Bombardier's Porter C Series Deal Falters on Toronto Airport Banby
Porter Airlines Inc.’s bid to expand Toronto’s island airport to accommodate jets has come to an end, dealing another blow to Bombardier Inc.’s C Series jetliner program.
Transport Minister Marc Garneau said on Twitter the new Liberal government will keep to its campaign pledge of not seeking to change a three-way accord among the Toronto Port Authority, Canada’s government and the city to allow for jet traffic at Billy Bishop airport, located in the center of the country’s largest city.
“We will not reopen tripartite agreement,” Garneau said in his tweet.
Porter planned to add as many as 30 CSeries jets in an order valued at as much as $2.1 billion, if the expansion was approved. The sale was never booked as a firm order. Bombardier’s widely traded Class B shares fell 2.2 percent to C$1.35 ($1.01) at 10:57 a.m. in Toronto, headed for the biggest weekly loss since July, and extending the loss to 68 percent this year.
Billy Bishop, located on an island in Lake Ontario close to Canada’s financial hub, is home to turboprop flights by Montreal-based Air Canada and closely held Porter. Local officials have banned jets there, and Porter stirred political opposition in 2013 with a plan to add Bombardier Inc. planes and push for a runway extension and lifting of that prohibition.
The Toronto Port Authority, which owns and operates the airport, is a federal agency under Transport Canada.