Local airline Airco has lost its bid to stop the closure of a runway at the City Centre Airport. The company has been fighting an injunction to keep the runway open despite city council's decision to close it in August.

CTV News has learned a judge has dismissed the company's application, which means Runway 34 will most likely close as planned this summer.

Airco has argued that the city broke its 56-year lease.

"An injunction would have been very clear cut and easy. It would have ensured that runway was open for businesses and now everything is back up in the air," said Mary Anne Stanway, Airco spokesperson.

Controversy has surrounded the issue since city council voted to close the airport several months ago.

A new lobby group has launched into its own battle with the city. The group argues the closure would harm northern communities and medivac services that heavily rely on close proximity to hospitals.

"Why would you want to shut down a perfect jewel of a transportation hub? It's a tragedy," said Charles Allard with Envision Edmonton.

Yet some councillors aren't willing to revisit the issue.

"After 8 months of research on this issue I found there really wasn't a business case to keep it open," said City Coun. Kim Krushell.

Still, there are some who feel city hall may have rushed the decision to close the airport.

"I really don't feel we fully comprehended what the closure of that runway would mean and I still don't believe we do today," said City Coun. Linda Sloan.

Airco can still move forward with its lawsuit, but the judge insisted that the broken lease is an issue for trial not an injunction.

Another lawsuit has been filed by the Edmonton Flying Club.

With files from Scott Roberts