Jazz Tries Stopping Porter Airlines

TorontoGuy · Post by **TorontoGuy** » Fri Mar 10, 2006 11:03 am

Gone to federal court trying to get it to scuttle contracts between the Toronto Port Authority and Porter Airlines.

Jazz takes eviction to court
Airline seeks to quash island ouster
Rival given `monopoly,' filing argues
Mar. 10, 2006. 07:08 AM
RICK WESTHEAD
BUSINESS REPORTER

Air Canada's regional Jazz unit, which has been evicted from Toronto's downtown airport, has asked a federal court judge to scuttle any contracts or agreements the Toronto Port Authority has reached with Porter Airlines, the carrier that is set to offer service this fall.

In court documents filed yesterday, Jazz alleged that the port authority has failed to act in good faith in managing the Toronto City Centre Airport and has discriminated against the Air Canada subsidiary by providing Porter Airlines with a "monopoly or dominant position ... in the Toronto City Centre Airport market."

Jazz's latest courtroom challenge to Porter Airlines was expected, and comes after an Ontario Superior Court judge refused to grant Jazz an injunction against the upstart carrier on Feb. 27. Instead, Justice Jim Spence, in his reasons for judgment, suggested the case was better suited for federal court and should be filed against the port authority, said a lawyer familiar with the case.

After acquiring a controlling interest in Toronto City Centre Aviation, Robert Deluce, president and chief executive of Porter Airlines, served an eviction notice on Jazz last month. The Air Canada unit, which had operated at the island airport for 16 years, had been working on a month-to-month lease. It offered five daily flights between Toronto and Ottawa on weekdays.

While Jazz initially fought back, pledging to increase its use of the island facility, it later announced a "temporary" halt to service to the airport.

Jazz is also seeking an order "requiring the Toronto Port Authority to provide adequate alternative space and/or facilities at the Toronto Island Airport to (Jazz) that can be used for scheduled commercial passenger and aircraft processing and requiring (the port authority) to provide (Jazz) with fair, reasonable and equitable use of and access to the Toronto Island Airport."

The court documents filed yesterday also provided more detail about Jazz's recent negotiations with the port authority.

According to the court filings, Jazz officials who met with the port authority on Feb. 7 were told that the next day they would receive a copy of a new proposed commercial carrier operating agreement, or CCOA, that would outline new terms and conditions of Jazz's continued operations on the island airport. The port authority told the Jazz officials that they wouldn't be given the chance to comment or provide input on the new document, the court filings say.

Jazz was given the proposed contract on Feb. 13, only after its officials signed a confidentiality agreement.

"It is highly unusual for an airport authority to insist on a confidentiality agreement before providing an airline with a CCOA. ... The proposed CCOA is significantly more restrictive than any airport operating agreement Jazz has ever encountered," Jazz said in its court documents. "It arbitrarily restricts both access to and use of airport facilities."

Jazz's allegations haven't been proven in court and the port authority hasn't filed responding court documents.

A port authority spokesperson didn't return a call for comment.

EI-EIO · Post by **EI-EIO** » Fri Mar 10, 2006 12:41 pm

well, Jazz should know a monopoly on the Island when it sees one I suppose.

TorontoGuy · Post by **TorontoGuy** » Fri Mar 10, 2006 1:27 pm

EI-EIO wrote:well, Jazz should know a monopoly on the Island when it sees one I suppose.

and it apparently wants it back.

boeingboy · Post by **boeingboy** » Fri Mar 10, 2006 1:55 pm

AWW...................Waaaa, waaa, waaa.

What - somebody screwed us??!! Well it can't be our fault. You will bow down and give us what we want! We are affiliated with Air Canada.

Give me a break.

Typical Air Canada mentality.

privateer · Post by **privateer** » Fri Mar 10, 2006 2:53 pm

I think jazz should be able to equally share the airport. GO JAZZ

Doc · Post by **Doc** » Fri Mar 10, 2006 4:17 pm

You know who's behind Porter?? Go Jazz!

Justwannafly · Post by **Justwannafly** » Fri Mar 10, 2006 4:25 pm

I'm rooting for JAZZ....I think they have a fair case....you can't buy controling shares in a PUBLIC airport & then kick out the competition

mantogasrsrwy · Post by **mantogasrsrwy** » Fri Mar 10, 2006 4:45 pm

After that stunt Jazz pulled to get Miller elected and the bridge killed I say........ go Porter....

Justwannafly · Post by **Justwannafly** » Fri Mar 10, 2006 4:57 pm

mantogasrsrwy wrote:After that stunt Jazz pulled to get Miller elected and the bridge killed I say........ go Porter....

hmm never said that Jazz was a saint...what did they do?

gr8gazu · Post by **gr8gazu** » Fri Mar 10, 2006 5:05 pm

Pandora wrote:I'm rooting for JAZZ....I think they have a fair case....you can't buy controling shares in a PUBLIC airport & then kick out the competition

But is the root word of "controling" not control...??

If I own controling interest in any business you can count on me dictating how it will operate.

Go......anybody that kick Air Canada's butt!!

Longtimer · Post by **Longtimer** » Fri Mar 10, 2006 5:06 pm

Pandora wrote:I'm rooting for JAZZ....I think they have a fair case....you can't buy controling shares in a PUBLIC airport & then kick out the competition

Can you just image the fuss if AC had tried to do that at YYZ to keep other domestic carriers out?

mantogasrsrwy · Post by **mantogasrsrwy** » Fri Mar 10, 2006 5:10 pm

They wanted Miller elected and the bridge killed....and they creatively ensured that by asking for permission to put jets in there just before the election. I don't believe they had any intention but it's just what Miller needed to get elected and I'm sure JR knew that. It was a sneaky little plan to sink the bridge and Deluce. All's fair in love and war I suppose, but I won't cry for Jazz after that.

http://www.andrewspicer.com/article181.html

Highflyinpilot · Post by **Highflyinpilot** » Fri Mar 10, 2006 6:30 pm

who is behind porter

TorontoGuy · Post by **TorontoGuy** » Fri Mar 10, 2006 8:03 pm

Highflyinpilot wrote:who is behind porter

Robert Deluce and his company REGCO Holdings.

EI-EIO · Post by **EI-EIO** » Sat Mar 11, 2006 4:44 pm

mantogasrsrwy

Precisely. It was in the papers IIRC the day before the election. I have no doubt it galvanised the Community Air types.

AC has been beetling up and down with a DH1 - maybe now they will consider putting larger equipment in or maybe even make a Q400 buy of their own. Even more jobs for Downsview!

Finally - Jazz has been a CCAL tenant for a long time, and knew Deluce was not gone for good. From a business POV they should have anticipated this, especially once the Q400 firming happened. They should have been banging down TPA's door and the other FBO's.