State of the Airlines

Thursday, September 28, 2006

Porter Airlines to Start Service in Toronto, Mayor Already Hates Them

Porter Airlines got approval to begin service out of Toronto and boy is their mayor pissed. Normally, politicians celebrate new airlines, trumpeting the value of increased access to their city. So what's rubbing Toronto's mayor, David Miller the wrong way?
First is Porter Airlines decision to use the smaller City Centre (note the Canadian spelling, eh?) Airport versus Pearson International Airport. You see City Centre Airport is on an island near Toronto and Miller apparently had big plans for the water front development. Ever increasing airline service was not in those plans. Just ask Canadian airline Jazz who got kicked out of City Centre and hasn't been able to get back in.
Second is the scuttlebutt surrounding a $20 million payment made to REGCO, the parent company of Porter Airlines. The payment was made after a deal to build a new bridge to the Toronto island collapsed. Miller is screaming back room politics but it appears the payment was made due to contract language. A deal's a deal.
Welcome to Toronto Porter Airlines.

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