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Ottawa makes refunds for cancelled flights condition for airlines to tap aid

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Catherine Deluz, an analyst at Moody’s Investors Service, said airport revenue is mostly volume driven, with fees calculated based on metrics such as “enplaned” passengers and landed seats. Even parking revenue is affected when people aren’t flying as much as usual.

Garneau’s statement said the government’s assistance package would include airlines, airports, and the aerospace sector. But only talks with the airlines are set to begin this week to establish “a process” for the financial assistance, which could include loans and potentially other support.

“The air sector cannot respond to these challenges on its own, given the unprecedented impacts on its operations,” Garneau said.

Last week, in response to the pandemic, WestJet suspended many of its flights in Atlantic Canada indefinitely, a move that eliminated more than 100 weekly flights.

Air passenger traffic plummeted nearly 90 per cent over the summer compared to the June to August period of 2019, with operating revenue down 88.2 per cent in the “industry’s worst ever summer season,” according to a Statistics Canada report released last month.

The National Airlines Council of Canada, which represents large air carriers including Air Canada and WestJet, said Sunday that a federal testing strategy is as critical to re-starting the industry as financial support because it would also help address regional travel restrictions and international border measures.

“As this work gets underway, the industry will continue its ongoing efforts to establish COVID-19 testing programs in conjunction with our airport partners, and establish a coordinated testing strategy with the federal government,” said Mike McNaney, chief executive of the NACC.

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