Feds to compensate Canadian air carriers

Federal Transport Minister David Collenette is introducing a $160 million program to compensate Canadian air carriers and specialty air operators for losses resulting from the closure of Canada’s airspace following the terrorist attacks in the United States on September 11, 2001.

“This package is structured to move sorely needed funds to air carriers quickly. We are acutely aware of the impact of this crisis on our air industry, and its workers. This package will help Canada’s air carriers begin to address their financial concerns,” said Collenette.

An examination of financial information provided by Canada’s largest carriers, supplemented by a sample survey conducted by the Air Transport Association of Canada, places losses for the air industry attributable to the closure of Canadian airspace at approximately $150 million.

The $160 million program incorporates the cost of administering the compensation program and allows for the possibility of larger claims once all data are submitted and assessed.