Location: National
Summary of Issue/Background
- The air sector has remained one of the hardest-hit industries since the beginning of the COVID-19 pandemic. To support Canada’s airports and airlines through the disruption, Transport Canada has put in place measures to help mitigate the financial impact caused by the pandemic, enabling a strong travel restart and recovery.
- The Airports Capital Assistance Program (ACAP) is a contribution funding program that launched in 1995 and provides federal funds to help eligible airports finance capital projects that will maintain and improve safety.
- As a result of COVID-19, ACAP received a received a one-time top-up funding of $186 million over two years. This financial support will help ensure that Canada’s smaller airports can immediately carry out required safety improvements despite revenue losses due to the pandemic.
- Airport Critical Infrastructure Program (ACIP) is a contribution funding program that is providing financial support to large airports that are making critical capital investments related to safety, security or connectivity to mass transit.
- The fund, launched in May 2021, is intended to provide funding to ensure that essential infrastructure projects are not cancelled or delayed due to the pandemic.
- To support the operations of Canada’s airports during the COVID-19 pandemic, rent relief was provided to the 21 National Airports System airport authorities and the operator of Toronto Billy Bishop Airport, Ports Toronto, that pay rent to the federal government. Rent was deferred or waived for a set period depending on the size of the airport.
- The Airport Relief Fund is a contribution funding program to provide immediate financial relief to certain Canadian airports that are struggling with the financial impact of reduced air travel due to the COVID-19 pandemic. As of July 2021, twenty-two agreements have been signed, awarding all the funding.
- The Remote Air Services Program (RASP) was created in September 2020 to provide contribution funding through bilateral agreements with Provinces, Territories and regional indigenous governments to support continued access to essential air services to remote communities.
- In addition, Finance Canada, with support from Transport Canada and Innovation, Science and Economic Development Canada, has negotiated agreements with several large air carriers to provide them with liquidity to enable their restart and recovery in return for a number of binding commitments, including on passenger refunds and restoration of service to Canadian communities.
Messages
- The Government of Canada is committed to helping airports mitigate the financial impact of the COVID-19 pandemic through several targeted support measures that are designed to provide much-needed support to airports.
- Canadian airports require support for infrastructure projects to maintain safety, security, and connectivity for travelers, airport workers, and surrounding communities.
- The Government of Canada looks forward to continue working with our provincial, territorial and Indigenous counterparts to support air carriers providing service to remote communities.