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Agreement between Ottawa and Air Canada

Agreement between Ottawa and Air Canada

(Ottawa) The federal government has entered into a financial aid agreement with the airline, Air Canada.




Joel Dennis BellavansJoel Dennis Bellavans
Journalism

Melanie MarquezMelanie Marquez
Journalism

It will be a loan arrangement, which will include a reimbursement fund for unused airline tickets due to the COVID-19 pandemic, according to information first reported by the media. English speakers, that Journalism Can confirm.

“This should not be seen as an emergency aid plan, but rather an investment to protect Canadians’ access to basic transportation services,” a government source said late Monday afternoon.

Details of the agreement will be clarified at a press conference this evening.

For several months now, the Trudeau government has been developing a strategy to save the Canadian aviation industry, which has been hit hard by the COVID-19 pandemic, and which has also agreed to suspend some flights to sunny destinations recently.

The Liberals put in place a list of conditions for airlines, including re-payment of tickets to customers for flights that were canceled, and re-establishment of regional routes that had been canceled since the start of the war, in particular the crisis.

The powerful and influential Unifor chief, Jerry Dias, recently estimated the cost of the industry-wide bailout at $ 7 billion in loans payable at 1% interest over 10 years.

The announcement of the agreement between Ottawa and Air Canada comes a week before the launch of the first budget of Finance Minister Chrystia Freeland.