Porter Airlines (P3, Toronto Billy Bishop City Centre) parent, Porter Aviation Holdings Inc. (PAHI), says it is exploring the potential sale-leaseback of its passenger terminal at Toronto Billy Bishop City Centre. The terminal is operated by City Centre Terminal Corp., a PAHI subsidiary.
"If completed, the transaction would allow PAHI to focus on its core airline business through Porter Airlines. Porter will continue to be based at Toronto City Centre with no change to its airline operations. Proceeds from the sale will allow for continued investment in the airline's growth," The Group said.
Quoting anonymous sources familiar with the firms dealings, US media sources claim PAHI has already decided to go ahead with the proposal which, if successful, could raise "more than USD500million". PAHI has retained Barclays Capital Canada and RBC Capital Markets to facilitate the process.
According to the Wall Street Journal, PAHI's lease on the terminal expires in 2033, "but it is being offered to buyers with the option for renewal."
From its Toronto City Centre hub, Porter currently serves 18 destinations in Canada and the United States with plans to expand its reach to further afield destinations with the arrival of its A220-100 fleet.
