Air Canada, WestJet could be set for coronavirus help from Canada

The Canadian government is offering more support to Air Canada and WestJet with a new loan program aimed at large companies hit hard by the coronavirus pandemic. Dubbed the Large Employer Emergency Financing Facility (LEEFF), Canada will provide loans starting at C$60m to companies with annual revenues of at least C$300m, according to a Monday statement from PM Justin Trudeau’s office. Air Canada and WestJet could qualify for the new aid funds. Smaller carriers, like Air Transat and Porter Airlines, are assessing whether they qualify, though they also have access to other Canadian government funding sources to help them bridge the crisis. The aid package in Canada is similar to the $25b in loans available to US airlines. Airlines taking assistance would also face similar strings on both sides of the border. These include barring dividend payments and stock buybacks, or using funds for executive pay. The one leg up that Canadian carriers appear to have is an absence of minimum schedule requirements. These rules in the US have forced airlines to fly nearly empty planes, further straining their balance sheets and pumping unneeded carbon into the air.<br/>