Companies in Newfoundland's booming offshore oil industry are lobbying Air Canada to rethink its decision to scrap a year-round daily flight between St. John's and London.

Air Canada will halt daily nonstop flights between the two cities in September, though the carrier responded to public complaints by creating a seasonal flight that will launch in April and run three times per week.

Ted Howell, president of the Newfoundland Ocean Industries Association, said delays in shipping parts could have large economic consequences.
(CBC)

However, that flight will involve a much smaller aircraft unable to carry some of the larger tools demanded for the offshore oil industry.

"If this equipment is not here, and they're unable to drill, they stop drilling," said Bob Pelletier, who works with Schlumberger, which provides drills, collars and other tools needed for rigs.

"Effectively, a rig could be waiting for this one piece of equipment to come in before it continues to drill."

Time and money

Ted Howell, president of the Newfoundland Ocean Industries Association, said such a delay can have a considerable impact on the economy.

"If production is shut down on one of our rigs we could lose 150,000-200,000 barrels of oil per day in production. At today's oil price that represents $15 million of lost production," Howell said.

Companies hope Air Canada will accommodate industry demands, though it appears the chances are slight.

After September, companies needing parts may have to make alternate arrangements, such as flying equipment to Halifax and then St. John's.

Those delays could involve both time and money. Gary Oates, who works with Cougar Helicopters, which ferries crews to and from offshore rigs, says a delay of three or four days would be unacceptable.

"At this point there is no other operator offering the type of equipment required to make these components move. We certainly hope someone else steps up to the plate," Oates said.