by Jim Byers
Last updated: 8:42 AM ET, Fri October 23, 2020
Transat says reports of a Trudeau government bailout for Canada's aviation industry is "very welcome news."
The Globe and Mail says the Trudeau government is quietly preparing an airline bailout package; something the Canadian aviation industry has been pushing for for months.
Asked for comment, Transat spokesperson Christophe Hennebelle issued the following statement to TravelPulse Canada:
"Any news that the government is finalizing plans to deliver on its promised support for the hardest hit airline sector is very welcome news, if we want the Canadian industry to be able to weather the crisis, remain competitive on the global stage, and support the wider Canadian economic recovery. Obviously, after eight months, time is now of the essence for our industry, with so many other countries having already acted months ago to secure their airlines and their workers."
"We think government support should be provided both in the form of immediate liquidity (low interest / forgivable loans) coupled with a proactive science-based approach on alternatives to the blanket border closures and quarantines in place in Canada since the beginning of the pandemic," Hennebelle said.
Today's Globe and Mail Report on Business says the Liberal cabinet is "deliberating a targeted bailout package for Canadai's airline industry that includes offers of low interest loans and rollbacks of airport fee increases to help it cope with the fallout from the coronavirus pandemic.
"The package of options that cabinet is reviewing recognizes that air travel is essential to the Canadian economy, and could come in the November economic statement or the next federal budget, expected in February or March, according to a senior government official and three industry sources. The Globe and Mail is not identifying the sources because the the government official is not authorized to discuss cabinet deliberations, and the others are not authorized to speak on behalf of their companies."
The Globe and Mail report says Ottawa is planning to make their bailout offer conditional on two potentially controversial requirements: "Public money cannot be used to pay air executives, and carriers may be asked to restart flights on routes that have been closed during the pandemic, according to the government source."
Canadiian airlines have noted that other countries around the world have bailed out their airlines with massive financial aid programs, while the Trudeau government has offered overall business packages such as the CERB program, but no direct aid for the devastasted aviation industry; a key part of Canada's travel and tourism economy.
Canada's tourism economy accounts for roughly one in ten jobs across the country.
WestJet earlier this month cut 80% of its capacity to the Atlantic provinces, while Air Canada earlier this year sliced 30 routes across the country.
"If you look at the airline industry, it has taken a significant hit," Navdeep Bains, Minister of Innovation, Science and Industry, said at an unrelated news conference on Thursday, according to the Globe and Mail report. "We recognize that as a government. We continue to work with the airline industry and all the relevant stakeholders to look at next steps of how we can support them, and support the workers and communities."
"We continue to work with all partners to ensure we can position our company to help lead Canada's economic recovery," a spokesperson for WestJet said early Friday afternoon. "COVID-19 has had a devastating impact on our industry and we continue to have discussions with the federal government on appropriate relief for our sector.
"We have not been provided with any details pertaining to support at this time."
Other Canadian airlines said they didn't want to comment or didn't have enough first-hand knowledge of the situation to make a statement.
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