Crash landing feared

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This article was published 03/09/2020 (1884 days ago), so information in it may no longer be current.

From aerospace manufacturers and travel agents to concession shops and other services at all 17 of Canada’s international airports, mandated pandemic shutdowns and a lack of direct federal support for the aviation industry is being called a “domino effect” they’re not sure they will survive.

Economic experts suggest even if a vaccine for COVID-19 is developed sometime next year, it’ll likely be until 2025 for airports and other aviation services to go back to normal.

Industry executives believe that’s why it’s high time for monetary aid from Ottawa.

“Our recovery really depends on if the federal government actually listens to us,” says Barry Rempel, president and CEO of the Winnipeg Airports Authority. “While provincially, Manitoba’s government has helped our airports as much as they can, we keep asking for urgent federal support that we haven’t seen a single cent towards.”

“For other provinces, their concerns are even bigger,” he said, “because their restrictions are much more stringent.”

“Our entire industry is in dire need for help and no one has listened yet.” 
–  Barry Rempel, president and CEO of the Winnipeg Airport Authority. 

In late May, then-finance minister Bill Morneau announced a “strong immediate and effective” action for the aviation industry by waiving ground lease rents from March 2020 through to December 2020 for the 21 airport authorities that pay rent to the federal government.

While that support waived fees for rent, Rempel says the lack of direct financial aid for the aviation industry to date has caused airports to “cut through (their) pockets and eat out cash reserves.”

“We contribute taxes and hire thousands of workers, with about 18,500 in our airport staff alone,” he said, pointing to the $201 million in federal taxes paid last year by Winnipeg airport. “And so even if we bring back our air traffic by 2025, the industry still can’t produce the economic output we used to if the whole country’s airports max out their reserves.”

Currently at a staggering 14 per cent activity, Winnipeg’s international airport, however, is still a far cry from the average five per cent activity being reported at other airports like in Toronto, Vancouver and St. John’s.

Still, that inactivity across Canada has caused all other airport services to cease — including shuttered travel agencies, permanently closed concession shops and aerospace manufacturers that have been asked to stop producing aviation parts because of the lack of demand.

“Companies that both repair airplanes and make airplanes are just sitting by idly, waiting for orders and purchases. And orders that were made before the pandemic are being pushed as far into the future as possible, because airlines just can’t afford it anymore.”
– Manitoba Aerospace Inc. president Wendell Wiebe

In statements to the Free Press, several airport storefronts — like The Exchange News and Gifts run by Paradies Lagardère in Winnipeg, who have reduced operational hours — confirmed they’ve faced a “disproportionate impact” amid the coronavirus pandemic.

“When there’s no one flying anywhere, airlines just don’t need our services anymore,” said Manitoba Aerospace Inc. president Wendell Wiebe, who represents around 30 world-leading aviation repair, maintenance and production companies in the province like Boeing Canada.

“Companies that both repair airplanes and make airplanes are just sitting by idly, waiting for orders and purchases,” he said. “And orders that were made before the pandemic are being pushed as far into the future as possible, because airlines just can’t afford it anymore.”

Wiebe says Ottawa has not yet offered any direct aid that will help Manitoba’s aerospace industry weather the pandemic.

“I just hope it happens before that’s too late.”

Winnipeg travel agent Christine Ward told the Free Press she’s sent several letters to the government asking for such support, but has yet to hear back.

“It’s frustrating because I think they just don’t understand how our industry works,” she said.

Prior to the pandemic, Ward says she had around 400 regular clients per year with at least a dozen more that were seasonal. Those numbers, she added, are on par with several other top travel advisers in the country.

“What’s the problem is that they’re giving us the same support they’d give restaurants or other services,” she said. “Well, we work in commission and are still closed. It needs to be specific.

“What happens when the pandemic is over and we just don’t survive? Will tourism be the same again?”

Rempel believes, if not monetary support, “at the very least” Ottawa must change its messaging around air travel — “reminding travellers that it’s safe to do so, if necessary because we’re taking all the precautions we possibly can.”

“I wish it were as easy as calling this handouts,” he said, “they’re simply not.

“Our entire industry is in dire need for help and no one has listened yet.”

 

Twitter: @temurdur

Temur.Durrani@freepress.mb.ca