Financial Update - Subsidiaries
VANTAGE AIRPORT GROUP
Vancouver Airport Authority created Airport Group (Vantage) in 1994 to market the expertise, operating philosophies and leading-edge systems developed at YVR. Vantage is jointly owned by Vancouver Airport Authority and Citi Infrastructure Investors (CII) and its portfolio consists of nine airports in five countries.
Vancouver Airport Authority retains 50 per cent ownership in Vantage and appoints four seats to its Board of Directors. In 2013, the Airport Authority’s interest in Vantage experienced a $49.7 million write-down, primarily as a result of the Liverpool John Lennon Airport investment. Vantage, a 65 per cent owner in this airport, was forced to divest the property from its portfolio following a marked decline in passenger traffic due to a sustained downturn in the economy, a tough regulatory regime and a highly competitive market. While this equity loss is significant, this was the right business decision for Vancouver Airport Authority and Vantage. This decision does not impact Vancouver Airport Authority’s operations or credit rating in any way. Subsidiary activities are separate from operations at YVR.
YVR PROJECT MANAGEMENT (YVRPM)
A wholly owned subsidiary of Vancouver Airport Authority, YVRPM was established in 2005 to oversee major capital expansion projects at YVR. In 2013, the majority of YVRPM’s revenue came from its project management and construction of the McArthurGlen Designer Outlet Vancouver Airport.
Vancouver Airport Enterprises Ltd. - Templeton
Vancouver Airport Enterprises Ltd. – Templeton (VAEL Templeton), a wholly owned subsidiary of Vancouver Airport Authority, was established in 2012 to hold the Airport Authority’s 50 per cent share in the McArthurGlen Designer Outlet Vancouver Airport. In 2013, the subsidiary contributed $9.9 million equity to the McArthurGlen Designer Outlet Vancouver Airport. It also incurred pre-opening marketing expenses but did not generate operating revenue. This resulted in a net loss, of which the Airport Authority’s portion was $58,000.
Note: Information on subsidiaries’ contributions to Vancouver Airport Authority can be found in our financial statements, available via the links below.