$100 million in emergency federal aid for Transat

$100 million in emergency federal aid for Transat< /p> UPDATE DAY

The Trudeau government has released $100 million to provide emergency assistance to Quebec tour operator and air carrier Transat, still in turmoil after two years of the pandemic. 

This sum, granted via the Emergency Credit for Large Employers (CUGE) set up by the Trudeau government, is in addition to the $700 million that Transat had already obtained in April 2021.

< p>Under the agreement unveiled on Friday, the deadline for repaying the company's $198 million debt has also been postponed by a year, from April 2023 to April 2024, again to leave a chance for the tour operator to get its finances back in order.

“This additional funding and the changes to existing agreements strengthen the cash flow we have and solidify our financial resilience. This important financing milestone, combined with sales that have been doing well for several months, will give us the financial flexibility necessary to deploy our strategic plan with optimism and confidence,” commented Transat President and Chief Executive Officer, Annick Guérard.

For its part, the Canada Business Emergency Financing Corporation (CFUEC), which administers the CUGE, specified that Transat's request had been submitted at the height of the wave. Omicron of COVID-19, which struck at the start of the year.

Transat is the only Canadian employer who has had to call on the CFUEC for assistance to obtain assistance via the CUGE since the beginning of the year, said Ottawa, which decided to end this program as of Friday.