Porter Airlines seeks permanent injunction to unwind relationship between Air Canada and Jazz

    Demands $850 million in damages from the two airlines

    TORONTO, Oct. 26 /CNW/ - Porter Airlines Inc. has filed a Statement of
Defence and Counterclaim in the Ontario Superior Court of Justice against Air
Canada and Jazz Air LP seeking a permanent injunction to unwind the existing
relationship between two of Canada's largest airlines. Porter alleges the
arrangements violate the Competition Act, and is seeking damages in the amount
of $850 million.
    The counterclaim alleges that Air Canada and Jazz have conspired to
lessen competition in the passenger air services market by, among other

    (a) entering into an agreement through which they effectively coordinate
        their activities to establish airfare prices, increase their market
        dominance, avoid competition between themselves and impede new
        competitors such as Porter Airlines; and
    (b) requiring Canada's largest users of travel services to enter into
        exclusive contracts which offer discounts only if Air Canada and Jazz
        are assured of a substantial percentage of business system-wide.

    The counterclaim further alleges that Air Canada and Jazz have
coordinated their activities in a common attempt to destroy or disable Porter
Airlines' business. None of these allegations have been proven in court.
    "Despite ACE Aviation Inc. having reduced its stake in Jazz Air LP to
approximately 20.1 per cent, the two airlines continue to coordinate their
businesses in a manner which we allege is anti-competitive," said Robert
Deluce, president and CEO of Porter Airlines. "Porter intends to pursue this
claim to its full extent in an effort to ensure that competition in Canada
remains fair and equitable, not only for Porter, but for other new airlines
entering the marketplace."

For further information:

For further information: Media contact: Brad Cicero, Porter Airlines,
(416) 619-8593

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