YBG has provided a superb description of Intair. There are a few other interesting spin-offs from the Intair fiasco.
Until 1989, InterCanadien was a private company that provided services to Canadian via a commercial services agreement. Around September, InterCanadien, being squeezed/choked in their agreement with the Mother Corp decided to unilaterally cancel their agreement with CAI and "go it alone". It was a very poor time to do so as Air Atlantic was able to fill the gap from the east and Ontario Regional from the Ontario side. Additionally, for the Christmas season, all bookings got voided for the new Intair as they were no longer a part of the CAI family.
They were to operate Fokker F-100's in addition to their turboprop fleet. They hired into the jets separately from their long time turboprop staff. They had their own colours. Unfortunately, they neglected to initialize their own reservations network.
The reason Intair was so important to Canadian aviation in the late 80's is what happened afterwards: Until this time, all Canadian's partners, and all Air Canada's partners were privately owned carriers, connected to the mother via a commercial services agreement. When InterCanadien bolted and went on their own, it was felt by the majors that all the others could do likewise in time. So they bought them outright - Air Canada bought AirBC, Air Ontario, Air Alliance and Air Nova; Canadian bought Time Air and Ontario Regional. Air Atlantic was supposed to be part of the deal but its alcoholic owner shot his mouth off at an inopportune time and pi**ed off CAI to the point of withdrawing of the offer to include AAL in the deal.
The rest is history. Intair failed. It resurrected as InterCanadien (1991) Ltd and then failed again in 1999. Air Atlantic failed in 1993, was rescued temporarily by British Aerospace Jetstream Corporation, then by IMP Group Ltd which shut Air Atlantic down in October 1998. (They are in the process of resurrecting Air Atlantic as "CanJet" much to the consternation of all those laid off one year ago).
Now all the regionals operate at similar costs to the parent company and are in the process of either being absorbed or being liquidated. Only time will tell.
An interesting question, MattD. What is your reason for asking?