CanadaB次元官网网址檚 flight industry is tentatively taking heart in signals from the throne speech that financial help is on the way but wants to see quick, clear action to support the sector, which has been devastated by the COVID-19 pandemic.
The governmentB次元官网网址檚 speech from the throne Wednesday pledged B次元官网网址渇urther support for industries that have been the hardest hit, including travel and tourism.B次元官网网址�
The National Airlines Council of Canada acknowledged the commitment, but president Mike McNaney said federal authorities need to B次元官网网址渋mmediately make a concrete planB次元官网网址� to support the sector.B次元官网网址�
B次元官网网址淲e canB次元官网网址檛 keep waiting,B次元官网网址� he said in a phone interview. B次元官网网址淎ll of our G7 trading partners all have brought forward sectoral supportB次元官网网址� We have not.B次元官网网址�
Passenger numbers are down 94 per cent from 2019, with aviation still at B次元官网网址淪tage 0 in its recoveryB次元官网网址� amid ongoing travel restrictions, said the group in a release. The council represents Air Canada, WestJet Airlines Ltd., Air Transat and Jazz Aviation.
Between the three largest airlines, more than 27,000 employees have been laid off since March. Nav Canada, which runs the countryB次元官网网址檚 air navigation system, announced earlier this week it has cut 720 jobs or 14 per cent of its workforce due to the plunge in global air traffic.
Canadian airline revenues in 2020 will fall by $14.6 billion or 43 per cent from last year, according to estimates in May from the International Air Transport Association.
B次元官网网址淭he financial situation is much worse now than it was in the spring, as airports continue to pile up costs and debt to provide enhanced safety and health measures on limited revenues,B次元官网网址� Canadian Airports Council president Daniel-Robert Gooch said in a statement.
B次元官网网址淭he speech from the throne offered some hope in recognizing particularly hard hit sectors, including aviation, but time is of the essence: without action, the damage done to airports and the communities they serve may take years to repair.B次元官网网址�
Unlike countries including France, Germany and the United States, Canada has steered clear of sector-specific support for carriers, instead rolling out financial aid available to many industries, such as wage subsidies and loans starting at $60 million for large firms.
Ottawa has also held off on requiring airlines to refund customers whose flights were cancelled due to the pandemic, potentially saving carriers hundreds of millions of dollars. In contrast, European and U.S. authorities have demanded airlines reimburse travellers, on top of the strings attached to financial lifelines that range from limiting dividends and executive bonuses to cutting carbon emissions and carving out ownership stakes for government.
The Liberals pledged in the throne speech B次元官网网址渢o support regional routes for airlinesB次元官网网址� as part of its efforts to connect communities. That comes after after Air Canada announced in June it would suspend service on 30 regional routes and close eight stations at smaller Canadian airports.
B次元官网网址淚tB次元官网网址檚 been a long time coming. WeB次元官网网址檝e been holding our breath for six months,B次元官网网址� said John McKenna, president of the Air Transportation Association of Canada, which counts 30 smaller carriers as members.
B次元官网网址淚B次元官网网址檇 like to see words turn into action. And significant action B次元官网网址� not just for show.B次元官网网址�
The broader travel and tourism industry found more encouragement in the throne speech, which outlines the governmentB次元官网网址檚 priorities for the new session of Parliament.
The Tourism Industry Association of Canada said it was B次元官网网址渢hrilledB次元官网网址� that Prime Minister Justin TrudeauB次元官网网址檚 government had circled the sector as a priority in the wake of hundreds of thousands of layoffs across the country.
B次元官网网址淚n fact, travel and tourism was among the only industries directly mentioned in the speech as a sector in need of further support,B次元官网网址� the association said in statement.
There were 463,500 fewer tourism sector jobs in September than the same month a year earlier, marking a drop of roughly 25 per cent from pre-pandemic levels, Tourism HR Canada said.
Other new measures applicable to all industries include the extension of the federal wage subsidy through the summer of 2021 and enhancements to the Canada Emergency Business Account and the Business Credit Availability Program.
Transat spokesman Christophe Hennebelle said the extension comes as a B次元官网网址渨elcome support, but it primarily benefits the employees.B次元官网网址�
The billions of dollars in aid to airlines in the U.S. and Europe are B次元官网网址渙ut of all proportionB次元官网网址� compared with the lack of support in Canada, he said in an email, with more B次元官网网址渟ignificantB次元官网网址� steps needed from Ottawa.
Suzanne Benoit, CEO of Aero Montreal, which represents QuebecB次元官网网址檚 aerospace cluster, called the Canada Emergency Wage Subsidy B次元官网网址渆xcellentB次元官网网址� in the short term but said the Liberal government should be B次元官网网址渕ore specificB次元官网网址� with how it will steady industry turbulence.
McKenna is asking Transport Canada to ramp up coronavirus testing in airports as a replacement for 14-day quarantine requirements for returning residents.
He is also demanding Ottawa postpone regulations slated to come into effect in mid-December that lower pilotsB次元官网网址� maximum working hours per day, a move that aims to boost safety but will also raise labour costs by necessitating new hires, McKenna said.
Christopher Reynolds, The Canadian Press
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