The Shot Heard around the Airport


Yesterday Air Canada got word that its lawsuit against the Toronto Port Authority (TPA) for unfair practices in allowing a single carrier, Porter Airlines, to monopolize the Billy Bishop Toronto Centre Airport (BBTCA) would be heard in early July.

Not wasting a minute, the TPA’s spin doctors were out in full force explaining why the TPA gave Porter Airlines a monopoly and how the TPA is now ready to play nice.

Here’s what the Tassé Report, P. 60, says about the monopoly.

      “The TPA and RegCo [now Porter] have determined that the CCOA they entered into on May 3, 2005, is confidential because of the commercial sensitivity of some of the information it contains although it was made available to me for the purposes of my review. It is not, however, contrary to the requirements of my Terms of reference, for me to note that there are provisions in the CCOA that are designed to ensure the financial stability of the TPA. The CCOA does, for example, provide for certain guarantees regarding the use of the airport by RegCo, for a rollout period of time, to assist RegCo to establish itself as a carrier.”   

And at page 61:

      Questions have been raised with me by Air Canada Jazz about the validity of the CCOA and the authority of the TPA to enter into such an agreement with RegCo in the context of a lawsuit commenced by Jazz in 2005. The Court will have an opportunity, after having heard the parties, to decide whether the TPA had the authority to enter the impugned CCOA with RegCo.

It seems that now is that time: the Federal Court of Canada will hear Air Canada’s application for a judicial review of the matter from July 6-8.

Bob Kotyk

 

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