After 30 years in the Canadian aviation industry, Russell Payson is preparing for battle once again as Air Canada’s hired gun in its fight against Porter Airlines Inc.
Mr. Payson’s Sky Regional Airlines Inc. surprised the industry last October by winning a high-profile contract to operate the new “Air Canada Express” service from Billy Bishop Toronto City Airport starting May 1.
Most industry observers at the time expected the contract to go to Air Canada’s long-time regional affiliate, Jazz Air Income Fund, now known as Chorus Aviation Inc.
But knowing the admirable reputation Mr. Payson has earned for himself over the past three decades in the Canadian aviation industry makes the win a little less surprising.
It has been more than four years since Mr. Payson sold his interest in Skyservice Airlines, and he said in an interview this week he is champing at the bit for another opportunity to build an airline from scratch, and to get Sky Regional airborne this spring.
Air Canada’s new service from the island airport was originally slated to launch in February. But a hold-up negotiating terminal space pushed it out to May. In the interim, Mr. Payson said he has been training staff and putting the finishing touches on the service he and Air Canada will offer, putting an end to Porter Airlines’ five-year monopoly there.
“All of our staff is really up for this because it has become a personal pride issue for us,” Mr. Payson said. “Everybody is pretty hyped up on this.”
Mr. Payson’s history in Canadian aviation dates back to the launch of his air ambulance and executive jet business in 1986 under the Skyservice brand. In addition to maintaining a fleet of 60 business aircraft for well-heeled individuals and corporations, he now overseas a successful maintenance business for regional and business jets and turboprop aircraft.
Mr. Payson was also behind the launch of Skyservice Airlines in 1994, which quickly became one of the largest charter airlines in the country, and garnered him a reputation for running a tight ship. He managed to negotiate a graceful exit from Skyservice Airlines in 2007 when it was purchased by Vancouver-based Gibralt Capital Corp.
The charter airline subsequently fell into bankruptcy last year well after his departure.
But, like most in the industry itself, Mr. Payson’s path has not been without a few mishaps along the way, noted Rick Erickson, an aviation consultant who heads Calgary-based RP Erickson & Associates. The failed launch in 2001 of Roots Air, a luxury airline that lasted just 39 days before it folded, figures high on the list, he said.
That doesn’t detract from the fact that Mr. Payson is a heavy hitter in the aviation sector with a great deal of respect from his peers.
“He had some hiccups, Roots Air being at the top of the list. But there were some other players who had egg on their face over that too,” Mr. Erickson said. “In the meantime, he has run a steady-as-it goes business, and, obviously, Air Canada has a great deal of confidence in him too.”
Prior to the launch of Sky Regional, Mr. Payson had been focusing his attention on running his air ambulance business and Skyservice Business Aviation, which has bases in Toronto, Calgary, and Montreal, where Sky Regional will also co-locate.
He credits Skyservice maintenance facilities in Montreal, and his extensive track record for maintaining Bombardier Q400s that Air Canada will use on the Island dating back to the aircraft’s launch, for giving him a leg up in the competition to win the Toronto Island contract.
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