Porter Airlines secures federal loan of up to $ 270.5 million, including money for repayments

TORONTO – The parent company of Porter Airlines has reached an agreement with the federal government for loans worth up to $ 270.5 million, including $ 20.5 million to reimburse passengers for flights canceled during the COVID-19.

Porter Aviation Holdings Inc. says it will use the money primarily as a capital reserve during the recovery period from the pandemic.

The regional airline based at the Toronto Island airport is the latest carrier to access loans through the Government of Canada’s Emergency Business Finance Corporation.

The loans are repayable over five years and the loan to repay passengers is repayable over seven years.

All flights booked before Wednesday for travel on or after February 1, 2020 are immediately eligible for a refund. Online submissions will be accepted until August 29, and refunds of the full purchase amount will be processed to the original payment method.

Customers can keep their existing travel credits and receive a 25 percent credit bonus, depending on their booking method. Credits are valid until December 31, 2022 and are transferable.

“All customers whose flights are canceled due to a pandemic now have the option to request a refund,” said CEO Michael Deluce.

He said the airline would use the loan to help resume flights on July 20.

Porter has issued thousands of refunds requested by passengers to date for all flights canceled on U.S. routes, or any domestic flights booked as of July 2020.

This report by The Canadian Press was first published on June 30, 2021.

The Canadian Press

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