- Porter Airlines approved for $125 million LASR loan
- Flair Airlines approved for $76 million LASR loan
- Air Transat receives $150 million under same facility
- Loans require job protection and executive pay limits
- WestJet opposes intervention while Air Canada opts out
Porter Airlines and Flair Airlines have been approved for federal government loans of $125 million and $76 million respectively under the new Liquidity for Airline Sector Resilience facility to help offset surging jet fuel costs driven by Middle East geopolitical conflicts. The federal financing is administered through the Canada Enterprise Emergency Funding Corporation. Air Transat has also received $150 million under the same programme.
To qualify for the repayable support, participating carriers must meet operational requirements including maintaining existing employment levels and operations within Canada, restricting executive compensation packages and shareholder dividends, and committing to buy Canadian provisions outlined by Ottawa. The loans are repayable and subject to conditions.
The loan rollout has created a division among Canadian carriers. Porter Airlines, Flair Airlines and Air Transat publicly welcomed the financial relief to bridge gaps caused by volatile fuel prices. WestJet opposed the intervention, calling the loans market-distorting subsidies that disadvantage carriers operating without state backing. Air Canada opted out of drawing on the facility.
