Quebecair Pt3: 1980-1999 Arise Inter-Canadien

The 70s had not been kind to Quebecair and the 1980s would prove even less so. The wave of market consolidation in the mid-80s couldn't help but sweep up such a vulnerable airline and yet it would survive, albeit barely recognisable, to carry on serving Quebec into the 90s.

For previous parts of this series see:

• Quebecair Pt1: 1946-1970 Rimouski-Jets
• Quebecair Pt2: 1970-1980 Charters & Troubles

Mounting debts, elderly equipment, marginal routes and increasing competition within the Canadian market, itself approaching deregulation, all served to make the early 80s a treacherous time for the French speaking airline.

By 1979 the airline had come around to the 737 and decided to try and standardise its fleet on the type. A pair of leased TEA aircraft (C-GQBS, BT) arrived in late 1979 prior to the arrival of three new aircraft (737-296s) ordered from Boeing (C-GQBB, H, J). A further pair of aircraft from Maersk Air (C-GQBA and BQ) were leased in 1981/82. The 737s did not help the airline's financial situation and the airline could ill afford them even though it was relying on using them for IT charters to Florida to get it through the winter of 1981/82. Competition from Air Canada on these charters using Tristars pushed Quebecair to the brink forcing the local government to step in. The Quebec government invested within the airline to keep it flying but with its charter business in ruins and competition with Air Canada on its domestic schedules the red ink continued to flow (the airline lost $4 million in the first 6 months of 1982 alone).

The Quebec government attempted to force Air Canada off the competing routes to protect Quebecair however this caused a political fracas that saw the plan dropped, not that Air Canada or Nordair were ever willing to accept it anyway. Instead in 1983 the airline was purchased by the Quebec government which hoped to be able to sell it on in the near future. In the meantime the beleagured airline was forced to sell its 3 owned 737-296s to Pan Am in May leaving it with leased 737s and its elderly One-Elevens.

The One-Elevens were withdrawn and 6 HS-748s joined the fleet. Into 1984 the company took up a new red and blue striped livery. Despite the government buyout  Quebecair's losses continued into 1985 with a $8.4 million deficit. This was no doubt in part due to the lease of a pair of Douglas DC-8-63s (C-GQBA, QF) used briefly for transatlantic charters. After a heated tender process Quebecair was finally sold by the government in 1986 to private interests including Michael LeBlanc and Nordair who each had  35% holding. LeBlanc would become President whilst Nordair itself was soon absorbed into the new Canadian Airlines.

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By that stage Quebecair had returned all its 737s and was effectively operating as a feeder airline with CV-580s and a pair of newly delivered F28-1000s (C-GQBR/BS). Resulting pay cuts and lay-offs (staff were cut from 900 to 500) stimulated strike action from employees. Now operating as a regional commuter airline Quebecair's name fell victim to consolidation of Canadian's regional partners in Quebec when it was merged with the smaller Nordair Metro and Quebec Aviation to form Inter-Canadien in 1987. As part of this it gained a fleet of Metros and more CV-580s.

C-GQBS had previously been LN-SUO ‘Magnus Barfot’ with Braathens S.A.F.E since August 1969. By 1988 with costs significantly reduced the airline was finally profitable and began looking for jet replacements for its fleet. The decision between the F100 and BAE-146 led to an order for 7 new F100s of which the first arrived in 1989. The two F28s didn't remain in the fleet for long, though they did get the new colours. F-GQBS became F-GIAG with TAT and was then leased to Palair Macedonia in 1993 before being withdrawn and finally broken up in 1997.

Inter-Canadien's livery was unsurprisingly based upon that of its senior partner Canadian Airlines. This happy state of affairs didn't last long however as after 9 months LeBlanc had a falling out with Canadian, the mutual codeshare ended and he bought the airline out. Inter-Canadien went it alone and rebranded as Intair but didn't last long as it was unable to weather the 1990 recession. 

LeBlanc resigned in March 1991 and once again Canadian Airlines took control. The F100s were returned to their lessors in 1991 with C-FICQ joining Air UK as G-UKFE. She stayed with the airline after the takeover by KLM and when KLM UK was merged into KLM Cityhopper in 2003 this aircraft became PH-OFE. She was withdrawn in 2011 and is now preserved on the Amsterdam Schiphol visitor terrace.

Inter-Canadien's fleet was standardised around ATR-42s and towards the end of the 90s the carrier grew its fleet to 16 ATRs and 3 F28s with the takeover of many of Air Atlantic's routes. However the collapse of Canadian Airlines itself was finally too much for it and it also shutdown, extinguishing the last traces of Quebecair along with it.