The Government of Canada said it will begin formal discussions on providing financial support to airlines, airports and the aerospace sector that have been hurt by the Covid-19 pandemic.
Federal relief "could include loans and potentially other support," said Transport Minister Marc Garneau said in a statement released on Sunday. Any aid will have conditions attached to it, such as airlines agreeing to issue refunds for unused tickets. Ottawa will also push for airlines to reinstate regional routes that they canceled because of a shortage of passengers, said Garneau.
Federal aid for the sector would mark the Justin Trudeau government’s first package to help the travel industry cope with the Covid-19 crisis. Trudeau’s ruling Liberals have come under criticism for refusing to create such programs.
Canada remains an outlier among Group of Seven (G7) countries when it comes to financially supporting the airline sector. The U.S. approved billions in stimulus funds and loans to help air carriers, and Germany, France and other European countries have provided billions of euros in aid for their airlines.
The National Airlines Council of Canada, which represents the nation’s largest carriers, said in a statement that it’s “encouraged” by the announcement.
WestJet Airlines (TSX:WJA), the Calgary-based airline that’s owned by private equity firm Onex Corp. (TSX:ONEX), said on Sunday that it will evaluate the government’s statement and “await greater clarity on what support for the aviation sector might include.”
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