2000 October Report of the Auditor General of Canada

Exhibit 10.3—Six Key Components of the Policy Framework for Airport Transfers

Some examples:

No increase in funding by the government
Authorities subject to the Federal Competition Act
Not-for-profit corporation
Authorities to operate under terms and conditions of the operating certificate and under the safety and security regulations
Government to get a reasonable compensation for any facility transferred
Many others

Some examples:

Airports to be leased on a long-term basis and valued on the basis of fair market value with consideration of potential earnings
As a general rule, authorities to be self-sufficient
Authorities to operate at arm's length from government without financial recourse to it
Board members must be Canadians, nominated by municipal governments and other parties such as chambers of commerce and boards of trade
Airports to be operated with flexibility, efficiency and affordability by local community representatives to ensure better accountability to public
Many others

Some examples:

Airport transfers should continue to reflect the principles of equity, consistency, uniformity and fairness
Five-year performance review
Requirement for self-sufficiency is deferred for some airports via renegotiation of leases
Federal government be no worse off
Blanket authority to negotiate 16 transfer deals without airport-specific Treasury Board approval
Specific components of lease can be negotiated or are predetermined and fixed
Renegotiate after five years if minimum passenger level not met (only for one airport)
Reopen long-term agreements to provide financial support at viable airports
Many others

Some examples:

Federal government to maintain its role as regulator
Federal government to retain ownership of the 26 NAS airports and guarantee the integrity and long-term viability of the System
·Airports to meet the needs of users and their communities they serve
Current levels of service adjusted to meet demand and existing user fees to be applied more widely
As a general rule, authorities to be self-sufficient five years after transfer
Many others

Some examples:

Not-for-profit corporation
Board of Directors includes two or three federal nominees
Equitable access to all carriers
Reasonable user charges
Engage in activities consistent with its purpose
General practice to tender contracts
Declarations of business activities to avoid real or perceived conflict of interest
Community consultations
Many others

Some examples:

Airports to be leased on a long-term basis
The financial terms of the airport transfer to the authority to result in fair value for the federal government with appropriate consideration to the airport's future earning potential
As a general rule, authorities to be self-sufficient
Authorities to operate at arm's length from government, consistent with the long-term lease, without any further recourse to the federal government
Board members to be Canadians, nominated by federal, provincial and municipal governments and other parties such as chambers of commerce and boards of trade
Airports to be operated with flexibility, efficiency and affordability by local community representatives to ensure better accountability to public.
Many others