Jazz pulls out of CYTZ

AOW · Post by **AOW** » Wed Feb 15, 2006 6:13 pm

A Jazz Press Release wrote: Jazz announces temporary suspension of Toronto City Centre Airport services
HALIFAX, Feb. 15, 2006 (Canada NewsWire via COMTEX News Network) -- Jazz Air LP (Air Canada Jazz) today advised Air Canada that due to the continuing uncertainty created by its eviction from the Toronto City Centre Airport, and the unwillingness of the Toronto Port Authority to assist in securing an alternate facility, it will be temporarily suspending service to and from Toronto City Centre Airport for the month of March 2006.

Air Canada Jazz operates five weekday round trips to Ottawa. This service suspension leaves the Toronto City Centre Airport without commercial air service.

At the present time, bookings will not be accepted for travel during the month of March 2006 on flights to and from the Toronto City Centre Airport, and Air Canada and Air Canada Jazz are taking the necessary steps to ensure that those passengers who have already booked their travel are protected on alternate services at Toronto's Pearson International Airport.

"We apologize to the many loyal Toronto City Centre Airport customers who will be impacted by this situation", said Bill Bredt, Air Canada Jazz's Senior Vice President and Chief Operating Officer. "We view this suspension as a temporary measure made necessary by an unforeseen eviction, and the surprising unwillingness by the Toronto Port Authority to assist its longest-standing commercial airline in finding alternate facilities at the Island Airport. Jazz will pursue every recourse available to re-establish operations at the City Centre Airport as soon as possible", he added.

Air Canada Jazz operates 10 of its 738 system-wide weekday departures through the Toronto City Centre Airport. It is the sole airline to have maintained uninterrupted service to the Island Airport for the past 16 years, and is currently the only provider of scheduled air service from this airport. Over those 16 years, Jazz has paid approximately $53 million in landing, terminal and other user charges to support the operations of the Toronto City Centre Airport.

On January 31, 2006, City Centre Aviation Limited, controlled by Robert Deluce, served a 30-day Notice of Termination to Air Canada Jazz, ending the lease agreement at Toronto City Centre Airport. Since receiving the termination notice, Air Canada Jazz has been working with airport stakeholders to secure an alternate lease arrangement. Several initiatives, including discussions with the Toronto Port Authority's CEO, Lisa Raitt, have not resulted in a resolution of this issue.

"Although we have continually stressed the need for quick resolution to this matter in order to protect the interests of our customers and employees, discussions with the Toronto Port Authority have not progressed substantially beyond their basic unwillingness to assist Jazz in finding alternate accommodations", added Bill Bredt. "We regret that the lack of meaningful progress leaves us with no alternative but to temporarily suspend our operations at Toronto City Centre Airport".

As a result of the service suspension, Air Canada Jazz is forced to issue furlough notices to all Jazz employees based at the Toronto City Centre Airport. The carrier will endeavour to provide the affected staff with alternate employment elsewhere within the Jazz network.

The Toronto City Centre Airport is a public facility which has been built over the years with public dollars. Air Canada Jazz will continue to pursue every option, including legal action, to protect its interests, those of its Toronto City Centre Airport customers, its employees and the traveling public. Fair and equal access to this public facility is needed to ensure Jazz's long-term presence at Toronto City Centre Airport.

Jazz Air LP (Air Canada Jazz) is the largest regional airline and the second largest airline in Canada after Air Canada, based on fleet size and number of routes operated. Jazz forms an integral part of Air Canada's domestic and transborder market presence and strategy. Pursuant to the capacity purchase agreement between Jazz and Air Canada, Jazz provides service to and from lower density markets as well as higher density markets at off-peak times throughout Canada and to and from certain destinations in the United States. As of February 1, 2006, Jazz operated scheduled passenger service on behalf of Air Canada with approximately 738 departures per weekday to 56 destinations in Canada and 22 destinations in the United States with a fleet of 127 aircraft.

SOURCE: Jazz Air Income Fund

SOURCE: Air Canada Jazz

Media Contacts: Manon Stuart, (902) 873-5054, Halifax, Nova Scotia; Debra Williams, (519) 659-5696, London,
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charlie_g · Post by **charlie_g** » Wed Feb 15, 2006 6:43 pm

AOW wrote:
A Jazz Press Release wrote:Over those 16 years, Jazz has paid approximately $53 million in landing, terminal and other user charges to support the operations of the Toronto City Centre Airport.

I'm confused by the "terminal charges" reference in that statement. Terminal charges are presently collected by Nav Canada and have nothing to do with the operation or funding of an airport. That's up to an airport authority to decide, via AIF's or whatever.

Unless they are refering to the period under TC, which would have been the first 6 years of that 16 year timeframe. At that point most or all airports were still operated by Transport, so perhaps there was some revenue directed that way back then.

AOW · Post by **AOW** » Wed Feb 15, 2006 7:14 pm

charlie_g wrote:I'm confused by the "terminal charges" reference in that statement. Terminal charges are presently collected by Nav Canada and have nothing to do with the operation or funding of an airport. That's up to an airport authority to decide, via AIF's or whatever.

I believe what they are referring to as "terminal charges" are the costs of leasing space in the terminal building for their operation. This is rented from the Toronto Port Authority, through City Centre Aviation Limited (formerly the Shell Aerocentre East).

charlie_g · Post by **charlie_g** » Wed Feb 15, 2006 9:28 pm

AOW wrote:
charlie_g wrote:I'm confused by the "terminal charges" reference in that statement. Terminal charges are presently collected by Nav Canada and have nothing to do with the operation or funding of an airport. That's up to an airport authority to decide, via AIF's or whatever.
I believe what they are referring to as "terminal charges" are the costs of leasing space in the terminal building for their operation. This is rented from the Toronto Port Authority, through City Centre Aviation Limited (formerly the Shell Aerocentre East).

Ok, that would make sense.

WJflyer · Post by **WJflyer** » Wed Feb 15, 2006 9:31 pm

Apparantly, the building that Jazz uses is owned by the parent company of Porter Airlines, and that company is kicking Jazz out. The building will get refurbished by Porter for their use.

KAG · Post by **KAG** » Wed Feb 15, 2006 11:14 pm

...I guess thats one way to penetrate a market.

cyyz · Post by **cyyz** » Thu Feb 16, 2006 12:28 am

As a result of the service suspension, Air Canada Jazz is forced to issue furlough notices to all Jazz employees based at the Toronto City Centre Airport. The carrier will endeavour to provide the affected staff with alternate employment elsewhere within the Jazz network.

How senior were those guys? So, per Union regs*, they're all gonna boot out the most junior guys in their respective seats, right?

And also, per union regs* shouldn't hiring stop until all current members are employed?

TorontoGuy · Post by **TorontoGuy** » Thu Feb 16, 2006 5:40 am

WJflyer wrote:Apparantly, the building that Jazz uses is owned by the parent company of Porter Airlines, and that company is kicking Jazz out. The building will get refurbished by Porter for their use.

More than that! City Centre Aviation Ltd. operates the airport on behalf of the Toronto Port Authority.

City Centre Aviation is owned by RGCO Holdings and Robert Deluce, the same company and man that are launching Porter Airlines.

The thot plickens!

EI-EIO · Post by **EI-EIO** » Thu Feb 16, 2006 7:11 am

http://www.citycentreaviation.com/index.html

CAL · Post by **CAL** » Thu Feb 16, 2006 7:54 am

that airport and its politics is a f--king mess...bottom line here is its a great location to service the business district downtown and a unique opportunity and given the size of Toronto and the size of a Dash 8 I think there is room for both....another hit to commercial aviation..surely Porter cant dictate who is allowed to operate out of CYTZ.....also what a crap name for an airline...

C-FABH · Post by **C-FABH** » Thu Feb 16, 2006 7:57 am

It is my understanding that Jazz will resume operations from the old-terminal building as soon as Esso leaves.
The new building for Esso was delivered yesterday infact, so I can't imagine it will be too long

CAL · Post by **CAL** » Thu Feb 16, 2006 8:00 am

A new building was delivered?....havent been to ytz in a while is that over by the approach to I guess it would be 26? Sounds positive though...

C-FABH · Post by **C-FABH** » Thu Feb 16, 2006 8:19 am

It's right by where the old Esso huts used to be -- Terminal B, Ramp Crew Room, and the FBO Office (they were demolished in August 2005).

Here's a map of what it basically looks like now, with the new building in red:

CAL · Post by **CAL** » Thu Feb 16, 2006 8:25 am

thats where I thought it was...thats where it was when we used them but I saw so much water and nothing else behind it that I thought it was elsewhere on the island....not much snow in To...

Hedley · Post by **Hedley** » Thu Feb 16, 2006 8:53 am

Hey, is that big-ass old hangar in the top right corner still standing?

Back in the 70's we used to keep our Maule in that hangar - it seemed to get it's wingtips smashed on a monthly basis. Kept that funny little mechanic Joe and his clumsy son busy. I wonder if they're still there?

God that's a long time ago. 30 years now, I guess. I still remember taking the ferry across from the crappy little parking lot, and how after they built the CN tower it screwed everybody's VHF radios up. It's sure great to be out of Toronto.

TorontoGuy · Post by **TorontoGuy** » Thu Feb 16, 2006 9:25 am

This morning's report in the Toronto Star quote the Port Authority as saying the Jazz could have made temporary arrangements with another tenant. In the story, Jazz says the Port Authority was unco-operative in helping it make alternative arrangements, so it pulled out entirely.

The truth probably lies somewhere in the middle.

And yes, the hanger in the top right of that pic is still there.

Cat Driver · Post by **Cat Driver** » Thu Feb 16, 2006 9:58 am

And it was there in 1953 when I started flying at Central Airways.

The Wong brothers ran their school out of a small building beside the terminal building.

A private license was thirty hours and we learned on Cessna 140's and Fleet Canucks. Ten dollars per hour dual and eight dollars per solo.

I did my private in thirty hours and about one hundred dollars, the rest I worked off in that same hangar...

Cat

privateer · Post by **privateer** » Thu Feb 16, 2006 2:05 pm

sounds like a alot of Bull^%$. Everybody is out to eat each other instead of helping one and other. It sounds like typical Ontario Politics! I hope Jazz comes out on top.

cyyz · Post by **cyyz** » Thu Feb 16, 2006 3:23 pm

privateer wrote:sounds like a alot of Bull^%$. Everybody is out to eat each other instead of helping one and other. It sounds like typical Ontario Politics! I hope Jazz comes out on top.

I'd like that, but I think no one in aviation will come out on top in ytz.

AOW · Post by **AOW** » Thu Feb 16, 2006 3:36 pm

C-FABH wrote:It is my understanding that Jazz will resume operations from the old-terminal building as soon as Esso leaves.
The new building for Esso was delivered yesterday infact, so I can't imagine it will be too long

Yes, Esso is moving to the new trailers that they delivered yesterday, but the building they are currently in (old Terminal A) is leased by REGCO; Deluce will be putting in offices there. Jazz will have to make a deal with another tenant if they want to return to the island...

TorontoGuy wrote:More than that! City Centre Aviation Ltd. operates the airport on behalf of the Toronto Port Authority.

City Centre Aviation is owned by RGCO Holdings and Robert Deluce, the same company and man that are launching Porter Airlines.

CCAL does opperate the larger portion of the FBO side of the airport, but the Toronto Port Authority runs the actual airport opperations (CCAL may think that they run the airport, but not quite...). The maintenance, ferry, firehall and opperations are all TPA responsibilities.

On another note, I don't think that you've seen the last of Jazz at CYTZ. There are enough closed door sessions around the east side of the airport to make one believe that something is up...