Air Canada, WestJet would have been better off grounding more flights: Porter Airlines chair
Adena Ali, BNN Bloomberg VIDEO SIGN OUT
Porter Airlines Chair Donald Carty said Canadian airlines like Air Canada and WestJet Airlines Ltd. probably would have been better off grounding more flights throughout the pandemic to better manage costs.
Carty believes that if the airlines knew how long the COVID-19 pandemic would last and how long it would take for the government to provide financial support, they might have chosen to halt more flying.
âTheyâve been flying around with airplanes that are far from full and not sufficiently full to pay for the operation,â said Carty, who also was the CEO of American Airlines from 1998 to 2003, in a broadcast interview Friday.
Share this article
MONTREAL, May 7, 2021 /CNW Telbec/ - Air Canada today reported first quarter 2021 financial results:
Operating revenues of $729 million, a decline of $2.993 billion or 80 per cent from the first quarter of 2020.
Negative EBITDA
(1
) (earnings before interest, taxes, depreciation and amortization), excluding special items, of $763 million compared to EBITDA of $71 million in the same quarter of 2020.
Operating loss of $1.049 billion compared to an operating loss of $433 million in the first quarter of 2020.
Net cash burn of $1.274 billion, or approximately $14 million per day, on average.
Unrestricted liquidity amounted to $6.582 billion at March 31, 2021. The persistence of COVID-19 and its resurgence in Canada are weighing heavily on the Canadian airline industry, as reflected in Air Canada s first quarter results. Still, through the hard work and dedication of our employees, we are operating a limited schedule for necessary travel and to ship ess
Transat (TSX:TRZ) Gets a Bailout Too – Should You Buy It Now?
More on:
It has been a bit late at coming, but the federal government
has started injecting money into the airline industry to stabilize it. Some speculate that the government didn’t want a repeat of the first wave of the pandemic, which practically ran the country’s airline to the ground if the third wave gained momentum. With that perspective, the aid is just in time.
The first target of this government aid for the sector was naturally the premier airline,
Air Canada, in which the government is now the fourth-largest shareholder. It gave enough funds to the airline to issue refunds and restore flier confidence.
By Reuters Staff
(Adds context, details)
MONTREAL, April 28 (Reuters) - Struggling Canadian tour operator Transat AT is very close to reaching a financial aid deal with the federal government involving a loan, two sources familiar with the matter told Reuters on Wednesday.
The deal would involve a loan under Canada’s Large Employer Emergency Financing Facility (LEEFF), the sources said on condition of anonymity because the talks are confidential.
Transat, which is scheduled to hold its annual general meeting on Thursday, declined to comment. The federal finance ministry, which is leading the talks with Transat, was not immediately available for comment.
Transat A.T. Inc. announced on April 29 that it has reached an agreement with the Government of Canada to borrow up to $700 million in additional liquidity through the Large Employer Emergency Financing Facility (LEEFF). The agreement reached with the Government of Canada provides us with an additional $700 million in liquidity, which is the amount we needed to move forward with confidence,â stated Jean-Marc Eustache, President and Chief Executive Officer. âOur strong balance sheet prior to the pandemic and the aggressive actions we have taken since have enabled us to weather this unprecedented crisis so far. With this support, we now look forward to resuming operations as soon as safe travel is possible and travel restrictions can be lifted. We will then be able to implement our plan to make Transat a solid and profitable company once again, one that will continue to symbolize leisure travel for its many customers in Quebec and elsewhere.