Sunwing turns to a federal emergency loan program designed to help Canada’s largest companies weather the effects of the crisis Coronavirus pandemic after new travel restrictions were announced last week.
Airlines are suspending flights to sun destinations until April 30 as concerns about the variants mount
The loan agreement announced on Monday gives Sunwing Airlines Inc. and Sunwing Vacations Inc. access to $ 375 million under the Large Employer Emergency Financing Facility (LEEFF) – the first Canadian airline to do so.
The LEEFF has barely been adopted since it was first announced in May, only two other companies – Gateway Casinos & Entertainment Ltd. and Conuma Resources Ltd. – did this approved for loans under the program.
To qualify for the LEEFF, a company must have a loan of at least $ 60 million and annual sales in excess of $ 300 million. Additional provisions include the obligation to publish annual climate-related disclosure reports and an agreement to limit executive compensation, dividends and share buybacks.
The story continues under the advertisement
As of February 1stSunwing pulled $ 50 million out of the loan.
Trend stories
-
Marjorie Taylor Greene is a “Cancer for the Republican Party,” says McConnell
-
COVID-19: Calgary Hotel Association concerned about “anger” from quarantined guests
Lending program for Canada’s largest companies “ineffective,” experts say
Canada’s already ailing airlines agreed to suspend flights to the Caribbean and Mexico until April 30 to curb the spread of aircraft COVID-19 amid growing concerns about a contagious variant of the virus.
Transport Minister Omar Alghabra on Friday acknowledged the current challenges facing Canadian airlines and said a federal aid package for the industry was in the works. The aviation industry saw no targeted government aid during the pandemic.
2:23
Coronavirus: Transport Minister Says Data Shows Aviation Sector Has Been Hardest hit by a pandemic
Coronavirus: Transport Minister Says Data Shows Aviation Sector Has Been Hardest hit by a pandemic
“Our government understands that a strong aviation sector is critical to Canada’s economy and the well-being of Canadians,” Alghabra said at a press conference.
The story continues under the advertisement
“With passenger numbers still falling by nearly 90 percent, airlines have had to take drastic measures to stay viable. The sector cannot respond to these challenges alone. “
Sunwing, which flies primarily to sun destinations, employs nearly 3,000 full-time Canadians.
© 2021 Global News, a division of Corus Entertainment Inc.
