LOCATION: National / TRAN
ISSUE/SOURCE: Status of recovery in the Canadian air sector
DATE: February 8, 2022
SUGGESTED RESPONSES
- I recognize that a strong and competitive air transport industry is vital for Canada’s economic well being.
- I understand the significant economic impact the COVID-19 pandemic is having throughout the transportation system, and especially on the air sector.
- The Government of Canada has implemented a number of economic support measures to help the air industry manage financial pressures. This includes ensuring that services were available throughout Canada, and that Canadians received refunds for tickets cancelled due to the pandemic.
- I am committed to supporting the recovery of commercial activity in the air sector in a way that continues to prioritize the health, safety, and security travellers and provides efficient and affordable travel options.
BACKGROUND INFORMATION
- COVID 19 has led to a significant decline in passenger volumes and has greatly impacted the economic viability of the air sector. Recovery was occurring prior to emergence of the Omicron variant and restrictions enacted to protect public health. Carriers had originally expected to be at closer to 70% of 2019 passenger levels by this time, and instead, they are closer to 35%. In contrast, American carriers are at over 80% of 2019 passenger levels.
- The Government of Canada has made over $11 billion available through various support measures for the air sector including:
- Airport Critical Infrastructure Program (ACIP) - $570 million to support large airports in making critical investments in safety, security and transit infrastructure as well as biosecurity improvements.
- Airport Relief Fund (ARF) - $65 million to address the financial impacts of COVID-19 among 22 targeted airports with revenues less than $250 million dollars in 2019.
- Enhancement of the Airports Capital Assistance Program (ACAP) - $186 million extra funding for safety improvements at small/regional airports.
- Rent relief for airport authorities - valued around $154 million in waivers and $129 million in deferrals.
- Regional Air Transportation Inititiaive (RATI) - $200 million administered by Regional Development Agencies to enable the regional air ecosystems to remain operational and continue to support regional economic growth.
- Remote Air Services Program (RASP) - $174 million to support essential connectivity links to remote communities through contributions with provincial/territorial governments; additional to $17 million provided early in the pandemic.
- Carrier specific loan deals – Offered over $7 billion of loan instruments to support passenger refunds and air carrier viability.
- Canada Emergency Wage Subsidy (CEWS) - Over $2.7 billion has been provided to air sector operators.