A flight arrives at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward

Airlines demand ‘concrete plan’ for financial aid after throne speech hints at relief

Canadian airline revenues in 2020 will fall by $14.6 billion or 43 per cent from last year

Canada’s flight industry is tentatively taking heart in signals from the throne speech that financial help is on the way but wants to see quick, clear action to support the sector, which has been devastated by the COVID-19 pandemic.

The government’s speech from the throne Wednesday pledged “further support for industries that have been the hardest hit, including travel and tourism.”

The National Airlines Council of Canada acknowledged the commitment, but president Mike McNaney said federal authorities need to “immediately make a concrete plan… to support the sector.”

“We can’t keep waiting,” he said in a phone interview. “All of our G7 trading partners all have brought forward sectoral support… We have not.”

Passenger numbers are down 94 per cent from 2019, with aviation still at “Stage 0 in its recovery” amid ongoing travel restrictions, said the group in a release. The council represents Air Canada, WestJet Airlines Ltd., Air Transat and Jazz Aviation.

Between the three largest airlines, more than 27,000 employees have been laid off since March. Nav Canada, which runs the country’s air navigation system, announced earlier this week it has cut 720 jobs or 14 per cent of its workforce due to the plunge in global air traffic.

Canadian airline revenues in 2020 will fall by $14.6 billion or 43 per cent from last year, according to estimates in May from the International Air Transport Association.

“The financial situation is much worse now than it was in the spring, as airports continue to pile up costs and debt to provide enhanced safety and health measures on limited revenues,” Canadian Airports Council president Daniel-Robert Gooch said in a statement.

“The speech from the throne offered some hope in recognizing particularly hard hit sectors, including aviation, but time is of the essence: without action, the damage done to airports and the communities they serve may take years to repair.”

Unlike countries including France, Germany and the United States, Canada has steered clear of sector-specific support for carriers, instead rolling out financial aid available to many industries, such as wage subsidies and loans starting at $60 million for large firms.

Ottawa has also held off on requiring airlines to refund customers whose flights were cancelled due to the pandemic, potentially saving carriers hundreds of millions of dollars. In contrast, European and U.S. authorities have demanded airlines reimburse travellers, on top of the strings attached to financial lifelines that range from limiting dividends and executive bonuses to cutting carbon emissions and carving out ownership stakes for government.

The Liberals pledged in the throne speech “to support regional routes for airlines” as part of its efforts to connect communities. That comes after after Air Canada announced in June it would suspend service on 30 regional routes and close eight stations at smaller Canadian airports.

“It’s been a long time coming. We’ve been holding our breath for six months,” said John McKenna, president of the Air Transportation Association of Canada, which counts 30 smaller carriers as members.

“I’d like to see words turn into action. And significant action — not just for show.”

The broader travel and tourism industry found more encouragement in the throne speech, which outlines the government’s priorities for the new session of Parliament.

The Tourism Industry Association of Canada said it was “thrilled” that Prime Minister Justin Trudeau’s government had circled the sector as a priority in the wake of hundreds of thousands of layoffs across the country.

“In fact, travel and tourism was among the only industries directly mentioned in the speech as a sector in need of further support,” the association said in statement.

There were 463,500 fewer tourism sector jobs in September than the same month a year earlier, marking a drop of roughly 25 per cent from pre-pandemic levels, Tourism HR Canada said.

Other new measures applicable to all industries include the extension of the federal wage subsidy through the summer of 2021 and enhancements to the Canada Emergency Business Account and the Business Credit Availability Program.

Transat spokesman Christophe Hennebelle said the extension comes as a “welcome support, but it primarily benefits the employees.”

The billions of dollars in aid to airlines in the U.S. and Europe are “out of all proportion” compared with the lack of support in Canada, he said in an email, with more “significant” steps needed from Ottawa.

Suzanne Benoit, CEO of Aero Montreal, which represents Quebec’s aerospace cluster, called the Canada Emergency Wage Subsidy “excellent” in the short term but said the Liberal government should be “more specific” with how it will steady industry turbulence.

McKenna is asking Transport Canada to ramp up coronavirus testing in airports as a replacement for 14-day quarantine requirements for returning residents.

He is also demanding Ottawa postpone regulations slated to come into effect in mid-December that lower pilots’ maximum working hours per day, a move that aims to boost safety but will also raise labour costs by necessitating new hires, McKenna said.

Christopher Reynolds, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Airlines

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

There has been COVID-19 exposures at two elementary schools in District 42. (Image courtesy CDC)
Interior Health reports 24 additional COVID-19 cases

This includes three school exposures in Kelowna

SD8 students can learn more about Métis culture, history, and language by participating in a variety of educational initiatives this month. Photo: Submitted
SD8 celebrates Métis Awareness Month

The district has a number of events planned in November

Numbers indicate positive COVID-19 tests, January through September. Map: BC Centre for Disease Control
Twenty-five cases of COVID-19 reported in Nelson, Castlegar and Trail in 2020

New data from the BC Centre for Disease Control shows numbers of cases per community

Boxers L-R: William Veroni of North Vancouver and Nelson’s Makalu Babott. Photo submitted
Nelson boxers compete in first pandemic match in North Vancouver

Match was conducted with no spectators and streamed to a live audience

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. records 217 more COVID-19 cases, mask use urged

Infection spike continues, 21 senior facilities affected

Los Angeles Dodgers celebrate after defeating the Tampa Bay Rays 3-1 to win the baseball World Series in Game 6 Tuesday, Oct. 27, 2020, in Arlington, Texas. (AP Photo/David J. Phillip)
L.A. Dodgers beat Rays 3-1 to win 1st World Series title since 1988

National League champs claim crown in six games

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Seven-year-old Aaliyah Rosa was found dead in an apartment in Langley in July. (Langley Advance Times files)
Child’s body cold, no pulse: Off-duty cop testifies in Langley mother’s murder trial

The seven-year-old girl’s mother faces a first-degree murder charge

People march during a climate strike in Montreal, Friday, Sept. 27, 2019. THE CANADIAN PRESS/Graham Hughes
Judge rejects 15 youths’ climate change lawsuit against Canadian government

Justice Michael Manson has granted the government’s motion to strike the plaintiffs’ claim

A woman walks through check in at WestJet at Pearson International airport during the COVID-19 pandemic in Toronto on Wednesday, Oct. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Strong support for pre-flight COVID testing ahead of upcoming WestJet trial: YVR

Airport is partnering with UBC, which is helping choose the method of pre-flight testing

Prime Minister Justin Trudeau provides an update on the COVID pandemic during a press conference in Ottawa on Tuesday, Oct. 27, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau says pandemic ‘really sucks,’ and that Christmas gatherings are up in the air

The prime minister encouraged residents to continue to follow the advice of local health authorities

The Williams Lake Indian Band is stipulating no-go zones for mushroom picking in areas burned by last summer’s wildfires. 100 Mile Free Press photo
Who controls mushroom harvesting on Indigenous lands?

‘We don’t necessarily know where the mushrooms grow, how old the stands need to be, those types of things.’

Most Read