Start-Up Airline Accuses City Of Abusing Power

They've been threatening to do it for a long time. Now, Regional Airlines Holdings has filed a massive lawsuit against the city of Toronto (ON) over a 125-yard long bridge to the Toronto City Centre Airport. The bridge would allow the number of flights from the island airport to increase from five to 55.

The $389 million (US) suit charges Toronto Mayor David Miller, who campaigned for office on a promise to stop the bridge project, "abused his powers of public office."

"I was quite shocked at the personal nature of the allegations," Miller said. "It's absurd, it's outrageous, it's nonsense, it's unbelievable, it's ridiculous. Does anybody have a thesaurus? There must be some other words to describe it. It's ludicrous. To claim $500 million for an airline that only exists on paper is just patently absurd."

But REGCO is deadly serious about the suit. It accuses Miller of threatening Toronto city council members "with a failure to appoint them to key council committees and other posts if they voted against his wishes" about killing the bridge project.

The council had already approved the bridge -- not once, but twice -- in November 2002 and June 2003. But after Miller took office, the city council voted 28-16 last month to scrap the bridge project.

REGCO CEO Robert Deluce says his company has already signed contracts and hired workers based on increasing the numer of flights from Toronto Island.

The airport is run by a combination of the city government, Canadian federal government and the Toronto Port Authority. REGCO is suing all three and says it might add more defendants to the suit before it's all over.

During Miller's campaign, Air Canada Jazz expressed interest in flying from the airport and hinted it might use regional jets to do so. That letter became public and became a flashpoint for anti-airport interests who built their argument on noise and traffic problems.

Prior to the election which swept him into office, Miller co-opted bridge opponents into his campaign. The REGCO suit takes the issue a step further, saying Miller favored Air Canada Jazz over startup REGCO. That Air Canada Jazz letter, according to the suit, was part of Miller's campaign strategy.

Toronto City Council members seem to have been expecting the lawsuit.

"I certainly believe they (REGCO) have incurred some costs over our dealings," Council Member Doug Holyday said. But he also indicated the suit was a bit too pricey. "Lots of times people sue for a lot more than they ever expect to get, and I think that probably would be the case here as well."

"This is David Miller's lawsuit because he, in fact, promised the taxpayers of the city of Toronto, that we wouldn't be on the hook on this. ... Any costs, David Miller has to take full responsibility for, from this day forward," said another council member, Denzil Minnan-Wong, in an interview with the Toronto Star.

FMI: www.torontoport.com/TCCA.htm