Big aspirations for Toronto’s Pearson airport
Vijay Kanwar, chair of the Greater Toronto Airports Authority, wants to see Pearson airport become one of the world’s big international hub airports.
STEVE RUSSELL / TORONTO STAR Order this photo
Vijay Kanwar, who has been chair of the Greater Toronto Airports Authority is stepping down after almost 3 years, Steve Russell/Toronto Star
For Vijay Kanwar, his arrival from Punjab on his first international flight three decades ago is seared in his memory.
He rhymes off the details. The final leg was a Lufthansa Airlines flight from Frankfurt. It landed at 2:45 p.m. on April 13, 1985, at the old terminal building.
“It was cold that day. My leather jacket didn’t really help,” Kanwar said as he pulls out his old Indian passport to show off the immigration stamp. “I came out and there was nobody there to receive me.”
He was 23 years old, and he only had $80 in pocket. His mother actually gave him $100, but he confesses he blew $20 en route to Toronto, on ginger ales and Coca-Colas, which he had never tasted, along with magazines and other items.
But that day was the start to a new life in Canada. Within three days, he was working at a parking lot at the corner of Bay and Dundas Sts.
It would eventually come full circle nine years ago, when Kanwar was appointed to serve on the board of the directors of the Greater Toronto Airports Authority that operates the airport.
For the past 2½ years, Kanwar has been chair. His term ends next month, but he says he’s proud of his time, helping to shape Pearson airport into a growing international hub.
“The airport was my introduction to Toronto,” Kanwar said as he looks at those entering into the international arrivals area, some for the first time in Canada. “They want to do well here.”
Toronto’s Pearson airport is also aiming high, to become one of the world’s top 10 airports – becoming an international hub like Singapore or Amsterdam, drawing in more travellers from around the world.
Last year, Pearson handled 38.6 million passengers, up 2.5 million or 6 per cent from the year before, of which 30 per cent were just connecting through Toronto onto other destinations.
In all, 46 carriers offered flights to 212 destinations including 34 cities in Canada, 63 in the United States and 115 in the rest of the world.
By 2030, the airport estimates it will grow to handle 64 million passengers, of which two-thirds are projected to be international travellers, which includes the United States.
“The growth is coming. You can’t stop it,” said Kanwar. “We’re the fast growing airport in North America in passenger growth for the past four years.”
Kanwar, who operates a chain of diagnostic cardiology clinics with his wife Neena, points to a five-year business agreement negotiated with Air Canada that should help spur more international routes out of Pearson airport as one of the highs of his term.
“I’m proud to say the business deal with Air Canada that has allowed us even more to become a true international transportation hub,” he said, noting Air Canada is taking delivering of Boeing 787 Dreamliners that open up potential to more new markets.
“You cannot become an international hub if there is no international carrier,” he said, noting the airport also has strong relationships with WestJet, which is expected to expand its international network in the coming years.
Canadian airports, unlike their U.S. counterparts, must be self-sufficient – paying for infrastructure and projects on their own.
“We don’t get nothing from nobody,” Kanwar said, noting last year, the airport bought back almost $500 million in debt, reducing interest charges. “We never forget our mandate is to create economic stimulation for our region and the country.”
Pearson charges an airport improvement fee of $20 per passenger, though it is $4 for those in transit. The airport has grown its non-aeronautical revenues – which includes parking, restaurants and retail – now represents 30 per cent of total revenues.
“We want that to be higher and higher so that travelling cost to the passenger becomes less and less,” Kanwar said, adding the goal is to have non-air revenue reach 40 per cent or even 50 per cent.
“The mall must flourish. Eventually, we should have a Bloor St. inside our terminal,” he said, noting the airport is competing with other airports that offer quite the international shopping experience. “We would also like to have arrivals duty-free store.”
The airport and its CEO Howard Eng came under severe criticism in January 2014, during extreme cold snap, for its handling of “a ground stop,” that essentially closed Pearson to planes for eight hours.
That created a huge backlog of passengers – waiting on the tarmac to get to a gate, waiting for their luggage and waiting to get rebooked on cancelled flights.
It took days before the logjam eventually cleared. Airport officials initially told reporters that Eng was away on business then had to admit later that Eng was on vacation in Edmonton.
Kanwar, who fielded media questions then, said a formal review was conducted, and recommendations have been implemented. “In case that day comes back again, our passengers will not be inconvenienced,” he said.
He says he stands by the airport’s management team, and sees no need for any changes. “Under the leadership of our CEO, he has a great team,” Kanwar said.
When asked how he responds to complaints about long security lines or that Pearson is too big compared to other airports, Kanwar emphasizes that different airports serve different needs.
Toronto’s Billy Bishop downtown airport focuses on short-haul flights, while Buffalo’s airport offers flights on low-cost carriers to U.S. cities. Pearson’s focus is on growing into an international hub, he said
“People from New York want to come here and then go to Shanghai,” he said. “We want to be globally competitive.”
Busiest airports for international passengers, departing or arriving, for 2014, based on preliminary data compiled by the Airports Council International
1. Dubai: 69.9 million
2. London’s Heathrow: 68.1 million
3. Hong Kong: 62.9 million
4. Paris (Charles De Gaulle): 58.6 million
5. Amsterdam: 54.9 million
6. Singapore: 53.2 million
7. Frankfurt: 52.7 million
8. Seoul’s Incheon: 44.9 million
23. Toronto’s Pearson: 23.2 million
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