Aviation industry set to take off. (Thunder Bay).

This year is a much-anticipated time at Thunder Bay International Airport.

Students enrolled in Confederation College's three aviation Programs are expected to arrive this fall at their new 59,000-squarefoot Aviation Centre of Excellence.

The $20-million complex now under construction will feature new classrooms, lab and office space, as well as two hangar facilities and an engine test facility.

It will incorporate the college's aviation manufacturing and engineering capabilities, and will feature modern flight simulators.

"The Aviation Centre of Excellence is hopefully the first tenant for our north side aviation development," says Scott McFadden, president and CEO of Thunder Bay International Airports Inc. "We're in the process of building roads and putting in infrastructure over there."

The authority has set aside about 100 acres of vacant land, which it plans to transform into usable lots for aviation-related businesses.

"The unique thing about the subdivision is it will have a taxi way as well as highway access," says McFadden: "No one else in town can. offer that kind of real estate.

"We're looking at it as a long-term development opportunity. The revenues we may derive from them are important to us, but what's more important is the spinoff effects," says McFadden.

"If we are successful in encouraging expansion or new business to come to Thunder Bay, it's the increased economic activity, that really benefits the airport."

Since Transport Canada divested itself of the operation in 1997, the private not for-profit authority has been on solid financial footing, posting surpluses every year, including $5.6 million in gross revenues in 2002 and an $833,000 net income. Much of that money is earmarked toward some capital-intensive projects this year such as rehabilitating its 6,200-foot main runway. The $3-million project will involve extensive sub-surface and re-surfacing work and lighting replacement.

As well, there will be some "largely invisible" and confidential modifications to the main terminal building to satisfy new security requirements, says McFadden.

Though total aircraft movements in 2002 were up (by 105,651) for the fifth straight year, passenger volumes were down (568,787) by 2.5 percent for the first time since 1997.

McFadden attributes that drop to heightened anxiety among travellers over security issues and a number of government fees and charges on air travel that is destabilizing the industry.