Montreal (AFP)

The Canadian government and the airline Air Canada announced Monday that they have agreed on a financial assistance plan in the form of loans, to help the first Canadian carrier to recover from the pandemic.

The agreement provides that Air Canada will be able to access approximately 5.9 billion Canadian dollars (3.9 billion euros).

"We have reached an important and historic agreement with Air Canada," said Omar Alghabra, Canada's Minister of Transport, during a press briefing.

To benefit from this financial support, Air Canada has undertaken to respect several conditions, in particular to reimburse customers whose tickets have been canceled by the carrier for reasons related to the pandemic.

The company has also agreed to re-establish regional links and restrictions on the remuneration of its senior executives.

Air Canada, which currently has nearly 15,000 employees, has pledged not to cut new jobs, after having had to lay off more than 20,000 employees since the start of the pandemic.

"Airlines are a strategic sector and generate good jobs for the middle class of our country," said Deputy Prime Minister Chrystia Freeland, welcoming a "fair deal".

Since the start of the pandemic, Canadian airlines have received more than $ 2 billion in federal aid that has enabled them to maintain the jobs of thousands of workers, said Mr. Alghabra.

The government is continuing discussions with other airlines, including WestJet, the country's second largest airline, Freeland said.

"Today's announcement by the federal government recognizes that workers in the airline industry are essential to the Canadian economy," said Jerry Dias, president of Unifor.

The Canadian airline industry has been asking for an aid plan from the Canadian government since last spring.

Unlike many other countries, Ottawa has so far refused targeted aid for its airline industry, insisting first that companies reimburse customers whose flights have been canceled since the start of the pandemic and that they resume routes. abandoned interiors.

Air Canada suffered a loss of 4.6 billion Canadian dollars (3 billion euros) in 2020, marked by a 73% drop in the number of passengers due to the pandemic.

In 2019, the company posted a net profit of $ 1.4 billion.

The top Canadian carrier's revenue fell 70% to $ 5.8 billion in 2020 from $ 19.1 billion the year before.

© 2021 AFP