March 29, 2011

City of Kamloops files notice against YVR

Kamloops, B.C. - On March 2, 2011, The City of Kamloops, as the Kamloops Airport Authority Society, filed a notice of civil claim against YVR Airport Services Ltd. and Kamloops Airport Ltd.

The City of Kamloops is in a long-term contract with YVR Airport Services Ltd. to manage and operate the Kamloops Airport. The City had endeavored to negotiate new contract terms with YVR and previously approached the airport in hopes of revisiting the original contract set forth in 1997, to better reflect the fairness and reasonableness of the contract, and to meet the changing demands of today’s market. Furthermore, the City feels that YVR has not met the existing conditions of the contract.

No agreement was reached by YVR to undertake these considerations, so the City of Kamloops proceeded to file the notice. The City firmly believes that an outside party, namely an arbitrator and the courts, should review the contract to accurately determine fairness.

The City hopes the outcome of the legal proceedings will be mutually beneficial and support the continued growth and development of the Kamloops Airport.

"The City of Kamloops made a business decision to file this claim. As both sides are unable to come to an agreement on rent, an arbitrated settlement seems to be the only way forward. This will ensure that the taxpayers of Kamloops and YVR receive a mutually beneficial contract," said Mayor Peter Milobar.

- 30 -

Media Contact:
Mayor Peter Milobar
City of Kamloops