In response to the announcement by Fort York – Spadina MP Adam Vaughn that the federal government-designate would not be opening the Tripartite Agreement, airport expansionists mounted their first counter-attack.
Later the same day, a recipient of Porter’s advertising largesse introduced a second talking point: damage to Bombardier if it doesn’t sell Porter the twelve CS100s Porter has ordered conditionally.
Not so much says Robert Kokonis, president and managing director of AirTrav Inc., an airline consultancy. He called it “a small problem in a much bigger sea of troubles at Bombardier”.
Bombardier’s ‘sea of troubles’ include
- a stagnant order book with no new commitments for over a year;
- failure to get Airbus to take on much of the future cost of the CSeries;
- CSeries development costs $2.2 billion over estimates;
- $9 billion in debt and a 58% drop in share price this year;
- family-control rather than professional management of the firm.
As for Bombardier, its spokeswoman Marianella de la Barrera didn’t want to speculate on what loss of Porter’s 12 planes will mean for the company.
So much for the Chicken Littles who will claim that that no expansion will mean no more Bombardier plus enormous job losses.
The job loss claim is another sibboleth that needs to be tested by an independent cost-benefit analysis, something sorely missing from PortsToronto “robust” reviews.