We have so much growth because the Edmonton International Airport (EIA) is in our backyard. All levels of government are on board for our growth. For example, outside of the funding we are receiving for the 65th Avenue Overpass, the federal government is giving us a grant of $18 million to support an expansion of $36 million in the airport’s cargo operations.
But it’s not just cargo that we need to keep our economy churning. We need to secure air service to keep our business retention and growth. One fact that EIA officials are stating is that 20% of the steel that is flying in the sky is no longer around.
Global Edmonton, EIA, and Chambers of Commerce have come to council to ask for part of the Regional Air Services Opportunity Fund. Some key takeaways from their ask on the June 21, 2021 council meeting are:
Municipalities across the Edmonton Metropolitan Region are being proactive by seeking out and implementing economic recovery measures.
One of the most strategic moves we can make is to secure air service for our communities, our businesses, and our citizens.
Collectively, the region is expected to see 7,000 jobs created, an increase to GDP of $415 million, and a total economic impact of $811 million.
Almost every business, either directly or indirectly, relies on air service and cargo for their prosperity. Moving parts, products, and people in and out of our communities is vital to our economy.
The world is reopening as we speak and every municipality in the region has been planning for this moment for the past 15 months with EIA and Edmonton Global.
This is the time to act. We’re moving very quickly because airlines are planning routes that will be in place for the next three to five years. We can’t afford to miss this window of opportunity.
The funds that they are looking to get from municipalities amounts to $15 million to attract and re-establish several key routes. They are needing the funds up front to retain and attract airlines to induce traffic back to our region. If they don’t have the money, they would have to increase fees, which would undercut our region’s cost competitiveness, and that is a critical factor in attracting flights.
There have been numerous studies that have shown that for every percentage point in increased fares, there is an almost equivalent drop in percentage of passenger travel, which would be counter intuitive to an effective recovery plan.
With the world opening up, hopefully that means that we will start to see commercial passenger flights returning to our airport soon. The impact this will have on Leduc real estate cannot be overstated – a vibrant economy affects housing and investments both. If you’re looking for a Realtor in Leduc who can help you find a home or walk you through Leduc real estate investments that might be a good fit, please reach out to set up a time to talk.