Porter finalizes loan agreement with the Canadian government

Porter Aviation Holdings Inc., parent company of Porter Airlines,  has reached an agreement with the Government of Canada for loans valued at up to $270.5 million. Included in this amount is $20.5 million dollars dedicated to issuing additional passenger refunds for flights cancelled during the COVID-19 pandemic.

“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.”

The loans are being made available through the federal government’s Canada Enterprise Emergency Funding Corporation under the Large Employer Emergency Financing Facility (LEEFF). Terms are consistent with LEEFF’s published rates and repayable within five years. A separate loan to assist with passenger refunds is repayable over seven years.

All flights booked by June 30, 2021, for travel as of February 1, 2020, are eligible for refunds. The process for making refund requests begins immediately. All submissions must be made online and will be accepted until August 29, 2021. Refunds are for the total purchase amount and will be processed to the original form of payment, such as a credit card and VIPorter points.

Customers 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 December 31, 2022, are fully transferable, and can be redeemed multiple times until the full balance is used. Credits, including bonuses, are automatically applied and do not require the customer to contact Porter. Eligible customers will be notified by email if their address was provided at the time of booking. The value of credits, including bonus amounts, is included in this email.