I could'nt get the link to properly work, so here is the story from The Globe and Mail Toronto, May 21, 2002 the story is written by Keith McArthur Transportation Reporter.
Former Roots Air executive aims to launch business airline
By KEITH MCARTHUR
Tuesday, May 21, 2002 – Print Edition, Page B1
TORONTO -- Airline veteran Ted Shetzen, the brains behind Roots Air, is quietly working on plans for an airline aimed at business travellers who want an alternative to Air Canada.
Mr. Shetzen said the new airline would launch in the fall of 2004, using small or medium-sized aircraft that would link some of Canada's biggest cities as well as international destinations through partnerships with foreign air carriers.
"There is room for another major full-service airline in this country that targets corporate travellers and premium travellers who will obviously get a lot more for less," Mr. Shetzen said in an interview.
Mr. Shetzen made similar comments in 2001 when he was working for Skyservice Airlines Inc. on plans for Roots Air, an airline that promised more perks at lower fares for business travellers fed up with Air Canada.
That airline ceased operations after less than six weeks in the air as a result of startup gaffes and a simultaneous effort by Canada 3000 Inc. to target business travellers.
Since the subsequent failure of Canada 3000 last November, various parties have been working on plans for new discount airlines. Halifax businessman Ken Rowe announced plans last week to resurrect CanJet Airlines,and Michel Leblanc, the former chairman of Royal Aviation Inc., is expected to announce plans this week for a new airline called JetsGo Corp. Conquest Vacations Co. has also expanded into the domestic market for the busy summer travel season.
But Mr. Shetzen said there is still a competition void at the high end of the market.
"Everybody's rushing into this no-frills, low-cost thing," said Mr. Shetzen, who has also worked in senior positions at Air Canada, Canadian Pacific Air Lines and Wardair. "Because Canadian Airlines is no longer [flying] and all the new entrants are no-frills airlines, there's room for a low-cost, full-service, interlinable airline."
Interlining refers to the practice of working with other airlines to feed traffic to them. Some foreign airlines have said they are looking for an alternative to Air Canada's feed for their international routes.
In addition to the rush of discount startups, there is at least one other airline in the planning stages that is geared toward business travellers. Robert Deluce, a former Canada 3000 president, wants to launch a regional business airline out of the Toronto City Centre Airport on the Toronto Islands in the fall of 2003.
Sam Barone, an independent airline analyst based in Ottawa, said a new airline geared to business travellers is a high-risk venture.
A low-fare airline like WestJet Airlines Ltd. has the advantage of being able to stimulate new traffic, Mr. Barone said. But an airline geared to business travellers will have to steal its business away from an existing business airline -- in this case, Air Canada.
Mr. Shetzen said that if his proposal is going to work, it will have to be very well capitalized. He doesn't have any firm investors yet, but said there are some people who "want to get very heavily involved in this business proposition" if the conditions are right.
Some of the potential backers are foreign investors, who are currently limited to owning 25 per cent of a Canadian airline under federal regulations.
"Ownership rules need to be changed to make it viable because obviously, if there's going to be real competition, there needs to be real money -- and real money will come from outside the country."
Mr. Shetzen said the business plan calls for small or medium-sized aircraft, which would allow the airline to be able to break away from the hub-and-spoke model used by Air Canada. This would provide passengers with more direct flights, instead of forcing them to land or change planes in Toronto.
Mr. Shetzen said he's not planning to launch the airline until late 2004 because it will take time to line up investors and aircraft and to reach deals with foreign airlines. He also wants to see how the federal Competition Tribunal resolves allegations of predatory behaviour by Air Canada in 2000. The dominant airline says it did not break competition law.
if anyone can get this link to work pls post it.