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Air Canada to Commence Toronto City Airport Flights

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Air Canada has settled the terms of a long term Commercial Carrier Operating Agreement (CCOA) with the Toronto Port Authority (TPA), operator of Billy Bishop Toronto City Airport.

Conclusion of the agreement is subject to certain conditions, including agreement with the lessor of terminal space, City Centre Terminal Corp. (CCTC), for lease of space at the airport.

In addition, the airline has entered into a letter of intent for the leasing of aircraft and has finalized arrangements with a regional carrier to operate flights from the Toronto Island airport beginning in February 2011.

Air Canada's initial schedule will offer customers the choice of up to 15 daily non-stop flights from Billy Bishop Toronto City Airport, in close proximity to downtown Toronto, to Montreal Trudeau International Airport.

"We are very excited to return to Toronto City Airport in the coming months," said Ben Smith, Executive Vice President and Chief Commercial Officer. "These arrangements mark solid progress as we work to develop a unique product tailored to meet the diverse needs of travelers between Canada's two largest cities. Our customers have told us they want an airport option close to downtown Toronto to complement our Rapidair service which offers flights up to every 30 minutes at peak times."

Flights will be operated with Bombardier Dash 8 Q400 turboprop aircraft. Air Canada has signed a letter of intent with a lessor for the five aircraft that will be operated on the Toronto City Airport-Montreal route. Formal terms and conditions of the lease agreements are expected to be finalized in the coming weeks.

Following a competitive bid process to select a Canadian regional operator for these aircraft, Air Canada has concluded a capacity purchase agreement with Sky Regional Airlines Inc., an associated company of Skyservice Business Aviation. The regional carrier will sublease and operate the Dash 8 Q400 aircraft on behalf of Air Canada.

Air Canada is actively engaged in talks with the airport terminal owner, City Centre Terminal Corp. (CCTC), towards an agreement to lease terminal facilitates that will accommodate the new service.

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