Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Canadian aviation sector to be permanently hurt without aid, unions say

Published 10/01/2020, 10:39 AM
Updated 10/01/2020, 10:40 AM
© Reuters. "Healthy Airport" initiative is launched for travel in Toronto
ABT
-

By David Ljunggren

OTTAWA (Reuters) - Major Canadian labor unions on Thursday said the aviation sector would suffer permanent damage unless Ottawa provided a C$7 billion ($5.3 billion) 10-year low-interest loan to offset the effects of the coronavirus outbreak, which has slashed travel.

The unions, which represent more than 310,000 workers, said in a statement that Canada remained the only leading developed nation not to have unveiled concrete measures to help the travel and tourism sector.

"We need urgent funds for the aviation sector or there won't be Canadian airlines, and that will cost us all much more," said Jerry Dias of Unifor, Canada's largest private sector union.

The unions also want direct financial aid tied to the resumption and maintenance of air services.

The federal Liberal government of Prime Minister Justin Trudeau has repeatedly said it is looking at aid for the aviation sector but has yet to make any announcements.

"Airlines are extremely capital-intensive operations with a high cash-burn rate and the requirement to preserve liquidity to maintain equipment, routes and staff," the unions said.

The office of federal Transport Minister Marc Garneau was not immediately available for comment.

Air Canada, the nation's largest carrier, wants Ottawa to relax travel restrictions which stipulate that people arriving from abroad must go into quarantine for 14 days to make sure they do not spread the virus.

Separately on Thursday, Air Canada said it was finalizing an initial order for 25,000 rapid testing kits from Abbott Laboratories (NYSE:ABT).

Dr. Jim Chung, the carrier's chief medical officer, said rapid testing was "a means to enable governments to relax current blanket travel restrictions and quarantines in a measured way".

© Reuters.

($1=1.3296 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.