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The financial lifeline shows that government officials “recognize the severity of the problem” and want to keep the industry competitive, according to Flair’s CEO.DARRYL DYCK/The Canadian Press
The federal government has approved $76-million in emergency aid for Flair Airlines as the high price of jet fuel continues to bleed money from carriers.
Flair chief executive officer Len Corrado said in an interview the financial lifeline shows that government officials “recognize the severity of the problem” and want to keep the industry competitive.
The Canada Enterprise Emergency Funding Corp. says it approves bailout loans to offset soaring fuel costs and make airfares more affordable.
The Crown corporation says the loan must be repaid within four years, with interest that sits below market rates.
Porter, Transat secure bailout loans to cope with soaring jet-fuel costs
Air Transat parent Transat A.T. Inc. has secured $430-million in financial aid since the Iran war began in late February and triggered a surge in energy prices that has pushed the price of jet fuel to roughly double the levels from a year ago.
The government says Porter Airlines also recently received a $125-million bailout loan.