Porter CEO sues Air Canada over free travel

[Troubleshot]

CAT FIGHT!!!





http://ca.news.yahoo.com/s/reuters/1007 ... erairlines


VANCOUVER, British Columbia (Reuters) - Robert Deluce, president and chief executive of Porter Airlines, said on Tuesday he is suing Air Canada because the airline halted a free lifetime travel pass for him and his wife.

Deluce's start-up airline, Porter, is already locked in a court battle with Air Canada over slots at Billy Bishop Toronto City Airport, a small airport close to Toronto's downtown.

Deluce said Air Canada, Canada's biggest airline, agreed to provide the free travel passes to him and his wife when his family sold Air Ontario and Austin Airways to it in 1986.

The Deluce couple enjoyed free travel for about 23 years until Air Canada "without warning, stopped honoring the arrangements" last fall, Deluce said in a statement. He is suing the airline for C$5 million ($4.8 million).

"I perceive this as being just another in a series of tactical moves by Air Canada to distract and influence Porter," Deluce said.

Porter, which Deluce founded nearly four years, is proving a tough competitor for Air Canada and other carriers in Eastern Canada.

Its monopoly on flying out of the conveniently located Billy Bishop airport, along with its business class-for-all service, has proved a hit, especially with business travelers.

Air Canada has filed a lawsuit against Porter and the Toronto Port Authority over what it says is the unfair allocation of slots at Billy Bishop.

($1=$1.05 Canadian)

(Reporting by Nicole Mordant; editing by Peter Galloway)

[The Raven]

I love this comment in another newspaper regarding Deluce suing Air Canada:

"A spokesman for Air Canada says it is completely understandable why Deluce would prefer to fly Air Canada"

[Troubleshot]

LOL that's a good one

[skyler]

I love this comment in another newspaper regarding Deluce suing Air Canada:

"A spokesman for Air Canada says it is completely understandable why Deluce would prefer to fly Air Canada"

[The Raven]

Porter CEO Deluce files own suit against Air Canada
Last Updated: Tuesday, July 20, 2010 | 07:00 PM EDT
Story courtesy of
The fight between Robert Deluce, Porter Airlines’s chief executive, and Air Canada has taken a personal twist after the carrier revoked free first-class travel passes he and his wife have received from Air Canada for the past 23 years.

Mr. Deluce launched a lawsuit Tuesday against Air Canada in Ontario Superior Court of Justice seeking $5-million in damages, or reinstatement of the passes and $100,000 in damages he claims to have incurred as a result of Air Canada ending the travel-pass agreement last fall.

Mr. Deluce and his wife were Tuesday given the passes in 1986 as part of his family’s agreement to sell its controlling interest in Air Ontario Ltd. and Austin Airways to Air Canada. He claims the passes carried no restrictions and could be used for free first-class travel on any of Air Canada’s flights, either for leisure or business.

Mr. Deluce said in an interview Tuesday he and his wife have used on average $11,000 worth of travel a month on Air Canada since the passes were awarded.

“On a long-haul international basis, they have a product that stands up against others. Why would I not use them given the travel rights that were embedded in a contract?” he said. “For any place Porter flew, I obviously flew Porter. But on the other hand, there are many places Air Canada covers that we do not fly to, and it made sense to continue using the pass.”

Mr. Deluce claims that on Sept. 1, 2009, Air Canada informed him it was revoking his and his wife’s travel privileges due to their “misuse” of the passes and the “breach of terms and conditions” under which they were granted, according to the statement of claim filed with the court.

He also alleges the carrier did not specify what terms and conditions were violated.

But a source said it is believed Mr. Deluce was using the passes for commercial purposes, including scouting future routes, and this is why Air Canada took umbrage.

Peter Fitzpatrick, Air Canada spokesman, would not comment on the new lawsuit.

“Because this is currently before the courts we cannot comment,” he said. “However, it is completely understandable why Mr. Deluce would prefer to fly Air Canada — with its Executive Class, in-flight entertainment, Maple Leaf Lounges, Concierge Service and other exclusive benefits — rather than Porter. Wouldn’t you?”


Read more: http://www.cbc.ca/fp/story/2010/07/20/3 ... z0uGm24bJC

[invertedattitude]

Apparently Air Canada has hired some rather quick witted employees...

[Jastapilot]

Cheeky! I like it!

[Inverted2]

Mr. Deluce launched a lawsuit Tuesday against Air Canada in Ontario Superior Court of Justice seeking $5-million in damages, or reinstatement of the passes and $100,000 in damages he claims to have incurred as a result of Air Canada ending the travel-pass agreement last fall.

Looks like he's trying to make up for Porters losses in the courts!
I'm starting to think this man is a bit of looney tune....

[tedcuthbert]

LOL, if he thinks those passes are worth 5 million, I guess he's planning to live to the ripe old age of 100 or so, and do allot of travelling in retirement. Now I'm sure his accountants, lawyers, & PR people all vetted & approved this, but I sure hope those "free" passes were accounted for properly. Revenue Canada just loves digging into high profile transactions like these. Plus, I'm not sure this is good exposure for him or Porter, it reeks a bit of greed and entitlement. I would have let it be, at least for now, but war is war, I guess. Lawyers must be #1, 2, and 3 on his speed dial, bet he gets great Christmas presents from them.

[RIPCURRENT]

Looks like he's trying to make up for Porters losses in the courts!
I'm starting to think this man is a bit of looney tune....

Desperation or Greed?

[teacher]

I do believe that pass travel is restricted to personal travel only and is not to be used for business purposes.

[2775PSI]

Perhaps he just wants to fly on Jazz when they start operating at the Island again..

[OceansEdge]

Hey he got his name, and his airline's name in the news, and is doing a job of making AC look petty and vindictive (although this could certainly backfire making him look pouty and bitchy) ... in the meantime there are marketing guys who will tell you any publicity is good publicity. Not quite so true in this industry.

[BingBong]

“Mr. Deluce would prefer to fly Air Canada — with its Executive Class, in-flight entertainment, Maple Leaf Lounges, Concierge Service and other exclusive benefits

He's probably taking all the free booze from the Maple Leaf Lounge and re-labeling the bottles to say porter. I always wondered how they were able to supply their PAX with all that alcohol...

[Troubleshot]

Hey if Air Canada are gonna go back on ther agreement maybe they should return some of Air Ontario's assets...hey a deals, a deal.

[Brewguy]

I do believe that pass travel is restricted to personal travel only and is not to be used for business purposes.

Are basing that on when Air Canada bought an airline from you?

Let's not confuse a contractual issue from what would have been a fairly high-level legal negotiation with the type of passes someone like an employee would get.

If AC's lawyers failed to put sufficient weasel words in that contract to prevent these folks for flying for business, then they need to suck it up. If they did in fact prohibit business travel in the contract, then the Deluce's were just asking for it ... I guess only time (and the courts) will tell.

[rudder]

Perhaps the Canadian Revenue Agency would like to talk to Mr. Deluce about his $11,000 per month 'perq'?

[teacher]

From the employee travel site under policies:

"Limitation

Personal travel privileges on Air Canada and other airlines are solely for the purpose of pleasure travel and not for any personal/business venture for the employee, family member, or travel partner or on behalf of an individual/company for which a salary or commission is paid."

Therefore flying on AC for the purpose of business for Porter airlines as is being alleged is prohibited. Be free first class passes I'm sure he's inferring to having C1 passes for life which is still standby.

This law suit will be dismissed rather quick.

[airway]

From the employee travel site under policies:

"Limitation

Personal travel privileges on Air Canada and other airlines are solely for the purpose of pleasure travel and not for any personal/business venture for the employee, family member, or travel partner or on behalf of an individual/company for which a salary or commission is paid."

Therefore flying on AC for the purpose of business for Porter airlines as is being alleged is prohibited. Be free first class passes I'm sure he's inferring to having C1 passes for life which is still standby.

This law suit will be dismissed rather quick.

Deluce is not an employee. His free passes are part of the deal for his share of the airlines that AC bought. Who knows what terms they agreed on. It could have been agreed that he could use them for business. This is what he is claiming anyway.

[Martin Tamme]

Be free first class passes I'm sure he's inferring to having C1 passes for life which is still standby.

No, he negotiated A1 passes, which are confirmed J-Class seats.

[teacher]

Oh well than there goes my theory. I guess it'll be all in the fine print somewhere.

[complexintentions]

I don't think the lawsuit will be dismissed "rather quick"...he had the passes for 23 years and now suddenly Air Canada has a problem with it? If it makes anyone look desperate, it's Air Canada...I can see how it would stick in their throat providing free travel to the boss of their competitor, but if there's a legal agreement in place you can't just ignore it out of spite.

[airliner]

On BNN last night Mr.Deluce said that "Air Canada isn't the best or the worst airline. I have been to Nigeria and there was a worst airline there".

[genetic jack hammer]

On BNN last night Mr.Deluce said that "Air Canada isn't the best or the worst airline. I have been to Nigeria and there was a worst airline there".

...and he still wants his travel passes on AC? What a f**ked up knob, he is.

[canuckjetsetter]

He may have said that on BNN, but he also is quoted saying:

“On a long-haul international basis, they [AC] have a product that stands up against others. Why would I not use them given the travel rights that were embedded in a contract?” he said. “For any place Porter flew, I obviously flew Porter. But on the other hand, there are many places Air Canada covers that we do not fly to, and it made sense to continue using the pass.”

Let's not forget that in this country there really are only 2 options to get around the whole country. Why would Deluce pay WS to fly them (not to mention lack of business ammentities I'm sure he's used to) when he can fly AC for free and in biz class.

Another note, AC obviously didn't see a problem with Deluce's pass privileges when he was helping run things over at C3 for years after Air Ontario. Seems like, to me, this is just another jab at this never-ending jolst. At least this time the legal fees are coming out of Bob's pocket and not PD's (I hope).