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Porter CEO Sues AC... You'll Never Guess Why!  
User currently offlineYYZYYT From Canada, joined Apr 2005, 971 posts, RR: 0
Posted (4 years 3 months 5 days 20 hours ago) and read 11732 times:

Didn't see this posted yet, so here goes.

Porter CEO Robert Deluce has sued Air Canada for - get this -- cutting off his life time free travel perk.

see:

http://www.cbc.ca/money/story/2010/0.../20/deluce-air-canada-lawsuit.html

38 replies: All unread, showing first 25:
 
User currently offlinerikkus67 From Canada, joined Jun 2000, 1661 posts, RR: 1
Reply 1, posted (4 years 3 months 5 days 20 hours ago) and read 11680 times:

Ummmmm....

Perhaps he'll get it back when he welcome AC to the Island Airport, eh?



AC.WA.CP.DL.RW.CO.WG.WJ.WN.KI.FL.SK.ACL.UA.US.F9
User currently offlinescrubbsYWG From Canada, joined Mar 2007, 1495 posts, RR: 0
Reply 2, posted (4 years 3 months 5 days 19 hours ago) and read 11382 times:

the last line of the article is fantastic.

User currently offlineRJLover From Canada, joined Dec 2006, 577 posts, RR: 1
Reply 3, posted (4 years 3 months 5 days 19 hours ago) and read 11356 times:

Quoting scrubbsYWG (Reply 2):
the last line of the article is fantastic.

That is exactly what I was just thinking!



Last Flight(s): YHZ-YUL-YYC-YVR-YYJ // YYJ-YYZ-YSJ-YHZ.....Next Flight(s):
User currently offlineStarAlliance38 From United States of America, joined Jan 2008, 1445 posts, RR: 3
Reply 4, posted (4 years 3 months 5 days 18 hours ago) and read 11149 times:

Quoting RJLover (Reply 3):
That is exactly what I was just thinking!

Very clever! Kudos to the PR officer who thought of this!

I guess it's understandable in the case for the Porter CEO. Was this a formalized arrangement and part of the contract signed at some kind of deal? A verbal or "understood" agreement can fall apart.



Roar, lion, roar
User currently offlinekanban From United States of America, joined Jan 2008, 3626 posts, RR: 27
Reply 5, posted (4 years 3 months 5 days 18 hours ago) and read 11098 times:
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He can get it all back by selling Porter Airways to AC and promising not to start up any other airlines that might compete

User currently onlineB747forever From Sweden, joined May 2007, 17079 posts, RR: 10
Reply 6, posted (4 years 3 months 5 days 18 hours ago) and read 11017 times:

Quoting kanban (Reply 5):
He can get it all back by selling Porter Airways to AC



As of know I doubt he will sell Porter Airways to AC. Isnt Porter doing okay right now?

Quoting scrubbsYWG (Reply 2):
the last line of the article is fantastic.



It is great.



Work Hard, Fly Right
User currently offlineLAXintl From United States of America, joined May 2000, 25750 posts, RR: 50
Reply 7, posted (4 years 3 months 5 days 18 hours ago) and read 10951 times:

I'm really surprised AC did not place any no-compete clauses as part of any agreements with Mr. Deluce

Quoting B747forever (Reply 6):
As of know I doubt he will sell Porter Airways to AC. Isnt Porter doing okay right now?

Porter has been trying to get an IPO off the ground for a while now, and had one even scheduled for last month that had to be scuttle at the last minute when underwriters had to readjust the offer price due poor finance market conditions.

http://www.montrealgazette.com/busin...viation+grounds/3100668/story.html



From the desert to the sea, to all of Southern California
User currently offlineAirCanadaA330 From Canada, joined Aug 2008, 294 posts, RR: 0
Reply 8, posted (4 years 3 months 5 days 18 hours ago) and read 10944 times:

Quoting scrubbsYWG (Reply 2):
the last line of the article is fantastic.

that line makes the whole article worth reading.

Quoting B747forever (Reply 6):
Isnt Porter doing okay right now?

I think so, I havent heard any numbers yet, but Im assuming that they are doing good.



Cheers;
User currently offlinelonghauler From Canada, joined Mar 2004, 5055 posts, RR: 43
Reply 9, posted (4 years 3 months 5 days 16 hours ago) and read 10568 times:

Quoting B747forever (Reply 6):
As of know I doubt he will sell Porter Airways to AC. Isnt Porter doing okay right now?

Porter has yet to show a profit, losing over $45M in just over 3 years. At the offer of the IPO, they had lost $6M so far this year. But .. they also claim profit is just around the corner.



Never gonna grow up, never gonna slow down .... Barefoot Blue Jean Night
User currently onlineB747forever From Sweden, joined May 2007, 17079 posts, RR: 10
Reply 10, posted (4 years 3 months 5 days 16 hours ago) and read 10521 times:

Quoting longhauler (Reply 9):
Porter has yet to show a profit, losing over $45M in just over 3 years.

Oh, I wasnt aware of that.

Quoting longhauler (Reply 9):
But .. they also claim profit is just around the corner

Every carrier claims that!



Work Hard, Fly Right
User currently offlineYYZRWY23 From Canada, joined Aug 2009, 561 posts, RR: 0
Reply 11, posted (4 years 3 months 5 days 16 hours ago) and read 10522 times:

Quoting scrubbsYWG (Reply 2):
the last line of the article is fantastic.

I agree. The PR department at AC is clearly very clever, and have quick whit as well.

Quoting StarAlliance38 (Reply 4):
part of the contract signed

I am sure something like this would be formalized in the legal documents leading tot hat sale of Air Ontario and Austin...

Quoting longhauler (Reply 9):
Porter has yet to show a profit, losing over $45M in just over 3 years. At the offer of the IPO, they had lost $6M so far this year. But .. they also claim profit is just around the corner.

Correct. I hope they do turn a profit soon.... I have heard they are a fantastic carrier and I want to try them soon. If they can get their IPO off the ground, I see a bright future for them

YYZRWY23



If you don't stand behind our troops, feel free to stand in front of them.
User currently offlineTheCol From Canada, joined Jan 2007, 2039 posts, RR: 6
Reply 12, posted (4 years 3 months 5 days 15 hours ago) and read 10403 times:

I wouldn't be surprised if this is just the tip of the iceberg. AC and Porter are going to make things as miserable for each other as they possibly can.


No matter how random things may appear, there's always a plan.
User currently offlinecyxuk From Canada, joined Mar 2009, 111 posts, RR: 0
Reply 13, posted (4 years 3 months 5 days 15 hours ago) and read 10379 times:

Quoting TheCol (Reply 12):
AC and Porter are going to make things as miserable for each other as they possibly can.

I think you are right. There is no end in sight for these jabs at each other


User currently offlineSanti319 From Mexico, joined Dec 2005, 400 posts, RR: 0
Reply 14, posted (4 years 3 months 5 days 12 hours ago) and read 10026 times:

Quote:
A spokesman for Air Canada says it's completely understandable why Deluce would prefer to fly Air Canada.

        


User currently offlineRP TPA From United States of America, joined Oct 1999, 852 posts, RR: 0
Reply 15, posted (4 years 3 months 5 days 10 hours ago) and read 9833 times:

Quoting TheCol (Reply 12):
I wouldn't be surprised if this is just the tip of the iceberg. AC and Porter are going to make things as miserable for each other as they possibly can.

For those not familiar with flying into Toronto Pearson, if they are landing to the west (which they do most of the time), you'll fly the downwind south of the airport, right over the downtown area. I wonder if Air Canada will be forced to change this, as Deluce might start denying overfly rights above the airspace over YTZ.  


User currently offlineOwleye From Netherlands, joined Feb 2006, 961 posts, RR: 2
Reply 16, posted (4 years 3 months 5 days 10 hours ago) and read 9802 times:

When such is signed and fixed in a contract than contract is contract. Law is law. But let the judges decide, it's their profession not ours.

User currently offlineua777222 From United States of America, joined Dec 2003, 3348 posts, RR: 11
Reply 17, posted (4 years 3 months 5 days 10 hours ago) and read 9774 times:

Quoting LAXintl (Reply 7):
I'm really surprised AC did not place any no-compete clauses as part of any agreements with Mr. Deluce

Wouldn't a monopoly-law prevent such a clause? Plus in Canada, its my understanding that common-law would have actually preventing Mr. Deluce from competing against them. But we're talking 20 years, I don't think any non-compete would reach that far unless pertaining to patents or industry secretes.



"It wasn't raining when Noah built the ark."
User currently offlineHotelDJRomeo From Canada, joined Dec 2009, 159 posts, RR: 0
Reply 18, posted (4 years 3 months 5 days 5 hours ago) and read 8212 times:

Quoting scrubbsYWG (Reply 2):
the last line of the article is fantastic.

Amazing. +1 to AC for that line. LOL

Quoting ua777222 (Reply 17):
, I don't think any non-compete would reach that far

Agree. Most contracts/agreements/pick your title that would prevent you from working for the competition will have a non-compete clause that would extend for 18 months or maybe two years - not 20.

Quoting TheCol (Reply 12):
I wouldn't be surprised if this is just the tip of the iceberg. AC and Porter are going to make things as miserable for each other as they possibly can.

They certainly don't seem to be going out of their way to be nice to each other. And it's already getting personal it seems.



Roger, Roger. What's our vector, Victor?
User currently offlinebe77 From Canada, joined Nov 2007, 455 posts, RR: 0
Reply 19, posted (4 years 3 months 5 days 5 hours ago) and read 7954 times:

Quoting StarAlliance38 (Reply 4):
A verbal or "understood" agreement can fall apart

If it is only verbal, then of course it can fall apart, but in Canada there is legal precedent supporting verbal / handshake agreements. Depends on the circumstances and such, but it sounds like AC was honouring for some time, then stopped, so he likely has a case...at least enough to get a judge to consider it.



Tower, Affirmitive, gear is down and welded
User currently offlineC172Akula From Canada, joined Mar 2001, 1008 posts, RR: 4
Reply 20, posted (4 years 3 months 5 days 5 hours ago) and read 7893 times:

I'm just waiting for Westjet to step in and say they will honour his agreement with Air Canada. Could give them some of that desperately needed exposure they are after in eastern Canada.

User currently offlineconnies4ever From Canada, joined Feb 2006, 4066 posts, RR: 13
Reply 21, posted (4 years 3 months 5 days 4 hours ago) and read 7288 times:

Quoting TheCol (Reply 12):
I wouldn't be surprised if this is just the tip of the iceberg. AC and Porter are going to make things as miserable for each other as they possibly can.

I agree with you on that. Properly marketed and managed, the YTZ-focussed Triangle service should be a gold mine, hence the two will fit over the possible spoils. Hopefully it won't wind up as a sort of "I'll burn it down before I let you have it" scenario.

If AC could ever produce a product that rivalled PD and worked on a cost basis, along with Aeroplan rewards, it could be very very good. But I think it would almost have to be an airline-within-an-airline operation, and the track record of these offerings has not been great:

Song (Delta)
TED (United)
Continental Lite (...)
MetroJet (USAir)
Attache (Canadian Pacific, geez, they were OK on their own)
Tango (AC, although Tango fares remain kind of like the Cheshire cat)
and on and on.



Nostalgia isn't what it used to be.
User currently offlinethenoflyzone From Canada, joined Jan 2001, 2584 posts, RR: 11
Reply 22, posted (4 years 3 months 5 days 3 hours ago) and read 6858 times:

Quoting HotelDJRomeo (Reply 18):
Amazing. +1 to AC for that line. LOL

Soon to be - 5,000,000 for AC.

By the looks of it, Robert Deluce is going to have a field day in the courts !!

Thenoflyzone



us Air Traffic Controllers have a good record, we haven't left one up there yet !!
User currently offlinethenoflyzone From Canada, joined Jan 2001, 2584 posts, RR: 11
Reply 23, posted (4 years 3 months 5 days 3 hours ago) and read 6798 times:

Quoting AirCanadaA330 (Reply 8):

I think so, I havent heard any numbers yet, but Im assuming that they are doing good.

They are doing very good. Out of the two, AC should be worried.

Porter has a larger market share on Toronto-Montreal and Toronto-Ottawa than Westjet does. And Porter has been around for only 4 years !! Westjet, on the other hand, has been around for 14. That's a huge slip-up from WestJet, and they know it !

Thenoflyzone

[Edited 2010-07-21 09:10:19]


us Air Traffic Controllers have a good record, we haven't left one up there yet !!
User currently offlinejamincan From Canada, joined Aug 2006, 776 posts, RR: 0
Reply 24, posted (4 years 3 months 5 days 3 hours ago) and read 6162 times:

Quoting Owleye (Reply 16):
When such is signed and fixed in a contract than contract is contract. Law is law. But let the judges decide, it's their profession not ours.

Except when the contract contravenes the law, in which case, that part of the contract does not apply.

For example, in Ontario, if I sign a contract with a landlord that I will not have a pet while living on the premises, I can still have a pet and not violate the contract, because the section of the contract which prohibits pets violates the Tenant Protection Act which affirms the right of tenants to have pets.


25 pink77W : where did he say he prefers AC ?
26 ytz : To my understanding this is not the result of a non-compete clause. Rather it was perk contractually accorded to him and his family for selling out th
27 multimark : And PD is losing money hand over fist getting that market share. That's your definition of "doing very good"? Deluce's action smacks of desperation.
28 Post contains images connies4ever : But not 14 years in the Triangle. More like 6. AC PR staff clearly have a great sense of humour.
29 UAL747DEN : There is a law that forces landlords to allow pets? As a owner of several rental properties I would have a BIG problem with this kind of law and just
30 LAXintl : I don't know about Canada but such non-compete clauses are quite common especially in the US. I don't see anything illegal about them as you are bein
31 9252fly : I'm not really too sure what to make of this situation,only to say it seems odd that Mr Deluce is in direct competition with AC,yet wants to maintain
32 Post contains images n800nn : good word use
33 Post contains images auroralives : The great unspoken here is that ACs network is just a "wee" bit larger than PD. Dollars to Donuts Mr Deluce flys Porter wherever PD flies.... but exp
34 crosswinds21 : I don't know about the whole history of AC and PD but this whole situation seems pretty straightforward to me. There is a contract clause that requir
35 thenoflyzone : Well, in my opinion, they are overspending on sales and marketing. That's part of the problem. 25M$ in 2009, and 7.4M$ in Q1 2010. Also, dont forget
36 Sebring : Have you read the agreement. Perhaps you should before offering a judgment on something so obvious to you. If there was specific wording - for person
37 Post contains links jamincan : Yep! On further research, it seems that the law has been updated since I was a student and is now the Residential Tenancies Act, but you can find the
38 crosswinds21 : No, I haven't. That's why I specifically said "unless there was some contract provision that directly or indirectly allowed for something like this."
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