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### Viewing cable 04MONTREAL701, AEROPORTS DE MONTREAL ANNUAL REPORT 2003

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
04MONTREAL701 | 2004-05-13 12:51 | 2011-04-28 00:00 | UNCLASSIFIED | Consulate Montreal

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

    131251Z May 04

` `

    UNCLAS SECTION 01 OF 02 MONTREAL 000701

    SIPDIS

    SENSITIVE BUT UNCLASSIFIED

    DEPARTMENT FOR WHA/CAN

    OTTAWA FOR ECON AND DHS/ICE AND DHS/BCBP

    E.O. 12958: N/A
    TAGS: EAIR ECON CA
    SUBJECT: AEROPORTS DE MONTREAL ANNUAL REPORT 2003

    REF: A) 2003 Montreal 1076 (NOTAL)

    B) 2002 Montreal 0412 (NOTAL)

    ¶1.   (U) Summary.  Aeroports de Montreal (ADM) Corporation
    President and Chief Executive Officer (CEO) James Cherry and
    Chairman of the Board Pierre Martin rolled out the ADM 2003
    annual report at a May 6, 2004 public meeting held at the
    International Civil Aviation Organization Headquarters in
    Montreal.  The meeting highlighted the ADM Corporation's
    strategic growth plan that focuses on three core sectors:
    passenger traffic, air cargo and industrial development.
    Montreal-Trudeau Airport will serve as the hub for domestic,
    transborder and international passenger traffic, while
    Montreal-Mirabel Airport will be revamped into an industrial
    and all-cargo airport.  CEO Cherry emphasized that passenger
    volume (8.9 million) and cargo volume (242,193 tons) had
    increased by 1.5% and 3.9%, respectively, from the 2002
    numbers.  Cherry stated that ADM optimistically anticipates
    a fifteen percent (15%) increase in passenger volume in
    2004, mostly as a result of increased numbers of flights
    from low-cost carriers.  He also reported several
    international charter carriers plan to offer new, direct,
    weekly flights between Montreal and a few European capitals;
    domestically, additional flights between Montreal and Quebec
    City are on the horizon.  A preliminary proposal to improve
    passenger accessibility to Montreal-Trudeau is anticipated
    for completion in June 2004.  End summary.

    ¶2.    (U) ADM is the corporation responsible for the
    management, Operation and development of Montreal-Trudeau
    Airport (MMA) (formerly known as Dorval International
    Airport) and Montreal-Mirabel Airport (MMA).  In 1992, ADM
    entered a 60-year lease with Transport Canada to manage both
    facilities.

    ¶3.   (U) Board Chairman Martin opened the public meeting by
    announcing that passenger and cargo volume increased and
    that the Phase I project to expand MTA was completed on
    schedule and within budget.  He reported the Phase II
    project, expansion of the international jetty, is thirty-
    seven percent (37%) complete.

    ¶4.   (U) ADM's three-point growth plan focuses on passenger
    traffic, air cargo and industrial development.  In January
    2004, ADM signed an agreement with charter carrier Air
    Transat, ADM's second largest carrier (after Air Canada), to
    relocate its head office, its aircraft maintenance center
    and aircraft to MTA.  ADM expects all charter flights from
    Montreal to be operating out of Montreal-Trudeau by late
    ¶2004.  A new international and transborder arrivals complex
    which will contain a new Canadian Customs hall and baggage
    claim area is scheduled to open in November 2004, followed
    by the inauguration of a new international jetty in July
    ¶2005.  ADM plans to launch an international request for
    proposals to redevelop MMA, to make use its terminal, hotel
    and administrative buildings.

    ¶5.    (U) In addition to highlighting that 8.9 million
    passengers (1.5% increase) and 242,193 tons of cargo (3.9%
    increase) transited the ADM facilities in 2003, on the
    environmental side, CEO Cherry emphasized that the noise
    footprint at the Montreal facilities is now fifty percent
    (50%) below the 1995 reference area.  He stated the number
    of citizens affected by the noise footprint fell to seventy
    percent (70%) below the 1995 reference level.  ADM
    management expects the commissioning of a new thermal power
    plant at MTA to cut the airport's energy consumption by
    fifty percent (50%).

    ¶6.   (U) CEO Cherry anticipates as much as a fifteen percent
    (15%) increase in passenger traffic stemming from
    international charters that will offer flights to new,
    weekly destinations between Montreal and a few European
    capitals.  He specifically mentioned the following
    international charters: Thomas Cook (to/from London), Zoom
    Airlines (to/from London and Paris), Air Plus Comet (to/from
    Madrid) and Transaero (to/from Moscow).  Domestically, ADM
    expects an increase in flights offered by Air Labrador
    between Montreal and Quebec City.

    ¶7.    (U) ADM management underscored that its primary
    concern relates to municipal taxes, to the tune of 21.3 million
    Canadian dollars (CAD) in 2003 (the MTA portion - 18 million
    CAD).  CEO Cherry stated that Montreal pays the highest per
    passenger tax compared to all the other Canada airports,
    approximately 2.21 CAD per passenger.  ADM management
    reported that it signed an agreement with the City of
    Montreal that will limit some tax growth for the next three
    years, but added the corporation seeks "a permanent,
    equitable basis" for determining its tax contributions.
    ADM's second priority concern is the amount of rent paid to
    Transport Canada (4.8 million CAD in 2003).  The third
    priority issue is passenger accessibility to MTA.  A
    preliminary proposal to improve road access and city and
    intercity rail connections to the MTA is planned for
    completion in June 2004.  A related impact study is
    scheduled for completion by August 2004.  ADM expects a
    final proposal will be ready in November 2006, to integrate
    a rail connection to MTA -- the anticipated construction
    completion date is in the 2007-2008 period.

    ¶8.   (SBU) On May 11, 2004, as a followup to ADM's public
    meeting, post's Principal Officer contacted CEO Cherry to
    inquire whether the Phase II plans will address the long-
    standing concern of Department of Homeland Security
    personnel at the Pre-Flight Inspection Facility; that is,
    lack of screening of passengers and baggage prior to the DHS
    inspectors' interviewing and pre-clearance of passengers.
    Cherry responded that Phase II plans do not address the DHS
    employees' concern, but he hinted that the Phase III
    proposals (June 2004) may accelerate renovations that would
    respond to the DHS employees' concern.
    Allen

`