Porter Airlines' CEO sues Air Canada for $5 million

23-year-old contract breached

TORONTO, July 20 /CNW/ - Robert Deluce, president and CEO of Porter Airlines, has personally filed a statement of claim against Air Canada for breach of contract. The claim seeks up to $5 million in damages related to a travel pass agreement.

In 1986, the Deluce family sold Air Ontario and Austin Airways to Air Canada. Under terms of the sale, Air Canada agreed to provide Mr. Deluce and his spouse with a free travel pass for life.

Air Canada performed its obligations under this contract for approximately 23 years. In the fall of 2009, it unilaterally, and without warning, stopped honoring the arrangements.

"I perceive this as being just another in a series of tactical moves by Air Canada to distract and influence Porter," said Deluce. "Nevertheless, we are committed to growing Porter, continuing to successfully attract market share, and lowering prices for consumers."

The claim will be considered by the Ontario Superior Court of Justice.

For further information: Media contact: Kristen Shamess, Porter Airlines, [phone]