Whitehorse Daily Star

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HELP FOR NORTHERN AVIATION – Of the $3.56 million in federal funding, $1.1 million will be directed to Air North over three months to ensure the continued operation of critical routes to the North. An Air North Boeing 737 is seen here in June 2018 over Whitehorse.

Federal money now available for Yukon’s aviation industry

The Yukon’s aviation sector will receive $3.56 million from the federal government to help compensate for lost revenues as a result of COVID-19.

By Whitehorse Star on May 5, 2020

The Yukon’s aviation sector will receive $3.56 million from the federal government to help compensate for lost revenues as a result of COVID-19.

The Yukon government will act as a conduit, flowing the federal funding to aviation businesses to support critical and essential routes and the transportation of vital supplies. The $3.56 million in funding is the Yukon’s portion of the federal support announced on April 14.

Of this funding, $1.1 million will be directed to Air North over three months to ensure the continued operation of critical routes to the North.

These routes ensure scheduled delivery of medical samples, supplies and critical front line staff to Yukon.

Yukon aviation businesses will also benefit from the waiving of commercial fees.

When coupled with the previously announced waiver of aviation landing, parking and loading fees, these changes will save aviation businesses approximately $780,000, the government said Monday. The new fee waivers include:

• land lease and licence fees;

• building lease and licence fees;

• air terminal building concession fees;

• aircraft fuel lease and licence fees;

• aircraft fuel concession fees;

• parking stall fees; and

• service recoveries like charges for electricity.

These fees are waived from April 1 until Dec. 31.

“Yukon’s airlines are critical to our northern lifestyle,” said Richard Mostyn, the minister of Highways and Public Works.

“They connect our communities, safely get us to medical services, transport much needed goods and support our economy.

“This funding will ensure critical medical cargo, including COVID-19 tests, continues to be sent to and from the territory.

“Airlines have been deeply impacted by this pandemic, and we are glad to provide some support at this time.”

Air North will be the primary beneficiary of this funding, which will support five weekly flights to Vancouver and three on their northern route that services Dawson City and Old Crow.

“All Yukon businesses have been hard hit by the COVID-19 pandemic,” said Air North president Joe Sparling.

“With our year-over-year traffic down by 96 per cent in April, we have had to reduce capacity drastically, while still maintaining a minimum level of essential service to the communities we serve.

“We have also had to slash our overhead costs in order to stem losses. We are very thankful for the help provided by both the Yukon government and the federal government under the Commercial Fee Waiver Program, the Yukon Business Relief Program, the Northern Essential Air Services Relief Program, and the 75-per-cent wage subsidy program,” Sparling added.

“Together, these programs will help see us through to better times.”

The aviation industry has been among the hardest hit by the COVID-19 public health crisis, with passenger traffic dropping almost 90 per cent nationally.

Air Canada said Monday it lost almost $1 billion during the first quarter of the year.

“Unfortunately, due to the COVID-19 pandemic, we are looking at very low traffic this year, which will have a dramatic impact on Yukon’s aviation industry,” said Wendy Tayler, the president of the Northern Air Transportation Industry.

“Our association represents aviation companies across the North and we are seeing firsthand the impact this pandemic is having on northern and remote aviation operators.

“This government support will help businesses through this crisis so that we can continue to provide valuable transportation services in the future,” Tayler said.

Comments (2)

Up 14 Down 6

The More You Know on May 6, 2020 at 6:23 pm

This is the same aviation industry that lobbied the government for an exemption from the Carbon tax even though they are by far our worst polluters.

Up 17 Down 1

Tater on May 6, 2020 at 1:37 pm

Federal money is TAXPAYERS MONEY.

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