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AIRPORT HERE TO STAY, PORT SAYS
Year of rebuilding blamed for loss, Port Authority says
Matthew Coutts
National Post
Wednesday, June 13, 2007
Flights will be taking off from the downtown island airport for a long time regardless of the success or failure of Porter Airlines, officials said yesterday.
"If the carrier fails, the reality is we've built the infrastructure. The plan would be to find an alternate carrier," said Lisa Raitt, chief executive officer of the Toronto Port Authority at its annual general meeting held at the Royal York Hotel.
"Right now, we're concentrating on our successful relationship with Porter Airlines," she said.
In 2006, the Toronto City Centre Airport reported a loss of $3.5-million, which contributed to an operating loss of $6.1-million for the Port Authority.
Ms. Raitt said last year was a rebuilding year, after former tenant Air Canada Jazz left the airport in February, and Porter did not start service to Montreal and Ottawa until October.
In 2005, the Port Authority reported an operating loss of $4.7-million.
"For approximately eight months, there were no commercial flights out of the Toronto City Centre Airport," Ms. Raitt said. She added that a much better result is expected this year, after having an active tenant throughout.
She said an increase in expenses of $1.4-million over 2005 due to legal fees associated with Air Canada Jazz and labour cost increases in maintenance, ferry operation and additional firefighters caused the change in operating losses.
The Port Authority collected $140,000 in airport improvement fees through a $15 per head charge placed on Porter passengers between the company's October start and the end of 2006. That number divided by the number of flights during that time period suggests an average ridership of 18 per flight.
While passenger numbers are not made public, an island airport opponent who attended yesterday's meeting calculated ridership at 25%.
"It's just a matter of time for this to fail," said Bill Freeman, chairman of Community Air, a community group against flights out of downtown.
"I have no idea how they're doing their accounts or what manner they're measuring," responded Porter Airlines president and CEO Bob Deluce.
While Mr. Deluce would not comment on passenger numbers, he did say the airline has reported a consistent growth each month. He said the company owns the four planes it flies and has been profitable every month since March.
In the month of May, Porter Airlines flew more people than Air Canada Jazz did in its last 12 months of business on the island, Mr. Deluce said.
"No debt, airplanes are owned outright, traffic numbers are on track, good healthy cash balance. That to me sounds like an airline that's going to be around for the long run."
Opponents of the airport railed against claims the Port Authority was dedicated to enhancing the quality of life for Torontonians.
"Your idea of quality of life is an expanded airport. Our idea of quality of life is the closure of that airport," Mr. Freeman said. "Citizens of Toronto are tired of having this airport shoved down our throats."