| End of feud clears way for Pearson airport expansion Tue, Dec 12, 2000 By Rob Ferguson TORONTO -- The $4.4-billion expansion of Pearson International Airport got an important takeoff clearance yesterday after two years of legal feuding between Air Canada and the Greater Toronto Airports Authority. The two companies said yesterday they have signed a comprehensive letter of intent that settles all outstanding issues between them, including a lawsuit and damage claims. Under the deal, Air Canada has agreed to sell its stake in Terminal 2 and a hangar that blocks the end of a new runway now being built to the airports authority. In addition, Air Canada has agreed to collect an airport improvement fee through its ticket sales if the airports authority decides to impose the charge, said Lou Turpen, chief executive of the airports authority. A decision on the fee, estimated at $10 per passenger, is expected early next year. Getting Air Canada on board was important because it's the major tenant at Pearson, accounting for 60 per cent of the traffic, Turpen said. "If Air Canada isn't landing at our airport, we don't have an airport," he said. "This agreement paves the way ... to complete the much-needed airport development program as rapidly as possible, recognizing Toronto's status as a major international gateway." The deal must still be approved by the boards of both companies, with final agreements being signed by the end of January. The legal battles began two years ago when the two companies went to court over how much Air Canada, the airport's biggest tenant, would pay toward the redevelopment. The airport, Canada's largest, is expanding because its current passenger volume of 28 million passengers a year is expected to grow by another 24 million over the next two decades. Construction on schedule The expansion plans include a new main terminal, growing to six runways from the current four and a new dual taxiway system to improve airport traffic flow on the ground. The project should be complete by 2008. Construction work has been going ahead on schedule during the dispute. The new terminal's roof was recently installed, a fifth runway running parallel to Highway 401 is now two-thirds complete and an infield cargo depot is almost finished. Under yesterday's deal, Air Canada will be paid $90 million by the airports authority for Terminal 2, a recognition of the millions of dollars in upgrades such as baggage systems and ticket counters the airline made in the building. |