ROOTS AIR PERMANENTLY GROUNDED
By Adnews Staff
Toronto-based Skyservice Airlines is permanently grounding its Roots Air business airline. The last flight will leave Vancouver tonight and land in Toronto early tomorrow morning. The move follows the formation of a strategic partnership between Skyservice Investments and Montreal-based Air Canada. Air Canada will acquire a 30% interest in Skyservice Aviation and 50% of the voting common shares of Skyservice Airlines. Air Canada will also acquire a 35% non-voting interest in Skyservice Airlines which will be distributed to its shareholders over the next 18 months. Skyservice said the suspension of Roots Air flights "was made after consideration of the dramatic changes in the airline landscape." "Recently a lot of capacity has been added to the routes we fly, which would mean that we would have had to wage the same kind of competitive war that Canadian [Airlines] did," Skyservice Airlines president, chairman and CEO Russell Payson said in a release. "Suspending flights was the fiscally responsible thing to do for our customers, shareholders and employees." Both Skyservice's existing vacation charter and Roots Air will be re-positioned. A new leisure carrier will launch this fall offering flights to destinations in the Caribbean, Mexico, Bahamas and Las Vegas. Advertising for Roots Air is done by its agency of record Grey Worldwide of Toronto. Public relations are handled by GCI Group, also of Toronto.