Minister comments on air service to Labrador West

Intergovernmental Affairs Minister Tom Lush today expressed his grave concern with the recent decision by Air Canada Jazz to discontinue weekend service to Wabush, Labrador.

"Air Canada seems intent on withdrawing services from many marginal regional markets across Canada so they can increase their concentration on high volume, high profit routes, " said Minister Lush. " As a government, we feel this is unacceptable and believe every effort must be made to ensure that everyone in this country, regardless of geographic location, has access to regular and affordable air service. We are very concerned with the movement away from regional air service and have conveyed these concerns to senior members of the Air Canada Jazz team during their recent presentation to the Cabinet Committee on Air Policy which I chair."

The minister went on to say that, although Air Canada has made numerous changes to flight service in Gander, St. John�s and Labrador in recent years, they have always assured the province that any move toward discontinuing service would not come without notification.

"In recent meetings, members of the Air Canada Jazz management team assured us that, prior to making a decision to discontinue service to any airport in Newfoundland and Labrador, Air Canada Jazz would present to the Air Policy Committee the results of its investigations into operational viability," said Minister Lush. "While I would not characterize Air Canada Jazz�s recent decision as a discontinuance of service, it is, none-the-less, one which significantly affects a remote region of our province. The decision is one which, in courtesy at least, Air Canada Jazz should not have implemented without prior notice to the Towns of Wabush and Labrador City and to the province."

"In the past, Air Canada has assured us that changes to the quantity and quality of air service in the province were necessary but would not have a major affect on accessibility," said the minister. This recent decision does not seem in keeping with these assurances and creates significant concern for the residents of Labrador West and other small regional air centres that depend on Air Canada flight services for business and personal travel.

"In light of this decision, I have written Robert Milton, President and Chief Executive Officer of Air Canada, asking for an explanation of how this decision came to be taken and implemented in such a cavalier fashion and inquiring as to whether this is how Air Canada and Air Canada Jazz intend to continue to conduct business in Newfoundland and Labrador. We look forward to hearing from Mr. Milton and discussing this recent decision and the overall direction of air service in the province."

Media contact: Janice Lockyer, Communications, (709) 729-1341.

2002 08 09                              1:45 p.m.