Kelowna Flightcraft DC-10

[mixturerich]

Are they still flying these? If so, which routes are they doing and is there a way of finding out the schedule?

[BMLtech]

Pretty sure it’s over. I read that the last one was parked/sold. Reference to DC 10 is gone from kfaero website.

[linecrew]

A search for Kelowna Flightcraft on the TC Canadian registration website doesn't list any DC-10s anymore.

[altiplano]

How did they lose the handle on that?

Barry Lapointe is still on the Purolator board... did he just want to turf the flying operation (Union), and is waiting in the wings to start up again? Or are there no more 727s available out there to part out and keep the larger operation going?

[BMLtech]

My guess is KF’s business model of using vintage aircraft with low acquisition cost and high fuel burn did not align with what customers are looking for these days.

[iflyforpie]

Cargojet’s offer was sweeter. They included things like ground handling which KF didn’t want to. Barry is on the board and a major shareholder of Purolator but excluded himself from the contract decision to avoid conflict of interest.

But the 727s days were numbered and the DC-10 was too big for CP and Purolators needs. When I was there I always imagined a 757 or 767 was a more logical choice but were probably too new and expensive for a company that traditionally made money on old aircraft bought cheap and flying few hours.

KF has always been a highly diversified company and primarily a 3rd party contractor and MRO. With Allied Wings, a few small Convair package runs, and extensive maintenance contracts I don’t think that they are doing badly at all.

[BMLtech]

I agree with above but it's sad that what was once Canada's third largest flight operations department is now just an empty shell. Very difficult to rebuild. KF had some experienced drivers, I wonder where they all ended up..
In 40 years of operations, I only recall one hull loss, the DC3 at Mayne island,and the vast majority of operations at night in all the shittiest weather you can imagine,98%+ OTP.

[W5]

There was the Howard 500 crash at YYZ, July 1981

[l_reason]

I don’t think Barry (KFC) wanted the Purolator contract with the new conditions. Let’s say I had a fleet of old tired airliners with a total value of a few million bucks. Purolator wants me to buy or lease 10 newer jets worth a couple hundred million. Then I need to buy 5 million worth of loading equipment and hire a bunch of people to do the work. All to compete with Cargojet that already has most of the equipment and a more modern fleet. They also have a more diversified customer base so they can bid aggressively for the Purolator work.

Now Barry is a smart guy, let’s say (complete speculation) he takes a big bag cash from some offshore account and buys some CJ stock. He may have invested millions in Cargojet in the year or two leading up to the contract award. He alone knew his bid was far higher then the CJ bid. If he gets the Purolator contract he makes a pile of money flying the cargo. If he doesn’t get the contact, He also makes money when the price of Cargojet stock jumps in the week after the contract award. My bet is that he didn’t want to renew, he made his millions just because he knew the outcome before anyone else.

[BMLtech]

That's interesting hypothetical speculation but it sounds a lot like insider trading so highly doubtful anything like that could happen in this day and age.

[rookiepilot]

That's interesting hypothetical speculation but it sounds a lot like insider trading so highly doubtful anything like that could happen in this day and age.

It happens.

Insider trading is rampant here in canuckistan. Take it from me. So is money laundering, aka the BC report. Duh. Obvious. And tolerated, that is the dirty secret.

Why? Cause Canada is so uncompetitive otherwise, they welcome all the capital they can get, however it occurs.

[iflyforpie]

I don’t think so either.

Like I said before... with the diverse revenue streams of KF Aerospace and it all being held under Barry Lapointe’s personal holding company, I don’t think he’s doing too bad at all.