Pamela Wallin, well-known former journalist, former diplomat, entrepreneur and newly appointed senator, was recently appointed to Porter Airlines Board of Directors.  She’s not one of the old boys so why Pamela Wallin?

First up is a look at the other board members.  With the exception of Don Carty and Jacques Demers, all of the other original board members* are money guys.  However, it is easy to see why these two were involved.  With all his U.S. aviation experience and American connections and Porter’s need for U.S flying rights, Carty is a natural fit. Jacque Demers also has his uses.  As a senior partner with law firm Ogilvy Renault and a specialist in mergers and acquisitions, Demers will prove to be a useful chap when it’s time for Porter to go for an Initial Public Offering.

As for the other directors, their millions in start-up cash buys a seat at the table.  First among equals, there is Porter Aviation Holdings’ Robert Deluce, president and CEO, the brain trust behind Porter.  His REGCO Capital Corp. is in for $52,350,000 or 42.6% ownership. 

Interestingly, REGCO got 20 million taxpayer dollars as part of the bridge settlement.  If the $20 million went into the Porter start-up, REGCO ended up with a 42.6% share on an outlay of $32,350,000 of non-taxpayer dollars.  That’s almost twice the percentage stake over the next biggest shareholder for only 5,600,000 non-taxpayer dollars more.

Second in line with $26,750,000 (non-taxpayer dollars) or 21.4% are Michael Rolland, Managing Director of Borealis Infrastructure Management Inc. and Andrew Lin, Merchant Banker, Borealis Infrastructure.  Borealis is the venture capital of the OMERS Pension Plan.  OMERS dropped $8 billion dollars on investments last year so they are no doubt hoping for a score on this little venture.

Next in line are Sam Duboc, Founder, President & Managing Partner Edgestone Capital Partners, Inc. and Steve Marshall, Partner & Executive President Edgestone Capital Partners.  EdgeStone is in for $22,875,000.

The other investors, GE Capital, $18,250,000 and DanCap Private Equity, $5,000,000 don’t seem to have board representatives for their dollars.  So where does Pamela Wallin fit in? 

First, Ms Wallin’s appointment is a master marketing move.  Consider her background.  She was appointed to the Senate of Canada, located in Ottawa, a Porter Airlines destination.  Pamela is also the Chancellor of the University of Guelph, a short drive from Toronto, Porter Airlines home base.  She also serves on several Toronto-based corporate boards and is also a member of a special Advisory Board for BMO Harris Bank which has its U.S. headquarters in Chicago, a Porter Airlines destination.  These are only a few of her connections that make her an invaluable word-of-mouth promoter of Porter Airlines.  And if board membership comes with free Porter passes, she must save a bundle as she travels between her homes in Toronto and New York.

Second, Pamela’s appointment makes for smart politics.  Who better than a senator appointed by the Conservatives to explain and promote Porter’s position on Toronto’s waterfront in the face of City Hall’s adversarial position and the ongoing farce that is the Toronto Port Authority.  Pamela may also just be a measure of insurance.  While the federal Conservative government has already proven itself to be the Port Authority’s biggest cheerleader, who’s to say that the Joke on the Bay won’t some day fall out of favour with the Feds?  Should that happen, Porter Airlines would still have a voice in Ottawa. 

That’s one astute move, appointing Pamela to the Porter

Bob Kotyk