Struggling tour operator Air Transat is in talks with the federal government on aid but may not reach a deal by an April debt deadline, a source close to the situation said, putting pressure on Quebec to ride to the rescue of another troubled aerospace brand in the province.
Airlines have been in talks with Ottawa since last year about a possible aid package. Transat’s aborted deal adds fresh urgency to the talks, given the jobs at risk if the carrier fails and the political importance of Quebec ahead of an expected federal election this year. "I think politically it would be a problem in Quebec. The federal government therefore absolutely has to come up with a solution," the source added, noting that"Transat has more of a cachet in Quebec ."
Ottawa said on Friday that protecting jobs and securing the long-term viability of Transat were a priority for the government. The carrier employs 5,000 people, mostly in Quebec, home to much of Canada’s aerospace sector.The survival of Transat, its Montreal headquarters and employees puts significant pressure on the Quebec government to secure its future.
"There will be a lot of pressure on Legault to come to Pierre Karl Péladeau’s aid in terms of funding."