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Some interesting news: Source From http://www.yyznews.com/Mar.html
Load Factor ---Porter's CEO Robert Deluce says the 3-year-old company is able to break even when its planes are half empty, giving it a competitive edge over rival carriers. Mr. Deluce disclosed that the privately owned carrier's load factor, or the proportion of seats filled by paying customers, had to reach only 49.3 per cent last year for Porter to break even. While he did not give details on Porter's actual financial performance in 2009, he said the regional airline was profitable on a "fully allocated basis" from mid-2007 through 2008, issuing profit-sharing cheques to employees for both 2007 and 2008. He estimated last year's break-even load factor to be 71 per cent for WestJet Airlines and 83 per cent for Air Canada. The 2009 load factor at WestJet was 78.7 per cent while it was 80.7 per cent at Air Canada. Calgary-based aviation consultant Rick Erickson said it's hard to independently verify Porter's internal data because it is privately owned. Porter's break-even load factor "is perhaps aggressive and a little lower than I thought," Mr. Erickson said. Mr. Deluce said Porter's break-even load factor has steadily declined from 58.4 per cent in 2007 and 51.1 per cent in 2008. Industry observers say Porter has been able to keep operating costs under control with its single-fleet type of fuel-efficient Bombardier Q400 turboprops, while attracting a loyal following among corporate customers who prefer Toronto City Centre Airport over Pearson International airport. Mr. Deluce said Porter has its hands full now with regional growth prospects, but within a few years, it will mull over acquiring a mid-range jet that would help it compete outside its hub near downtown Toronto. "Longer-term possibilities leave open consideration for a mid-range jet type that could be utilized outside of our Toronto base and capitalize on opportunities beyond the current regional focus, including transcontinental routes," he said, referring to point-to-point flying that doesn't involve landing or taking off in Toronto. Mr. Deluce added that no decision has been made on whether Porter will be embarking on an initial public offering this year, but the IPO route is one option for raising money to fuel expansion plans.
Load Factor ---Porter's CEO Robert Deluce says the 3-year-old company is able to break even when its planes are half empty, giving it a competitive edge over rival carriers. Mr. Deluce disclosed that the privately owned carrier's load factor, or the proportion of seats filled by paying customers, had to reach only 49.3 per cent last year for Porter to break even. While he did not give details on Porter's actual financial performance in 2009, he said the regional airline was profitable on a "fully allocated basis" from mid-2007 through 2008, issuing profit-sharing cheques to employees for both 2007 and 2008. He estimated last year's break-even load factor to be 71 per cent for WestJet Airlines and 83 per cent for Air Canada. The 2009 load factor at WestJet was 78.7 per cent while it was 80.7 per cent at Air Canada. Calgary-based aviation consultant Rick Erickson said it's hard to independently verify Porter's internal data because it is privately owned. Porter's break-even load factor "is perhaps aggressive and a little lower than I thought," Mr. Erickson said. Mr. Deluce said Porter's break-even load factor has steadily declined from 58.4 per cent in 2007 and 51.1 per cent in 2008. Industry observers say Porter has been able to keep operating costs under control with its single-fleet type of fuel-efficient Bombardier Q400 turboprops, while attracting a loyal following among corporate customers who prefer Toronto City Centre Airport over Pearson International airport. Mr. Deluce said Porter has its hands full now with regional growth prospects, but within a few years, it will mull over acquiring a mid-range jet that would help it compete outside its hub near downtown Toronto. "Longer-term possibilities leave open consideration for a mid-range jet type that could be utilized outside of our Toronto base and capitalize on opportunities beyond the current regional focus, including transcontinental routes," he said, referring to point-to-point flying that doesn't involve landing or taking off in Toronto. Mr. Deluce added that no decision has been made on whether Porter will be embarking on an initial public offering this year, but the IPO route is one option for raising money to fuel expansion plans.