The panel, appointed by GNWT Transportation Minister Joseph Handley, includes business and community representatives from throughout the territory.

Co-chaired by ex-premier Richard Nerysoo, of Inuvik, and Yellowknife businessman Boyd Warner, the panel has been directed to submit a report to the minister by the end of May.

As a starting point, the panel will review recommendations made by Hopkins & Associates in its recent report to the GNWT on governance alternatives.

"The Hopkins report was a good eye-level document that looked at different governance models and at specific issues with respect to process and legal decisions," said NWT airports director Jim Winsor.

"The panel's work will be more down to the nitty gritty," said Winsor.

That means preparing a detailed examination of the airport operation and then recommending "whether or not the process should proceed from there."

The Hopkins report recommended moving away from government ownership and operation of the Yellowknife airport. GNWT subsidies to operate the airport are estimated at $2.5 to $3.5 million per year.

With that change, the best of several options is to establish an airport authority incorporated as a non-share capital corporation to manage the airport, Hopkins recommended.

Benefits include the ability to participate in the local and territorial economy "in a much more aggressive and meaningful manner," said Hopkins.

An authority would also have greater flexibility and access to capital for future growth requirements.

One of several thorny legal issues involved is determining what effect the transfer would have on existing federal funding arrangements.

The panel will also be looking closely at the impact of a transfer on existing Department of National Defence and NavCanada obligations, and on existing employees.

New obligations would include collecting and remitting applicable taxes to the federal and territorial governments.

Revenue to operate the airport could be generated through a variety of fees and charges, including an airport improvement fee of $5 to $10 charged to passengers.

"There are only a handful of airports in Canada that can meet their capital requirements without levying an Airport Improvement Fee," said the study.

Landing and terminal fees are lower than at many smaller airports and should be raised by April 1, Hopkins said.