(The Canadian Press/Adrian Wyld)

By Canadian Press and Josh Hall

talks to begin soon

Federal support for airlines to be contingent on refunds for passengers

Nov 8, 2020 | 4:33 PM

OTTAWA – The federal government says it will make any new support for Canada’s airline industry during the COVID-19 pandemic contingent on refunds for passengers whose flights were cancelled.

Transport Minister Marc Garneau laid out the requirement today as he announced that Ottawa will launch talks with the industry this week.

Canada’s commercial airlines have been hit hard by COVID-19, with passenger levels down as much as 90 per cent thanks to a combination of travel restrictions and fear about catching the illness.

Garneau says Ottawa is ready to respond to the sector’s pleas for assistance by providing loans and other support to help the country’s air carriers and airports weather the pandemic.

But he says the government will place strict conditions on any support, including requiring airlines to refund what is believed to be millions of dollars in previously booked tickets and protecting regional routes.

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“We have heard from many Canadians who have been negatively affected. When this unprecedented pandemic broke out in the spring, Canadians who had already booked travel ended up stuck with vouchers for trips they could not take instead of getting refunds,” Garneau said. “They found themselves in a situation where they have given thousands of dollars in interest-free loans to airlines.”

Many airlines have offered passengers credits for trips cancelled because of the pandemic, saying they cannot afford full refunds, and have cancelled some regional flights to save money.

“Canadians are rightly angered by these developments,” the minister added. “Before we spend one penny of taxpayer money on airlines, we will ensure Canadians get their refunds.”

WestJet issued a response to the announcement, saying, “We will evaluate this afternoon’s statement from the Government of Canada and will await greater clarity on what support for the aviation sector might include.”

“As we determine how to proceed in the best interests of our guests, our people and the communities we serve, we won’t be making any further comment.”

Alberta Premier Jason Kenney also weighed in Sunday afternoon, calling the news of federal support for airlines welcome news. Kenney said the impact on airlines has been felt disproportionately in Alberta because it is home to WestJet’s head office.

“While we welcome direct support to carriers we must also prioritize the development of a Canadian domestic travel framework and a national plan for rapid testing,” said the premier. “Airlines have already taken unprecedented measures working with public health officials and bringing in new safety protocols, like enhanced screening. Alberta has been calling for such measures for several months.”

Kenney did not comment directly on the stipulation that airlines refund ticket-buyers.

“Since day one of this pandemic, I have said that we need to protect lives and livelihoods. Airlines are a critical part of our economy, employing thousands of people and generating billions of dollars in tax revenue,” he concluded. “We must ensure that they get through this pandemic to create jobs and opportunities across Canada.”

(With file from The Canadian Press)