Air Canada pleads for plan to ease Covid-travel rules

Bloomberg

Flush with bailout funds, Air Canada called on the government of its home country to lay out a plan for reopening borders as vaccination progresses.
Canada’s biggest air carrier is in a position to ramp up operations after reaching a deal for nearly C$5.9 billion ($4.8 billion) in debt and equity with the federal government last month. Chief Executive Officer Michael Rousseau said it’s now “essential” for officials to follow the US in easing rules that have stopped most air travel.
“Starting with replacing blanket restrictions with science-based testing and limited quarantine measures where appropriate, Canada can reopen and safely ease travel restrictions as vaccination programs roll out,” Rousseau said.
“We have seen elsewhere, notably in the US, that travel rebounds sharply as Covid-19 recedes and restrictions are lifted, and we fully expect this can be replicated in Canada,” Rousseau said.
Canada has barred many foreign nationals from entering the country since last March and requires a two-week quarantine for some arriving travellers — including a hotel stay at their own cost.
Eastern provinces have also adopted restrictions on travellers from other parts of Canada. The hotel quarantine became mandatory earlier this year for passengers awaiting test results, but it’s been undermined by travelers who have opted to pay a fine instead. It “has proven ineffective,” Rousseau said on a call with analysts.
That approach has reduced Canadian air travel to a trickle. Average passenger traffic at the largest Canadian airports’ checkpoints in April was just 8% of 2019 levels, versus 59% in the US, where vaccination has proceeded more quickly, according to data from the countries’ transport security authorities.
Air Canada says there’s pent-up demand for both leisure and business travel. Conversations with corporate clients suggest a recovery will start in September, Rousseau said.
The airline is already seeing solid bookings for warm destinations like Florida and the Caribbean for late 2021 and early 2022, according to Chief Commercial Officer Lucie Guillemette.