Air Canada is still seeking a buyer for its Air Alliance subsidiary, three months after putting the unprofitable Quebec-based regional on the block.
The company continues to drain Air Canada's resources, despite annual sales of around $35 million. A strike last year resulted in the loss of several million dollars, and the airline's aircraft are said to be too large for its route structure.
"The main reason we are interested in selling is the changing conditions of the Quebec travel market," says Air Canada spokesperson Nicole Couture-Simard. "Air Alliance should be run by someone specialising in operating smaller aircraft."
Air Alliance operates six Ratheon Bombardier de Havilland Dash 8-100s, and five Beech 1900Ds.
In June, Air Canada tasked Toronto-based RBC Dominion Securities with finding prospective buyers and closing the sale, but no time limit has been placed on the transaction.
"It's not a fire sale, by any stretch of the imagination," Couture-Simard says. "We will not accept a loss on the sale, and are willing to maintain the status quo until finding a buyer or deciding to do something else."
Air Canada is also interested in maintaining Air Alliance's regional feed for its Montreal and Quebec City flights.
"It is well recognised that you don't need to own something to be in close commercial cooperation with it," Couture-Simard adds.
Established in 1988, Air Alliance serves 15 destinations, including Ottawa and Toronto in Canada and Newark and Hartford in the USA.
For now, Air Alliance's 350 employees are watching and waiting.
Source: Flight Daily News
