Government Bailout of Canadian Airlines, is it a Good Investment for the Taxpayers of Canada.

Updated: May 1

It is one thing for our government to bailout the airline business sector that is deemed vital to the economy of Canada, but there are to many red flags in this deal that will cost taxpayers a lot of excess money in years to come. Other countries' government have delivered financial support to airlines already, but they did it with transparency, the Canadian liberal government is once again keeping a closed book on this airline bailout.

Canadian Airlines have in fact already received taxpayer funds thought the Canada Emergency Wage Subsidy (CEWS), CBC has reported that Air Canada received 492 million dollars. Air Transit received 106 million dollars and Chorus Aviation, who owns Voyageur Airways that has provides chartered aircraft to the United Nations in support of various programs in Africa, received 98.6 million dollars. In total, with other funding to varies airlines, the Canadian government has already provided 1.7 billion taxpayer's dollars to Canadian airlines. The amount now being loaned to airlines starts at a basement price of 9 billion dollars and as there is non disclosure agreements on this deal Canadian citizens will never know the true amount. Throughout Canada, 400 businesses have already filed public disclosures indicating they received taxpayer support.

Government bailout of airlines to start at 9 billion dollars

The Globe and Mail reported last month the government remains open to "some form of equity ownership in return for low-interest loans to the industry." If the government is allowed to own equity in the airlines, the airlines will become a government funded long term project at the expense of taxpayers. Anytime the government acquires equity in a company it gets plagued with polices or eventually gets chocked to death, like the Kinder Morgan and keystone pipelines did.

Trudeau once again, becomes a climate change hypocrite as he condemns the oil patch sector but yet will support the airline sector that solely relies on fossil fuel for 100% of its operations. Further more, the Trudeau family accumulated a fortune by building gas stations around the Montreal area and a loyalty program known as the Automobile Owners' Association, which by 1932 had 15,000 members patronizing Trudeau's 30 stations.

Deputy Finance Minister Michael Sabia is leading the negotiations for the federal government. Sabia is currently director at the Munk School of Global Affairs and Public Policy and chair of the board of the Canada Infrastructure Bank. For anyone not familiar with Sabia, his first job out of university — after an undergraduate degree from the University of Toronto and graduate degrees from Yale — was at the Department of Finance, where he ended up in charge of the team that brought us the Goods and Services Tax. Has the liberal government positioned him as deputy Finance minister to dream up a new tax for the Trudeau - liberal government to enforce on taxpayers in the future to pay for all the covid spending dollars of today?

More than 100,000 Canadians signed petitions calling for government action on refunds, and several class-action lawsuits have been filed against airlines. Air Canada has agreed to refund passengers for cancelled flights as part of the talks but is using it as a bargaining chip in bailout negotiations with the federal government. Transport Minister Marc Garneau said he has made it clear to airlines that they must pay out the refunds before they can get any more government aid. "We said very clearly no — until they commit in writing to refund passengers, they will not get a cent from the Canadian government,". As the negations are confidential it is safe for a liberal minister to say anything he wishes and the general public will never know the truth. Only a corrupt government acts in a nontransparent manner, there is no other word for it. I highly recommend not paying attention to any liberal member giving himself praise.

NO Transparency No Bailout

Yes, any and all jobs that can be saved in Canada should be saved, but the conditions the liberal government plan to set forth in bailing out airlines is going to cost taxpayers more than it should. The true cost of this so called loan to airlines, will never be known as sources say all parties involved in the confidential talks have signed non-disclosure agreements barring them from speaking publicly about the details. This is opening the door to more scandals that has become the main priority of the liberal government, further more as the liberal government can not account for 80 billion dollars. transparency is a must in this airline deal. Government failure to show transparency in any spending of tax dollars, is a potential opportunity for fraud and embezzlement. Taxpayers have a right to know where and how much taxed dollars will be given to airlines.

WestJet's has demand for a plan to restart domestic air travel and of course this has caused disturbance as the liberals clearly no plan at restarting the economy. WestJet president and CEO Ed Sims has said his airline is not seeking a "bailout" and instead wants a recovery plan for the industry. The liberals were slow to react in closing the borders when the pandemic first started and even called it racist when President Trump restricted foreign travel. But yet liberals seam to have had no problem at slamming the doors shut on businesses and in fact nailed some of the doors shut for good as many will never reopen. The only answer Trudeau has is spend money and major corporations in Canada have become wealthy as dozens of corporations are paying out dividends and bonuses while receiving federal wage subsidies. Clearly taxpayers money has been ill spent.

Canadians should worry because losses incurred by airlines now will defiantly mean higher ticket prices especially when the government wants equality in the airlines.