https://www.theglobeandmail.com/busines ... os-island/
Porter Airlines Inc. warned it was losing millions of dollars and threatened to leave Toronto’s island airport in a dispute with the owner of the terminal more than a year before the pandemic sent the air travel industry into crisis.
The battle with Nieuport Aviation is at the centre of a legal action between the two companies over at least $49-million in fees levied by Nieuport, which owns the terminal at Billy Bishop Toronto City Airport.
The dispute according to the Globe dates back from 2018, when Porter notified Nieuport it would begin to reduce its flights at the airport on certain days. Nieuport refused to reduce Porter’s fees or slot allocations, and said the airline was required to pay for 172 of 202 available daily slots per an agreement that was struck with Porter in 2015 when Porter sold off the airport's terminal to Nieuport.
In 2020 during the pandemic, Porter then sued Nieuport in Ontario Superior Court of Justice for $21-million for breach of contract, seeking forgiveness of as much as $45-million in fees for unused slots. Nieuport then countersued Porter, seeking $10-million in punitive damages and payment of the disputed fees, which total about $49-million for the 12 months ending in March, 2020. Nieuport was also demanding Porter replenish its security deposit with Nieuport with a letter of credit worth $11-million in their counter suit.
In it's lawsuit, Porter is alleging Nieuport charges slot fees that are three or four times as expensive as those of Pearson, and that it refused to stop levying the fees during Porter’s shutdown during the pandemic. Porter is also threatening to leave the airport entirely as well, citing factors that have hurt the competitiveness of the airport, from the opening of the UP Express train between downtown Toronto and Pearson, the Federal government's refusal to allow jet operations at the airport, limits on the maximum size of aircraft allowed at the airport, delays to the expansion at the airport, and an overall decline in service at the airport, such as the loss of free coffee, newspapers and cookies for passengers.
Porter's CEO apparently told Nieuport's CEO back in 2018 that Porter's forecasted a loss of $40 million for that fiscal year, and that Pearson’s yearly fees would amount to $50-million less than those of Nieuport.
It's interesting that this bit of information is coming to light, and perhaps does kinda make sense in conjunction with the other rumours around Porter, such as the rumours around an alleged Embraer E2 jet purchase.