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Transport committee  Sorry, if I can just speak to your further question on capacity, acquiring aircraft hauls is probably a very small part of capacity. In order to operate aircraft, there have to be hangar facilities for the repair and maintenance; you have to have the crews, the ongoing testing of the crews.

June 8th, 2010Committee meeting

William Henderson

Transport committee  They didn't have wide-body aircraft. But as I pointed out, in January 2008, Purolator, well apart from this contract by well over 18 months, had requested Kelowna to start evaluating aircraft such as DC-10s, MD-11s, 767s, to transition into wide-body aircraft from the narrow-body fleet.

June 8th, 2010Committee meeting

William Henderson

Transport committee  You know what? I can say that the perception may look like that, but this is a public RFI that we participated in. Eighteen months prior to this contract we had already engaged Kelowna Flightcraft, and the analysis was done by Boeing and the Air Cargo Management Group out of Seattle for this.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Absolutely.

June 8th, 2010Committee meeting

William Henderson

Transport committee  That's correct.

June 8th, 2010Committee meeting

William Henderson

Transport committee  The other....

June 8th, 2010Committee meeting

William Henderson

Transport committee  That's fair to say.

June 8th, 2010Committee meeting

William Henderson

Transport committee  As I said, even with all the trucking companies we do business with, we will open up bids to anybody. We've actually had American carriers try to bid on these, so we don't exclude American carriers from doing it. Air carriers, obviously, have much more difficulty with the registration of aircraft in this country, but they can register aircraft to operate in this country.

June 8th, 2010Committee meeting

William Henderson

Transport committee  We put it out in the marketplace, and based on service, cost, financial stability--the top three criteria--we select for it.

June 8th, 2010Committee meeting

William Henderson

Transport committee  I think it's a good-news story for Canada, yes, sir.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Certainly. In terms of preferential treatment, Purolator's transparency is such that even though we are a private organization, we issue an annual report. That goes out to 2,000 of Purolator's shareholders. It's issued to both Kelowna Flightcraft and Canada Post. That has in it our consolidated financial statements.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Yes, because it's been Purolator's business model for both trucking and air that we utilize outsource providers to complete our transportation requirements.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Purolator issued a public RFP in 2007.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Nine companies responded. We go through a bidding process. Each bidder actually comes in to make their individual proposals. Then we go through a scrutiny at that time. We review, as we're progressing, with our board, since the matter of airlift for Purolator is significant in how Purolator conducts its business.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Kelowna Flightcraft had the capacity at the time, yes.

June 8th, 2010Committee meeting

William Henderson