Back at the taxpayer trough....

[Realitychex]

Having yet to repay a dime of their taxpayer funded LEEFF $270.5m "loan", Porter is back at the taxpayer trough, this time for another $125m, a sum that one can safely assume will also never be repaid.

When they were telling the gov't the cash was "urgently" required, I guess they were serious.

https://ceefc-cfuec.ca/approved-loans-lasr/

Very quietly, the GoC are now the lenders of last resort to two, and likely very soon, three cash sucking airlines.

Fuel is pushing us$4.00 a gallon again. I wonder what happens come October?

More taxpayer cash hand outs?

I wonder how many life saving MRI's $125m would pay for?

[DanWEC]

Yeah yeah, made the same post in the Transat forum. But doesn't the fact that now half of the established, major airlines in Canada need funding, and the largest one of the other half already went bankrupt, point further to the systemic issues of operating under the Canadian government instead?

[Realitychex]

Its 2026. What happened at AC 15+ years ago is ancient history.

The only airlines at the trough are Transat, Porter and soon enough, Flair.

The other two have publicly said they have no need or interest in the handout.

That these three are at the trough should surprise no one.

That they are in need of cash during the most profitable period of the year should raise eyebrows.

If you aren't printing cash in July and August in Canada, its game over.

What will their cash situations look like in the latter half of October?

How much more cash will the feds pump into these three airlines to keep them going?

And why?

[flieslikeachicken]

Its 2026. What happened at AC 15+ years ago is ancient history.

The only airlines at the trough are Transat, Porter and soon enough, Flair.

The other two have publicly said they have no need or interest in the handout.

That these three are at the trough should surprise no one.

That they are in need of cash during the most profitable period of the year should raise eyebrows.

If you aren't printing cash in July and August in Canada, its game over.

What will their cash situations look like in the latter half of October?

How much more cash will the feds pump into these three airlines to keep them going?

And why?

Transat is not producing a profit. Porter is currently in the process of taking on new aircraft and just finished pumping hundreds of millions into a new airport terminal.

Porter's need for funding may be a sign that they are short on cashflow, but it might also just be a sign that they have tied up their cash in another asset.

[Speedbrakes]

It's not even worth wasting your time on this guy. Someone at Porter slept with his wife or his mom or both and he has a hate-on for Porter. Nothing you say will convince him Porter isn't going bankrupt tomorrow.

Move on. Don't feed the trolls.

[rudder]

$150M is about 10 days of fuel expense for AC. In other words - a drop in the bucket.

However, for others who are either cash strapped or just want to borrow $$$ at a grossly discounted interest rate, then I guess a deal too good to pass up.

The Liberal government believe that propping up every existing carrier is the appropriate strategy to sustain competition. I am guessing that there may be some economists that would differ in opinion but they weren’t handed the keys to the vault.

[FurHat]

The Liberal government believe that propping up every existing carrier is the appropriate strategy to sustain competition. I am guessing that there may be some economists that would differ in opinion but they weren’t handed the keys to the vault.

They know that large, high profile companies going bankrupt during the busiest time of the year doesn't support their "everything is fine and we are great at managing the economy" message.

[Hangry]

There is a very big difference between public and private companies. I cannot fathom why the Canadian government would give a dime to the Deluce’s. Can’t pay the bills? Close up shop. Wish Porter all the best but it’s a family shop. Ridiculous they would receive public funds.

[CaptDukeNukem]

There is a very big difference between public and private companies. I cannot fathom why the Canadian government would give a dime to the Deluce’s. Can’t pay the bills? Close up shop. Wish Porter all the best but it’s a family shop. Ridiculous they would receive public funds.

You mean a loan to offset higher gas prices that comes with a signup fee and interest?

I personally don’t think porter is broke and asking for handouts. Rather, this is a facility to use for funds during an expansion and the people at the table have thought this out. Hopefully.

Also, air Canada is not a government owned crown corp, or owned by the government so whether or not public funds are used on “the flag”, or porter or WestJet. it’s kinda all the same. All airlines that meet the extremely strict criteria get to choose to apply for it or not. It’s a place to borrow money to help an airline out.

The feds made $126 million profit from the 500 million dollar air Canada share purchase just a few years ago. It’s was an investment, so is this.

[Realitychex]

Any insight as to the profit the GoC made off the $270.5m gift they provided Porter under the LLEEFF program?

Perhaps a better question is how much of the principle and interest from said "loan" has Porter paid back?

Here's a hint. It's less than a cup of coffee... at 1982 prices.

In the real world, sources of cash dry up when recipients of loans don't make any effort to pay back what is owed. Word gets around very quickly.

Thus the reason for their pounding on the doors of the Feds describing their need for cash as "urgent".

A previous poster was correct. The GoC does not want an airline(s) to collapse during the summer. That'd be horribly inconsistent with the narrative they"re selling.

The $125m will help underwrite the beating Porter are taking on their YHU flights to, with a couple of exceptions, everywhere.

[8895]

Any insight as to the profit the GoC made off the $270.5m gift they provided Porter under the LLEEFF program?

Perhaps a better question is how much of the principle and interest from said "loan" has Porter paid back?

Here's a hint. It's less than a cup of coffee... at 1982 prices.

In the real world, sources of cash dry up when recipients of loans don't make any effort to pay back what is owed. Word gets around very quickly.

Thus the reason for their pounding on the doors of the Feds describing their need for cash as "urgent".

A previous poster was correct. The GoC does not want an airline(s) to collapse during the summer. That'd be horribly inconsistent with the narrative they"re selling.

The $125m will help underwrite the beating Porter are taking on their YHU flights to, with a couple of exceptions, everywhere.

Hey jimbo I know you got let go from WJ but it’s very obvious you’re anti porter. For anyone reading this that’s unaware, this clown is on the airlines.net forum constantly calling doomsday for porter. A lot of people have him muted. Sounds like he enjoys carpet bombing the forms here too.

[pelmet]

Any insight as to the profit the GoC made off the $270.5m gift they provided Porter under the LLEEFF program?

Perhaps a better question is how much of the principle and interest from said "loan" has Porter paid back?

Here's a hint. It's less than a cup of coffee... at 1982 prices.

In the real world, sources of cash dry up when recipients of loans don't make any effort to pay back what is owed. Word gets around very quickly.

Thus the reason for their pounding on the doors of the Feds describing their need for cash as "urgent".

A previous poster was correct. The GoC does not want an airline(s) to collapse during the summer. That'd be horribly inconsistent with the narrative they"re selling.

The $125m will help underwrite the beating Porter are taking on their YHU flights to, with a couple of exceptions, everywhere.

Hey jimbo I know you got let go from WJ but it’s very obvious you’re anti porter. For anyone reading this that’s unaware, this clown is on the airlines.net forum constantly calling doomsday for porter. A lot of people have him muted. Sounds like he enjoys carpet bombing the forms here too.

Is that the guy that was spying on AC and used to be on the AEF forum bashing Porter all the time. Was it Dagger?

[Realitychex]

Any insight as to the profit the GoC made off the $270.5m gift they provided Porter under the LLEEFF program?

Perhaps a better question is how much of the principle and interest from said "loan" has Porter paid back?

Here's a hint. It's less than a cup of coffee... at 1982 prices.

In the real world, sources of cash dry up when recipients of loans don't make any effort to pay back what is owed. Word gets around very quickly.

Thus the reason for their pounding on the doors of the Feds describing their need for cash as "urgent".

A previous poster was correct. The GoC does not want an airline(s) to collapse during the summer. That'd be horribly inconsistent with the narrative they"re selling.

The $125m will help underwrite the beating Porter are taking on their YHU flights to, with a couple of exceptions, everywhere.

Hey jimbo I know you got let go from WJ but it’s very obvious you’re anti porter. For anyone reading this that’s unaware, this clown is on the airlines.net forum constantly calling doomsday for porter. A lot of people have him muted. Sounds like he enjoys carpet bombing the forms here too.

Just pointing out the obvious.

My sources tell me the Porter “loan” was funded quite a bit before Transat’s. Their need for funds was described as “urgent”. It was provided in one tranche, rather than dribbled out monthly through the end of Oct as the program was intended.

Profitable airlines don’t require government financial intervention, from a program specifically designed for them, before the start of their peak earnings season.

My sources also report Porter brass have acknowledged their disappointment with YHU to Toronto / Hamilton. Even on long weekends, it’s weak, with a very noticeable directional trend.

My sources also report YHU to BC and Alberta are strong, (and massively skew YHU l/f’s). YWG, YYG and YHZ are weak. YQM is ok and YYT is marginally above water.

During peak summer travel season, everything should be humming nicely. What happens post Labor Day as the propensity and demand for domestic travel from YHU falls off the cliff? It can’t be replaced by low yield sun flying as the YHU is legally a “domestic only” operation.

Fuel is now averaging us$3.83 a gallon. Delta paid $2.25 a gallon in 4Q 2025.

Lest anyone forget, Porter was pounding the street in late 3Q / early 4Q 2025, eventually cutting a complicated debt deal to raise the $300m they needed, with that much lower fuel cost, to make it through to May 2026. There were some very precarious days.

One would have to be an optimist to think fuel will be dropping back to $2.25 anytime soon.

How much more government money will Porter, Transat and others need to make it through another winter?

10 years at WestJet, which for me is 3 international airlines and 22+ years ago. It might be time for some to quit living in the past.

BTW, after 22+ years, the guy who was “let go” still enjoys full flight benefits.