Porter investors show grit

Expanding your business during a recession? Might not be as crazy as it sounds.

As Chairman of the Toronto Port Authority, I spent the morning at the Toronto City Centre Airport (the TPA owns the TCCA). For every entrepreneur thinking about “what to do now?”, the $45 million expansion of the Porter Airlines terminal at the TCCA is certainly one example to consider. The airline industry is reeling, holiday travel is down, yet Porter CEO Bob Deluce and his institutional investors are making a huge commitment to grow their airline. The fleet will have reached 18 Toronto-made Q400 aircraft by year end, up from 6 last Fall.

The representation at today’s event of Federal Cabinet Ministers and Ontario Provincial Government legislators speaks to the non-partisan operation that the TCCA is. Unless you consider Toronto’s City Hall. Despite the 1,000 jobs that Porter will soon represent, from zero just a few years ago, Mayor David Miller has refused to step foot on the property for a tour. Just think of the increased cost to the taxpayers, plus the higher carbon footprint associated with jet travel and the longer ground commute, when Mayor Miller goes from City Hall to Pearson to take a flight to Ottawa, Montreal, New York or Chicago on official business.

As for the 25 protesters who tied up traffic on Bathurst Street this morning — pushing to close down the TCCA — the turnout doesn’t hold a candle to the tens of thousands who use the airline each month. If you look at Jeff Gray’s coverage in today’s Globe & Mail, you’d wonder why two dozen protestors get more billing that Mr. Deluce’s expected 500,000 passengers in 2009. Not that I wonder at all about their anti-airport agenda (see prior post “‘Public Service’ — easier said than done part 4” January 30-09).

Fortunately for the many businesses benefitting from Porter’s expansion, its institutional investors aren’t getting distracted by the nattering nabobs. Nor is the longest recession since 1945 serving as a barrier to expanding this thriving business. That takes courage.

As Tim Draper reminded some of us last month during an Atlanta speech at the South East Venture Conference, many great companies were founded or built during a depression or a recession: GE, Coke, J+J, HP, Amgen, Skype, Microsoft, Kodak, Adobe….

For every entrepreneur and VC who is hunkering down, there may be another path: Porter is showing true grit.

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UPDATE:

The Toronto Star editorial board applauded Porter et all today: “Island airport success“, calling the decision to expand “a ray of good news amid the economic gloom”.

MRM
(disclosure – this post reflects my own views and not the TPA, its Board/Staff, nor any level of government)