The Government of Canada continues to strive to serve people who work in the aviation sector and Canadian airlines through this unprecedented and difficult time for the industry. (Pexels photo)
In a country as large as Canada, it is important that we maintain connections between people and our communities.
To this end, the Deputy Prime Minister and Treasury Secretary, The Honorable Chrystia Freeland, and the Minister of Transportation, The Honorable Omar Alghabra, announced today that Air Canada will be financially supported.
In order to receive this assistance, Air Canada will ensure that:
- Regional communities are maintaining air connections to the rest of Canada by resuming service at airports temporarily suspended by Air Canada.
- Any Air Canada customer who requests a refund will receive a refund for certain pandemic-related cancellations.
- Airlines’ jobs, pensions and collective agreements are protected. and
- Air Canada remains a customer for the Canadian aerospace sector.
The Government of Canada continues to strive to serve people who work in the aviation sector and Canadian airlines through this unprecedented and difficult time for the industry. The government is also committed to supporting the gradual return of business in the aviation sector in Canada so that the health, safety and safety of all Canadians remain a priority.
Negotiations with other Canadian airlines for financial assistance continue and any agreement reached in these negotiations will include a requirement that the airline also reimburse pandemic-related cancellations. In the event that an airline does not need government liquidity support, the government remains open to helping all airlines provide voucher refunds to their customers.
This financial assistance, announced today, in the form of repayable loans and an equity investment, will help Air Canada weather the current economic downturn and protect thousands of Canadian jobs.
“From coast to coast to coast, it is important that we maintain connections between people and our communities large and small. Protecting Canadian customers is important. Maintaining a competitive Canadian aviation sector, Canadian airlines and the thousands of good jobs in the sector is a priority. This is guaranteed by today’s announcement from Air Canada. “
– The Honorable Chrystia Freeland, Deputy Prime Minister and Treasury Secretary
“For our economic recovery and to rebuild better, we need a strong Canadian aviation sector that creates good jobs, boosts the economy and helps connect communities across Canada. Today’s announcement by Air Canada is another important step in that direction. “
– The Honorable Minister of Transport, Omar Alghabra
- Since the beginning of the global pandemic, the government has supported the aviation sector and other hardest hit sectors through a range of targeted support measures, including Canada’s Emergency Wage Subsidy. To date, aerospace workers have received over $ 2.1 billion in support from the wage subsidy.
- In addition, the government announced over $ 1 billion in support for airports and smaller airlines in the Fall 2020 Economic Statement.
- In the Fall 2020 Economic Statement, the government reiterated its commitment to ensuring that Canadians receive reimbursements as a condition of financial support for large airlines.
- The aviation sector, including airlines, supports 235,000 community jobs across Canada.
- Government financial support for Air Canada is provided through the LEEFF (Large Employer Emergency Financing Facility). Canada Enterprise Emergency Funding Corporation (CEEFC) is a Federal Crown Corporation founded in May 2020 that is wholly owned by Canada Development Investment Corporation (CDEV), a parent company of Crown.