Sunwing receives $375 million credit from federal government
Posted February 2, 2021 9:04 am.
Last Updated February 2, 2021 9:05 am.
The federal government is extending some financial support to one of Canada’s airlines.
Sunwing is tapping into a $375-million credit line days after agreeing to suspend flights to Mexico and the Caribbean along with all other major Canadian carriers.
The loan is being granted through the federal government’s Large Employer Emergency Financing Facility (LEEFF), which was put together last May to help big companies weather the pandemic.
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Though the program has not seen as much activity as expected due to the terms of conditions and higher borrowing costs with less than 20 companies using the credit facility.
Sunwing, who employs around 3,000 people, flies to the Carribean and Mexico and has been forced to shutdown much of its operations.
The cash still doesn’t answer questions for passengers holding tickets to cancelled flights as negotiations continue with Ottawa.
