Porter flying in the face of city hall

[Driving Rain]

http://www.thestar.com/News/GTA/article/599347

Mayor's opposition isn't hurting Bob Deluce's successful airline

Mar 10, 2009 04:30 AM


Bob Deluce is done fighting.

He says he's got no more time for half-billion-dollar lawsuits and trading blows with the mayor of Toronto. He's busy making improvements to his island redoubt and his growing airline, Porter. And, frankly, he thinks he's won.

"We've moved beyond our battles with the city," Deluce says. "There's the odd skirmish on certain issues that we don't necessarily see eye to eye on. I think they are increasingly respectful of the role we play on the waterfront."

Not quite.

"Toronto's waterfront is a place for people to live, work and play and is not an appropriate place for a commercial airport," Mayor David Miller responds.

"It is impossible to realize our (waterfront) vision and accomplish all we are working toward with multiple daily commercial flights in the vicinity."

As for Deluce the man? Miller declines to say anything.

Deluce and Miller are a bit of a pair, protagonist and antagonist. Taking on Deluce in 2003 over the proposed fixed link to the island airport set Miller apart in a tight mayoral race. That now allows Deluce to cheekily take credit for getting Miller elected.

"We gave him an issue," says the 58-year-old founder and CEO of Porter Airlines. "We were very helpful to him in that regard. Full credit to him for picking it." Deluce smiles innocently as he says it.

Since starting his mayoral career with a big win on the torpedoed bridge, Miller has spent more than five years butting heads with city council opponents, taking bruises over a new land transfer tax, street food and redeveloping Union Station.

Conversely, since losing the bridge fight, Deluce can't seem to put a foot wrong.

"He's had just about everything break his way," says Brad Iler, head of Community Air, Porter's well-connected and vocal opponents in the local community.

Deluce's threatened $500-million lawsuit against the city eventually led to a $35-million federal settlement to compensate for the scuttled bridge, $20 million of which went to Deluce's REGCO Holdings.

Then Deluce pried his only island competitor, Air Canada's Jazz, out of the airport.

Now, in the midst of a nosedive for all larger airlines, he says he's making money. "I'm totally impressed with his business skills," says Iler. "He's also charming and responsive."

Just as the love-in gets started, Iler learns of Deluce's latest idea. Since he can no longer have a bridge, Deluce recently mused about building a walkway underneath the water, linking the mainland with the island.

"I hadn't heard that," says Iler in an appalled tone.

Later, Porter spokesperson Brad Cicero will call the tunnel plan "a longer-term proposition requiring a substantial amount of work that has yet to be considered."

There are those who doubt the airline's business model, but Porter continues to grow. The eight-plane fleet will increase to 18 by year's end. The company is expanding and improving the island terminal at a cost exceeding $20 million. Deluce expects Porter's workforce to increase to 800 from the present 600. In December, the Toronto Port Authority will debut a new $5 million ferry for the airport.

Deluce eventually envisions as many as 20 Porter destinations and a nearly threefold increase to 150 flights in and out of the island each day.

The timing – in the midst of a recession – seems odd. But Deluce has always successfully ridden his luck.

He was born the second son in a huge flying clan. His father, Stanley, launched a bush operation in the isolated community of White River that would grow into Austin Airlines, the dominant carrier in Northern Ontario. All seven of the Deluce boys ended up as pilots.

Austin was eventually subsumed by Air Canada, sparking a lengthy legal battle in the 1980s. The Deluces were bought out at a significant premium; Austin no longer exists.

Deluce bounced to Canada 3000, where he was one of three principal shareholders. He bailed in 1995 with another windfall. Canada 3000 folded shortly after the 9/11 attacks. "Probably good luck rather than good planning," Deluce says of his departure.

The biggest part of the Canadian aviation industry's territory is its graveyard. Deluce has danced on a fair few of those graves.

"How many people inside the Canadian airline business have made money?" one of Deluce's competitors says of those deals. "Other than the Deluces, almost nobody."

"We made money five or six times," Deluce says, counting off airlines he's been involved with.

Has he ever lost any in aviation?

"No, as a matter of fact," Deluce says. Then he knocks on wood.

Little wonder Deluce's default expression is a smile – shy and a little sideways.

He wears the pinstripe armour of Bay St., but his voice is all small-town Northern Ontario – nasal, twangy, rising to meet the end of his sentences. He is ingratiating in a formal, courtly way.

Like many of the hyper-successful, he emanates energy from a compact, athletic body. He brags about rising at 4 a.m. and working 100 hours a week. Waiting in Porter's plush lounge for a recent flight to Chicago, he refuses to sit. He looks as if he'd run out and push the plane if he could.

The flight down deepens the mystery of Porter's purported profitability. Roughly 20 of the 70 seats are occupied. Nearly all are Porter employees or guests.

In Chicago, Deluce throws a cocktail party for 300 travel agents at the Trump Hotel.

The main pitchman at the event is former U.S. ambassador to Canada David Wilkins. He greases up the crowd with a lot of talk about the "historic bond" between "our two great nations" before throwing the spotlight back to Bob "Delooch."

"Only he gets away with that," a Porter employee sighs.

The next morning, Deluce is still in sell mode.

"I think they were really receptive to what we had to say – I think they really enjoyed the party," Deluce says, looking around the back of a crowded stretch limo for confirmation. The Porter staffers, all well-scrubbed 20- and 30-somethings, nod wearily. Only the boss is looking forward to an 8:30 flight. Deluce spiels animatedly for most of the 30-minute drive.

On the flight home, there are only eight passengers, all of them connected to Porter.

"It takes six months for a route to find its legs," Deluce says. The Chicago route has been running since November.

Exact numbers of how many passengers Porter carries are hard to obtain. The Port Authority has suggested 45,000 per month through Toronto.

Deluce says the real number well exceeds that, including routes that don't begin or end on the island. Speaking elliptically, Deluce says that Jazz, in its final year on the island, carried 20,000 passengers.

"We carry that about every 10 days," he contends. "We are well above break-even."

"He keeps telling us that," says airline analyst and AirTrav Inc. president Rob Kokonis. "There's no way to check."

To provide proof, Deluce points out the window of his airport office. A crew of construction workers is moving earth around what will eventually be a new wing of gates for the airport.

"See that?" Deluce says. "That doesn't make much sense if you're not making money.

"Remember, I learned how to fly at this airport in 1966. It's been that long. And now I think everything here is moving in the right direction and Toronto is moving past its initial opposition to this operation. It defies logic that they wouldn't."

Whatever the logic, Deluce maintains a contingent of powerful – if somewhat quieted – detractors. He continues to fly in the face of an economically depressed industry. But based on what he's managed so far, would you bet against him now.

[Rudy]

Some night they'll just go in with bulldozers and rip up the runways like mayor Daley of Chicago did with Meigs. This David Miller is just working out how he's going to fit a D9 Cat on the ferry.

[skymarc]

Please dont give mayor Miller any more ideas, he has enough as it is.

[Valhalla]

Some night they'll just go in with bulldozers and rip up the runways like mayor Daley of Chicago did with Meigs. This David Miller is just working out how he's going to fit a D9 Cat on the ferry.

The island airport is controlled by the federal government who think that it may be a good idea to have a successful Toronto based company, employing Torontonians, flying Toronto made airplanes, bringing Americans into downtown Toronto... etc.

The Mayor can whine all he wants, but will not be able to bulldoze the runway.

[Guido]

Some night they'll just go in with bulldozers and rip up the runways like mayor Daley of Chicago did with Meigs. This David Miller is just working out how he's going to fit a D9 Cat on the ferry.

The island airport is controlled by the federal government who think that it may be a good idea to have a successful Toronto based company, employing Torontonians, flying Toronto made airplanes, bringing Americans into downtown Toronto... etc.

The Mayor can whine all he wants, but will not be able to bulldoze the runway.

Yeah, tell that to Daley who bulldozed a federally run airport, flying in American made planes, bringing people of all nationalities to downtown Chicago...

I think we can only hope that Miller respects the rule of law a little more than Daley did...

[C-FABH]

Some night they'll just go in with bulldozers and rip up the runways like mayor Daley of Chicago did with Meigs. This David Miller is just working out how he's going to fit a D9 Cat on the ferry.

... after the ferry has stopped operating for the night

[Rockie]

The bulldozer better have a snorkel attached to it. Miller is such a twit.

[Siddley Hawker]

Miller is such a twit.

For want of a vowel...

[dashx]

Deluce recently mused about building a walkway underneath the water, linking the mainland with the island.

I for one would love to hear more of Deluce's "musings"......

And maybe just maybe Geraldo could be persuaded to find the original tunnel entrance to the airport.

[gustind]

This is exciting. I love the photo of Deluce in the article though. Gives you a sense of wiseness or reliability.

[dashx]

I'd say you're biased by saying that.

[Four1oh]

I was once told that Deluce has made money selling airlines, not necessarily running them... just say'n, any truth to that?

[Rockie]

The inconvenient and infinitely irritating truth for Miller is that he'd be just another nobody if it weren't for the much smarter Deluce and his bridge. And while the bridge may be history, Deluce is still there literally flying in Miller's face every day of the week.

It's taking years off Miller's life.

[dashx]

"I really think there's a place for guys like us in the marketplace," said Mr. Pappalardo in an interview not long after beginning operations at the Island facility. "If the public gets behind City EXpress, I can guarantee we'll get behind the public and expand our service accordingly".

I took this from a magazine published by the Harbour Commisioners to celebrate 50 years of the airport back in 1989.

He's also charming and responsive."

Yes he was and yes he still is. Thank you Mr Iler.

Look to the east to see the past and look to west is that the future?

[bmc]

The island is a brilliant place for Porter. They have no operation out at Pearson (as far as I know) so they have no duplicate costs. Being in a great location without strong competition is good for them.

Lots of people on this forum complain about the failing industry in Canada. They moan and bitch. Yet, when you see someone doing well, you just have to knock him down.

[Driving Rain]

Yet, when you see someone doing well, you just have to knock him down.

Huh?

[dashx]

But Deluce also knows how cutthroat the airline business can be. In the 1980s his family, along with Air Canada, launched Air Ontario. The aviator clan owned a quarter of the new carrier, which eventually began service out of the island airport to compete with rival City Express. Those were hopping days on the island, which served 400,000 passengers a year at its peak. Within months, City Express went out of business. Air Canada then forced the Deluces out of Air Ontario, swallowed the smaller airline, and shifted most of its business to Pearson International Airport, west of the city.

http://www.thecanadianencyclopedia.com/ ... RTM0013101

Oh yes he did quite well. Quite well indeed. He laid the seeds a long time ago and is now reaping the rewards.

Congratulations Mr Deluce.

I love the photo of Deluce in the article though. Gives you a sense of wiseness or reliability

[C-FABH]

Someone must be looking for a job!

[gustind]

Yea basically that is how it is.

[Driving Rain]

But Deluce also knows how cutthroat the airline business can be. In the 1980s his family, along with Air Canada, launched Air Ontario. The aviator clan owned a quarter of the new carrier, which eventually began service out of the island airport to compete with rival City Express. Those were hopping days on the island, which served 400,000 passengers a year at its peak. Within months, City Express went out of business. Air Canada then forced the Deluces out of Air Ontario, swallowed the smaller airline, and shifted most of its business to Pearson International Airport, west of the city.

How else would someone become Air Canada's biggest share holder?

Then.... Mr. Milton took over... Then .......... Ah shit.

[dashx]

Daniel Gustin
President and CEO
vPorter Airlines
http://www.flyvporter.org

vPorter Airlines is not affiliated with Porter Airlines

http://www.flyvporter.org/careers.aspx

http://www.youtube.com/user/gustind

Say Daniel since you have already identified yourself and have a title (President and CEO) why don't you tell us a little more about yourself. Virtually speaking of course.