Divesting YXE will benefit taxpayers
Saskatoon International Airport
WINNIPEG, MB, March 6, 2021 – The Frontier Centre for Public Policy has just released Debt-Free, Few Capex Demands, Well Positioned to Soar: A Valuation & Strategic Appraisal of the Saskatoon International Airport by Ian Madsen, a senior policy analyst with the Frontier Centre. This paper conducts an in-depth valuation and strategic appraisal of the Saskatoon John G. Diefenbaker International Airport, using an intrinsic value method and market-based valuation system.
YXE is the airport serving the metropolitan Saskatoon area that is ultimately owned by the federal government. The airport has negative free cash flow and positive operating and profit-based returns on assets, equity, and capital employed. This valuation explores the different options in which YXE could increase its profitability, overall benefiting the citizens of Saskatoon. Government ownership of a company exposes citizens and taxpayers to the unnecessary risks of economic and technological trends. There are several airports around the world that are privately-owned which fare much better.
To read this critical valuation of Saskatoon International Airport, visit the Frontier Centre for Public Policy website: www.fcpp.org, or OPEN HERE.
The Frontier Centre for Public Policy is an independent, non-profit organization that undertakes research and education in support of economic growth and social outcomes that will enhance the quality of life in our communities. Through a variety of publications and public forums, the Centre explores policy innovations required to make the prairies region a winner in the open economy. It also provides new insights into solving important issues facing our cities, towns and provinces. These include improving the performance of public expenditures in important areas such as local government, education, health and social policy. The author of this study has worked independently and the opinions expressed are therefore their own, and do not necessarily reflect the opinions of the board of the Frontier Centre for Public Policy.
Contact:
Frontier Centre for Public Policy
203 – 2727 Portage Avenue
Winnipeg, Manitoba R3J 0R2
204-957-1567
manitoba@fcpp.org
