In August, Canadians welcomed the first woman Finance Minister in the nation’s history. Chrystia Freeland accepted the post after serving for several years in other positions within the Trudeau Administration. Now, just a few months later, she appears ready to support the extension of an emergency loan package to assist Canada’s commercial air carriers. This policy change conforms with the desire of the largest airline union in Canada. A bailout might help preserve the badly damaged industry and, possibly, avoid further mass layoffs.
Canada’s Commercial Air Carriers in Crisis
The global Coronavirus pandemic damaged commercial air carriers around the world. Yet while nations like the United States took action to bolster ailing airlines and airports early in the course of the crisis, Prime Minister Trudeau in Canada initially resisted extending assistance to Canada’s passenger carriers. His administration supplied $1.3 billion Canadian dollars in subsidies to airlines to pay their employees during shutdowns. The Canadian government also offered support to Northern air carriers. They received some $192 million Canadian dollars in subsidies. The government agreed to waive ground lease rents for 21 carriers. However, Canada’s two largest companies, Air Canada and WestJet, reportedly sustained extensive losses as the demand for international passenger flights plummeted.
During 2020, commercial air passenger carriers in Canada sustained a 92% decline in business during the period between April and August 2020 compared with the same time frame in 2019. Air Canada laid off nearly 50% of its work force as the pandemic progressed. Now, the Trudeau Admnistration faces strong public pressure to take action to avoid further downsizing within the industry. Reportedly, Finance Minister Freeland appears likely to support extending an emergency aid package to assist Canadian airlines. It will likely extend low interest ten year business loans to the troubled companies, a measure supported by unions.
One of Prime Minister Trudeau’s Staunchest Supporters
Chrystia Freeland joined the Liberal Party in 2013, just before standing for election to the Canadian Parliament representing Toronto Centre. Both of her parents worked in the legal profession in Alberta. A Rhodes Scholar and a Harvard graduate holding a B.A. in Russian History and Literature, she obtained a Masters in Slavonic Studies from Oxford before embarking on a meteoric career in journalism. She speaks five languages fluently: Ukrainian, Russian, French, English, and Italian.
Chrystia Freeland became Moscow Bureau Chief for the prestigious Financial Times while still in her 20s. She held increasingly responsible journalistic positions. Her British-born husband, Graham Bowley, serves as a reporter for The New York Times. During the past decade, she made frequent appearances on television in the United States. For example, she discussed current events on Fareed Zakaria GPS, Real Time with Bill Maher, and Left,Right & Center and other newscasts. Her policies as Canada’s Finance Minister will likely generate keen interest in Canada, the international community, and the airline industry.
