Toronto

Porter exploring sale of Billy Bishop terminal

Porter Aviation Holdings Inc., the company that owns regional airline Porter Airlines, has announced it is exploring the sale of its passenger terminal at Billy Bishop airport.

Company looking to focus on airline and growth

Porter Airlines offers flights from Toronto to cities such as Montreal, Ottawa, New York and Chicago. (CBC)

Porter Aviation Holdings Inc., the holdings company that owns regional airline Porter Airlines, said Friday it is exploring the sale of its passenger terminal at Billy Bishop airport in Toronto.

The possible sale would allow the company to concentrate on Porter Airlines, it said. Proceeds from the sale will allow for "continued investment in the airline's growth," according to the company's news release.

The sale is described as a sale-leaseback. The current lease on the terminal at the island airport expires in 2032.

The Wall Street Journal reports the deal, which is being put together by RBC Capital Markets and Barclay's Capital Canada, is expected to be valued at more than $500 million.

The Billy Bishop airport lease expires in 2032. (David Donnelly/CBC)

Robert Deluce, president and CEO of Porter Aviation, said the airport was crucial to the success of the company and airline.

He said the terminal "helped create a unique passenger experience based on speed, convenience and service, which the airport is now internationally recognized for."

Porter Airlines offers flights to cities including Toronto, Montreal, Ottawa, New York and Chicago, but has been looking at expansion to destinations such as Los Angeles, Miami and Vancouver.

Porter Aviation was founded in 2006, and the airline began flying that same year.

In 2010, Porter Aviation looked at going public, but did not end up doing so, citing market conditions.