If they are really going to go about this smart, they should get a shuttle going from Union Station out to the airport and try to get a air/rail alliance going with VIA Rail. That would open them up to a larger market and give them a bit more cover from AC. Trying to get AC evicted from YTC altogether would be a good idea, too. (Perhaps with whining/bribes the government could arrange it on 'competition' grounds.) Evan McElravy emcelr@po-box.mcgill.ca http://users.penn.com/~cpa1/ > From: W Wilson <wlw-jr@att.net> > Reply-To: The Airline List <AIRLINE@LISTSERV.CUNY.EDU>, W Wilson > <wlw-jr@att.net> > Date: Sat, 09 Feb 2002 00:01:23 -0500 > To: AIRLINE@LISTSERV.CUNY.EDU > Subject: Toronto group unveils plans for regional airline > > By Jeffrey Hodgson > > TORONTO, Feb 8 (Reuters) - A consortium led by the former president of > bankrupt carrier Canada 3000 unveiled a C$550 million ($344 million) > proposal on Friday to launch a regional airline operating from Toronto City > Centre Airport. > > Regional Airlines Holdings Inc., headed by veteran airline entrepreneur > Robert Deluce, said it is seeking government approval and hopes to start > operating in September 2003. The plan includes the building of a new > terminal and bridge to the airport, located on an island in Toronto Harbour > in Lake Ontario. > > The proposed airline would operate about 15 prop planes and offer flights to > destinations within 90 minutes of Toronto. Canadian destinations would > include Ottawa, Montreal, Quebec City, Sudbury, Sault Ste. Marie, Thunder > Bay, Timmins and Windsor. > > > The airline would also fly to Detroit, Cleveland, Cincinnati, Chicago, > Pittsburg, Philadelphia, Washington, Boston and New York. > > If it's cleared for take off, the new venture will find itself in a tough > environment. The Sept. 11 attacks drove former No. 2 airline Canada 3000 > into bankruptcy last year, while dominant carrier Air Canada (AC) racked up > a record C$1.25 billion loss for 2001. > > But Regional Airlines chief executive Deluce, whose family founded Air > Ontario and who was Canada 3000's president from 1988 to 1995, said the > group has studied the market for more than 18 months and is convinced demand > is there. > > "It's a niche market that allows us to compete with the dominant monopoly > carrier on a level playing field. As long as we get the slots that we need > and can roll out our business plan in a comprehensive way, it will succeed," > Deluce told Reuters. > > "We're not coming at this without good financing. We know that starting > airlines today requires good capital and we're prepared for that." > > Deluce declined to name any of the consortium's members or financial > backers, but said they have access to C$550 million in capital financing. > > Around C$50 million would be needed to build the new terminal and the bridge > to the airport, now reached by ferry. The remainder would be invested in the > airline. > > The initiative would take the form of a private-public partnership. Deluce > said it would be fully financed by the private sector and require no > government money. > > But the group needs the City of Toronto's permission to build the fixed link > and is asking the Toronto Port Authority to be its partner. It also needs > the federal government to allocate it large aircraft slots at the airport. > > Regional Airlines said it will use Q400 turboprops manufactured by > Bombardier (BBDb) rather than jet aircraft, so no runway extensions or > changes to environmental restrictions would be needed. > > If the Regional Airlines proposal succeeds it may be entering a crowded > market. Former Canada 3000 chief executive Angus Kinnear told Reuters in > January he hopes to launch a scaled down version of the bankrupt airline by > May 23, with a fleet of 10 planes. > > A number of other small players have proposed start-ups in the wake of > Canada 3000's demise. > > ($1=$1.60 Canadian) >