31. ESSENTIAL AIR SERVICES TO REMOTE COMMUNITIES

FUNDING TO PROVIDE ESSENTIAL AIR SERVICES TO REMOTE COMMUNITIES

The Program to Support Essential Air Service to Remote Communities is seeking access to $115,782,133 in planned spending authorities.

Key Messages:

• The funding is from the federal government-wide response to address the impact of COVID-19 pandemic.

• The objectives of this new contribution program is to support air carriers providing service to remote communities, who are currently facing massive revenue losses due to COVID-19 pandemic.

• The funding will be provided to Provinces, Territories and Indigenous Government to complement funding mechanisms that they have implemented or will be implementing to flow funding to air carriers providing air service to remote communities.

• The contributions will provide transitional support to maintain minimal essential services to Canadian remote communities. If pressed:
• Without this support, residents of 140 remote communities across Canada relying on air service as the only year-round transportation mode could find themselves without the air services required for the essential movement of people and goods.  

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Small Airports and Small Air Carriers

LOCATION: NATIONAL

Issue/Source: SUPPORT FOR SMALL AIR CARRIER SERVING REMOTE COMMUNITITES DUE TO IMPACTS FROM THE COVID-19 PANDEMIC

Date: November 2, 2020

Suggested Responses

• In April 2020, funding of up to $17.3 million (M) was also provided to the governments of Yukon, Northwest Territories, and Nunavut to support northern air carriers in providing essential goods and services to remote fly-in communities.

• In August 2020, the Government also announced further funding of up to $174M to ensure continuity of essential air access to remote communities continues through the development of bilateral agreements with provinces and territories.

• This $174M Remote Air Services Program was designed to ensure remote communities receive essential levels of air service over the medium-term.

BACKGROUND INFORMATION - Remote Air Services Program (RASP)

• On August 6, 2020, TC announced the RASP, including:

Seeking bilateral agreements with provinces and territories to ensure continuity of service for at least six months.

Establishing a $75-million funding program for the federal contribution for the first six months (July through December 2020) and maintaining these essential services through an investment of up to $174 million over 18 months, if needed.

• Since the announcement, agreements with the Northwest Territories (NWT) and Nunavut (NU) and the Yukon (YT)have been finalized and over half of the funds announced for phase one of the program have been disbursed.

• RASP federal funding allocations (for the first 6 months of the programs) for NWT, NU, and YK were included in Intergovernmental Affairs October 9, 2020 announcement on top-up of Safe Restart funds for the territories:

• • NWT $17.1M
  • Nunavut $17.1M
  • Yukon $7M

• Discussions are progressing well with the other jurisdictions, however funding agreements with the Provinces (BC, AB, SK, MB, ON, QC) as well as with the Nunatsiavut and the Innu Nation for Labrador have not been finalized.  Some delays have been caused by elections and internal approval processes required for provinces to establish their programs.  

• The RASP is targeted at remote services and was not intended to address service cuts for regional routes.