WestJet criticizes government’s $376M bailout for Flair, Porter, and Air Transat
Canadian airlines Flair, Porter, and Air Transat are receiving a combined $376 million in government loans as the industry faces rising fuel costs.
But WestJet maintains that government-backed financing isn’t the answer.
In an email to Daily Hive, a representative for the Canada Enterprise Emergency Funding Corporation (CEEFC), a subsidiary of Canada Investment Corporation, confirmed that the loans were approved through the Liquidity for Airline Sector Resilience (LASR) facility.
The loans are repayable, with $76 million approved for Flair Airlines, $150 million for Transat A.T. Inc., and $150 million for Porter Airlines.
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According to the government, LASR was created in June 2026 as temporary financial support to airlines facing pressure from increasing aviation fuel costs. Loans are provided on commercial terms and are based on demonstrated need.
Porter declined to comment on the specifics of the loan agreement, but said that it accessed the loan program to “moderate the current effects of extreme fuel prices.”
Daily Hive also reached out to Flair and Air Transat, but did not receive an immediate response.
The CEEFC says its role is to provide financing “during periods of economic uncertainty while protecting the interests of Canadian taxpayers through appropriate terms, conditions, and oversight.”
WestJet pushes back
WestJet has previously criticized the government’s decision to offer loans to Canadian airlines, arguing that government financing could distort competition in the industry.
“The government faces a choice: continue with costly and market-distorting subsidies or build a sustainable future for Canadian aviation,” reads a June 8 statement.
WestJet also pointed to the U.S. as an example, saying it has refrained from “bailing out airlines in the spirit of fair and level playing field competition.”
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“Their airlines face the same oil prices as ours, and Canada should stay away from distorting markets, both within our country and across the border to the U.S., especially at this sensitive time between our nations,” the statement reads.
A WestJet representative told Daily Hive that the airline doesn’t rely on government subsidies and believes airlines should be able to succeed on their own.
Instead of providing government-backed loans, WestJet argues that the government should address underlying costs that make it harder for airlines to compete and keep fares affordable for Canadians.