When we receive information about investing money in Porter Airlines,
it might be wise to look at all sides in this decision, and consider the following:

1. Porter Air could succeed as a long term investment, or it could succeed only for a while.
Plus it could share the financial problems of other airlines, like Canada 3000, which was sold by the Deluce family for a half billion dollars, three years before it went bankrupt.

2. Porter Air dreams big in its prospectus, but the dreams might be larger than the profits. Passenger numbers are usually kept secret but it looks like Porter is flying half full planes. Ambitious expansion plans might eventually fill the planes, or it might go bankrupt first.  

3. Porter Air can expand into American markets only if the crowded island airport offers reciprocal flights for American airlines wanting to fly into Canada. When American airlines offer flights out of Toronto Island, will a small airline like Porter be able to compete?

4. If Porter suffers an economic downtown, who will pick up the pieces? Can an american airline buy a struggling Canadian airline, and wind up controlling Toronto’s Island Airport? It will be interesting to find how Porter investors will be treated in event of a bankruptcy.

5. Although Porter is considered a success as a small regional airline, there are some constraints which will limit its profitability. The island airport is small, with a limited number of flight slots. If this airline expands, it will have to expand into other airports, thus losing it’s number one selling point, the island airport as its downtown location.

6. Some residents of Toronto’s Waterfront are campaigning to limit island airport operations to daytime hours, with a Community Quiet Time of 10pm to 8 am.
This would further reduce the number of flight slots available at the airport.
The airport currently operates at industrial noise levels from 6:45 am to 11pm
even though it’s located in a densely populated urban community.

7. Porter’s ability to continue flying with half full planes might be attributed to financial favoritism it has received from the federal government, which finances the planes through the Export Development Corporation (Go figure, How could this happen?), and support for the airline from the federal Port Authority. Only recently, the Port Authority has been judged as a tax dodger, and is now liable for millions of dollars in back taxes to the city.
If the Port Authority finally pays Toronto taxes, its ability to support Porter will be limited.
Flying on its own money, Porter’s financial picture might not look so bright.

8. Porter could surprise everyone, and succeed magnificently as an investment, but there are still a few questions that haven’t been answered. Even the Board of Health is having difficulty getting information about the island airport. When regulatory agencies can finally open doors on the island airport, it’s anyone’s guess how much this might limit operations.

9. When the island airport reaches a grand old age in the year 2033, the current contract which allows all this, the Tripartite Agreement comes up for renewal. If all three levels of government agree, (city, province, feds), a new Tripartite Agreement could extend the life of the Toronto Island Airport. If the agreement isn’t renewed, the island airport is finished.

Max Moore