Air Canada Loses Toronto Island Airport Fight

Today will be Air Canada's last at the Toronto Island airport after it lost a legal fight.

Air Canada lost access to the airport after City Centre Aviation Ltd. announced it was going to renovate the terminal. The airline had sought a court injunction related to its lease termination.

"We're obviously disappointed," said Manon Stewart, a spokeswoman for Air Canada's Jazz service. "(Today) will be our last day."

Complicating the issue is the fact City Centre Aviation is owned by REGCO Holdings and Robert Deluce, who earlier this month announced plans to launch Porter Airlines from the island airport in September. City Centre Aviation operates the island airport on behalf of the Toronto Port Authority, a federal agency.

The court ruling gives a boost to Deluce as he makes a second run at starting an island-based airline. "(This) clears the way for a competitive alternative for travellers," he said in a statement.

In 2003, Deluce sought the city's approval to build a bridge to the airport so he could start an airline, but Mayor David Miller killed that deal shortly after being elected. Miller, who opposes a busy airport on the Toronto Islands, recently asked the federal government to investigate the legitimacy of the Toronto Port Authority, which controls the airport.

Miller thinks the city of Toronto should govern the island airport.

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