Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Canada faces calls for level playing field on airline aid as virus clouds summer travel

Stock Markets Apr 15, 2021 06:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: An Air Canada Airbus A320 airplane prepares to land at Vancouver's international airport in Richmond, 2/2

By Allison Lampert and Steve Scherer

MONTREAL (Reuters) - Canada is facing industry calls to extend financial aid to smaller airlines, after offering a C$5.9 billion ($4.71 billion)life-line to Air Canada, as new COVID-19 variants cast early clouds ahead of the vital summer travel season.

The timing of Monday's deal, which saw the Canadian government take a 6% equity stake in Air Canada, was partly designed to secure "access to air travel when it returns," as the country's vaccine rollout ramps up this summer, a source familiar with the discussions said.

But with the spread of new variants threatening to overtake the pace of vaccination, early hopes for a relaxation of Canada's strict travel requirements ahead of summer are fading.

Fears of a delayed recovery, along with the government deal with Air Canada, has upset the "level playing field" for air service with the airline's smaller rivals calling on the government for financial support.

"We want everyone to have access to the same programs," said John McKenna, chief executive of the Air Transport Association of Canada (ATAC), which represents smaller carriers.

On Wednesday, Air Canada joined rival WestJet Airlines in extending a three-month suspension of sun-destination flights to the Caribbean and Mexico originally slated to end on April 30, reflecting the government's current warnings against international travel. [L1N2M71SG]

The planned April reopening of a bubble in Atlantic Canada, which would allow travel among the region's four provinces without the need to self-isolate, was postponed this week until at least May 3 over COVID-19 concerns.

WestJet said its previously-planned schedule for Atlantic Canada remains unchanged.

Canada's vaccine roll out has been slow, but it is ramping up now. By the end of June, some 44 million doses are expected, and everyone who wants to be fully inoculated will be by the end of September, Prime Minister Justin Trudeau has promised.

Canada's Liberal government, which will deliver its first budget in two years next week, has said talks with carriers like Onex Corp-owned WestJet are ongoing.

"We hope that the other agreements come as soon as possible," the source familiar with the talks said, adding that "different airlines have different needs".

WestJet spokeswoman Morgan Bell said the airline is optimistic that a successful vaccine roll-out will support summer travel and expects "government policy will transition" with mounting jabs.

Canada, with some of the world's toughest travel rules, has a mandate that its citizens and residents arriving from abroad self-isolate for 14 days.

Health Canada advised Canadians in a statement to avoid traveling outside the country "for the foreseeable future."

Calgary-based WestJet has asked the government to end an order requiring international arrivals to quarantine for up to three days in a hotel in favor of COVID-19 testing.

The government must decide whether to renew the controversial hotel order, which expires on April 21.

McKenna also urged the government to relax restrictions on travel with neighboring United States.

"The government can come up with all the financial help they want," ATAC's McKenna said. "But until those things are relaxed we can't do anything."

($1 = 1.2515 Canadian dollars)

($1 = 1.2519 Canadian dollars)

Canada faces calls for level playing field on airline aid as virus clouds summer travel
 

Related Articles

Factbox-Europe's summer travel chaos
Factbox-Europe's summer travel chaos By Reuters - Jun 30, 2022

(Reuters) - Strikes and staff shortages are forcing airlines to cancel thousands of flights and causing hours-long queues at major airports, dashing hopes of a sizzling first...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Felipe Daniel
Felipe Daniel Apr 15, 2021 7:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The only problem in Canada is horrible socialist leadership destroying the country
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email