Aviation | Porter Airlines $ 270 Million Federal Loan

Porter Airlines said Wednesday that it had reached a $ 270.5 million “maximum cost” agreement with the federal government, including $ 20 million in “additional compensation” for passengers whose flights were canceled during the pandemic.

Henri Wellette-Vezina

Henri Wellette-Vezina
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“We intend to use these funds as needed to support the recovery of operations at a time of uncertainty in travel demand. Our immediate goal is to be ready to resume flights as soon as public health conditions allow and governments change travel restrictions, ”Porter President and CEO Michael Delus said in a statement.

He clarifies that the company will use these amounts “mainly as a capital reserve for the recovery period after the pandemic.”

The Canadian Emergency Business Finance Corporation is providing this loan to Porter Airlines under the Emergency Large Employers (CUGE) program. The loans are repayable over five years, but the separate loan, “designed to help passengers repay, is repayable within seven years,” however the company said.

Toronto-based Porter Airlines becomes the latest airline to gain access to CUGE loans.

Thus, all flights booked before June 30 are for travel from June Feb 2020, refunds possible. Requests to this effect must be made online, on the Porter Airlines website, and will be accepted until 29 August.

“Refunds correspond to the total purchase amount and will be processed according to the original payment method,” the carrier also indicated, stressing that its customers will also be able to “keep their existing travel credits and receive a 25% credit. bonus depending on the booking method ”. These loans will be valid until December 31, 2022.

There is no need to contact Porter Airlines. The company itself will contact eligible customers by email. “We look forward to resuming flights this summer and welcome passengers back on board our aircraft,” insisted Mr. Delus.

The only exception remains: users who purchased their ticket through a travel agency company will have to request a refund from the same agency and not from Porter Airlines.

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