432-00913 (Business and trade)

Transport Canada has been working with a range of air industry participants, the organizations that represent them, and other government departments to analyze the current situation and develop appropriate options to support Canada’s air transport sector generally.

The Government of Canada recognizes that travel agencies and their agents play a vital role in the air travel system, both in terms of assisting Canadians wanting to explore the world beyond our borders and welcoming tourists to Canada and by virtue of the latter play a critical role in supporting jobs and businesses. 

On November 8, 2020, the Government of Canada announced it would develop a package of assistance for Canada’s airlines to ensure the existence of a robust air transport sector that connects Canadian communities. Agreements have now been reached with Air Canada, and Transat, A.T. based on repayable instruments to protect taxpayers’ money. Any assistance to air carriers comes with strict conditions to protect Canadians and the public interest. All carriers will be required to provide refunds for tickets cancelled due to the pandemic, and Air Canada must restore services to Canadian communities where these were cut due to the pandemic.

Additionally, as part of the Air Canada and Transat agreements, travel agencies and their agents, most of which are small businesses, owned and operated by women, and significantly affected by the pandemic, may assist in the processing of refunds for tickets the travel agents sold but will not have their sales commissions recalled on refunded fares by Air Canada and Transat. The government is currently negotiating financial packages with other Canadian carriers to achieve similar outcomes.