## CommunityAI R- devote dt o restorin g th e land s an d harbou r no w occupie db y th e Toront o Islan dairpor t t o park , recreation , an dcultura l uses . 

# Cemnnuiniti i 

# AI R

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Offic e O f

Th e Secretar) ' Departmen t

O f Transportatio n Washington , D.C . R e Applicatio n o f

PORTE RAIRLINE S INC . Docke t DOT-OST-2007-2740 2 Community ' Airpor t

Impac t Revie w (CAIR ) submit s tha t i t i s no t i nth e publi c interes t

t o issu e th e applican t

aforeig nai r

carrie r permi t i nth e for ma s attache di nth e origina l order . I n it s Tentativ e Finding s an dConclusions—Foreig nAi r Carrie r Permi t Application , th e Departmen t

o f Transpor t

(Department ) ha s no t revisite dth e quesdo no f equitabl e acces s t o Porte r Airline' s hu b a t

th e Toront o C'\x

y Centr e Airpor t

(TCCA ) firs t

raise db y anumbe r

o f airline s a t

th e tim e o f

Porte r Airline' s origina l applicadon . W e submi t tha t i nth e interes t

o f fai r an dope n conipetidon , i t i s incumben t

upo nth e Departmen t t o d o s o now . 1 . Introducdo n CAI Rquestion s th e preferenda l treatmen t afforde dPorte r

Airline s i nit s us e o f

th e Toront o Cit) ' Centr e Airpor t

(TCCA ) an durge s th e Departmen t o f Transportatio nt o d o th e sam e befor e granun g Porte r

Airline s it s permit . I t i s i nth e publi c interes t tha t th e Departmen t

o f Transportado nensure s tha t all carriers , America nan dCanadian , hav e th e sam e acces s a s Porte r Airline s doe s t o thi s facility . O n Jun e 20 , 2007 , th e Departmen t o f Transportado nissue dNOTICE: : O FACTIO N TAKE N- - DOCKE T OST-2007-27402 . I nrespons e t o filing s b y severa l airline s abou t equitabl e acces s t o th e TCCA , th e Departmen t cite dasingl e lette r

(OST-2007-2402- ] 9 ) fro mLis aRaitt , CE O o f th e airport' s operator , th e Toront o Por t Authority ' (TPA) , a s a refutatio no f

th e airlines ' claims . M s Raitt' s lette r containe dsix-mont hol dcorrespondenc e betwee nth e TP A an dU S Airway s abou t si x dail y flights . Now , mor e tha ntw o year s later , w e trus t tha t th e Departmen t

wil l revisi t

th e questio no f

fai r an dequitabl e acces s t o th e TCC A an dbas e it s analysi s an ddecisio no nPorte r Airline' s permi t

o nmor e tha non e out-of

- dat e exampl e o f

th e TCCA' s accessibilit}' ^

Workin g toward s aclean , gree nwaterfron t 89 0 Yong e St , Suit e 700 , Toronto , Ontario , Canad aM4 W3P 42 . Th e TPA-TCC A Porte r Recor do f

Accessibilit\ ' a t

di e Toront o Islan dAirpor t Accordin g t o tli e Rene w O f Toront o Por t Authorit y Kepot

i (lirrp://\\'\vw.tc.gc.ca/pril/en/Report/rorontoPortAuthoi'ir \/tpa.pdO , conducte do nbehal f o f th e Canadia n government . Porte r Airlines ' precursor , RegCo , an dth e TP A signe da Commercia l Carrie r

Operatin g Agreemen t (CCOA ) o nMa y 3 , 2005 . O nFebruar y 28 , 2006 , th e TPA' s cancellatio no f it s leas e wit hAi r

Canad aforce dth e airlin e t o qui t it s servic e leavin g Porte r

Airline s a s th e sol e carrie r at th e TCCA . (Jaz z airlin e ask s judg e t o se t asid e flyin g prohibition : 'Undu e preference' , Nationa l Post . Augus t 17 , 2006) . I t

ha s remaine ds o fo r th e thre e year s u p unti l th e presen t i nspit e o f

Ai r Canada' s attempt s t o find alega l mean s t o retur no na nequitabl e basis . A s mentione dabove , o nMa y 10 , 2007 , th e TPA' s CEO , M s Raitt , wrot e that , i neffect , th e TCC A wa s ope nfo r

business . Tw o an dahal f year s afte r

th e claim , Porte r

i s stil l th e onl y airlin e i n servic e a t

th e TCCA . Whil e M s Raitt' s submissio ncite doperatin g restriction s unde r th e Tripartit e Agreemen t an d mentione dth e nee dt o sig n aCCOA , i t understandabl v di dno t mentio nth e CCO A betwee n th e TP A an dRegCo , Porte r Airline' s majo r

investor . However , th e CCO A i s cite di nth e Rfvie w O f Toront o Por t Authorit y Report . Whil e th e autho r o f th e Repor t

doe s no t

questio nth e legalit} ' o f

th e CCOA , h e doe s state , P.61 , tha t Porte r Airline s ha s "exclusivit) ' o f certai n destination s an dguarantee s o t aminimu mo f

movements" . I t i s th e questio no f

exclusivit} ' o f

certai ndestination s an dguarantee s o f aminimu mo f movement s tha t

shoul db e o f

primarj ' concer nt o th e Deparmient . I norde r t o satisfy ' itsel f tha t an y airline , U.S . o r

Canadian , flvin g t o an dfro mPorte r Airline' s hu b at

th e TCCA , receive s equitabl e treatment , CAI Rurge s th e Departmen t t o see k guarantee s tlia t

an y competito r

signin g aCCO A wit hth e TP A wil l hav e th e sam e route s availabl e base do n reasonabl e an dnon-discriminator y scheduling . Accordin g t o arepor t

publishe dtoda y b \Bloomber g (http://wwwbloomberg.com/apps/news?pid-206010K2&sid"a t 1 8 Su4K^aZM) : Porter' s agreemen t

wit hth e authorit\ ' barre dregiona l carriers , includingjaz z Air , fro mflNHn

g betwee n th e airpor t

an dNe w York , Chicago , Boston , Washington , Philadelphia , Cincinnati , Detroi t an dCleveland , Jaz z Air' s lawj'e r Ear l Chernia k

sai d las t vea r a t ahearing . Exclusivit}' ^ o f

certai ndestinations , includin g man y if no t all o f it s existin g an dpotentia l U.S . destination s ha s n o plac e i na n ope nan dcompetitiv e marke t an di s no t

i nth e publi c interest . Toront o ha s tw o mai nairport s servin g th e fiv'in g public : Leste r B Pearso nInternationa l Airpor t (Pearson ) an dth e Toront o Cit} ' Cente r Airport . Som e ma y argu e tha t fo r th e airlin e industry , Toront o i s on e market . O nthi s basis , i t ma y the nb e sai dtha t

exclusivit} ' o f

certai n destination s i s no t

anti-competitiv e sinc e an y destination s tha t Porte r Airline s ha s exclusiv e right s t o ou t

o f th e TCC A ca n b e accesse dat Pearson . I nothe r words , i f

a napplican t

fo r acces s t o th e TCC A doesn' t lik e th e conditio ntha t prevent s i t

fro mflying , fo r

example , Ne w York-TCCA-Ne w Yor k becaus e tha t

rout e i s Workin g toward s aclean , gree nwaterfron t 89 0 Yong e St , Suit e 700 , Toronto , Ontario , Canad aM4 W3P 4reserve dexclusivel y fo r Porte r Airlines , th e TP A ma y argu e tha t unde r th e one-marke t scenari o th e applican t

isn' t disadvantage dsinc e i t ca nfl y ou t o f Pearson . However , base do n Porte r Airline' s advertising , indee dthei r raiso nd'etre , ther e ar e tw o markets : th e Greate r Toront o Are aan dDowntow n Toronto . A s evidence db y statement s o nit s websit e suc ha s "Gon e ar e th e hassle s o f gettin g t o an dfro mPearson" ; "Th e nex t time yo u fl

y int o Toronto , yo u ca nactuall y fl

y int o Toronto " ; an d"That' s right , avoi dth e additiona l expens e an d unpredictabilit} ' o f

trip s t o Pearson . Porte r Airline s flie s ou r

o f Toront o Ci w Centr e Airpor t (TCCA) , jus t

minute s fro mdowntown" , Porte r Airline s ha s mad e i t

clea r tha t i t i s servin g th e Downtow nToront o market . I n servin g th e Downtow nToront o marke t fro mth e TCCA , Porte r Airline s i s a t

asignifican t cos t advantage . Base do n airpor t rate s publishe drespectivel y o nPearso nan dTCC A websites , afull 70-sea t

Q40 0 turbopro p cost s 4/5th s les s t o operate , take-off an dlanding , ou t o f th e TCC A - $801.0 8 v s S 2,509.7 0 fo r Pearson . (Se e Appendi x A ) I t i s clea r t o se e tha t Porte r Airline s ha s asignifican t cos t advantag e ove r

competitor s require dt o tl y ou t o f Pearson . Wha t

i s no t clea r i s ho w th e TP A plan s o nallowin g othe r airline s int o th e Porte r Airlines ' hu b t o provid e competition . 3 . Porter' s Complaint s regardin g Acces s t o Newar k Internationa l Airpor t Althoug hfai r

an dequa l acces s b y an y othe r airlin e t o th e Toront o Islan dvVirport i s demonstrabl y no t

possible , a s th e abov e indicates , Porte r ha s relie do nth e righ t t o fai r an d equa l treatmen t

whe ni t come s t o arguin g fo r

mor e acces s t o Newar k Internationa l Airport . I n asubmissio n t o di e Federa l Amtio nAgenc y (Docke t Ko . FAA-2008-0221 ) date dApri l 1 , 2008 , a t pag e 7 , it s counse l states : Th e combine deffec t

o f thes e change s i s t o reduc e Porter' s dail y roundtrip s Monda y throug hFrida y fro mseve n t o five , o r a30 % reductio ni nth e numbe r o f Porter' s operation s an dt o disrup t Porter' s Saturday/Sunda y operations . Thi s i s no t a"fai r an dequa l opportunit} ' t o compete " a s promise db y th e U.S . i nth e Ope nSkie s Agreemen t

wit hCanad aan dunfairl y an ddiscriminatoril y penalize s Porte r despit e it s attentiv e an dmeaningfu l engagemen t i nth e schedulin g proces s sinc e las t summer . 4 . Th e Presen t O n Octobe r

13 , 2009 , th e Departmen t issue dit s Orde r

t o Sho w Caus e notic e regardin g th e Porte r Airline' s permit . I naremarkabl e coincidence , thre e day s later , o nOctobe r 16 , 2009 , th e TP A poste da bulleti ntided'Toront o Por t Authorit} ' acceptin g expression s o f interes t regardin g Toront o Cit} ' Centr e Airport " o n it s website . W e trus t tha t th e Departmen t

wil l no t regar dth e issu e o f thi s bulleti na s evidenc e tha t th e Porte r

Airline' s hu b i s ope nfo r fair , competitiv e ser\'ic e t o an y an dal l comers . On e reaso ni s th e conditio ncite di nM s Raitt' s correspondenc e wit h U S Airways , th e Tripartit e Agreement . Wliil e seemingl y ope nfo r business , th e bulleti nmake s clea r wit hth e paragrap htha t follows , ther e ar e conditions . I t states , Workin g toward s aclean , gree nwaterfron t 89 0 Yong e St , Suit e 700 , Toronto , Ontario , Canad aM4 W3P 4"Th e Tripartit e Agreement , i nconjunctio nwit ha nNE FContou r stud y tha t

i s currenti y underwa}' , limit s th e numbe r o f dail y commercia l flight s tha t ca nb e operate da t

th e TCCA" . Th e bulleti ngoe s o nt o say tha t th e TP A won' t

b e i na positio nt o respon dt o th e aviatio ncommunit y unti l th e stud y i s unde r way. " Th e bulletin , however , ignore s a nimportan t commen t

fro mth e Rene w O f

Toront o Por t Authorit y Repor

t o nPag e 60 . "I nJun e 2003 , RegC o woul dhav e understoo dtha t th e tota l ceilin g fo r

larg e turbopro p movement s (numbe r o f departure s an dlandings ) woul db e 16 7 i n an dou t o f th e airpor t

eac hday . Unde r

di e 200 6 CCO A wit hRegCo , th e numbe r o f movement s i s far

lowe r tha nth e numbe r

contemplate di n2003 , a s th e ceilin g fo r tota l flight s i s no w 12 0 movements. " Th e figur e i s fro ma nauthoritativ e sourc e citin g th e TPA' s CCO A wit hPorte r

Airlines ' holdin g company . A s recenti y a s Octobe r 17 , Mr . Rober t

Deluce , CE O Porte r

Airlines , cite di na narticl e i nth e Glob e an dMail , ja: ^ want s apiec e o f Porter s monopoly. , state dtha t Porte r Airline s ha dabou t

10 0 dail y flights . Thi s figur e ma y b e confirme db y a nanalysi s o f Porte r Airlines ' curren t schedul e publishe do nit s website . Th e sam e article,/d^::;; ; want s apiec e of Porter' s monopoly , refer s t o Porte r Airlines ' planne d expansio nb y addin g five mor e aircraf t an dPhiladelphi aan d\X'ashingto nD.C . a s destinations . Th e articl e goe s o nt o cit e Mr . Deluce' s clai mthat , "B y nex t April , it forecast s tha t i t wil l b e usin g 12 0 slot s ada y .. . " . Thus , th e Rei-ieii ' O f

Toront o Por t Authorit y Repor

t state s tha t

th e tota l numbe r

o f flight s i s 12 0 an dMr . Deluc e i s claimin g thos e 12 0 flights . Th e Glob e an dMai l articl e als o cite s aCAI R analysi s tha t

put s th e numbe r

o f dail y flight s betwee n12 0 an d167 . Th e 16 7 i s als o referre d t o abov e i n conjunctio n wit hth e Ret'ie w O f Toront o Por t Authorit y Report . Eve na t th e greate r number , th e competitio nwil l hav e onl y 4 7 o r 28y o o f th e dail y slot s available . Offerin g les s tha n 1/3 ^ o f

th e TCCA' s capacit} ' t o competitor s i s no t i nth e publi c interest . 5 . Summar y an dConclusio n Th e recor dshow s tha t i nth e fou r

year s sinc e th e TP A an dRegC o firs t signe dthei r

CCO A n o othe r airlin e ha s arrive da t

th e TCCA . I nfact , sinc e th e signing , th e on e residen t competitiv e airlin e wa s torce dout . Whil e constrainin g othe r airlines ' acces s t o th e Toront o Islan dAirport , Porte r ha s exercise d it s righ t t o fai r an dequa l treatmen t

i nit s effort s t o expan dit s operatio ns i nNewark . Wha t benefit s Porte r

i n Newar k

shoul dals o benefi t

othe r airline s i nToronto . Th e Toront o marke t

ha s bee nfragmente dint o aGreate r Toront o Are amarke t

serve db y Pearso nan daDowntow nToront o marke t serve db y Porte r

an dPorte r

Airline s ha s aloc k

o n th e Downtow n Toront o market . Th e operatin g cost s ar e 1/5' ^ fo r th e Downtow nToront o Marke t a t th e TCC A ove r

thos e at Pearso ngivin g Porte r

Airline s asignifican t

competitiv e advantage . A simpl e mathematica l analysi s show s tha t les s tha n30 % o f

th e TCCA' s capacit}

- coul d becom e availabl e t o th e competition . Workin g toward s aclean , gree n waterfron t 89 0 Yong e St , Suit e 700 , Toronto , Ontario , Canad aM4 W3P 4Th e TPA' s bulletin , 'Toront o Por t Authorit}

- acceptin g expression s o f interes t regardin g Toront o Cit} ' Centr e Airport ' offer s n o proo f tha t th e TCC A i s ope nfo r competition . CAI Rsubmit s i t

i s incumben t

upo nth e Departmen t fo r th e sak e o f

th e publi c interes t

i n term s o f competitio nan dth e marketplac e t o ensur e tha t th e TCC A i s trul y ope nfo r busines s befor e agreein g t o issu e Porte r Airline s aforeig nai r

carrie r permit . Al l o f whic hi s respectfull y submitted .

Bria n Her , Chair , Work : (416)598-0103x11 4 Cell : (416)835-438 4 Fax:(416)598-348 4

Workin g toward s aclean , gree nwaterfron t 89 0 Yong e St , Suit e 700 , Toronto , Ontario , Canad aM4 W3P 4Appendi x A Comparativ e Airpor t

Charge s —

Pearso n& TCC A Calculation s ar e base do nth e following . o Bot hlandin g an dtake-of f charge s ar e included . o Pea k perio drate s apply . o Th e aircraf

t i nquestio ni s th e 70-sea t Q40 0 turboprop . o Th e aircraf

t i s full v occupied . o Th e aircraf

t weigh t use di s th e operatin g weigh t empt\ ' a s determine db y th e aircraft' s manufacture r

Bombardier . o Domesti c fligh t

charge s apply . o Althoug hshow nseparatel y o nth e ticket, th e Airpor t Improvemen t

Fe e i s include d sinc e i t i s acos t tha t a nairlin e mus t

eithe r recove r o r absorb . o Al l calculation s ar e base do npublicl y availabl e informatio na s o f 10/19/200 9 Charg e

Termina l Charg e pe r

domesti c passenge r

pe r Q40 0 (S6.7 1 X 70 )

Landin g fe e base don : o Q400 @ 17,18 5 kg . o Domesti c rate s Airpor t Improvemen t

Fe e X 7 0 Passenger s

Total s Pearso n

$469.7 0

$14 5

$1,75 0

$2,509.7 0 TCC A

$ 0

$101.0 8

$70 0

$801.0 8

Workin g toward s aclean , gree nwaterfron t 89 0 Yong e St , Suit e 700 , Toronto , Ontario , Canad aM4 W3P 4Sources : Q40 0 Specification s http://\\A\'w2.bombardicr.con-i/q4UO/en/spt.'cihc;ui()ns.is p Pearso nCost s hI tp://www.gtaa.com/local/hies/en/Business/AirlineR,iies(^harges2l'Ul.pd t TCC A Cost s http://t(>r(>ntf>pon.coETi/PortAuthiirity/i.UTpor t contcnt.aspr'id-21&:SfiircliTypc=^l^.x.ictPhr. i se&terms-landing " •.i20fL-e s

Workin g toward s aclean , gree nwaterfron t 89 0 Yong e St , Suit e 700 , Toronto , Ontario , Canad aM4 W3P 4