Flair Airlines secures $76M bailout from Ottawa as fuel costs soar
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.
Loan must be repaid within 4 years, with interest below market rates
Christopher Reynolds · The Canadian Press
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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 CEO 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.
Air Transat parent Transat A.T. Inc. has secured $430 million in financial aid since the Iran war began in late February. The war 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.
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