OTTAWA – Airways in Canada are apparently near reaching a bailout cope with the federal authorities.
A authorities supply tells The Globe and Mail the Trudeau authorities and the nation’s airways are in late-stage negotiations that would finish months of talks for a multi-billion greenback rescue plan.
Air Canada CEO Calin Rovinescu mentioned on the corporate’s latest convention name that he was optimistic a few deal being put collectively. This comes after what he described as the bleakest yr within the historical past of economic aviation, because the variety of passengers declined 73 per cent following a number of years of report development for Air Canada.
On Friday, the airline reported a $4.5 billion loss for 2020. It mentioned it misplaced $1.16 billion within the closing three months of final yr, releasing a monetary report on the heels of Thursday’s information that the Canadian authorities authorized Air Canada’s $190-million buy of Transat A.T.
The journey trade has been hard-hit by journey restrictions imposed throughout the COVID-19 pandemic. Not too long ago, the Canadian authorities and a number of the nation’s airways — Air Canada, WestJet, Sunwing, and Air Transat — agreed to cancel flights to Mexico and the Caribbean till April 30 to discourage journeys amid the rise within the variety of COVID variant circumstances.
The primary frustration for customers has been the airways’ unwillingness to refund unused tickets, one thing the airways have mentioned would solely include a bailout deal.
The federal government supply tells The Globe and Mail any deal can be contingent on the airways certainly sending money to prospects, and that not one of the bailout cash would go to government bonuses.
Nonetheless being mentioned is the thought of Ottawa taking fairness stakes within the corporations.