After Air Canada lifeline, small carriers seek aid as virus looms ahead of summer travel

Canada is facing industry calls to extend financial aid to smaller airlines, after offering a C$5.9b lifeline to Air Canada, as new COVID-19 variants loom ahead of the vital summer travel season. The timing of Monday's deal, which saw the Canadian government take a 6% equity stake in Air Canada, was partly designed to secure "access to air travel when it returns," as the country's vaccine rollout ramps up this summer, a source familiar with the discussions said. But with the spread of new variants threatening to overtake the pace of vaccination, early hopes for a relaxation of Canada's strict travel requirements ahead of summer are fading. Fears of a delayed recovery, along with the Air Canada deal, has upset the "level playing field" for air service, with smaller carriers asking for financial support. "We want everyone to have access to the same programs," said John McKenna, chief executive of the Air Transport Association of Canada, which represents smaller carriers.<br/>