” she said. “We have a great mix so far of luxury, premium and lifestyle brands that we think the local and visiting consumer is going to be thrilled with.”

She would not confirm any tenants because of what she called “confidentiality clauses.”

McArthurGlen’s plan is to open a second phase of the mall, with an additional 140,000 square feet, by 2017. The company's plan is to target travellers coming to and from the airport, given that transportation on Canada Line is free between stops on Sea Island.

London, England-based McArthurGlen traditionally opens its malls with about 80% of the space leased because some of the brands that it seeks as tenants prefer to see the mall built before committing to leases, Day said.

Financing from deep-pocketed partner Simon Property Group (SPG) could help McArthurGlen increase the pace of its mall development. In 2013, SPG (NYSE:SPG), which is the world’s largest retail developer, invested €435 million in the private McArthurGlen.

SPG then noted last year that its investment was targetted toward specific McArthurGlen properties and that SPG owns a 45% stake in McArthurGlen’s Richmond mall.

McArthurGlen and the Vancouver Airport Authority share the remaining 55% of the mall.

https://www.biv.com/article/2015/5/mcarthurglen-delays-richmond-mall-launch-goes-unex/

[cavok]

Why the hell does an airport need a "Luxury Mall"????

Because the money generated from the ownership stakes offsets rates and charges to airlines.

[Guest]

Because the money generated from the ownership stakes offsets rates and charges to airlines.

great theory but I have yet to see this in action. Nevertheless I continue to question the beautification of airports in general that does nothing to improve the passenger traffic flow. The Following is from the YVR 2014 Annual Report.

During 2014, the Airport Authority invested $277.6 million in capital projects. The capital

projects included redevelopment of the Domestic Terminal’s A-B Connector, the Expedited

Transfer Facilities, baggage system upgrades, the Airside Operations Building and the

installation of the offsite services in support of the Designer Outlet Centre.

YVR 2014 ANNUAL REPORT | 21

In order to pay for these capital projects, the following amounts were used:

 Net cash flow (excluding AIF) of $91.2 million.

 Net AIF in the amount of $124.2 million.

These amounts in total were more than sufficient to pay for the 2014 capital project costs,

leaving $100.1 million in cash available to pay for capital projects in 2015 and future years.

[cavok]

great theory but I have yet to see this in action. Nevertheless I continue to question the beautification of airports in general that does nothing to improve the passenger traffic flow. The Following is from the YVR 2014 Annual Report.

It's no theory. Airports like YVR operate on a cost recovery basis. Rates and charges are set to cover expenses. If additional revenue comes in, say from operating other airports, selling expensive purses, or parking, the pie shifts and the less money needs to be recovered from elsewhere. There's nothing theoretical about it.

It would be pretty simple math to take an annual report, strip out some of the non-aeronatical revenue and see how much more money would need to be raised. The only other two pieces of the revenue pit are AIF and aeronautical revenue.

[Guest]

It's no theory. Airports like YVR operate on a cost recovery basis. Rates and charges are set to cover expenses. If additional revenue comes in, say from operating other airports, selling expensive purses, or parking, the pie shifts and the less money needs to be recovered from elsewhere. There's nothing theoretical about it.

It would be pretty simple math to take an annual report, strip out some of the non-aeronatical revenue and see how much more money would need to be raised. The only other two pieces of the revenue pit are AIF and aeronautical revenue.

Please do so but do not include the AIF in the non-aeronautical revenue and please do include all the non-aeronautical costs. By the by the original AIFs were never intended to beautify and indeed were to be of a temporary nature, the airlines agreed to collect the AIFs on behalf of the airports as the alternate was that the additional fee would be tacked onto their landing etc. costs for using the airport.

[CanadaEH]

Given the constant evolution of airlines, strategies, and airports I don't think you'll ever see the end of AIF. In around 10 years in YVR for WS operations alone I've seen:

-A pier closed

-A pier demolished/renovated and re-opened for WS

-A pier expanded for WS Encore

-B pier modified for CMA/Air North/Hawkair/Sunwing/WS

-AB Pier renovated

And I believe next up is a permanent facility for Encore and eventually the renovation of the B Pier.

That money has to come form somewhere and as much as I'd say proper planning would mean less renovating and alterations the fact is airlines shift strategies every few years.....

[Guest]

For those who are interested the following goto will get you to a 1997 document that talks about the YVR AIF and it's purpose.

http://bnaps.org/hhl/newsletters/rev/rev-1997-03-w016.pdf

[mo32a]

^In summary the AIF is doing just what it is supposed to do, provide funding for the AA to improve facilities, which it has done on a continuous basis.

Well done YVRAA, I guess there is a reason they provide expertise around the world to other airport operators.

[Guest]

^In summary the AIF is doing just what it is supposed to do, provide funding for the AA to improve facilities, which it has done on a continuous basis.

Well done YVRAA, I guess there is a reason they provide expertise around the world to other airport operators.

Expensive works of art etc. do nothing to improve the facilities. The aim was to provide a cash flow to improve the operational end of the airport, not to guild the lily.

[mo32a]

Hey, you want to go back to the Quonset huts and trudging across the tarmac to get to your aircraft, fill your boots, open your own low cost airport.

With people having to get to the airport hours ahead of time, and with the myriad of possible scenarios that can cause major delays and cancellations, I am quite happy having a nice place to walk around and nice restaurants to eat at. The AIF is not costing the airlines dime one, it does not show as part of the fare, and the AA's do not get many complaints about it.

Along with all the navaid improvements, gate improvements, runway improvements, access improvements, parking improvements, transportation improvements etc. they throw in some decent art for folks to look at while they are captive. I'm OK with that.

[Guest]

Mo32a: no problem as long as you are also content with the higher operating fees caused by the $$$$ frills that put downward pressure on your remuneration .

[J.O.]

I'm pretty certain there are some folks who'd rather that a certain eastern airport would have spent more money improving navaids and runway facilities rather than fancy buildings and art work.

[boestar]

AA's are Non Profit organizations so they need to spend the money. They dont reduce the fees, they just spend more and more money.

[Thebean]

If they don't conjure up ways to spend money, they are out of their nice, high paying jobs, with tons of boondoggle travel opportunities.

It's a self full fulling prophecy. Keep building and keep raising the aif.

[mo32a]

Well here is a snippet of what the last increase paid for.....you may wish to talk to your own company as it appears they are in favour of the increase.

The improvement strategy will make it easier and faster for passengers and their baggage to move through the airport and help YVR in the face of increasing competition from other airports, Vancouver Airport Authority president and CEO Larry Berg said Wednesday.

“We think this will attract considerably more Asia-Pacific traffic,” he said. “The airlines concur with what we’re doing and the benefit to them.”

He said YVR wants to be the gateway of choice, particularly for the fast-growing Asian market, with demand for air travel in China growing by seven per cent annually.

The new projects in the strategy include more than 700 metres of secure corridors and moving walkways to reduce connection times for passengers, new high-speed baggage systems, upgrades to the original areas of the 1968 domestic terminal building, and runway safety enhancements.

Under the new strategy, $286.4 million will go toward “airside” projects (including runways and taxiways); $488.7 million for domestic terminal building upgrades; $408 million for international terminal building upgrades; and $559.8 million for Sea Island and airport infrastructure upgrades (bridges, roads and dikes).

Berg said it’s anticipated that due to expected new regulations, YVR will have to add 150 to 300 metres of pavement at each end of its runways to ensure adequate safety areas for long lands.