Pearson Transit Hub | ?m | ?s | GTAA

rbt

Senior Member
Member Bio
Joined
Apr 25, 2007
Messages
6,561
Reaction score
2,140
I wonder if COVID will actually speed the construction of this terminal up a bit. With air travel looking like it's going to be in a funk for potentially years to come, it may give the GTAA a reason to shift their focus (and dollars) from air-side expansions to projects like the Transit Hub.
Neither Air Canada or WestJet will approve of any unnecessary spending; I expect airport capital projects to be dead for a while.
 

gweed123

Moderator
Staff member
Member Bio
Joined
Feb 10, 2009
Messages
7,690
Reaction score
1,232
Location
Burlington
Neither Air Canada or WestJet will approve of any unnecessary spending; I expect airport capital projects to be dead for a while.
Is it really up to them though? As long as their rates don't go up, would they really care what the GTAA is spending its money on? And it's not like Air Canada is going to pick up and move to Hamilton out of protest.
 

Woodbridge_Heights

Senior Member
Member Bio
Joined
Feb 14, 2008
Messages
2,838
Reaction score
636
Is it really up to them though? As long as their rates don't go up, would they really care what the GTAA is spending its money on? And it's not like Air Canada is going to pick up and move to Hamilton out of protest.
The alternative to raising rates is to issue bonds on the financial markets (provided they believe they have or can generate the cash flows to cover the bond obligations). Interest rates are still quite low historically. However will there be interest in the bond market for an airport given that air travel may be suffering a down turn for the next 2- 5 yrs.

Much as I agree that a time where passenger numbers are down is a perfect opportunity to accelerate capital projects I don't think it will happen at pearson because of 1) disinterest in additional cash expenditures given heavily reduced cash flows and 2) Lack of truly shovel ready projects to be pushed up.
 

rbt

Senior Member
Member Bio
Joined
Apr 25, 2007
Messages
6,561
Reaction score
2,140
Is it really up to them though? As long as their rates don't go up, would they really care what the GTAA is spending its money on? And it's not like Air Canada is going to pick up and move to Hamilton out of protest.
Technically it's not up to them. Realistically, the #1 and #2 customers of GTAA, who are currently trying to fight off bankruptcy, have a lot of sway.

Also, Air Canada could quite easily pickup 50% of their international operations (especially today) and move them to O'Hare or JFK under the United or Lufthansa brand (leasing AC aircraft). The trans-atlantic joint venture + flat-fee deal at Pearson encouraged those airlines to move US connections traffic to Pearson but Canadian connections could be shuffled south just as easily. Air Canada isn't just Air Canada or stuck using Canadian airports as an international hub. AC wouldn't move out of Pearson, but they might go from 5 per day to London to 2 per day (far fewer connections at Pearson). The last overbuild resulting in most expensive landing fees in the world did not benefit the airlines much (nor did they have flexibility to avoid them); Gate 193/Pier G expansion shows pretty clearly Airline thoughts on future overbuilding.

WestJet and Delta have trans-border joint venture; so Minneapolis would be an alternative hub for that portion of traffic.

AC does not have a trans-border joint venture with United yet, but they've been exploring one for quite a while. If that was put into place, AC could move 1/3rd of Pearson operations south without risking profit.


All of that is to say that I expect the Pearson transportation hub to be delayed until airlines can make reasonable traffic projections again, rather than accelerated. Though, if government decided to kick in for a majority of the cost, they wouldn't turn it down.
 
Last edited:

kEiThZ

Senior Member
Member Bio
Joined
Jul 31, 2008
Messages
9,468
Reaction score
2,782
I wonder if COVID will actually speed the construction of this terminal up a bit. With air travel looking like it's going to be in a funk for potentially years to come, it may give the GTAA a reason to shift their focus (and dollars) from air-side expansions to projects like the Transit Hub. The transit hub doesn't increase the overall passenger capacity of the airport, but it's infrastructure that would be great to have when demand does pick up again.
The problem is financing. Who is going to pay for this? Commercial development would also be limited by the lack of higher yielding air travelers transiting through.
 

Mcurtis

New Member
Member Bio
Joined
May 17, 2020
Messages
31
Reaction score
15
Would there be any stomach in Mississauga to either create a development fee for new construction that goes towards transit oriented projects like this? or create a specific development fee for this area that does the same thing? Some type of municipal funding that could allow the development of this project. I would imagine that Mississauga would have a lot to gain by Pearson being more efficient as an operation.
 

Woodbridge_Heights

Senior Member
Member Bio
Joined
Feb 14, 2008
Messages
2,838
Reaction score
636
Would there be any stomach in Mississauga to either create a development fee for new construction that goes towards transit oriented projects like this? or create a specific development fee for this area that does the same thing? Some type of municipal funding that could allow the development of this project. I would imagine that Mississauga would have a lot to gain by Pearson being more efficient as an operation.
In fact IIRC Mississauga isn't exactly friendly with the GTAA. There are some disagreements on land use issues suuroinding the airport.
 

bangkok

Active Member
Member Bio
Joined
Dec 8, 2011
Messages
299
Reaction score
197
Would there be any stomach in Mississauga to either create a development fee for new construction that goes towards transit oriented projects like this? or create a specific development fee for this area that does the same thing? Some type of municipal funding that could allow the development of this project. I would imagine that Mississauga would have a lot to gain by Pearson being more efficient as an operation.
Absolutely not.
 

Sub_Human

New Member
Member Bio
Joined
Jan 23, 2016
Messages
74
Reaction score
24
Location
Toronto
...What about the space at Malton, could we expand the station? Yes, the parking lot is big enough for expansion and if more land is needed then part of the International Centre parking lot could be expropriated and then there is the old Orenda Engine buildings just east of the tracks. I'm sure that the owners of the International Centre wouldn't mind losing some parking for a major transportation hub at their door step. As for the old Orenda buildings, one is empty and the other has a flooring retail business which could be relocated anywhere...
FWIW, the last time I was on a GO train that stopped there about a month ago it looked like all of the old Orenda and Magellan Aerospace buildings that had been there were demolished, and apparently the site will be developed for other projects.
 

Top