Ottawa Grants $76 Million Emergency Loan to Flair Airlines
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The federal government's latest bailout aims to offset soaring jet fuel costs, joining a series of multi-million dollar lifelines for major carriers.
The Canadian federal government has approved $76 million in emergency aid for Edmonton-based Flair Airlines, according to reporting from CBC. The funding comes as carriers struggle with the high price of jet fuel, which has roughly doubled over the past year following the start of the Iran war in late February.
The loan was issued through the Canada Enterprise Emergency Funding Corp., a Crown corporation. According to the agency, the bailout is intended to make airfares more affordable and offset fuel costs. The terms of the agreement require Flair Airlines to repay the loan within four years at interest rates that are below market levels.
Flair CEO Len Corrado stated that the financial support indicates government officials recognize the severity of the current industry crisis and intend to maintain competitiveness.
This aid follows other significant government interventions for the aviation sector. CBC reports that Porter Airlines recently received a $125-million bailout loan, while Transat A.T. Inc., the parent company of Air Transat, has secured $430 million in financial assistance since the conflict in Iran began.