Where is Canada airline bailout? The deal was supposed to be ‘imminent’ — so why are we still waiting?

[chromeuser]

Where’s the bailout?

For months, airline industry workers have heard a common refrain from the parties involved in negotiating a federal aid package — that a deal intended to save the struggling sector is “imminent.”

The deal was supposedly imminent in February, shortly after Air Canada posted a staggering $1.1-billion loss in its fourth-quarter results. It was imminent again, early in March, after the airlines agreed to repay customers for cancelled flights in exchange for a bailout, acquiescing to one of Ottawa’s key demands.

Calin Rovinescu, former CEO of Air Canada, told analysts he was “confident” an aid package was on its way months ago. Jerry ****, president of Unifor, the union for thousands of employees, told the Star that negotiations were “very close” to finalizing in March.

But five months have passed since negotiations began and still no deal has been announced.

“We’ve been hearing that support is ‘imminent’ over and over again, and we’re left disappointed each time because nothing comes through,” said Wesley Lesosky, president of the Air Canada component of CUPE, the union which represents flight attendants at Air Canada and Air Canada Rouge.

“It’s all just a big question mark for us.”

The Canadian airline industry has been in survival mode since the COVID-19 pandemic began. The country’s two largest airlines, Air Canada and WestJet, have dramatically reduced in size, laying off thousands of workers and cancelling flight routes on a near-monthly basis. The smaller airlines — Porter, Sunwing, Air Transat — have suspended their services temporarily and laid off most employees.

Tight travel restrictions imposed by the federal government have decimated the airlines and the industries that grow around it, leaving workers without pay and grappling with nearly a year of unemployment.

To help the struggling sector, Ottawa and the airlines have been in talks to secure a deal that would offer financial relief to the airlines on several conditions, including demands from Ottawa that the airlines reinstate regional routes and offer refunds to customers whose flights were cancelled early in the pandemic. Initially poised to land around $7 billion for the industry, **** recently said the bailout will likely surpass that figure — if and when this package arrives.

“All I know is that everybody’s frustrated right now,” **** told the Star. “We were hoping for a rollout of the deal prior to the federal budget (to be tabled April 19), but it doesn’t seem like that’s happening now.”

Having initially thought a deal would be made sooner, **** now says the negotiations could take a while longer. He recently described the negotiations to the CBC as “contentious and difficult.”

In question is the bailout’s price tag, and what policy measures will be put in place to let airlines operate at a higher capacity, **** says. The airlines appear to want a figure that can account for Ottawa’s demands to repay customers and reinstate regional routes, as well as eased restrictions on travelling.

The airlines and Ottawa originally focused on a $7-billion loan that would be repaid at a one per cent interest rate over 10 years, **** said, but the final package could end up being substantially larger.

“I know Air Canada was saying they’d co-operate in things like reopening the smaller markets and repaying customers, but when they’re losing millions of dollars a day, they’re going to need some more help,” **** said.

Based on the current state of negotiations, **** believes the deal could end up closer to $9 billion in total.

Canada is one of the few remaining western countries that has not reached a deal to help its airline industry during the pandemic. To date, the U.S. has provided more than $50 billion (U.S.) in grants, loans and other programs to its airlines. France has provided roughly $12 billion (U.S.) to Air France-KLM alone, while Lufthansa recently brought in $10 billion (U.S.) from the German government.

Critics, in turn, have accused Ottawa of putting Canadian airlines at a competitive disadvantage that will hurt their customer retention long after pandemic restrictions are lifted.

Ottawa has said it has already given the airline industry $1.7 billion in support through the Canada Emergency Wage Subsidy, as well as $1 billion in support for airports and smaller airlines.

Any further federal aid hinges on three demands, said Katherine Cuplinskas, spokesperson for the Deputy Prime Minister’s Office: “1) refunding Canadians for cancelled flights; 2) retaining and reinstating regional routes in Canada, and 3) protecting jobs across the sector.”

“We continue to emphasize this in our ongoing conversations with the airlines. In a country as vast as Canada, it’s essential we maintain connections between people and our communities.”

John Gradek, a former Air Canada executive now working as a faculty lecturer in aviation leadership at McGill University, said the company likely would have received financial aid “ages ago” were it not for the debacle surrounding customer refunds.

Companies such as Lufthansa and Air France-KLM, which have already gotten bailouts, offered full refunds to their customers early on in the pandemic when flights were abruptly cancelled, Gradek noted. Air Canada was one of the few that didn’t, prompting a wave of class-action lawsuits and public outcry from its customer base.

The Canadian Transport Agency, notably, received an unprecedented number of complaints regarding the airlines in 2020, over half of them relating to refunds and vouchers. “Air Canada shot themselves in the foot by doing that,” said Gradek.

Gradek now suspects Air Canada and WestJet are more interested in having the government ease travel restrictions than they are in getting cash. The companies have essentially cut their way to financial stability through downsizing measures, by selling off assets and reducing their routes and workforce, he said. Now they just need a steady stream of revenue.

“Don’t get me wrong, they will take the government’s money. But they don’t really need it right now, and they certainly don’t want all the strings attached to it,” said Gradek.

“Air Canada has a few billion dollars sitting in the bank that they’ve got as a result of selling and leasing assets. Now, what they want is for advisories and restrictions to be lifted. They want passengers on airplanes, they want revenue, they want to make the best use of their resources. That’s more important to them than a government bailout.”

But as Canada braces for a third wave of COVID-19, with variants of the virus spreading rapidly through the country, Ottawa is unlikely to budge on its restrictions measures. That’s what’s causing the holdup, Gradek said.

Caught in the middle of this standoff are the smaller airlines and industry-adjacent sectors — hospitality, airports, retail, taxi services and others — that need the money more than the largest airlines do, said Gradek.

Air Canada did not comment on the ongoing negotiations, referring the Star to the company’s year-end results announced in February.

“At the time of our year-end results in February we said that we were encouraged by the constructive nature of our discussions with the Government of Canada in regard to sector support, and there has been no change to this,” said company spokesperson Peter Fitzpatrick.

****, who has lobbied the two parties to reach a deal quickly, says his union members could start looking for work elsewhere if they aren’t called back to their airline jobs soon.

“All I know is I’ve got 10,000 laid-off workers in this industry that are very concerned about what’s taking so long,” he said.

“I keep getting told that a deal is imminent, but my definition of imminent is much different than theirs, apparently.”

Source: https://www.thestar.com/business/2021/0 ... ckage.html

[Cavalier44]

Like many who are furloughed in this industry, I've been receiving emails from my union for months now which have stated that a bailout package is imminent, and yet we've seen no sign that a deal is any closer to being reached.

As to the following statement from the Deputy PM's Office that a bailout package was contingent on: “1) refunding Canadians for cancelled flights; 2) retaining and reinstating regional routes in Canada, and 3) protecting jobs across the sector.” - the airlines have been publicly stating their willingness to comply with all of these conditions for months, so clearly that's not where the holdup is happening.

The one thing that we've seen from this government since the COVID-19 crisis began is that they are hypersensitive to public opinion, whether positive or negative, and that every action that they take is calculated from the perspective of maximizing their political advantage (i.e. approval rating with the voters). I can only cynically assume that this government is timing the announcement of a bailout package for maximum effect.

We've all heard the rumours that an election could be called this spring - if the budget is announced on April 19 and the opposition rejects the budget, an election will be almost a certainty. Watch for this government to make any announcement of a bailout package to coincide with a possible election announcement - they'll say that they've "secured refunds for Canadians, prevented further job losses in the aerospace sector, restored essential air service to smaller communities", etc. etc. It's all politics - everything will be timed for maximum impact with the voters.

This government will happily let Canadian aviation workers deplete their savings, struggle to pay their bills or next month's rent, or wonder how they're going to put food in their children's mouths while they're trying to scrape by on EI or CEWS, while every other G7 nation is injecting much-needed cash into their aviation sectors and preventing further job losses. It's all cold political calculus, AKA, "how can I exploit this crisis to my own benefit?".

[RRJetPilot]

This is the worst PM and Government in Canada's history. All JT cares about is pandering and votes. Helping the industry will not get him any votes. I know myself and every single aviation worker I talk to will never again no matter that the circumstance vote for his government again. They know this. He is an embarrassment not just in Canada, but the entire world now. He runs the show like a dictator, and gets rid of anyone who crosses him. The sooner he gets the hell out of office the better. He has failed on every single file he gets his hand on. He wants a piece of the airlines and he aint getting it; and hes pissed. The companies are resisting and he will continue to punish the industry into submission. Look at the quarantine hotels, absolutely useless. Meant to discourage travel while fucking the airlines. Now that Transat might be in trouble I hope they dont agree to any kind of state ownership by Mr fancy socks.
I see the polls and I dont believe them. I know maybe two people now out of many who would vote for him again. These are previous liberal voters. Done with him. Just like his wife. Cant wait for that to come out. Hes spending Easter alone this year.

[TeePeeCreeper]

This is the worst PM and Government in Canada's history. All JT cares about is pandering and votes. Helping the industry will not get him any votes. I know myself and every single aviation worker I talk to will never again no matter that the circumstance vote for his government again. They know this. He is an embarrassment not just in Canada, but the entire world now. He runs the show like a dictator, and gets rid of anyone who crosses him. The sooner he gets the hell out of office the better. He has failed on every single file he gets his hand on. He wants a piece of the airlines and he aint getting it; and hes pissed. The companies are resisting and he will continue to punish the industry into submission. Look at the quarantine hotels, absolutely useless. Meant to discourage travel while fucking the airlines. Now that Transat might be in trouble I hope they dont agree to any kind of state ownership by Mr fancy socks.
I see the polls and I dont believe them. I know maybe two people now out of many who would vote for him again. These are previous liberal voters. Done with him. Just like his wife. Cant wait for that to come out. Hes spending Easter alone this year.

I can’t disagree with anything you wrote but your closing line is in my opinion utterly distasteful. Wishing anyone poorly and/or using their personal trial and tribulations nullified your entire post’s merit upon using that closing line.

I wonder how many of our colleagues have had to endure a marital split given this situation... Food for thought perhaps?

Respectfully,

TPC

[telex]

https://www.narcity.com/en-ca/people/ju ... is-so-cute

The twenty year love story... Laughable.

It might make you puke if you read it. Keep a bucket nearby.

[Co-Joe Exotic]

You must be new here

[Big Pistons Forever]

Sigh....another thread flames out

[telex]

Sigh....another thread flames out

Bailout for an industry based on hydrocarbon use?

What exactly are you expecting?

[termerair]

Like many who are furloughed in this industry, I've been receiving emails from my union for months now which have stated that a bailout package is imminent, and yet we've seen no sign that a deal is any closer to being reached.

As to the following statement from the Deputy PM's Office that a bailout package was contingent on: “1) refunding Canadians for cancelled flights; 2) retaining and reinstating regional routes in Canada, and 3) protecting jobs across the sector.” - the airlines have been publicly stating their willingness to comply with all of these conditions for months, so clearly that's not where the holdup is happening.

The one thing that we've seen from this government since the COVID-19 crisis began is that they are hypersensitive to public opinion, whether positive or negative, and that every action that they take is calculated from the perspective of maximizing their political advantage (i.e. approval rating with the voters). I can only cynically assume that this government is timing the announcement of a bailout package for maximum effect.

We've all heard the rumours that an election could be called this spring - if the budget is announced on April 19 and the opposition rejects the budget, an election will be almost a certainty. Watch for this government to make any announcement of a bailout package to coincide with a possible election announcement - they'll say that they've "secured refunds for Canadians, prevented further job losses in the aerospace sector, restored essential air service to smaller communities", etc. etc. It's all politics - everything will be timed for maximum impact with the voters.

This government will happily let Canadian aviation workers deplete their savings, struggle to pay their bills or next month's rent, or wonder how they're going to put food in their children's mouths while they're trying to scrape by on EI or CEWS, while every other G7 nation is injecting much-needed cash into their aviation sectors and preventing further job losses. It's all cold political calculus, AKA, "how can I exploit this crisis to my own benefit?".

You are spot on!

They are not wasting this crisis and make the most of it in terms of political gains OR/AND to push their green agenda... I think this gvt wouldn't mind to see the aviation sector shrink so much that it would help Canada to reach the COP 21 GES emission targets. Workers of the industry can suck it up for the well being of our grand grand grand children, no...?

April 19th and the following days will be a turning point. If we go in election mode the aid package will never materialize and the nightmare will continue. If the budget is voted and airlines get what they need, it might be the beginning of the
recovery for some of us.

A few days ago, i read in a newspaper (La Presse) that the package is expecting to be 2 billions... only! If this is the case this doesn't even cover the cost of reimbursements for AC alone... But lets wait to see what the aid consists of... Another punch in the face on the horizon?

Either way, we need to educate the people around us about what has happened to our industry in the last year. JT and the liberals all together must go on the next election. The vote on bill 67 a few weeks ago is one of many arguments to get rid of the hypocritical clowns.

This pandemic has also showed us that the aviation lobby in Ottawa is very weak, maybe even non existent. How come the airlines agreed on so many sacrifices without getting anything in return...! They should have bonded together (including cargo and northern airlines) at some point to park all airplanes at the same time... No more Canadian airlines in the the sky and i am sure the aid would have been on the table in less than a week. Don't tell me this is not feasible in this unprecedented times!

I am getting a bit frustrated with the Canadian way of doing things. Way too docile and polite. It's like if we are being punished for something we haven't done and we feel ok to be treated this way...

[McKinley]

Like many who are furloughed in this industry, I've been receiving emails from my union for months now which have stated that a bailout package is imminent, and yet we've seen no sign that a deal is any closer to being reached.

As to the following statement from the Deputy PM's Office that a bailout package was contingent on: “1) refunding Canadians for cancelled flights; 2) retaining and reinstating regional routes in Canada, and 3) protecting jobs across the sector.” - the airlines have been publicly stating their willingness to comply with all of these conditions for months, so clearly that's not where the holdup is happening.

The one thing that we've seen from this government since the COVID-19 crisis began is that they are hypersensitive to public opinion, whether positive or negative, and that every action that they take is calculated from the perspective of maximizing their political advantage (i.e. approval rating with the voters). I can only cynically assume that this government is timing the announcement of a bailout package for maximum effect.

We've all heard the rumours that an election could be called this spring - if the budget is announced on April 19 and the opposition rejects the budget, an election will be almost a certainty. Watch for this government to make any announcement of a bailout package to coincide with a possible election announcement - they'll say that they've "secured refunds for Canadians, prevented further job losses in the aerospace sector, restored essential air service to smaller communities", etc. etc. It's all politics - everything will be timed for maximum impact with the voters.

This government will happily let Canadian aviation workers deplete their savings, struggle to pay their bills or next month's rent, or wonder how they're going to put food in their children's mouths while they're trying to scrape by on EI or CEWS, while every other G7 nation is injecting much-needed cash into their aviation sectors and preventing further job losses. It's all cold political calculus, AKA, "how can I exploit this crisis to my own benefit?".

You are spot on!

They are not wasting this crisis and make the most of it in terms of political gains OR/AND to push their green agenda... I think this gvt wouldn't mind to see the aviation sector shrink so much that it would help Canada to reach the COP 21 GES emission targets. Workers of the industry can suck it up for the well being of our grand grand grand children, no...?

April 19th and the following days will be a turning point. If we go in election mode the aid package will never materialize and the nightmare will continue. If the budget is voted and airlines get what they need, it might be the beginning of the
recovery for some of us.

A few days ago, i read in a newspaper (La Presse) that the package is expecting to be 2 billions... only! If this is the case this doesn't even cover the cost of reimbursements for AC alone... But lets wait to see what the aid consists of... Another punch in the face on the horizon?

Either way, we need to educate the people around us about what has happened to our industry in the last year. JT and the liberals all together must go on the next election. The vote on bill 67 a few weeks ago is one of many arguments to get rid of the hypocritical clowns.

This pandemic has also showed us that the aviation lobby in Ottawa is very weak, maybe even non existent. How come the airlines agreed on so many sacrifices without getting anything in return...! They should have bonded together (including cargo and northern airlines) at some point to park all airplanes at the same time... No more Canadian airlines in the the sky and i am sure the aid would have been on the table in less than a week. Don't tell me this is not feasible in this unprecedented times!

I am getting a bit frustrated with the Canadian way of doing things. Way too docile and polite. It's like if we are being punished for something we haven't done and we feel ok to be treated this way...

I agree with these last two posts. I’m exhausted with the Ho-Hum attitude of Canadians it makes me ashamed to be Canadian. At least in the USA, Americans will take a stand.
( Although, I disagree the things they are standing for)

Canadian carriers agreed to cease travel to sun destinations but American carriers are still flying into Canada and taking Canadians to sun destinations.Taxes and revenue is leaving the economy and lining the pocketbooks of American companies.

Canada almost did a full ground stop similar to 9/11: https://m.youtube.com/watch?v=YduMzabasXI . Huh?

I feel like Canada is trying to destroy its airline sector. How are we the only G7 country to not support its aviation sector? I feel we can take it a step further and Or, furthermore, it’s economy. Canadians are far too apathetic. In the USA, this kind of crap wouldn’t fly.

I do think this pandemic is real. With that said, is it being overhyped? -I think possibly so. Mismanaged? - Yes. Has this pandemic provided an opportunity for distraction from some major issues?- big time.( all in my opinion of course)

Other countries are reopening and we’re headed into a third wave and lockdown. Yet, nobody stands up.

[montado]

I feel that I couldn't care less about government bailouts. Money doesn't solve the problem with the industry, a change in policy is what is needed.

End the hotel quarantine and let people know its safe to travel. Or at least give airlines some insight into the future so they can make a plan. Airlines can't function on policy that changes on a monthly basis and has no end date in sight.

[Mostly Harmless]

Dare to dream... but I will put forth a proposal to the universe and hope it gains traction:

Proposal to all airline executives in Canada.

When the next election comes, no one leases an aircraft to the Liberal Party Of Canada at any point during the election campaign. They don't like aircraft and won't offer assistance to an industry that was shut down by government policy and not bad business decisions; let them literally walk the walk, or take the bus, or the train, anything but fly around the nation to campaign.

[ayseven]

I had a successful business. I didn't get successful turning down business that came my way.

[Donald]

Omar is too busy declaring the Easter bunny an essential service to worry about trivial matters such as the state of Canadian aviation.

[Mostly Harmless]

I had a successful business. I didn't get successful turning down business that came my way.

And that's why you'll get more of the same... and like it.

Sometimes you just have to turn a bad customer away.

[flying4dollars]

Honestly I've long given up the idea this financial assistance/loans/bailout or whatever you want to call it, is coming. I'm sure most airlines are already doing this, but here we are financially planning assuming no help from the government. That way, if it comes, it will be a relief/bonus but not a reliance. That being said, the ridiculous quarantine restrictions need to be relaxed. This is the key to rebuilding our sector.

[McKinley]

Omar is too busy declaring the Easter bunny an essential service to worry about trivial matters such as the state of Canadian aviation.

He almost went full ground stop. “ then realized the massive amount of economic benefits and emergency equipment moved by air.”

[Mach1]

https://www.narcity.com/en-ca/people/ju ... is-so-cute

The twenty year love story... Laughable.

It might make you puke if you read it. Keep a bucket nearby.

I couldn't help but notice the missing part in that propaganda piece about the $18,000,000 of my tax money that is currently being spent to build her a mansion because they have been separated for over a year.... and the absence of any comments to about that.

[Inverted2]

I heard they are separated. When was the last time you saw the Turd and Sophie together?

[bobcaygeon]

Honestly I've long given up the idea this financial assistance/loans/bailout or whatever you want to call it, is coming. I'm sure most airlines are already doing this, but here we are financially planning assuming no help from the government. That way, if it comes, it will be a relief/bonus but not a reliance. That being said, the ridiculous quarantine restrictions need to be relaxed. This is the key to rebuilding our sector.

The general understanding is that the Airlines are balking at the conditions attached to the funding. JT, Marc Garneau, and Omar have been very clear what needs to happen at a minimum ie refunds, regional service, and jobs. This similar to what other countries have required. US DOT manadates refunds and even Swoop gace refunds on US flights. The initial US bail out mandated no layoffs until Sept 30, 2020.

I'm not sure what the other stumbling blocks are but as a tax payer these conditions are pretty reasonable. Why should $$$ go to a private company like WJ if there's nothing preventing the cash from going to Onex. The auto bailouts are similar. $$$ for jobs.

The WHO has now placed Canada on the list as a "High risk" country with travel not recommended. Ontario i sgoing into lockdowns that are tighter them ever ie big box stores have essential goods only restrictions for the first time.

[altiplano]

So reinstate regional service so Liberal MPs in the Maritimes and rural Quebec can fly to Ottawa? Who else is going to take the plane? There's nowhere to go.

If the government wants to fully subsidize regional routes and jobs to make them viable to operate until the recovery because it's in the national interest, that's one thing, but giving a loan for airlines to piss away on maintaining a losing service that they will have to pay back? Who would agree to that?

"here's some money, but you have to throw down the drain, get me back later with interest"

Airlines need cash to steady the house... cover fixed costs while they try to contain the bleed on all the routes that still actually generate a bit of money and traffic.

They need the government to stop fucking up with their labyrinth of restrictions, between provinces, regions, health units... they need government to come up with a clear and defined consistent plan and message. We need travel open in this country, we need the border opened. If the US will take us that is. We need a target metric for opening international travel.

Otherwise, what's the point of loans that you just have to throw away?

The Liberals certainly spin CEWS against the industry... "we already gave the airline 1 billion in wage subsidies" - including Emirates, Cathay, Air China and more - "airlines are the largest users of CEWS" for people that would otherwise be unemployed though... I think AC saw the spin coming and that's why they opted not to use it and just lay off 20,000+ instead.

[ayseven]

https://www.gov.uk/uk-border-control/se ... you-arrive

I don't know where people get this idea that things are opening up everywhere else but here.

[altiplano]

https://www.gov.uk/uk-border-control/se ... you-arrive

I don't know where people get this idea that things are opening up everywhere else but here.

You like to pull old info or incomplete info.

Currently travel is open to non UK citizens/residents unless coming from "red zone" country.

Only 10 day quarantine in your own home/location.

No forced covid hotel interment.

UK will reopen non-essential international travel further next month instituting green/yellow/red zones.
Green zone - open to unrestricted travel to/from with no quarantine.
Yellow zone - self isolate on arrival in UK only, no quarantine.
Red zone - existing measures, 10 day quarantine at own location.

Oh, and they supported their airlines through these dark days.

Canada? No plan. No support. Not enough vaccine. Only citizens admitted. 14 day quarantine, including interment in government facilities. NO PLAN.

[sanjet]

American CDC telling Americans to avoid travel to canada even IF VACCINATED. As opposed to what’s being spewed on CBC, you now have a statistically higher chance of catching COVID in Canada than USA.

Today:
1 daily case per 8024 people in USA
1 daily case per 5828 people in canada

People are literally getting ill because of this governments mismanagement. Let’s stop pretending we’re better than everyone else.

Before the apologists tell me about getting vaccines late, do some research on Trudeaus decision on signing a deal with Sinovac first when he should have signed with a reputable pharmaceutical company first. All this while we already had bad relations with sinovac’s host country.

This mismanagement is getting criminal, this bailout issue is just a microcosm of the situation. The government literally has no idea of what’s going on, the bailout as we think is not coming. It will be loans with massive green energy requirements. Congrats to Ontario on another lockdown by the way.

BD6A8EFA-E21C-463D-976A-DB74F084EA60.jpeg (274.42 KiB) Viewed 3516 times

[Gino Under]

This government has no sense of the urgency our industry needs financial aid. Their indifference and unreasonable conditions under which financial aid would be rendered will cost the country immeasurable damage if prolonged much longer.
I suspect the demise of Air Transat is imminent.

http://www.reuters.com/article/us-healt ... um=partner

Gino Under