The coronavirus pandemic created a cascade of complications for all commercial airline operators globally. Some governments have been less active than others in propping up the operators and services provided in their jurisdiction, and others have intervened strongly to sustain the industry. Among the latter is Canada, which has finally decided to prepare a rescue program.
However, the conditions of this aid are clear: airlines will have to pay refunds for unused tickets. Today Marc Garneau, the Canadian Transportation Minister, issued the following statement, indicating that the companies received «an interest-free loan» from passengers:
«A strong and competitive air transport industry is vital for Canada’s economy and the well-being of Canadians. Due to our vast geography, Canadians rely more heavily on air travel than other countries. Canada has successfully built a strong air travel system that connects communities across regions, supports a green, world-leading aerospace supply chain, the tourism sector and regional economic development, and directly employs over 100,000 Canadians.
«The pandemic has hit the air sector harder than any other and it is facing a delayed and slow recovery. With passenger levels still down almost 90 percent, air carriers and airports have been forced to take drastic measures to remain viable. Broad-based government supports like the Canada Emergency Wage Subsidy have helped to mitigate the severe impact on employees in the sector.
«However, we have heard from many Canadians who have been negatively affected. When this unprecedented pandemic broke out in the spring, Canadians who had already booked travel ended up stuck with vouchers for trips they could not take instead of getting refunds. They found themselves in a situation where they have given thousands of dollars in interest-free loans to airlines.
«We have heard from Canadians in the air travel and related industries who have lost their jobs or fear for their job security. We have heard from Canadians who have lost air service to their regional communities.
«Canadians are rightly angered by these developments.
«The air sector cannot respond to these challenges on its own, given the unprecedented impacts on its operations. To protect Canadians, the Government of Canada is developing a package of assistance to Canadian airlines, airports and the aerospace sector. As part of this package, we are ready to establish a process with major airlines regarding financial assistance which could include loans and potentially other support to secure important results for Canadians. We anticipate beginning discussions with them this week.
«Before we spend one penny of taxpayer money on airlines, we will ensure Canadians get their refunds. Regional connectivity is important to Canadians traveling now and in the future. We will ensure Canadians and regional communities retain air connections to the rest of Canada, and that Canadian air carriers maintain their status as key customers of Canada’s aerospace industry. Any assistance the Government of Canada provides will come with strict conditions to protect Canadians and the public interest.»
