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Aviation industry awaits details for aid package; refunds will need to be an option

The man in charge of Victoria International Airport sees reason for hope in what he鈥檚 heard from the federal government this weekend.

The man in charge of Victoria International Airport sees reason for hope in what he鈥檚 heard from the federal government this weekend.

Geoff Dickson said he remains confident Ottawa has heard the pleas of the beleaguered aviation industry, decimated by the COVID-19 pandemic, and will act to provide relief in the coming weeks.

On Sunday, federal Transport Minister Marc Garneau acknowledged the aviation sector would not be able to respond to the COVID challenge on its own given that passenger levels have dropped by as much as 90 per cent because of travel restrictions and fear about catching the virus.

鈥淭o protect Canadians, the government of sa国际传媒 is developing a package of assistance to Canadian airlines, airports and the aerospace sector,鈥 he said. 鈥淎s part of this package, we are ready to establish a process with major airlines regarding financial assistance which could include loans and potentially other support to secure important results for Canadians.鈥

Garneau said those discussions would start this week.

However, Ottawa will not release any funding until the airline industry refunds to passengers the millions of dollars spent on previously booked tickets and commits to maintaining regional routes, he said. 鈥淎ny assistance the government of sa国际传媒 provides will come with strict conditions to protect Canadians and the public interest.鈥

Many airlines have offered passengers credits for trips cancelled because of the pandemic, saying they cannot afford full refunds, and have cancelled some regional flights to save money.

In a news release, the WestJet Group said it was awaiting greater clarity on what support for the sector might include.

Dickson said the industry is struggling. 鈥淭he aviation sector is feeling the impact of COVID probably as much or more than any other sector, it鈥檚 been devastating,鈥 he said. Victoria International Airport will see maybe 600,000 passengers this year, after recording more than two million last year.

鈥淲e will see a 60 per cent decline in our revenue and you can鈥檛 cut costs at that rate,鈥 he said, noting YYJ has already trimmed operating costs by about 25 per cent.

Dickson said the help the sector is looking for would include rent relief, loan guarantees, interest-free loans and financial support for the country鈥檚 smaller airports. 鈥淚t鈥檚 just really difficult times for airports.鈥

Dickson said the hope is the Canadian air travel market will soon be able to fly again with confidence, but rapid testing that offers results before anyone gets on a flight or to the airport may be key to that.

鈥淜nowing 100 per cent of the people on a flight and airport have tested negative, then that confidence factor increases,鈥 he said.

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