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SOMBA K'E/YELLOWKNIFE - One month ago, in the Copper Room of the Yellowknife Inn, Darryl Bohnet, board chair for Aurora World, read from a prepared speech about the collapse of Yellowknife's first Northern Lights tour operator and what needs to be done to save an industry that many say is in decline.

A report commissioned by the GNWT's Department of Industry, Tourism and Investment finds little support for the extension of the Yellowknife runway among NWT stakeholders. - NNSL file photo

"I believe that in order for the Aurora market in Yellowknife to take that next major step forward, we need an airport capable of handling large aircraft directly from overseas," said Bohnet. "Now is the time to move on this important capital project initiative."

Two months earlier, in the same room, a draft of an independent report commissioned by the GNWT's Department of Industry, Tourism and Investment (ITI) - originally charged with looking at whether Yellowknife had the potential to become a transshipment centre and the possibility of attracting more Asian and European travellers to the city - was unveiled and came to a very different conclusion.

There is little support among members of the NWT business community for an extension of the Yellowknife airport runway, which would cost an estimated $70 million, according to the report.

The study, carried out by Vancouver-based transportation and tourism consultant InterVISTAS and Yellowknife-based consultant Ile Royale Enterprises Ltd., involved interviews with 38 organizations including all three levels of government, industry groups like the Yellowknife and NWT Chambers of Commerce and a selection of impacted businesses including scheduled flight operators like First Air and Canadian North.

"Over 90 per cent of the stakeholders felt that an extension of the runway would have no meaningful impact on increasing demand for the airport from tourism or other segments, particularly because of the ability to connect to non-stop international flights from international gateways in Edmonton, Calgary and, seasonally, Vancouver," said David Connelly, president of Ile Royale.

As for the Japanese tourism market, "A number of stakeholders were of the view that decline to Japanese tourism was due to other reasons than lack of a direct flight," he said.

The study wasn't charged with looking at the Yellowknife airport; it just turned out that way, said Connelly.

"We started every interview off making sure it wasn't about airport expansion," he said. "However, in every interview, it was essentially a condition of the people interviewed that they wanted to present their views on that."

The current Yellowknife runway measures 7,500 feet, according to Martin Copeland of InterVISTAS. "For a non-stop service either from Japan or from Europe, they can land here," he said. "But they can't take off to go back non-stop."

"The weight of fuel to take flight from Yellowknife to Europe is about 160,000 pounds," continued Copeland. "With that weight in the aircraft, it can't take off on a runway of 7,500 feet. That's the issue."

Connecting flights, like those Japanese tourists must currently take to get to Yellowknife, are avoided by consumers, added Copeland.

"If it's a change of different airlines, people are going to choose something else," he said.

A direct flight is also much faster, said Copeland.

A Yellowknife runway capable of handling larger planes travelling directly from overseas could help the Asian and European markets grow, according to Maureen Jaud, an agent with Top of the World Travel and Tours.

"I think a runway extension would be beneficial to the North in the long run because I think more and more people are travelling and I think a lot of people want to see the North before they die," she said.

Copeland of InterVISTAS specifically cites China, Russia and Germany as major emerging markets for travel to the North.

But regional airlines Canadian Air and First North are not convinced growth in those markets is substantial enough to warrant a major capital expense like an airport runway expansion and say they have other priorities on hand.

"You have to build the market and have the product here to attract the people," said Mike Olson, director of sales with First Air. "Now, do we in the NWT or in Yellowknife have enough product to attract a steady stream or a weekly (stream)? Are we going to be able to handle 300 to 500 people coming in weekly from Germany or Japan on a weekly basis, unsubsidized? I don't think it's there."

Olson estimated only five to seven per cent of First Air's business is generated from the tourism market.

"For us, being a local carrier, the runway is adequate for our needs," he said.

Canadian North is not interested in an extension, either, because of the costs that would come with it.

"Canadian North's position has always been - and we provided this information to the consultants when we were interviewed - that the extension of the runway at the Yellowknife airport may not serve the needs of the people that are there (because) that level of infrastructure development will obviously create additional costs," said Kelly Kaylo, vice-president of marketing and sales at Canadian North.

"Costs will be passed on to the users. The users will then, in turn, pass that on to consumers."

That would likely mean higher ticket prices, which nobody wants, added Kaylo.

"I don't think anybody would argue that air passengers are not wanting the most direct route possible. That's pretty obvious. At what cost, though?"

Businesses have to be realistic about where they invest their money and Canadian North is no different, said Kaylo.

"When you're getting 80 per cent of your business from industrial projects, then that's where you want to be developing and putting in your investment," she said.

That sentiment was echoed in the report.

"All participants felt that the single largest potential driver for increased demand in the Yellowknife airport would be increased mineral exploration and the construction operation of new mines," said Connelly.

"The mining and exploration industry does not see the need for a lengthened runway."

What is needed by stakeholders, continued Connelly, "is more tarmac space, more space for expediting, more space for private terminals, more space for deicing, and if there's money left over, there was a pretty strong comment to use that to improve the facilities in community airports so they would have to cancel less flights."

Many stakeholders expressed "considerable frustration that these needs have not yet been met but they're hopeful that they will be," said Connelly.

For Canadian North, updates to community airports are a much higher priority than a Yellowknife runway extension, confirmed Kaylo.

Many community airports cannot accommodate Boeing 737 planes capable of handling large loads. Instrument landing systems also need to be upgraded, added Kaylo.

Bob McLeod, minister of ITI, was surprised the idea of a runway extension held so little traction among stakeholders interviewed for the report.

"I would expect that there would have been support for some significant levels of funding for the extension and for the increased business opportunities," he said. "In my view, there's always been some indicated support for that in the past."

"I think we need to review the study in more detail," he said. "We have to look at funding that's available and what the priorities of this government are. It has to go through some due diligence, some process."

There are other options besides extending the runway - albeit ones that would require connecting flights - as the report concludes.

"A means of developing international markets so that they justify a full flight load for non-stop services, in both directions, is to start with a split (double drop) charter service," the report stated.

There are companies willing to partner with Yellowknife to do just that, according to Copeland.

"Edmonton would like to work with (Yellowknife) on sharing a long-haul flight to Asia or Europe," said Copeland. "Whitehorse would even like to work with you. Instead of having the flight go on to Fairbanks or Anchorage, they'd like it to go to Yellowknife, Whitehorse and then back to Germany. There is a lot of potential co-operation."