Porter Airlines and Nieuport Aviation Resolve Terminal Fee Dispute Amicably

In a significant development, Porter Airlines and Nieuport Aviation Infrastructure Partners LP have amicably settled their long-standing dispute over terminal fees at Toronto Billy Bishop City Centre. The resolution comes after a period of contention and legal proceedings.

The disagreement between Porter Airlines and Nieuport Aviation, the owner of Toronto Billy Bishop City Centre’s passenger terminal, originated before the pandemic, revolving around the fees charged at the Billy Bishop Toronto City Airport (BBTCA). When the COVID-19 pandemic hit, Porter Airlines voluntarily suspended operations from March 20, 2020, to September 8, 2021, citing the “force majeure” clauses in its contract due to circumstances beyond its control.

Following a four-week trial in late 2021 and early 2022, the Ontario Superior Court ruled on October 19, 2022, that Porter was not entitled to relief from contractual obligations due to the pandemic and ordered damages exceeding CAD 130 million (USD 95.3 million).

The legal battle involved lawsuits from both parties, covering issues such as Porter’s surrender of take-off and landing slots and payment disputes. Porter sought damages for breach of contract, while Nieuport Aviation charged the airline for unused slots and threatened to seize aircraft.

Porter Airlines appealed to the Ontario Court of Appeal, but in a recent turn of events, both parties released statements confirming the amicable resolution of their disputes and litigation. The terms of the settlement remain undisclosed.

Nieuport Aviation’s President and CEO, Neil Pakey, expressed satisfaction with the resolution, stating, “We are pleased to see a resolution to this matter.” The conclusion of this dispute marks a positive step forward for both Porter Airlines and Nieuport Aviation, potentially impacting their future collaboration at the Billy Bishop City Centre.