Transport 2000 Canada Hotline

9 March 2001

Summary

1 - Airport/Rail Link in Toronto
2 - Air Wars
3 - Roots Air start-up
4 - Polar air routes

This is the Transport 2000 Canada Hotline for 9 March 2001, Mike Murphy reporting.

1 - Airport/Rail Link in Toronto

Transport Minister David Collenette will soon be seeking private firms to build and run a rail link between the Lester B. Pearson International Airport in Toronto and Union Station, reports the Toronto Star on Thursday, 8 March.

Speaking to the Toronto Board of Trade, he said he will be seeking declarations of interest within about three weeks. The announcement was coincident with the arrival in Toronto of the International Olympic Committee which is currently examining bids for the site of the future games.

The idea has been kicking around for about 4 years. The currently favoured approach is to run a fleet of six self-propelled train cars running at about 130 kmh to a new station near the Woodbine Raceway, which would then connect with a Disney World-like monorail to the airport.

At about $250 million, the project would not be luxurious. Critics question the length of time it would take to make the trip and the fact that only 17% of airport travelers start or end in the downtown core.

2 - Air Wars

Air Canada is in trouble with the Competition Bureau for charging too little on its eastern routes that it shares with low fare competitor, CanJet.

The Halifax based new entrant has alleged that Canadas dominant carrier was using predatory pricing tactics on those routes and schedules used by CanJet. The Competition Bureau agreed, forcing Air Canada to abandon those fares. Other reports suggest that CanJet may be losing as much as $2 million a month and with long term leases on its six 737 jets, may be seeking a buyer.

Two days later, and at the other end of the country, Air Canada was under fire for charging too much between Prince Rupert, BC and Vancouver. The Canadian Transportation Agency directed Air Canada to reduce its lowest return airfare ($400) on the 450 mile trip to something more comparable to the $200 low fare between Winnipeg and Saskatoon, a similar distance.

Air Canada enjoys a monopoly between the two BC cities but faces competition between the prairie centres. An Air Canada spokesman said the ruling did not take into account the business realities of running an airline in a changing market and economic environment.Before it has even gotten its first airplane off the ground, Roots Air has fired a salvo at Air Canada, filing a complaint with the Competition Bureau that the predominant carrier is using predatory pricing.

3 - Roots Air start-up

Roots Air will be operated by Toronto based Skyservice. The start up airline, which expects to fly Toronto to Calgary and Toronto to Vancouver later this month notes that Air Canada has dropped the Calgary price to $909 for a three day advance booking, while leaving fares going to Edmonton at $1903. Roots also accuses Air Canada of stalling over plans to allow Roots Air passengers access to Air Canadas frequent flyer points system.

4 - Polar air routes

Air Canada announced plans to make over-the-pole flights from Vancouver to New Delhi. The move appears to be in response to Canada 3000s announcement to commence service by 17 October to fly the same route, plus one from Toronto to New Delhi and Bombay.

Finally...

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