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Potential Business Initiatives

Hewanorra International Airport and George F. L. Charles Airport

Project Update # 1

June, 2013

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0n the 22nd of May, 2013, Mr. Sean Matthew, General Manager/CEO of the Saint Lucia Air and

Sea Ports Authority (SLASPA) presented an informative and comprehensive presentation on the

plans for Saint Lucia’s two airports, the Hewanorra International Airport and the George F. L

Charles Airport as well as the Vieux Fort Sea Port. The following summarizes the main points

presented.

George F. L Charles Airport

The smaller of Saint Lucia’s two airports,

serves commuter type aircraft such as the

Bombardier De Havilland DASH 8 and ATR

72s. It is ideally located in the city of Castries,

making it close to tourist attractions in the

north of the island. A ten year review on the

airport from 2002 to 2012 is presented

below:

Passenger Movements 2002 - 2012

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The constant decline in passenger movement at GFLC Airport may be attributed to the global

economic crises compounded by the loss of service from Caribbean Star and American Eagle

and the reduction in flights from LIAT in regional travel.

G.F.L Charles Airport Aircraft Movement Traffic 2002 -2012

Following a similar trend to passenger traffic, aircraft movement at G.F. L. Charles Airport

declined significantly from 2002 to 2012 due to similar reasons cited above.

Air Cargo Traffic 2002-2012

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Based on the above statistics, cargo to and from G.F.L Charles Airport has steadily declined

from 2002 but has increased in recent times due to increase activity by LIAT.

Future of G. F. L Charles - Airport Studies Undertaken

As part of the process of developing as strategic direction for the future of G.F.L Charles

Airport, the following studies were undertaken:

• Strategic Route Development in St Lucia – ASM Route Development Experts

• Assessment of Alternative Use of George F.L. Charles Airport for Saint Lucia Air and Sea

Ports Authority – ASM Global Route Development Experts

• HIA Economic Impact Study – Leigh Fisher Management Consultants

Hewanorra International Airport

The larger of the two airports located in the

south of the island, serves aircraft such as

the Boeing 747, Air Bus A320 and the Boeing

777. The airport currently handles

approximately 500,000 passengers and is

located in the town of Vieux Fort; a town

which is a fast developing and also close to

tourist attractions. A ten year review of the

airport’s performance from 2002 to 2012 in

passenger arrivals, aircraft movement and cargo traffic is presented in the following graphs.

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Hewanorra International Airport Passenger Movement 2002 -2012

As seen by the above, passenger arrivals increased steadily largely due to changes in travel

trends, the reduction in the use of San Juan as a hub from North America and the growing

demand for St. Lucia as a tourist destination.

Hewanorra International Airport Aircraft Movement 2002- 2012

329,184

352,482

405,590

394,349

413,961

418,778

466,229

459,265

552,097

546,538

557,051

-

100,000

200,000

300,000

400,000

500,000

600,000

8,362

8,232

10,011

11,939

12,969

12,224

12,042

10,078

12,741

13,525

13,492

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

20022003200420052006200720082009201020112012

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Following a similar trend to passenger traffic, aircraft movements increased significantly from

2002 to 2012 due to an increase number of schedule carriers into the island.

Hewanorra International Airport Air Cargo Traffic 2002 – 2012

Unlike GFL Charles Airport, air cargo has declined steadily from 2002 to 2012, several factors

have contributed to this occurrence inclusive of the effects of weather conditions on local crops

traditionally transported in the belly holes of wide bodied aircraft and a growing preference use

of the GFLC Airport based carrier by consumers.

Statistical Highlights

The following statements highlight the statistical data collected on both airports.

• Aircraft and Passenger traffic Continues to grow at HIA but declining at GFLCA;

• Air Cargo has been declining at HIA but increasing at GFLCA;

• By 2017, passengers are expected to surpass 800,000;

• Traffic demand as well as aging infrastructure is driving the necessary improvements at

HIA.

2,728,582

2,409,971

2,464,507

2,012,811

2,052,758

2,024,039

2,009,891

1,713,226

1,728,442

1,449,914

1,442,654

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

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Hewanorra International Airport - Condition Assessment of Runway / Remaining Life of

Runway

In recognition of the condition of the runway at Hewanorra International Airport, SLASPA

commissioned a condition assessment. The findings are presented below:

Pavement Remaining Life

Runway – Flexible ( 1, 200m ) 1.5

Runway – Composite Section (1,550m) 6 -12 months

Apron – Flexible >20

Taxiway - Flexible 11.3

The flexible section of the runway has 1.5 years before the end of its structural life and

the need for major reconstruction.

The composite section requires immediate rehabilitation

Hewanorra International Airport Redevelopment Project Update

As a result of the current economic environment a phased approach will be taken. The phases

will include the following:

• Relocation of Fuel Farm

• Construction of New Business Centre

• Resurfacing of Runway

• Rehabilitation of Terminal

• Construction of FBO

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Short Term Project Phasing

Item Project Estimated Duration

Phasing

1. Rehabilitation of Runway 6-12 months Project commencement in short term

2. Redevelopment of the Terminal Building

24 – 36 months Project commencement in short term

3. Development of Commercial Area

12-18 months Project commencement in short term

4. Development of Fixed Based Operation

6-12 months Project commencement in short term

5. Relocation of the Fuel Farm

12 months Project completion to coincide with completion of new Terminal Building

6. Construction of a New Business Centre

12 months Project completion to coincide with completion of new Terminal Building

7. Construction of shoulders alongside the runway

4 – 6 months Project commencement in medium term

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Business Opportunities – Hewanorra International Airport

HIA employs 900 persons directly and 8,900 indirectly around the island

MEASUREMENT CURRENT AFTER PROJECT

Direct Employment 891 1,300 ( inc cargo facility and FBO)

Indirect Employment( hotels, travel agents, tour operators, restaurants)

8019 11,700

Total Employment 8,910 13,000

Direct Labour Income EC $ 18.6 mil EC $ 25 mil

Indirect Labour Income EC $ 119.1 mil

EC$160

Total Labour Income EC$137.7 mil

EC$185

Gross Output- direct EC $ 382 mil EC $ 581 mil

( inc. cargo shed, business ctr, ADC and FBO)

Amount of Gross Output Staying in local Economy EC$ 95 mil EC$ 145 mil

Direct Gross Output per passengers EC$ 813.00 EC$829.00

Amount of Gross Direct Output per passengers staying in local Economy

EC$ 203 EC$209

Direct Taxes EC$ 27.2 mil EC$38mil