Good afternoon.
The Air Transport Association of Canada represents this country's commercial aviation and has done so since 1934. We have approximately 180 members engaged in all levels of commercial aviation, operating in every region of Canada. We welcome this opportunity to speak to this committee on the impact of COVID-19 on our industry.
The damage is easy to assess. Operations are at levels 80% to 90% lower than one year ago. Some operators have suspended operations altogether. Tens of thousands of jobs have been lost. There's hardly enough revenue to meet our short-term obligations. Airports are raising fees to compensate for lost revenue. Not allowed by law to incur deficits, Nav Canada has implemented a fee increase of 29.5% as of last September 1.
All these increases, resulting from an absence of government assistance, dangerously limit our industry's ability to survive during the pandemic and seriously undermine any future recovery strategy.
The challenge facing us is to come up with solutions to limit the irreversible damage to our national aviation transportation system. While the Prime Minister recognizes that our industry is one of the hardest hit, only limited support has come so far from the government.
The financial update presented by the Minister of Finance on November 30 offered nothing in the way of financial relief to regional air carriers, and little more than repeating promises of a process regarding financial assistance for the larger airlines.
We have written over half a dozen letters since March to the government, offering our full cooperation in finding comprehensive and viable solutions. We have yet to receive a single acknowledgment from the government.
On November 8, the Ministry of Transport issued a statement to the effect that “The air sector cannot respond to these challenges on its own, given the unprecedented impacts on its operations.” The anticipated discussions would begin that week to establish a process with airlines regarding financial assistance. Three weeks later, our members and many other key stakeholders are still waiting for this process to begin.
Therefore, the question that the aviation industry has been asking for so long is, what is the government waiting for?
We fear two things from an airline perspective. The first is that the government is simply waiting to see which air carriers survive and perhaps then step in to help re-establish lost services, but at a great cost. Our other fear is that the government will choose to help only the two largest carriers. That would demonstrate a profound lack of understanding of Canada's air transportation network and quickly lead to a significant and very long-lasting disruption of domestic scheduled air services. Very many regions depend almost entirely on regional carriers as socio-economic lifelines with the rest of Canada.
The support of regional air transport in the North was most welcome. However, much more must be done if regional air transport in Canada is to survive, as there are many other remote parts of the country that rely on air transport as an essential service.
To limit the sweeping damage to the air industry, the Government of Canada must set up a financial aid program immediately, offering substantial, equitable and easily accessible funds. It should dedicate specific and adequate funding support to the regional airlines and provide Nav Canada with commensurate funding that the recent fee increases are designed to provide. It should champion rapid COVID-19 testing programs and contact tracing for international arrivals, and fully utilize the available science in reducing quarantine periods at Canada's major airports as quickly as possible.
The government should also recognize that the December 12 implementation deadline for the new pilot flight and duty time regulations is totally unrealistic. Canadian carriers are already fighting for survival and operating within unprecedented travel restrictions, and they cannot achieve the necessary pilot training and software development and implementation. Most certainly, they are not able to bear the extra cost at this crucial time. A deferral to post-pandemic times will not jeopardize safety in any way, and there would not be any cost to the government or taxpayer.
The government should order the Canadian Transportation Agency to work with carriers, rather than enforcing new APPR regulations that leave carriers with little choice other than to cancel flights in the face of the agency's totally disconnected appreciation of the reality our industry is facing in complying with the constantly changing government health restrictions on air travel.
Our plea to the government is to support aviation when it most needs help, work with industry, increase interdepartmental co-operation efficiency, assume a leadership role in the coordination with the provinces in finding Canada-wide solutions and, finally, lift travel restrictions.
Service cuts have already been announced all over Canada, and more are to come unless something is done soon.
Thank you.