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House Hansard - 230

44th Parl. 1st Sess.
October 5, 2023 10:00AM
Context: House Hansard - 230 - Oct/5/23
Mr. Vance Badawey (Parliamentary Secretary to the Minister of Transport, Lib.)
  • Oct/5/23 6:43:44 p.m.
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Mr. Speaker, the First Air-Canadian North merger was approved, as was mentioned earlier, in 2019, with terms and conditions around pricing, scheduling and employment, amongst other elements that would be in place until mid-2026. The sudden onset of the pandemic, which drastically changed the air transportation landscape in northern Canada, has had a lasting impact on Canadian North's ability to comply with these conditions while continuing to serve communities, return to profitability and maintain services. Passenger levels in the North remain below 2019 levels and are lower than in other regions throughout the country. The lasting impacts of COVID have required us to vary the original terms and conditions, while at the same time ensuring that important safeguards remain in place for northern Canadians for the remainder of the period subject to obligations. In this context, Transport Canada has negotiated new terms and conditions with Canadian North, which were subsequently approved by the Governor in Council. These conditions are intended to strike a balance in ensuring the airline's continued operations and financial resiliency, while maintaining some conditions to maintain the public interest, such as imposing caps on fare increases and profit margins, as well as ensuring the balance of service. These terms and conditions will be in place for the next three years. Furthermore, the new terms and conditions include an obligation by Canadian North to be subject to assessment by an independent monitor, reporting to the Minister of Transport, and to provide financial and scheduling data to ensure compliance with the new terms and conditions. The Government of Canada shares concerns over air affordability and accessibility in northern Canada, which is why the Government of Canada insisted on maintaining safeguards for Canadians when deciding to vary the terms and conditions. At the same time, we have acted to ensure that Canadians in northern communities continue to receive the air services that they rely on. It is our understanding that the merger related terms and conditions to which Canadian North is subject do not supersede the contractual obligations it has with the territories around medical and duty travel. In this context, Canadian North will need to adhere to the conditions laid out in the agreements it holds with the territories. I will add, and the member does recognize this, that we on the transport committee are working with the member for Yukon to look at these arrangements, as well as other arrangements to, once again, strike that much-needed balance in the northern part of our country.
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Context: House Hansard - 230 - Oct/5/23
Mr. Vance Badawey
  • Oct/5/23 6:48:11 p.m.
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Mr. Speaker, the Government of Canada is concerned with ensuring that northern Canadians have access to the air transport they require. COVID-19 placed serious pressure on the ability of Canadian North to continue to provide services to northern Canadians while at the same time avoiding financial losses. To ensure ongoing service in the north, Transport Canada recently reached the agreement I spoke about earlier with Canadian North to vary their merger related terms and conditions. These aim to strike a balance between addressing public interest concerns while maintaining the sustainability of the airline. In conclusion, the Government of Canada, in approving these new terms and conditions, ensured there remained safeguards for Canadians, especially in the north, such that each community will continue to be served and that fare increases would be representative of the new realities of the market and capped to ensure that the balance is maintained.
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