Air Canada's Government funding to spur on return of service to small communities, provide refunds for past travel plans

The Federal Government is putting close to 6 billion dollars
into Air Canada, including an equity stake in the airline

The Federal Government is getting back into the aviation business, yesterday announcing plans for 5.879 Billion dollars in liquidity to Air Canada, taking on an equity stake in the national carrier which once upon a time was an airline owned by the Government.

The Trudeau government won't be taking a huge share of ownership, with the plan announced on Monday one which will see the Government taken on towards 500 million dollars worth of Air Canada shares, which is about a six percent ownership of the airline.

Chrystia Freeland, Deputy Prime Minister and Minister of Finance took the lead on yesterday's announcement by the Federal Government, with job protection in the airline sector the main talking point for the financial boost.

“From coast to coast to coast, it is essential we maintain connections between people and our communities, large and small. Protecting Canadian customers is important. And maintaining a competitive Canadian air sector, Canadian airlines, and the thousands of good jobs in this sector is a priority. This is what today’s announcement with Air Canada guarantees.”

The Federal Government also is in negotiations with other airline carriers in the country, looking to address their concerns over the state of the industry at this point of the pandemic period.

Negotiations continue with other Canadian carriers on financial support and any agreement reached in those negotiations will include a requirement that the airline also refund pandemic related-cancelations. In the event that an airline does not need liquidity support from the government, the government remains open to helping all airlines provide voucher refunds to their customers.

A companion statement from Air Canada looked ahead to the days of Canadians returning to the skies en masse, resuming their travels that for the most part have been suspended for over a year to this point.

"As vaccine deployments ramp up, we continue to work with the Government of Canada on the evolution of safe and science-based test and quarantine relief measures with a view to safely restarting our sector. We know that Canadians are looking forward to re-connecting with friends and family and taking those long-awaited vacations and business trips and we will be ready to safely connect Canadians within Canada and Canada to the world," -- Michael Rousseau, President and CEO of Air Canada.

Of note for travellers in the Northwest, are two elements of the update on operations from the national airline that will be welcome news.

As part of the financial package, Air Canada has agreed to a number of commitments related to customer refunds, service to regional communities, restrictions on the use of the funds provided, employment and capital expenditures. 

These include: Beginning April 13, 2021, offering eligible customers who purchased non-refundable fares but did not travel due to COVID-19 since February 2020, the option of a refund to the original form of payment. In support of its travel agency partners, Air Canada will not retract agency sales commissions on refunded fares; 

The resumption of service or access to Air Canada's network for nearly all regional communities where service was suspended because of COVID-19's impact on travel, through direct services or new interline agreements with third party regional carriers. 

More details on the Refund plans from Air Canada can be explored here.

The news was also relayed by Skeena-Bulkley Valley MP Taylor Bacharach, who has in the past spoken to the need for resumption of the service to Prince Rupert, raising the issue during House of Commons sessions over the last year.

According to the information released on Monday, Service will resume by no later than June 1, 2021, with Prince Rupert and Sandspit listed among the communities across the nation.

The North Coast Review has forwarded an email to Rick Leach at YPR, inquiring if the airline has provided for a firm date for the return to service to Prince Rupert. 

The last update, one from March, had set the return to service for the city for June 19th.

So far, we've received no reply from YPR, but should there be good news to share for travellers we'll update our notes on today's story.

For more notes related to air travel across the Northwest see our archive page here.