by Jim Byers
Last updated: 5:26 PM ET, Thu March 4, 2021
A published report says the Trudeau government is "in the final stages" of talks with Canadian airlines, and that the final package could reach a value of $9 billion.
The CBC on Thursday quoted sources as saying that that most Canadian airlines are asking for financial help from the Trudeau government, likely in the form of loans. But they said Calgary-based WestJet would like to have Ottawa prioritize a plan to safely restart air travel across the country.
"I think the sticking point is money," said Jerry Dias, national president of Unifor, which represents about 15,000 workers in the airline industry. "The loan, the interest on the loan."
Dias told the CBC that talks between Ottawa and Canada's airline sector, which began in early November, were originally focused on the idea of a $7 billion loan to be repaid at 1 per cent interest over 10 years. But he said it's possible the deal could reach $9 billion.
"My understanding is a solution is imminent," he said. "But frankly, I thought it was imminent over a month ago, so we'll see where this thing ends up. But it's got to get done quick."
"This isn't a bailout. I would argue this is a loan to the industry," Dias said. "Based on the time that has gone on and the added complexity to the negotiations, I would suggest to you that the $7 billion is now the floor, not the ceiling."
Dias told the Toronto Star on Wednesday that he's spoken with Air Canada CEO Michael Rousseau and also with government officials involved in talks about a sector-specific financial package for Canadian airlines. Dias said Air Canada has agreed to Ottawa's demand that it repay customers who weren't reimbursed for flights that were cancelled due to the COVID-19 pandemic.
TravelPulse Canada ran a story quoting the Star's report. But an Air Canada spokesman on Thursday said nothing has changed.
"There is no update since the Feb. 12 (Air Canada annual) earnings release," Air Canada's Peter Fitzpatrick said in an email. "You can read that release here. It clearly says discussions are ongoing and that is still the case.
"There is nothing new since we issued this release," he said.
Former Air Canada President and CEO Calin Rovinescu said last month that he was optimistic that a federal financial package would be worked out. He also said he has no issue with the government requiring refunds be paid out as part of that package.
"I know that they're very close," Dias told the Star. "Based on the conversations I've had with the government and industry, I had already expected an announcement by now."
Fitzpatrick told the paper that Air Canada is encouraged by the constructive nature of recent talks.
Topics From This Article to Explore
