Exploring Its Options

Late last week, Porter Aviation Holdings Inc. (PAHI) said it was exploring a sale-leaseback of its passenger terminal at Billy Bishop Toronto City Airport (BBTCA). The terminal is operated by City Centre Terminal Corp., a PAHI subsidiary.

In its announcement, PAHI said that if completed, the transaction would allow PAHI to focus on its core airline business through Porter Airlines Inc. (Porter). Porter will continue to be based at BBTCA with no change to its airline operations. Proceeds from the sale will allow for continued investment in the airline’s growth.

Robert Deluce, president and CEO of PAHI, explained the move: “The investment by PAHI in designing, constructing and operating the BBTCA terminal at an early stage of the airport’s revitalization was crucial to supporting Porter’s growth. This helped create a unique passenger experience based on speed, convenience and service, which the airport is now internationally recognized for.”

PAHI noted as well that using experienced operators for airport infrastructure, such as terminals, is part of a global trend to enhance operations through private sector management. With a professional terminal operator, the airport will benefit from continued and focused development of retail, concessions and the overall passenger experience.

PAHI has retained Barclays Capital Canada and RBC Capital Markets to facilitate this process.

Porter Aviation Holdings Inc. (PAHI)

PAHI is a holding company for subsidiaries that include Porter Airlines Inc. and City Centre Terminal Corp.