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State Financial Help for Private Airlines Crisis at Air Canada and WestJetThe government is moving to declare Air Canada and WestJet "Systemically Important Businesses" that will receive more public funds in one way or another. Both companies have announced massive downsizing of their workforces since March. Air Canada has already taken advantage of the 75 per cent federal wage subsidy with the rehiring of 16,000 laid-off employees. In spite of this assistance, Air Canada announced it will lay off more than half of its 38,000 employees starting June 7. The layoffs will affect a minimum of 19,000 staff and could go as high as 22,800. Air Canada said those furloughed workers will no longer receive the wage subsidy but instead will have to apply for other federal assistance even though the government extended the Canada Emergency Wage Subsidy through to the end of August. Air Canada has grounded some 225 airplanes and slashed flight capacity by 95 per cent. WestJet has taken similar measures. Prime Minister Justin Trudeau said he is having discussions with the airlines regarding further public financial help. Trudeau said on May 15, "We will have conversations with Air Canada as we will with airlines across the sector to try and see how the best way to get through this particular pandemic is." Trudeau would not elaborate on the form of the aid, if it would be a bailout, a federal stake in the company's equity or whether the federal government would help with the company's pension and health benefit obligations. Trudeau also noted the airlines and other big employers can also access the newly announced bridge financing program being made available to companies with at least $300 million in revenues so they can stay open, keep employees on their payrolls and avoid bankruptcies.
Should they agree to a public bailout of Air Canada and WestJet even though these are private enterprises that answer to their owners and serve their private interests? The imperialist investment cartel ONEX is the majority owner of WestJet. If the airlines are "systemically important businesses" for the economy and nation should they not fall under the control of a public authority and be accountable to the people? Does this not require a change in the aim of the current authority from one taken over by narrow private interests to ones where the people constitute the decision-making power? Does it not require giving priority to businesses which the working people define as "systemically important and viable"? Such businesses would not have making private profit for private owners their raison d'être but be guided by an aim of serving the country, people and nation-building. This in turn would require a change in how public opinion is created and who controls the process of decision-making. How that is accomplished begins with speaking out about the developments based on what serves the people, not what pays the rich. The situation calls for airline workers and others to respond to this situation and lay their own claims on what is needed at this time.
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How should
active, laid-off and retired airline workers
respond to this situation? What would they like the government to
do?