Government Officials in Ottawa agreed to loan $700 million to travel company Transat AT inc. Half of the total deal will go straight to refunding travelers whose flights got canceled. Reimbursements will commence immediately for customers that were scheduled to depart on or after February 1, 2020.
The federal government will pay using the Emergency Financing Facility, which is the same entity that supported Air Canada. The rest of the money will be used to support the business as a whole.
Transat has been going through financial difficulties since the start of COVID-19, as they had to continually suspend flights. The company had to place restrictions on dividends, stock repurchases, executive compensation, and active employment.
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