The Trudeau government has released $100 million in emergency aid to Quebec tour operator and air carrier Transat, which is still reeling after two years of the pandemic.
The amount, granted through the Trudeau government’s Emergency Credit for Large Employers (CUGE), is in addition to the $700 million Transat already received in April 2021.
The deal, unveiled Friday, also postponed the company’s $198 million debt repayment deadline by a year from April 2023 to April 2024, again giving the tour operator a chance to straighten out its finances.
“This additional financing and amendments to existing agreements will strengthen our cash availability and strengthen our financial resilience. This significant financing milestone, combined with several months of strong sales, gives us the financial flexibility we need to execute our strategic plan with optimism and confidence,” commented Transat President and Chief Executive Officer Annick Gerard.
For its part, the Canada Business Emergency Financing Corporation (CFUEC), which administers CUGE, said Transat’s request was submitted at the height of the Omicron wave of COVID-19 that hit earlier in the year.
Transat is the only Canadian employer that has had to call for help from CFUEC to get help through CUGE since the start of the year, Ottawa underlined, deciding to end the program on Friday.