Transat A.T. Inc. says it has secured up to $150 million in federal aid to help offset the soaring price of jet fuel caused by the Middle East war. The Montreal-based travel company, which runs Air Transat, says the size of the loan will be based on the difference in the cost of fuel between the next few months and the same period last year, ending on Oct. 31.
The financial relief comes seven weeks after Ottawa announced a loan lifeline available to airlines struggling to cope with sky-high oil prices and the slashed flight schedules and lower profit forecasts that followed.
Air Canada suggested earlier in the summer it would not need to draw on the aid, while WestJet said it “strongly opposes” the move because of its market-distorting effects.
Transat says the loan will be drawn in monthly tranches, with an initial $125 million disbursed from Ottawa this week.
The loan has a four-year timeline with an annual interest of 3.91 per cent.
If you enjoyed or found this story useful, we’d appreciate if you would forward it to a colleague or friend who may also enjoy it. If, on the other hand, a friend shared it with you, welcome! You can get all the latest travel news and reviews from Travel Industry by simply clicking HERE.