After months of wondering when Ottawa will announce sector-specific aid for Canada’s struggling aviation sector, a “multibillion-dollar relief package” for Air Canada, and other parts of the industry, is expected to be unveiled Monday night (April 12), reports the Globe and Mail.
The Globe, which did not identify its sources, spoke to three individuals with knowledge of the negotiations between Ottawa and the airlines, which have been ongoing since fall of 2020.
The “rescue package” is said to be worth billions of dollars and is expected to consist of a mix of low-cost loans and wage subsidies, sources told The Globe.
The package will also reportedly come with restrictions related to executive compensation, that regional routes are maintained and that orders for aircraft would not be cancelled if jobs in Canada were affected.
These conditions echo similar conditions Canada’s previous Transport Minister Marc Garneau announced in November of 2020.
It’s also believed the government will announce a fund from which airlines can draw to refund customers for flights that were cancelled during the pandemic, The Globe reported.
WestJet is apparently not included in the package that is being announced on Monday as some discussions are still ongoing, the report says.
Parts of Ottawa's assistance package are expected to be available to other airlines, the report says.
According to CPAC, a live announcement will be made at 7:00 p.m. EST Monday night (April 12). Click here to watch.
This is a developing story.
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