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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Friday, September 08, 2006

Rumours of a New Canadian Carrier

Speculation regarding the possibility of a new Canadian airline is starting to spin up based on an announcement made by officials at Hamilton International Airport yesterday. Interesting news based on the recent announcement that CanJet would pull out of scheduled service to return to its charter only roots citing increasing business risks. Just last year JetsGo went bankrupt with little notice. But there may be an opportunity for another airline, especially a low cost operator, based on the improving numbers coming from WestJet and Jazz, even if it does appear to be at the expense of Air Canada.

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