Canadian Airlines Hope New Faces Bring Fresh Offers From Trudeau Government

Fresh faces at the bargaining table could help spark stalled talks between the Justin Trudeau government and Canadian airlines.At least that's the hope.

Speaking on a not-for-attribution basis, a Canadian airline industry source told TravelPulse Canada that discussions, which began November 8, have been "extremely limiited" to this point.

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But the source said industry officials are hopeful that the new Minister of Transport, Mississauga MP Omar Algahabra, and Trudeau point man Michael Sabia will kickstart the process.

Talks appeared to go almost nowhere under former Transport Minister Marc Garndeau, who was bumped to Foreign Affairs Minister earlier this week, prompting Trudeau to give the job to Algahabra.

The Globe and Mail on Friday suggested that the real power at the table for Ottawa's side is Sabia, the former President and Chief Executive Officer of la Caisse de dépôt et placement du Québec and now deputy finance minister in the Trudeau government.

The Globe story quoted unnamed officials as suggesting a deal could be announced by January 25. But TravelPulse Canada's source said that would be "a pleasant surprise."

The COVID-19 pandemic hit the world ten months ago, and the Liberal government has yet to provide a sector-specific assitance program to Canadian airlines.

Canadian government officials have repeatedly said that airlines will only get direct help (possibly through loans) if they offer refunds to customers who had flights cancelled due to the virus, and if they restore the deep cuts made to their network of flight routes.

The TravelPulse Canada source said time is of the essence.

"A consistent plan is needed urgently if we don’t want too many permanent scars on the industry in Canada," he said.