Air Canada hits snag at Toronto island airport

Air Canada is not sure when passengers will be able to book flights through Toronto's island airport on the city's waterfront, after the airline failed to reach an agreement over terminal space.

The country's largest carrier is in talks with terminal operator City Centre Terminal Corp., owned by Robert Deluce, the head of rival Porter Airlines.

"As those talks are ongoing, we are not in a position to confirm a revised timeline for start-up," spokeswoman Isabelle Arthur said in an email.

Service had been scheduled to start sometime in February.

Arthur said the airline is trying to reach agreement to lease terminal facilities to accommodate the new service.

"We look forward to resuming service at the island airport and serving our customers who have been looking forward to that event with anticipation."

Sky Regional Airlines that will operate five Bombardier Q400s turboprops has begun taking delivery of aircraft.

"Negotiations between airlines and City Centre Terminal Corp. are confidential and the details cannot be discussed," Deluce said in a statement.

"We understand that Sky Regional is still in the process of finalizing licensing with Transport Canada. This licensing is required before any service can begin."

Air Canada plans to offer up to 15 daily flights from Billy Bishop Toronto City Airport to Montreal's Trudeau International Airport.

The new route will compete with regional carrier Porter Airlines, which started flying out of the airport four years ago.

Air Canada was granted initial approval to fly into and out of the downtown Toronto airport in June. It plans to appeal a Federal Court ruling that ordered it to pay nearly $2 million costs stemming from its fight with Porter over the allotment of tarmac slots at the airport.

The airline had launched a judicial review to increase the 30 slots granted by the airport authority. The federal high court dismissed the claim.

Continental Airlines was also awarded 16 slots and Porter was given 44 slots in addition to the 112 it already had.

Chris Murray of PI Financial Corp. said the delay will have a minor impact on Air Canada, which has enough demand to make the route a success.