U.S. airlines are protesting Porter Airlines “monopoly” at its base at Toronto Island airport saying it violates the new the recently completed U.S.-Canada Open Skies agreement. Porter proposes to start Toronto City Center Airport-Newark service on April 2 using Bombardier (BBD) Q400s.
However, six carriers, the Air Transport Association and Regional Airline Association, have filed with the DOT objecting to the Porter application. In addition to the ATA and RAA, others include Calgary's WestJet, as well as Continental (CAL), Northwest (NWACQ) and US Airways (LCC). They are objecting to the deal cut between the airport and Porter promising the fledgling carrier most landing and take-off slots. They further state that the deal struck with Porter by the Port Authority, which runs the major New York airports, including Newark, does not meet the goal of lifting barriers to entry between the two countries.
This is a battle first fought by Air Canada Jazz, which continued to reduce service in the market and, according to the port authority overseeing it, contributed to losses there. It ultimately abandoned service and was evicted from the airport, and with the advent of Porter, wanted back in but could not gain access. Related Story  Jazz continued the battle in federal court in an effort to relaunch service at Toronto City Center Airport, saying the port authority is unfairly preventing competition with Porter “by forcing it to sign a ‘secret’ operating agreement severely restricting the number of flights” it can offer from the island. Jazz accused the port authority of establishing a “virtual monopoly” at the airport.
Open Skies comes as the total value of trade flowing across the U.S. and Canadian border has nearly tripled over the previous 16 years, growing from $9 billion a year in 1990 to more than $24 billion in 2006. Likewise, there has been an increase of more than 2 million passengers flying between the United States and Canada since 2003. The new agreement means the express air cargo industry will have the ability to drop-off freight in several cities on the other side of the border. In addition, they will be able to fly onto other destinations around the world from Canada.