Air Canada to begin Flights From Toronto Island airport in February

Air Canada (AC.B.T) plans to begin offering flights at Toronto's island airport in February after reaching a long-term agreement with the airport's operator, the company said in a statement.
The 15 non-stop daily flights between Toronto and Montreal will be operated on Air Canada's behalf by Sky Regional Airlines Inc., an affiliate of Sky service Business Aviation, Canada's largest airline said. Sky Regional, which won a competitive bid process to provide the service, will sublease five Bombardier-built Dash 8 Q400 turboprops from Air Canada, which is in the midst of leasing the aircraft. Agreements are expected to be finalized "in the coming weeks,Air Canada said.Air Canada is trying to win back the high-margin business travelers it lost to upstart Porter Airlines Inc. the airport's main tenant because of ease and convenience of travel from downtown Toronto to the Billy Bishop Toronto City Airport, better known as the Toronto island airport. The Toronto-Montreal route, linking the country's two most populous cities, is a lucrative route for the airlines.

One of the things that business travelers prize is frequency, and that's one of the reasons why we decided to focus on Montreal and this gives us a good schedule,said Air Canada spokesman Peter Fitzpatrick.The Toronto Port Authority, which operates the island airport, awarded Air Canada and Houston-based Continental Airlines Corp. takeoff and landing slots in June.Toronto-based Porter earlier this year said it intended to increase its number of daily flights between Montreal and Toronto to 46 from 28.Montreal-based Air Canada said its selection of Sky Regional to operate the new flights has no impact on its commercial arrangements with other regional carriers, including its key regional partner Jazz Air LP. Halifax, Nova Scotia-based Jazz Air previously flew at the island airport for Air Canada until a terminal company headed by Porter's founder Robert Deluce ousted Jazz in 2006. Jazz Air signed a $454 million deal to buy 15 Q400s in April.Air Canada remains in talks with the airport terminal owner, City Centre Terminal Corp., to lease terminal space at the island airport.In Toronto Monday, Air Canada class B shares closed down 5 Canadian cents to C$2.80.