On 30JUN, Porter Airlines’ parent company announced it had reached an agreement with the federal government for $270.5 million, including $20.5 million dedicated to passenger refunds for flights cancelled due to COVID. On Monday, it announced that it would restart flight service from select Canadian destinations on 08SEP 2021, and U.S. flights on 17SEP 2021.
Loan Details
The loans are being made available through the federal government’s Canada Enterprise Emergency Funding Corporation under the Large Employer Emergency Financing Facility (LEEFF). The bulk is repayable within five years, while the separate loan to assist with passenger refunds is repayable over seven years.
“Porter is using this money primarily as a capital reserve during the pandemic recovery period,” said Michael Deluce, president and CEO, Porter. “We intend to draw on these funds as required in support of re-establishing operations through an uncertain period of travel demand. Our immediate focus is on being ready to fly again as soon as public health conditions allow and governments modify travel restrictions.”
In a separate statement, the Canada Enterprise Emergency Funding Corporation (CEEFC) which administers LEEFF said, “The agreement will provide a repayable loan to Porter Airlines (Porter) to restart operations and support jobs in Canada's airline sector… As a part of this agreement, Porter has committed to maintaining jobs and honouring collective agreements and pension benefits. Porter has also agreed to place restrictions on executive compensation, dividends, and share buybacks.”
The statement went on to state that refunds for cancellations were a condition of the loan.
Porter says it’s starting the refund process immediately. It’s an exclusively online process, and requests will be accepted until 29AUG.
All flights booked by 30JUN 2021, for travel as of 01FEB 2020, are eligible for refunds.
Pax who purchased their ticket through a travel agency must make a refund request through the agency, and the airline says commissions are protected for tickets issued as part of the refund process.
Customers also have the option of keeping their existing travel credits and receiving a 25% credit bonus, depending on their method of booking. These credits are valid until 31DEC 2022, are fully transferable, and can be redeemed multiple times until the full balance is used.
The company says it has already issued thousands of refunds requested by pax for all flights cancelled on U.S. routes, or any domestic flight booked as of JUL 2020.
“All customers with pandemic-related flight cancellations now have the option of requesting a refund,” said Deluce. “We look forward to returning to flying this summer and welcoming passengers back onboard our planes.”
Flight Restart
Just one business day later, Porter Airlines confirmed its official return to service on 08SEP 2021 for select Canadian destinations, with U.S. flights to resume on 17SEP 2021.
"This is the moment our team members, passengers and the communities we serve have been waiting for," said Michael Deluce, president and CEO, Porter Airlines.
"The pandemic has progressed to the point that we can now begin restoring service across our network, focused around our main base at Billy Bishop Toronto City Airport. Being grounded for more than a year has been incredibly difficult for everyone involved. In true Porter fashion, our team members have displayed remarkable levels of commitment, engagement and optimism over this uncertain period of time, despite the vast majority being unable to work. While deciding to suspend our service was the most difficult business decision we've made, announcing a restart of flights is the first step in a recovery process that includes recalling hundreds of team members and welcoming back passengers. We are looking forward to once again delivering Porter's unique style of service."
Service will resume in phases, and the initial group of Canadian destinations includes YHZ, YQM, YUL, YOW, YQB, YYT, YQT, and YYZ. U.S. destinations include BOS, MDW, EWR, and IAD.
Other flights to year-round destinations normally serviced by the line are currently available for booking and set to resume as of 06OCT based on passenger demand.
Porter Airlines is also making all fares purchased by 20JUL for travel through 15DEC 2021, fully refundable, with no fees. This also applies to Porter Escapes vacation packages.
It will also introduce the "Healthy Flights" program in preparation for its return as health and safety protocols.
Details on Porter's Canadian service restart can be found below.
| Canadian Routes | Peak Daily Roundtrips | Service Start Date (2021) |
| YOW – YYZ | 6 flights | 08SEP |
| YUL – YYZ | 6 flights | 08SEP |
| YQT – YYZ | 3 flights | 08SEP |
| YOW – YHZ | 2 flights | 13SEP |
| YUL – YHZ | 1 flight | 13SEP |
| YQB – YYZ | 1 flight | 13SEP |
| YHZ – YYT | 1 flight | 17SEP |
| YQM – YOW | 1 flight | 17SEP |
Details on Porter's U.S. service restart can be found below.
| U.S. Routes | Peak Daily Roundtrips | Service Start Date (2021) |
| EWR – YYZ | 6 flights | 17SEP |
| BOS – YYZ | 3 flights | 17SEP |
| MDW – YYZ | 2 flights | 17SEP |
| IAD – YYZ | 1 flights | 17SEP |
I’m so happy to hear that most of the big guys are still getting hundreds of millions of dollars! I’m still waiting to see my so-called commissions? We have lost over $400,000 in commissions because most of our wedding groups were under deposit only…no commissions for deposits, but we still have to organize the refunds for FREE, which will take us months of FREE work!