by Jim Byers
Last updated: 4:10 PM ET, Mon February 15, 2021
Canadian airlines may soon get their long-awaited aid package from the Trudeau government. But travel agents are still waiting for their helping hand, and Canadian hotels might need new relief soon.
Calin Rovinescu, former chief executive officer of Air Canada (he officially retired on Monday, Feb. 15), said last Friday that he's more confident than ever that the Liberal government in Ottawa will come through with a sector-specific package for Canada's long-suffering airline industry.
Rovinescu said talks over the past few weeks have been focused on three pillars the government has insisted be part of any rescue plan, those being refunds for customers who had their flights cancelled, restoration of cancelled regional routes in Canada and support for the aerospace sector.
The two sides began talking in early November; more than three months ago.
Speaking to analysts after Air Canada reported a massive,$4.6 billion loss for 2020, Rovinescu said confidentiality agreements prevented him from elaborating on the talks. But he said he favours an aid model that would provide payroll support and loans for airlines.
"I'm more confident that there can be an outcome than I was six months ago," Rovinescu said. "Our expectation is that there will be something on all those three that will come up.
"I am very encouraged by the constructive nature of discussions that we have had."
Jerry Dias, president of the Unifor private sector trade union, was quoted on the weekend as saying he's confident an aid deal is around the corner.
"I've been speaking to the federal government as well as Calin and everybody and there's no question, it's imminent," Dias said in a phone interview, without providing further details.
Sunwing was recently given a $375 million loan by an arm of the government in Ottawa.
Travel agents, on the other hand, are still waiting to see if the Liberals will reach out with a package aimed at devastated agents and advisors.
"Without enhanced and urgent aid, and protection against commission recall, there will be imminent business closures and bankruptcies among travel agencies and independent contractors - as we have been warning the federal government," ACTA President Wendy Paradis said recently. "However, as we have been stating for months to the federal government, travel agencies and travel agents cannot survive the brunt of about $200 million in recall commission on cancelled and refunded bookings related to the COVID-19 crisis."
Paradis said ACTA has spoken to the federal goverment "and reinforced our message that any aid given to an airline or tour operator must include funding to cover travel agent recall commissions, and for a fund to cover past bookings already recalled."
Nancy Wilson of the Association of Canadian Independent Travel Advisors said recently that while the Liberals seem to recognize that airlines need help, there have been no announcements about agents. That, she said, "leaves us again scrambling, and concerned for the future of our businesses. Independent advisors, as well as travel advisors in storefront agencies, and travel agency owners are at a greater risk today of shutting their doors for good, and the work we have ahead of us is paramount to ensure we can limit those closures as much as possible."
The Trudeau government last December announced a new program called the Highly Affected Sectors Credit Availability Program, which is aimed at providing low-interest loans to struggling businesses in the tourism, hotel and other sectors.
Susie Grynol, president and CEO of the Hotel Association of Canada, said she welcomed those improvements. But she said Canada's hotel sector will need more sector-specific aid down the line.
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