OTTAWA INTERNATIONAL AIRPORT BREAKS PASSENGER VOLUME RECORDS IN 2004

May 12, 2005 (Ottawa) – Ottawa International Airport Authority released its 2004 results at today’s Annual Public Meeting.

Passenger volumes in 2004 of 3,609,885, were the highest on record for the Ottawa International Airport. Overall passenger traffic increased by 10.7% increase, and can be broken down as follows: domestic increased 9.8%, transborder by 9.0%, and international by 27.1%. The huge hike in international traffic can be largely attributed to an increased number of available flights to southern destinations during the winter charter season.

“The record passenger volumes are an indication that the industry is back on track” said Paul Benoit, President and CEO of the Ottawa International Airport Authority. He went on to say that “while we can’t take these results for granted, we look forward to continued growth and more stability in the coming years.”

The Chairman of the Board, Jim Durrell is particularly pleased with what these results mean for the community; “An increase in passengers of almost 11% means greater revenues for the businesses that operate at the airport, which is great news for the local economy. We’re proud to play such a vital role in the economic health of our communities”.

Financial results for the Airport Authority were equally positive with earnings before amortization of $8.9 million.

Revenues

The Authority generated $69.6 million in revenues in 2004 as compared to $63.3 million in 2003.

The Airport Improvement Fee (AIF) represents a significant portion of the Authority’s revenues base. For 2004, AIFs collected amounted to $23.7 million which was 13.6% higher than those collected in 2003. In addition to airport improvement fees, the Authority generates revenues primarily from concessions, vehicle parking, land and space rents, and landing fees and terminal fees that are charged to air carriers.

Expenses

Expenses before amortization increased from $45.2 million in 2003 to $60.7 million in 2004. Interest expense accounted for $10.5 million of the increase in expenses. Increased physical plant costs, including higher utilities and maintenance costs accounted for a further $1.8 million, and expenses related to materials, supplies and services increased from $13.0 million in 2003 to $16.5 million in 2004.

In addition, amortization increased from $5.7 million in 2003 to $13.2 million in 2004. The significant increase in year-over-year amortization expense represents a full year of depreciation calculated on the new Passenger Terminal Building and support facilities for the full calendar year 2004 as opposed to a partial year in 2003.

Capital resources

During 2004, the Authority made cash payments, including the release of construction holdbacks, in the amount of $25.4 million for capital expenditures related to the Airport Expansion Program, and an additional $3.7 million for maintenance capital expenditures. During the year, Moody’s, Standard & Poors and DBRS reaffirmed the Authority’s credit ratings of A1, A+ and A (high), respectively, in connection with the Authority’s bond offering.

OMCIAA operates Ottawa International Airport without government subsidies under a 60-year lease transfer agreement with Transport Canada. The OMCIAA’s mandate is to manage, operate and develop airport facilities and lands in support of the economic growth of the National Capital Region. Its new state-of-the-art passenger terminal building opened for business on October 12, 2003.