TORONTO - Residents continued their vehement protest and government officials offered gushing praise as upstart Porter Airlines announced Monday it has already begun a privately funded, $45-million expansion of Toronto's controversial downtown airport.

The expansion of the island airport, located just off Toronto's shoreline, will allow the airline to double its traffic in and out of the city and will lead to 300 infrastructure jobs, while still respecting the local environment and community, said president Robert Deluce.

He grinned through speeches by federal Finance Minister Jim Flaherty, Transport Minister John Baird and a representative of the Ontario government, who all congratulated the company for its much-welcomed investment and offered compliment after compliment about the relatively new airline's level of service and successes.

"I can't tell you how happy I am to be at an announcement where the federal government has no investment -- there's no taxpayers money in this building," Flaherty joked.

"It is a good news announcement that's putting shovels in the ground... This is good for Toronto, it is good for Ontario and it's good for our country."

"I don't think anyone has ever worked so hard and faced so many obstacles and overcome them and triumphed economically," added Baird. "The great airline that is Porter is providing a lot of great service."

Porter began flying between Toronto and Ottawa in the fall of 2006 and has since expanded its roster of flight paths to Thunder Bay, Ont., Montreal, Mont Tremblant, Que., Quebec City, Halifax, New York and Chicago.

The company has also mused about potentially flying to Ontario cities Sault Ste. Marie, Sudbury, Timmins and Windsor, as well as Boston, Cincinnati, Cleveland, Detroit and Philadelphia.

Not everyone was singing Porter's praises, however.

Residents of Toronto's islands -- which house a small community of cottage-like residences a short ferry ride from the downtown core -- and other locals have complained the airport is a blight on the city's waterfront and should not be made larger.

Dozens of protesters slowed traffic into the airport before the announcement and complained about the prospect of even more planes soaring over their homes.

"We have a right to breath air that isn't filled with carcinogens spewed from the commercial airport 500 metres from our doorstep," stated a flyer that picketers distributed.

Deluce said an environmental assessment deemed the expansion would have no significant impact on the local community and added that his fleet of planes are designed for urban areas and emit low levels of noise.

"I think we're doing our part in every respect, particularly in regards to ensuring we approach this transportation hub with the utmost of concern and respect for the environment and the community."

Phase 1 of the Toronto airport expansion is expected to be ready by November and will include new aircraft gates and office space. By spring 2010, the airport could be outfitted with a second passenger lounge, 10 bridged aircraft gates, and Canadian and U.S. customs checkpoints.

Although the expansion is being funded by Porter, Deluce acknowledged that it could open the door to more competition at the airport.

"Porter will be the prime tenant in the new facility but yes, the building has been designed in order to accommodate other requests as well," he said.

Deluce insisted he's not worried about the likes of Air Canada encroaching on his turf and breaking up his monopoly on flights in and out of downtown Toronto.

"Particularly on the service side, we've managed to set ourselves apart from some of our competitors and I think that'll put us in good stead for a point in time when there may well be other competitors on this airport and elsewhere."