WestJet drops out of talks with government on pandemic aid

Calgary-based WestJet said today that after months of negotiations, it has officially ended talks with the federal government ona financial aid package to help the airline during the COVID-19 pandemic.

The statement from the airline, released this afternoon, comes a day after Canada announced it plans to reopen the border to fully vaccinated U.S. citizens next month and to vaccinated travellers from around the world in September.

"Given encouraging vaccination rates across the country, both parties have mutually agreed to shift focus from these negotiations, and away from taxpayer-funded support, to leading the safe restart of the travel and tourism sector,"WestJetsaidin the statement.

The federal government said it and the airline agreed "mutually ... to suspend constructive discussions" and it's open to restarting talks in the future if necessary.

Major airlines have been lobbying the government for months for financial help. The carriers argued anaid package was desperately needed as a lifeline for an industry hit hard bythe pandemic. Air travel dropped to historic lows as airlines endured border closures, travel restrictions and quarantine orders.

Several carriers alreadyhave reached multimillion or multibillion dollardeals with thegovernment in exchange for refunding passengers for flights cancelled during the pandemic.

Air Canada reached a $5.9 billion deal with the federal government consisting of low-interest loans; the governmenttook a$500 millionequity stake in the company. Air Transat also secured a $700 million support package. The parent company of Porter Airlines receiveda federal loan of up to $270 million.

Conservative transport critic Stephanie Kusie took aim at Transport Minister Omar Alghabra following WestJet's announcement. Alghabraposted a video on social media earlier today showing he met with recalled WestJet staff this morning.

"You tried to fool us today with all of your positive @WestJet posts," tweeted Kusie. "The truth comes out. This announcement proves the industry always knew they were on their own and are ready to move on without you."

The office ofDeputy PrimeMinister and Minister of FinanceChrystia Freelandsaid that it has provided "substantial support" to theairline sector.

"That support to date includes more than $2 billion in wage subsidies for airlines and $1 billion announced in the Fall Economic Statement for airports and smaller airlines," wroteFreeland's press secretary Kat Cuplinskas.

WestJet's CEO said company never wanted a "bailout"

Before entering talks with the government, WestJet's president and CEO Ed Sims said it wasn't about the money and his company was not seeking a "bailout." Instead, the airline said it wanted the government to lay out a recovery plan for theindustry, he said.

WestJet's books are closed to the public since it's privately owned by Toronto-based Onex Corp.

"We are not seeking policy that strictly supports our bottom line and, frankly, that is not what the nation needs," Sims wrote to MPs and senators in December 2020.

WestJetrecently apologized and said it made an errorby refusing some customers'refunds for rebooked flights during the pandemic. The admission came after a CBC News investigation into complaints from customers.