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Porter Airlines' ambitions fade at Billy Bishop Airport. Time of the essence to deliver new strategy

Analysis

Uncertainty over Porter Airlines' growth path has developed now that the new Canadian government has essentially nixed the airline's plans to operate Bombardier CSeries narrowbodies from Billy Bishop Toronto City airport.

Porter unveiled its ambitions to expand from Billy Bishop, and a conditional aircraft order from Bombardier roughly two years ago. From the onset, Porter faced strong political opposition for its plans to extend the runway and add jet operations from the airport, which is currently limited to turboprop flights. As political backlash against changing the airport's operating profile continued to grow, Porter offered no real back-up plans for its business going forward if its plans failed to materialise.

After the new government's dismissal of the plan, Porter still has not outlined its business strategy going forward. Its lack of clarity results in questions about the the state of its overall viability in the Canadian market place when its two largest competitors continue their expansion unabated. Both Air Canada and WestJet have an intense focus on properly serving all of Canada's passenger segments, especially the high yielding traveller that serves as a foundation of Porter's business model.

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