Minister comments on air services in Labrador

Tom Lush, Minister of Intergovernmental Affairs, today commented on meetings held last week with officials from Air Labrador and the town councils of Happy Valley-Goose Bay, Wabush and Labrador City to discuss the recent withdrawal of Air Canada from the area.

"In my meetings with the executive team of Air Labrador, I was pleased to hear Mr.Warrick Pike indicate the withdrawal of Air Canada from the area presented an opportunity for the expansion of Air Labrador," said Minister Lush. "They are currently examining a number of options before they move forward with an expanded service. In the interim, they have added two additional flights to their schedule and are discussing the possibility of future schedule additions as well as the possible purchase of new aircraft to service the area."

On September 6, Air Canada Jazz announced it would discontinue its domestic air service on several routes in Newfoundland and Labrador including routes affecting Stephenville, Deer Lake, Goose Bay, Wabush and St. John�s in early January 2003.

Representatives from Wabush and Labrador City noted that although Provincial Airlines and Air Labrador will be increasing service to this area, cargo space remains a concern. They advocate that provincial air carriers also make adjustments to provide adequate access to cargo service.

"These meetings have been a great help to me in preparing for my meeting with the Honourable David Collenette, Minister of Transport on October 8 in Ottawa," said Minister Lush. "We discussed their concerns and I will take them directly to Minister Collenette. It is important he know we need Air Canada to work with our provincially-based airlines to ensure a smooth and complementary scheduling pattern. It is also important Mr. Collenette understand local interests must be protected in the future. If these airlines become profitably established in their expanded routes, I want a guarantee Air Canada will not encroach on their marketplace in the future."

The minister added he was extremely pleased Air Labrador and Provincial Airlines are committed to moving forward to fill the void left by Air Canada and noted this is an excellent opportunity for the provincially-based airline industry to grow.

"This presents a real opportunity for local business to expand in the market," said Minister Lush. "I want to assure everyone in the community that we intend to work with Provincial Airlines, Air Labrador and Air Canada to make the transition from Air Canada Jazz service to Provincial Airlines and Air Labrador a smooth one that provides the service the people of the province need and deserve."

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

2002 09 26 5:00 p.m.