Devin Dreeshen, Minister of Transportation and Economic Corridors, speaks at the Red Deer Regional Airport on Wednesday. (rdnewsNOW/Alessia Proietti)

By Alessia Proietti

$30 million budget investment

Province aims to transform Red Deer Regional Airport into national transportation logistics hub

Mar 15, 2023 | 4:15 PM

Alberta government officials gathered at the Red Deer Regional Airport (YQF) on Wednesday along with City and County officials to discuss how the provincial budget’s $30 million investment will support the development of a national transportation logistics hub.

Government officials note as they continue to focus on growing and diversifying the economy, an investment and improvements into the airport will provide new opportunities in central Alberta, such as the development of a shipping and receiving hub in the region and high-paying jobs.

The airport’s Board of Directors stated the expansion would generate 200 jobs during construction and 350 jobs after development.

“Alberta’s airports play a critical role in strengthening and diversifying our economy by expanding access to markets, as we don’t have direct access to tidewater. This investment will allow additional aviation cargo and logistics services, which will not only provide new travel options and get more products to market but also create jobs and help attract new investment to central Alberta,” said Devin Dreeshen, Minister of Transportation and Economic Corridors, who was given a YQF embroidered leather jacket from the Red Deer Regional Airport Authority Board of Directors, as a thank you.

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Dreeshen added, he hopes an expansion and policy changes will help the airport become a competitor in all of North America, as landing cargo in central Alberta costs a fraction compared to Calgary or Edmonton, becoming a strategic advantage.

He says with the establishment of the Junction 42 rest stop nearby in Red Deer County, trucks can safely take a break and then transport freight from the airport as they are centrally located in the province.

Officials believe the expansion will support the growth of rural communities in central Alberta while enhancing the safety of local residents and airport users by creating an additional emergency access to the airport and the Hamlet of Springbrook through north end road construction and civil works, including water sanitation, stormwater and fibre optics, to Township Road 374. They say this will also support new business and economic opportunities for development in that area.

“These things don’t just happen,” said Mayor Jim Wood of Red Deer County, alongside other council members. “When we work together, we get things done.”

“Sometimes we think of the people that might fly out of here but it’s far more than that. It’s the logistics, it’s the manufacturing; the sky is the limit.”

The provincial government and officials with the City of Red Deer and Red Deer County at the Red Deer Regional Airport on Wednesday. (rdnewsNOW/Alessia Proietti)

For passenger flights, Dreeshen said the provincial government would work with the federal government to acquire a customs area; the Canadian Labour Code regulates the air transportation industry. The province is already home to three low-cost Alberta-based carriers: Lynx Air, Swoop and Flair Airlines.

Graham Ingram, Chief Executive Officer of Red Deer Regional Airport, says passenger flights are waiting for the airport to finish necessary expansions. He says phase one was completed last year, consisting of widening the main runway, with just a bit of tidying up left to do to the main apron and taxiway. He confirms they are in the process of issuing a Request for Proposal for a general contractor for the next phase of expanding the terminal this June, with a timeline of nine months to one year for completion.

He says he is excited for locals to be able to see how the funds are being utilized as the upcoming work will no longer be behind the scenes.

“We are glad this government has recognized the unique opportunity the airport and central Alberta can play in expanding our economic impact through diversification,” he said, adding businesses have already expressed interest. “By building the road north, we now have the opportunity to access the additional 220 acres, which we hope will bring in cargo, aircraft repair and other airline-related services. This expansion project will also result in a new passenger terminal allowing for 737 aircraft passenger service.”

Graham Ingram, Chief Executive Officer of the Red Deer Regional Airport. (rdnewsNOW/Alessia Proietti)

The airport’s largest tenant of 50 years, Air Spray Tankers, said they are already looking to expand their business. Employing over 150 highly trained aviation professionals, Chief Operating Officer Paul Lane says they intend to add additional hangar space at the airport.

According to a 2022 Statistics Canada report, Alberta’s aviation and aerospace industries employ more than 18,000 people. The province says these industries contributed $1.5 billion to the province’s GDP in 2021.

“The City and County recognize the Red Deer Regional Airport as an economic catalyst. The City, as a joint appointer for the airport with the County, is working together to be a key logistics hub based on our prime location,” said City of Red Deer Mayor Ken Johnston, alongside other councillors as well as MLA Jason Stephan who was also in attendance.

The provincial government created the Strategic Aviation Advisory Council in 2020 to provide expert advice to government on how aviation and aerospace can increase economic development opportunities, expand markets and create jobs in the province.

Officials say this new funding builds on a $7.5 million grant from Alberta’s government in 2022-23 for the airport to repair and upgrade its runway.