Westjet bails out of pandemic compensation talks with Ottawa
Calgary-based airline Westjet has jettisoned from COVID-19 compensation talks with the federal government.
Following months of negotiations over pandemic relief for the carrier that's been hit hard by the collapse in air travel, Westjet said Tuesday it's officially broken off talks with Ottawa.
In a statement, the airline said it wants to shift attention to the reopening of air activity as pandemic conditions improve in Canada.
“The Westjet Group and the Government of Canada have had constructive discussions over the last several months,” the statement said. “Given encouraging vaccination rates across the country, both parties have mutually agreed to shift focus from these negotiations, and away from taxpayer-funded support, to leading the safe restart of the travel and tourism sector.”
That move came a day after the federal government announced it would reopen the country's borders to fully vaccinated, non-essential travellers from the U.S. on Aug. 9, and for all other international visitors Sept. 7. But uncertainty remains for the full resumption of travel between Canada and the U.S. after Washington refused to follow suit until at least Aug. 21.
Compensation talks had linked financial aid for beleaguered carriers to their willingness to refund passengers airfare.
Westjet said the company remains “open to resuming financial support discussions in the future.”
Last April, the Liberal government threw carrier Transat A.T. Inc. a lifeline in the form of a loan of up to $700 million. That aid package came two weeks after it agreed to loan Air Canada as much as $5.9 billion to help it navigate the pandemic.
The pandemic's effect has reduced Westjet's PRE-COVID-19 workforce of 14,000 to 4,900, with 5,000 of those permanently laid off.
Spokeswoman Morgan Bell said the carrier is currently operating 300 flights a day when it would normally be flying 700 at this time of year.
“We've been seeing signs of positive recovery … every day we're working to recall employees,” she said.
She didn't say what effect the cessation of compensation talks would have on its rehiring, operations or viability. But on Tuesday, she said the carrier is watching closely for the possibility of a fullblown fourth wave of COVID-19 in the U.S., adding the company “has flexibility in its cancellation policies.”
The opposition Conservatives have accused the Liberal government of dragging its feet on helping airlines that have been punished by the pandemic for 17 months. But the government insists it's been responsive, pointing to aid agreements reached with some airlines.