” Castlégar News December 3, 1986 PWA buys CP Air for $300 million By JEFF ADAMS CALGARY (CP) — Pacifie Western Airlines Corp., Canada’s third-largest air carrier, has gobbled up Canadian Pacific Airlines Ltd. in a bid to take on federally owned Air Canada Pacific Western paid $300 million Tuesday to buy all the issued and outstanding common shares of CP Air, Canada's second-largest air carrier. The takeover leaves the merged carriers with only half as many planes and employees as Air Canada, the country's largest airline. But pacific Western spokesman Jack Lawless said the deal creates an airline network large enough to rank 24th in the world, giving Calgary-based Pacific Western the national and international routes needed to compete with Air Canada. Donna Mitchell, CP Air's director of international strategy and industry affairs, said from the firm's Vancouver headquarters that Air Canada’s size made a merger of its next two largest competitors inevitable “Both airlines saw the wisdom of this,” added CP Air president Donald Carty. They “realized that to be competitive with the Crown corporation was going to require a network.” The merged airlines’ 30,000 employees will serve 82 domestic destinations plus 17 internationally MAY CHANGE NAME Lawless said Pacific Western, which earned $13 million last year and $19 million during the first nine months of 1986, has no plans to absorb CP Air. Both will keef operating as separate companies, although Carty said a name change for his firm is likely. Carty said he doesn’t expect any cuts in passenger routes or flight frequency, but Lawless said the fact both carriers have a few parallel routes — such as Calgary Vancouver — means some consolidation may be required CP Air's fleet of 13 McDonnell Douglas DC-10 jets, including three leased to United Airlines Inc., will probably remain intact. But some of its 51 Boeing 737s, the same plane Pacific Western operates on most routes, may be sold. Pacific Western's purchase does not include acquisition of CP Hotels, which operates in Canada, West Germany and Federal deregulation plans go array OTTAWA (CP) Federal plans to gain lower air fares and better service for travellers by promoting the birth of new airlines may crash before they get off the ground. The latest blow to the spirit of airline deregulation is the takeover of Canadian Pacific AirLines, the country's No. 2 airline, by Pacific Western Airlines, No. 3. Together they are still less than half the size of Crown-owned Air Canada. Virtually every other airline in the country is allied with one or the other of the megacarriers, as Hugh Whittington, editor of the trade magazine Canadian Aviation, has dubbed them The most notable exceptions are Wardair, the original proponent of deregulation which now faces an uncertain future as the country's No. 4 airline, and City Express, which soon will face stiff itis for its “There's still plenty of time for the government to look at what's happening and say we may have been a bit too hasty,” Whittington said from his Toronto office Deregulation lifts government controls on airline routes and prices. It is supposed to encourage competition in the industry, encouraging new airlines and lower fares. CONTINUE THE ROLL Deregulation was imported from the United States by former Liberal transport minister Lloyd Axworthy in 1983. He started the airline industry down the runway to deregulation and his Tory successors have continued the roll. The legislation officially implementing deregulation has yet to be approved by Parliament. So far the big airlines have become bigger while the smaller ones have become fewer. Lower air fares have been much less visible. Whittington said the trend to megacarriers isn't in the best interest of the industry or travellers. The sale must be. approved by the Canadian Transport Commission, but a commission official said there isn't much chance the commission will say no in view of orders from the government to act as if air deregulation is already the law. Transport Minister John Crosbie said in the Commons he had no plans to object to the merger but that any concerned citizen is welcome to protest to the Toronto-Ottawa-Montreal commuter service from Air n Air Canada subsidiary He said the move “may lead to more competition by establishing two strong national carriers.” Where Things Just Got Better * 55.000 Minimum Castlegar Savings offers a 6-month or 1-Year Term Deposit at a rate higher than Canada Savings Bonds! Deposit Limited Time Offer (May be changed or withdrawn without notice) Come in and buy your term deposit! Letter deadline Wednesday Did you know there's just one week left to drop off your letters to Santa? That's right, deadline for letters to Santa to be printed in the Castlegar News is 5 p.m. Dee. 10. Children should write the letters to: Santa Claus ¢/o Castlegar News, Box 3007, Castlegar, B.C. V1N 3H4, and we'll do the rest. We'll try to publish as many letters as we can in the Castlegar News, space per mitting. And this year we'll again draw 10 letters from those submitted. Each of the 10 letter writers will receive two tickets to the Castle Theatre. But remember, the dead. line is next Wednesday so better tell Mom and Dad ‘to help you get started! For Active People OPEN SUNDAY 11-5 ‘Til Christmas Israél. The chain, which earned $14.5 million last year, will become a wholly owned subsidiary of CP Ltd. CP Air lost $100 million during the last five years plus another $30 million in the first six months of 1986. Lawless said he has no idea whether the takeover wili result in layoffs at either airline. Carty said staff increases are more likely. But Robert Biggar, a prong official of the International Association of Mi 3,500 was halted Monday morning after a buying spree forced up its stock by $1.25 to $21 a share. It also rose $2.50 in heavy piety apes no reason for requesting the halt, but rumours of a deal with CP Air had been circulating. : Buying CP Air means Pacific Western has also acquired Eastern Provincial Airways and Quebee-based Nordair. Both were purchased by CP Air since 1984 in its debt ing effort to expand eastward. Nordair provided at CP Air and about 200. ae Pacific Western, said he is worried about layoffs. And the Brotherhood of Railway Workers and Airline Clerks union, saying it fears many of its 1,600 members may suffer job losses or unwanted transfers, announced it will ask Ottawa to kill the takeover. But Lawless said Pacific Western is expecting federal approval within a couple of months. The Alberta government owned most of Pacific Western before selling out in late 1982. The largest block of shares today is no bigger than four per cent. Pacific Western trading.on the Toronto Stock Exchange access to Quebec while Eastern Provincial opened the door to the Maritimes. Air Canada countered recently by taking over Air B. and Air Ontario, in which Pacific Western also has a small stake in Pacific Western Airlines Ltd., Pacific Western Holidays Ltd., Pacific Western Leasing (1986) Ltd. a 46-per-cent investment in Lethbridge-based Time Air (1982) Ltd., and a 50-per-cent investment in GPA Jetprop Ltd. The corporation underwent a reorganization last April that included the sale and then lease-back of 16 Boeing 737 jets for $250 million. That deal fle: eshed out Pacific Western's bank account to a hefty $355 million Gortex Ski Gloves ON SALE Hockey Equipment yyand Sticks . Fishing Tackle Rods & Reels . . . ON SALE * Aerobic Footwear by Jogging Suits & Reebok Sweat Clothing Brooks Goggles & Ski Kaepo Wax * Leotards & Tights Children’s Ski Toques Soft Weights Socks & Underwear Printed Sweat Shirts Sunglasses Fashion Active Wear Ski Jackets Children’s Ski Mitts Mountain Ski & Sports Hut Castieaird Plaza * 365-3525 ON SALE : $200,000 INVESTMENT LOST Awarded damages A Vancouver woman has received payment in dam ages after financial advisors recommended she invest $200,000 in savings in the Teachers’ Investment and Housing Co-operative only four days before its collapse. A B.C. Supreme Court judge on Monday ordered Canada Trust to pay. retired teacher Evelyn Blair $50,000 for the bad financial advice she received last spring. Blair, like scores of other co-op depositors, did receive 75 cents on the dollar, or $150,000, back. And Justice Alan Mac. donell awarded her the bal ance. Macdonell ordered the trust company pay her $50,000. And in doing so, he blasted money man J. Russell Abraham for not knowing the difference between a co-op and a credit union. “The irony of the matter is that Abraham served a two- month stint as inspector of credit unions,” said Mac donell, in reasons for judg ment “If he didn't know the dif. ference between a co-op and a credit union he was badly suited for that position.” The court heard that in ad ministering the proceeds of her late husband's estate, Abraham, a Canada Trust employee, urged Blair to join several RRSPs for tax pur poses. Abraham also brushed aside Blair's concern about dumping all her savings in one place. He assured her the money would be fully in sured, as if in a credit union. But co-ops are not fully insured, noted Macdonnell “Even his understanding of the security of deposits in the credit union is faulted. Macdonell declined to find Abraham or advisor Richard E. Baker, who confirmed Abraham's bad advice to Blair, personally liable. In. stead, he ordered that Can. ada Trust pay Blair's losses plus interest Drug bill questioned OTTAWA (CP) — Con- sumer Affairs Minister Har- vie Andre was accused Tues day of misrepresenting the position of generic drug pro- ducers on last-minute chan ges in a bill to amend the Patent Act. NDP Leader Ed Broadbent first made the complaint during the Commons ques tion period. Similar com ments came later from an of. ficial of the Canadian Drug Manufacturers Association in Toronto. It was the second day in a row that statements by the minister were called into question On Monday, the NDP com plained that Andre used the names of Steve Fonyo, Rick Hansen and the late Terry Fox in a news release on the bill that was issued last week. Doug Lewis, parliamen tary secretary to Deputy Prime Minister Don Mazan kowski, rejected the com plaint Tuesday morning. He said the news release said the three athletes had raised money for medical research, but it didn’t link them to the legislation itself. The Conservative govern Party... Come Visit Santa LEGION HALL Saturday, Dec. 6 10 a.m. -1 p.m. ment wants to chaage the Patent Act to give producers of new brand-name drugs 10 years of protection from competition from generic, or no-name drugs. The idea is to encourage more research, siimulate investment and create more jobs in the industry Critics of the bill say it will lead to hefty increases in the cost of new drugs for con sumers in years to come. The original draft bill pre pared by the Tory govern ment last spring would have given brand-name producers 10 years of protection — but only if they started manu facturing the necessary phar maceutical-grade chemicals in Canada within two years instead of importing those ingredients. The revised bill tabled in the Commons this fall did away with that requirement. It also said generic producers who made their own chem. icals could get into the market after seven years in stead of being forced to wait 10 years. Broadbent said the re quirement in the original bill would have forced brand name producers to create Children’s Christmas Treats tor the Children * Hot Chocolate * Hot Dogs * Candy Canes * Oranges & Cookies by: Castlegar Dowatown Business Sponsored Protos wth Sonte Avestable * Nomina! Chorge (Private Photographer more jobs in Canada, and he asked Andre why it was removed. “It was removed from the bill because it was asked to be removed by the Canadian Drug Manufacturers Asso- ciation, which represents the generic companies,” André replied. Lawyer jailed for 3’ years KAMLOOPS (CP) A lawyer who stole almost $60,000 from clients’ accounts in an attempt to stave off bankruptcy was sentenced Tuesday in provincial court to 3’ years in prison. Don Riley, 55, of Kamloops pleaded guilty Oct. 29 to two counts of theft over $200. Defence lawyer John Ro wan told the court that Riley, who graduated third in his class at the University of British Columbia in 1963, was involved in a property de velopment scheme in the late 1970s. But when the price of land fell in the early 1980s, Riley went deeply in debt and finally declared bankruptcy in 1983. Charges were laid follow ing an investigation which began when a discrepancy was noticed in the books of his former law firm. Court was told Riley moved clients’ money from one account to another, si phoning off some of the money to pay his debts. The net loss to clients was $59,800, but court was told Riley only actually got $29,000 Riley voluntarily surren dered his licence to practice law in 1984 Nelson woman compensated By CasNews Staff A Nelson woman received one of 97 monetary rewards announced in B.C. during Oc tober under the Criminal In. jury Compensation Act According to a prepared release, a 25-year-old Nelson woman was attacked and struck in the face with a broken bottle wielded by a female assailant. She suffered an extensive laceration to her forehead and face and was subse quently awarded $2,070. Under the act, anyone who is a victim of a crime in B.C may either apply for com pensation or bring an action against a person or do both. When a victim chooses not to pursue an action then, upon payment of compensa tion, the Workers’ Compen sation Board is entitled to sue the party or parties respon sible for the victim's injury One week left in story contest Hey kids, have you written your Christmas short story yet? Don't delay, there's only one week left to get the stories in. The contest is open to children ages 14 and under And it’s easy to enter. All you have to do is write a story of any length as long as it’s less than 300 words The story must begin with the line: “It was a Christmas Eve like never before” and end with the line “That was the true spirit of Christmas. The stories will be judged in three categories and the top three stories published in the CasNews Christmas Greetings special edition on Dec. 24 In addition, the first, second and third place winners in each category will receive book certificates worth $15, $10 and $5, respectively Just mail or drop off your story at the Castlegar library (downtown or Kinnaird branch) Castlegar News, 197 Columbia Ave But hurry or at the deadline is 1 p.m. next Wednesday RIBBON CUTTING . . . Dorothy Gourlay, represen- ting Kootenay West MP Bob Brisco, and Castlegar mayor Audrey Moore cut ribbon Friday marking of- ficial grand opening of Elektro Dohmen in its new ss TREET "TALK AN OFFICIAL grand opening was held Friday afternoon at Elektro Dohmen Enterprises Ltd. in Castlegar's industrial park. Although the business has been in the building since last December the opening was delayed until Friday to coincide with Elektro Dohmen’s 10th anniversary More than a dozen people attended the official ribbon-cutting ceremony. The ribbon was cut by Mayor location at Castlegar industrial park. Looking on are Dieter and Ursula Dohmen, owners of the business. CostewsPhoto by Chery! Colderbonk The beer now is called true ale, referring to the brewing process. A true ale is top-brewed, meaning after fermentation, the yeast is drawn off the top rather than settling to the bottom of the brewing container. REGIONAL RECREA. TION Commission No. 1 has a new recreation coor. dinator. She's Lerene Mac- Gregor. MacGregor is fill- ing the position held by Verona Walker, who is on a six-month leave of absence. A graduate of the Uni- versity of Alberta with a Bachelor of Physical Edu- cation, MacGregor has held a number of recreation in E and Audrey Moore, and Dorothy Gourlay, repr ing Kootenay West MP Beb Brisco. Representatives of the Castlegar and District Development Board were also on hand to congratulate owners Dieter and Ursula Dohmem on their official opening. 4 The $222,500 building is being leased from the City of Castlegar. All but $10,000 of the funds to construct the building came from a federal grant. The city chipped in the remaining $10,000 for the building. NICK OGLOW and eight other Kootenay West Liberal delegates did some pre-planning with B.C. senators last weekend in Ottawa, and eventually they managed to get party leader John Turner aside where they could really give it to him What they gave him was a framed peneil sketch by Rossland artist George Bouchier of Turner's boyhood home in Rossland. The presentation took place at a B.C. Liberal delegates’ reception held at the Parliament buildings ‘Turner was very pleased and it went over extremely well,” said Oglow. “We ended up getting recognition for Kootenay West on a national scale.” FOR THE first time in two years of use, the new digital service at Nelson's B.C. Tel office experienced “technical problems” that may have left Castlegar residents trying to make long distance calls at the time completely frustrated B.C. Tel public affairs officer Ed Clark said it is still] being looked into but the problem, which occurred at 12:49 p.m. and shut down service for 29 minutes, forced staff to reprogram the computer's memory Service manager Bob McAllister tried to explain, in| layman's terms, that the memory was “mutilated,” possibly during the continual updating of data which must occur to keep abreast of new customers and| services. McAllister explained that level one traffic (one plus number dialing) was totally impaired, but level 0 traffic (operator assisted calls) was still operating Local calls in Castlegar, which are relayed through Trail, were unaffected, but local calls in Nelson were interrupted for the entire 29 minutes. “There is the possibility of this happening any time, said McAllister. “But breakdowns are very few and far] between.” NETICIST AND television personality David Suzuki mentioned his West Kootenay heritage while speaking Friday night at the Brilliant Cultural Centre I did live in the Slocan Valley for three years,” Suzuki told the audience of more than 1,700, “and I remember the Doukhobor population there who fed us vegetables and fresh meat and helped us to get through many winters. And I'll never forget that THE COLUMIA Brewing Co. has re introduced its Vietoria. For the past 1' years she has been substitute teaching in Fort St. James and Vanderhoof. A native of Castlegar, MacGregor was employed with the recreation department for the summer as a fit ness instructor. THE TRAIL branch of the Canadian Mental Health Association is again holding its Gift of Hope campaign. The campaign involves buying a new, unwrapped gift. “We ask for gifts of hope so that all mental patients in hospitals, care residences and at home in this area may receive gifts from under the Christmas tree and enjoy the Christmas festivities and know that someone cares about them,” says CMHA spokesman Vernita Lynde. Gift of Hope boxes are located in local stores until Dec. 10. Donations can also be made to CMHA Trail Branch, 1325 McQuarrie St., Trail VIR 1X2. YOU MAY be able to peddle around the Upper Arrow Lakes next summer. Patricia McNeil has been given the go-ahead to operate peddle boat retals on Nakusp Beach, provided adequate liability insurance is in place. LORENE MacGREGOR . . Fecreation coordinator December 3, 1986 oO TO eC TR We er ge ee it's Easw to Budget Yourself with These Food Buys @ At Central Food ShopEasy OF BEEF BARO STEAK INSIDE ROUND cu 5g FBAS SPARERIBS 8B n'4"l hd STEWING BEEF ,..,, $929] BS on 1 DELI DELITES CAPICOLL! | TURKEY FY BREASTS OVERLANDER SMOKIES wenn 49° | RIPE OLIVES LINDSAY. WHOLE /PITTED. CORNED BEEF RIPPER SHACKS BOLOGNA 29° PINK SALMON Beer RAO $109 STUFF'NSUCH $429 WINNER OF $100 WORTH OF GROCERIES ON OUR ANNIVERSARY CELEBRATIONS WAS G. FRANCO OF CASTLEGAR OPEN CRACKERS PEAR HALVES, 98° N AUSTRALIA. 3 $ MINCEMEAT SLICES OR HALVES. CROSS & BLACKWELL BATHROOM Ue LAUNDRY DETERGENT TIDE OR OXYDOL (Room and | Board Facilities Needed Selkirk College requires room and board tacilines for Inter national students arriving in Castlegor The stu staying for one month to o year times The overage remuneration $350 0 month. If you are in terested in providing a home environment tor these studen ts please contact We send special 5 CASTISGAR CAMPUS eo= 1700 Costieger 6c vin 3s1 368 7202 For our association and your support over these past 10' Sometimes change does not come easily. The interruption of our service to Castlegar means on end to many good times and a few not so good years We apologize to anyone we have offended over the years Thanks” to those people who have supported us at our best and have stuck by us at our worst. Thank you, Castlegar SHIRLEY & ALLEN WOZNEY GRAPES RED EMPEROR. No.1 .... kg. 17,69 . ANJOU PEARS B.C. GROWN. CARROTS B.C. GROWN. No. | : .*1*° O09 g ONIONS MEDIUM NO. |! 3 Ibs. 69° 3 NUTS IN THE SHELL FUBERTS, BRAZILS ALMONDS, WALNUTS “hy S98 PEANUTS sso, 99° IN THE SHELL. ....- SI OR SO GO I IP CI SHS OT OA I OI PRICES EFFECTIVE THURSDAY, DEC. 4 THRU To SUNDAY BEC. 7/86 Coutral Foods YOUR COMMUNITY AWARD WINNING FOOD STORE BUSINESS HOURS Mon. Tues. Wed. & Set Fam. tobp.m Thurs. & Fri Foam. to%p.m SUNDAY 10 A.M. TOS P.M.