Ottawa announces $22.4M to expand Kelowna International Airport

Funding will extend basic infrastructure at multiple hectares of land at YLW to aerospace and development

The federal government has announced a $22.4-million investment for the Kelowna International Airport (YLW).

The funds will be used to extend basic electrical, water and sewage infrastructure to more than 66.77 hectares (165 acres) of empty land, and create a runway-accessible industrial park along the airport eastern border.

"This investment removes the infrastructure barriers and creates serviced airport, industrial land — which is a massive, massive deal," Stephen Fuhr, federal secretary of state for defence procurement and the MP for Kelowna, said during a news conference.

"We are strengthening the local economy, creating opportunities for skilled training jobs, and opening the door to Canada's aerospace industry to grow right here at home."

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The $22.4-million commitment is the part of a larger $58.8-million expansion project authorized by the City of Kelowna.

The remaining $36.4 million will be financed through the Municipal Finance Authority, with debt repayment coming from airport reserves rather than local taxation.

Several prominent Canadian aerospace companies are already lining up to utilize the new space.

De Havilland Canada, Wildcat Helicopters and FireSwarm Solutions — a company developing autonomous firefighting drones — have all expressed interest in expanding their operations at YLW.

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Phillip Elchitz, director of operations and innovation at YLW, emphasized that the development goes far beyond basic infrastructure.

"Today is more than just infrastructure. Today is unlocking possibilities," Elchitz said.

"We see airports as economic engines, places where innovation happens, where investment is attracted, where industry grows, where people build careers, and where communities create the conditions for long term prosperity."

The airport, B.C.’s second-busiest, saw some 2.3 million passengers travel to 22 destinations last year — with the airport saying it contributes more than $2 billion annually to the local economy and supports over 9,000 jobs.

YLW has opened a new $101-million, 5,500-square-metre terminal expansion, on-site hotel, and covered parking facilities in the last few years.

The airport master plans calls for $422 million in upgrades between 2024 and 2033.

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KF Aerospace, a company that services and rebuilds aircraft for airlines across the world, is already a major airport client and regional employer.

With the addition of the new aerospace campus, officials are hoping to attract more high-wage educated aerospace workers to the region and turn YLW into an emerging aerospace hub.

"The type of people that work at these facilities, we're talking about educated people who come here and bring their families and they stay here and they live here forever." Elchitz said.

"And that's the type of community that we're trying to develop."

Infrastructure construction is expected to begin in the spring of 2027, and is scheduled to be completed by the end of 2028.