CanadianNorth
Topic Author
Posts: 3133
Joined: Sat Aug 24, 2002 11:41 am

Government Favoritism Of Airlines..

Sat Jan 25, 2003 12:54 pm

Today Whitehorse based Air North recieve a grant of 1 million dollars from the government, one that does not have to be repaid, and to be used to help pay for their first B737-200 aircraft and look into purchasing their second B737-200 aircraft now on a short term lease. CanadianNorth and First Air, the other major airlines based in northern Canada (Yellowknife, NWT) have never recieved such grants, its simular to when Air Canada got big bucks from the government whilsts Canadian Airlines Intl. recieved nothing. No wonder Canadi>n is gone and Air Canada has a monopoly... but my point is that if one airline gets money from the government, so should other airlines! even better, they shouldnt be handing out money to airlines at all, If an airline is in a position where they cant make enouf revenue themselves to stay in the air, thats their problem, if they go under then it makes room for other airlines to succeed, better to have 1 good airline to stay around than to have a good airline go and the competition to get off easy... I say let the best airline fly!

"Canadi>n is gone, Never to return, but it still lives on, In the hearts of Canadians"


CanadianNorth
What could possibly go wrong?
 
planenutz
Posts: 1156
Joined: Fri Dec 31, 1999 5:50 am

RE: Government Favoritism Of Airlines..

Sat Jan 25, 2003 4:27 pm

I believe that the grant to Air North was so that they could begin service (as well as increase service) to locales in the far north of Canada that otherwise wouldn't receive air service because it wouldn't be profitable. The same practice exists in the USA, and here in Mexico, and its how many commuter airlines survive.

Transport Canada recently gave Air Canada a grant to serve cities in the far north of Quebec. But rather than use the $$ to finance the purchase of a plane, Air Canada will use the money to subsidize a portion of a passenger's air fare.

These arrangements are made because when you think about it, demand for air travel to some smaller, more remote, destinations may not be there. But, air travel to these cities/towns may be necessary (mail, cargo, etc.).
Not all who wander are lost....
 
CanadianNorth
Topic Author
Posts: 3133
Joined: Sat Aug 24, 2002 11:41 am

RE: Government Favoritism Of Airlines..

Sun Jan 26, 2003 5:18 am

The grant was accually to help them pay off their first B732 and help purchase the second, based out of Whitehorse with service to Edmonto, Calgary and Vancouver... not for routes northbound
What could possibly go wrong?
 
Dash8King
Posts: 2657
Joined: Wed Nov 21, 2001 8:45 am

RE: Government Favoritism Of Airlines..

Sun Jan 26, 2003 6:15 am

The grant went to one of the native group which is a shareholder and they are going to up their share in the company to almost 50%.
 
slawko
Posts: 3742
Joined: Tue May 25, 1999 7:40 am

RE: Government Favoritism Of Airlines..

Sun Jan 26, 2003 9:08 am

Um Im sorry but your view on teh government with respect to Air Canada is false....AC was a government owned agency, and it was set up in a time when it was though that domestic transportation should be controlled by the government so that everyone could have access to it...after AC was privatized the government showed undue favouritism towards CP, They bought the wardair fleet of A310's or most of them anyway, the political parties all chartered CP aircraft during elections, Team Canada missions were almsot always flow by CP, They were given grants, and cash injections to help keep them alive, even at the end the government had a few million bucks ready to help them out just before AC bit the bullet and bought them. It was funny how VIA rail got a few hundred million a few months later....
"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
 
AirCanadaMan
Posts: 458
Joined: Sun Feb 27, 2000 4:42 am

RE: Government Favoritism Of Airlines..

Sun Jan 26, 2003 9:28 am

Okay, you guys dont quite have the idea

The Vuntut Gwitchin Development Corporation got the loan, valued at 1 million to increase its stake, and for Joe to pay off his first 732. However, the Vuntut Gwitchin will have to match the federal loan/gift with a $1-million investment of its own in the north, and inturn great more aborigonal jobs which will stimulate the Yukon economy etc.

Its not like Ottawa was giving Sparling money out of the blue, they gave it to the Vuntut, who then handed it to Sparling, they had good reason to do so.

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