Innovation, Trade and Rural Development
March 10, 2010
Stephenville Airport
to Receive Guarantee Extension
The Honourable Shawn
Skinner, Minister of Innovation, Trade and Rural
Development, today announced that the Provincial
Government has agreed to a request from the Town of
Stephenville and the Stephenville Airport Corporation
(SAC) to increase its guarantee of a bank line of credit
from $350,000 to $600,000. The $250,000 increase
reflects the long-standing support the Williams
Government has provided to ensuring SAC's
competitiveness.
"With the increase of the Provincial Government's
guarantee, the Stephenville Airport Corporation will be
able to take the necessary steps to secure investments
from private sources," said Minister Skinner. "It is
important for the Stephenville Airport Corporation to
take this opportunity to fully address all options to
achieve viability. The investment also highlights our
government's commitment to assist businesses and
organizations across the province to strengthen their
operations and target new, profitable opportunities."
Including the guarantee of a bank line of credit, the
Provincial Government has undertaken a number of
initiatives to support SAC. These initiatives have
included the commissioning of a feasibility study in
2004 to support operational restructuring of the
airport; an investment of $225,000 that enabled SAC to
secure the professional services of Ernst & Young in
2005 to restructure the corporation's finances; $25,000
was provided to implement a national and international
marketing strategy in 2007; an investment of $10,000 in
2008 assisted the airport in its analysis of business
development opportunities; and in 2009, $3,000 was
provided for financial analysis support. Indirect
investments in local educational institutions and the
build-out of the first-response training suite of
programs have, in turn, provided incremental revenues
for the airport corporation.
"Dating back to the early days of our administration,
this government has made a series of investments in the
Stephenville Airport Corporation and worked with
officials to strengthen its operations and viability,"
said Minister Skinner. "It is important for the
Stephenville Airport Corporation and the Town of
Stephenville to understand that this is our final
investment under the airport's current model. Any future
support will only occur if the airport can secure
long-term financing that ensures the sustained viability
of the airport."
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Media contact:
Scott Barfoot
Director of Communications
Department of Innovation, Trade and Rural Development
709-729-4570, 690-6290
scottbarfoot@gov.nl.ca
2010 03 10
1:35 p.m.
