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Canadian airlines inch closer to government bailout

written by Adam Thorn | February 17, 2021

A file image of an Air Canada Boeing 787-8. (Air Canada)
An Air Canada Boeing 787-8. (Air Canada)

Canadian airlines are on the verge of finally receiving a bailout, according to numerous reports.

The country’s The Globe and Mail newspaper reports the new Deputy Minister of Finance, Michael Sabia, has now made progress on an agreement after numerous setbacks since the start of the COVID crisis.

The deal would be reliant on airlines agreeing to refund customers if their flight was cancelled owing to the pandemic, rather than provide flight credits.

Other reported conditions include no bonuses for senior employees, maintaining crucial routes and pledging to not cancel orders that could adversely affect jobs.

It comes days after the US itself finally approved proposals to give airlines another US$14 billion in government aid.

The House of Representatives Financial Services Committee voted 29-24 in favour of supplying an additional US$14 billion in payroll support to US airlines through to September 2021, as well as US$1 billion for contractors.

The funds will form part of a US$1.9 trillion COVID-19 relief package being offered by the Biden administration, and is the third round of government support welcomed by the embattled aviation industry.


The package will see around 30,000 jobs saved across the industry.

House Speaker Nancy Pelosi said that she expects lawmakers to complete legislation based on the bill by the end of February.

Additional reporting by Hannah Dowling


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