Porter CEO sues Air Canada over free travel

[teacher]

Oh well than there goes my theory. I guess it'll be all in the fine print somewhere.

[complexintentions]

I don't think the lawsuit will be dismissed "rather quick"...he had the passes for 23 years and now suddenly Air Canada has a problem with it? If it makes anyone look desperate, it's Air Canada...I can see how it would stick in their throat providing free travel to the boss of their competitor, but if there's a legal agreement in place you can't just ignore it out of spite.

[airliner]

On BNN last night Mr.Deluce said that "Air Canada isn't the best or the worst airline. I have been to Nigeria and there was a worst airline there".

[genetic jack hammer]

On BNN last night Mr.Deluce said that "Air Canada isn't the best or the worst airline. I have been to Nigeria and there was a worst airline there".

...and he still wants his travel passes on AC? What a f**ked up knob, he is.

[canuckjetsetter]

He may have said that on BNN, but he also is quoted saying:

“On a long-haul international basis, they [AC] have a product that stands up against others. Why would I not use them given the travel rights that were embedded in a contract?” he said. “For any place Porter flew, I obviously flew Porter. But on the other hand, there are many places Air Canada covers that we do not fly to, and it made sense to continue using the pass.”

Let's not forget that in this country there really are only 2 options to get around the whole country. Why would Deluce pay WS to fly them (not to mention lack of business ammentities I'm sure he's used to) when he can fly AC for free and in biz class.

Another note, AC obviously didn't see a problem with Deluce's pass privileges when he was helping run things over at C3 for years after Air Ontario. Seems like, to me, this is just another jab at this never-ending jolst. At least this time the legal fees are coming out of Bob's pocket and not PD's (I hope).

[TyrellCorp]

On BNN last night Mr.Deluce said that "Air Canada isn't the best or the worst airline. I have been to Nigeria and there was a worst airline there".

That is not cool at all. Whatever respect I had for him just went up in smoke. BTW isn't that slander?

[airliner]

It seems like this thread was taken hostage by AC posters that are quick to dish it out. When it comes to Porter's rebuttal on BNN (which for the most part could be fact) everyones feelings got hurt. Seems more like AC is just trying to find more ways to hemorrhage money.

[canuckjetsetter]

This whole situation (since '06) reminds me of Legend Airlines' attempt (and brief success) of starting up business flights out of DAL. AA spent millions of dollars in court trying to prevent Legend from starting up - which they ended up doing but the legal fees over the course of 3 years really dug into their capital and at the end of the day, couldn't survive.

At least thus far, AC has had to compensate PD for it's legal expenses. I think it's time to give up on this rather frivolous cat fight and focus on bigger problems (WS's continued and successful growth, AA/BA's recently awarded anti-trust immunity, their pension fund payments which they managed to put off for 21-months yet is still going to need to be paid, and continuing to improve their customer service).

After just over a year in control, Calin has shaped up AC quite nicely but there is a hell of a lot of work to be done. Let PD do their thing and let AC focus on their own successes - both present and future.

[bmc]

I don't think the lawsuit will be dismissed "rather quick"...he had the passes for 23 years and now suddenly Air Canada has a problem with it? If it makes anyone look desperate, it's Air Canada.

+1

Doesn't say much for AC's ability to uphold agreements.

[Clark Kent]

On BNN last night Mr.Deluce said that "Air Canada isn't the best or the worst airline. I have been to Nigeria and there was a worst airline there".

That is not cool at all. Whatever respect I had for him just went up in smoke. BTW isn't that slander?

What part you didnt like?! Not praising for AC or the Nigeria part?! Curious

[bcflyer]

He admitted to using free passes on Air Canada to travel and do business for Porter. Air Canada took exception to that, cut him off and somehow they are the bad guys? I know you guys don't like Air Canada much but really? Does anyone here have the exact details of the agreement he signed? I doubt it. Until the courts sort it out its much ado about nothing. Another publicity stunt to get Porter's name in the paper and make AC look bad.

[2R]

When you sell a business you also sell the goodwill.
If you start a similar business using similar aircraft does that mean you would have to return the goodwill payments as well ?
If you are given travel vouchers as part of that agreement and you use them against the goodwill you sold ,should the honourable thing to do,be, payback the costs of those goodwill flights ?
Or wait until some Judge orders you to pay them back ?
The agreement to sell must have included a goodwill clause or somebody did not deserve their share of the billable hours.
If someone sells you the goodwill and then starts another similar business using similar aircraft.Would you trust them again ?
Although i smell some collusion here between AC and Porter to dominate that section of the market and shut out cheaper flights,just a matter of time before it all comes out.

[bmc]

It's not unusual to sell a business and include a non compete clause that restricts the seller from entering the market place, in competition, for a number of years. I'm sure AC had that in this agreement as the words " Deluce" and "airlines" go back as far as White River Air Service.

If the commercial agreement to purchase the assets and business of Air Ontario (or whatever the company name was) included passes for life, that's the agreement. Get over it.

Let's be clear, we are not privy to whole story here. On the surface, somebody has a problem withholding agreements.

It's long been common practice for airline CEO's to hold POS F/J/C travel cards on competing airlines. It's a non issue. Sure they compete in the marketplace, but a senior level, travel cards are standard issue and of a high boarding priority. I know this as fact having been responsible for it.

The issue at hand, based on my knowledge of industry discount travel, has nothing to do with how many flights Deluce took. This is not a pass bureau issue.

[altiplano]

-

[canuckjetsetter]

There couldn't have been more than 2 years or so on a non-compete clause as Deluce and family were part of the rise of C3 from 1988 till around the mid-90's (I believe but don't quote me on it).

[Jaques Strappe]

I don't think the lawsuit will be dismissed "rather quick"...he had the passes for 23 years and now suddenly Air Canada has a problem with it? If it makes anyone look desperate, it's Air Canada...I can see how it would stick in their throat providing free travel to the boss of their competitor, but if there's a legal agreement in place you can't just ignore it out of spite.

None of us actually know the details of said contract. One very plausible clause could be that passes are granted for personal travel only and if Deluce is claiming that he flies to the tune of $11K per month, then it is totally possible that someone at AC figured out he was in fact, traveling on Porter business and simply caught him in the act. If that was the case, then said contract has been violated by Deluce.

Not saying this is what happened, Just sayin there could be many reasons.

[bmc]

Jaques....I think you've hit it on the head.

Let's be clear, Deluce didn't get this far by being Mr.Nice Guy. Yes, he's a very sharp business man. And sharp business people are opportunists.

Why pay for the cow when the milk is free?

On the other hand...

This really is a weanie show.
My weanie is bigger than your weanie.
No, my weanie is bigger than your weanie.
No, my weanie......

[complexintentions]

Well, this is perhaps a re-phrasing of my earlier comment, but if Jacque's theory is true...than hey, good work Air Canada! Only took 23 years to figure it out! What was the first clue, the five-figure monthly travel figures?!



Yeah yeah I know...Deluce couldn't have been traveling on Porter business that long, it was just a joke.

But sitting on the sidelines of both businesses, the perception (right or wrong) is that AC petulantly tried to take back their ball and go home since they lost on the Island. So if it really is only a publicity stunt to make AC look bad I would say it's succeeded. Remember it doesn't matter what we "industry insiders" think, we are an insignificant minority compared to the general public....

[Jaques Strappe]

But sitting on the sidelines of both businesses, the perception (right or wrong) is that AC petulantly tried to take back their ball and go home since they lost on the Island......... ...

I have no doubt that was a motivator for someone at AC taking a closer look and possibly monitoring Deluce's use of passes.

[bcflyer]

Any have any insight on how this lawsuit is doing?