Pascan Aviation Faces Cutbacks as Quebec Ends Air Travel Subsidy Program

Pascan Aviation, based in Canada, has issued a warning of impending cutbacks to its network and potential layoffs following the Quebec government’s decision to terminate an air travel subsidy scheme. The subsidy, designed to offset pandemic-related operating deficits, facilitated air services to remote areas within the province, including Nunavik, the Lower North Shore, and the Magdalen Islands.

Despite the Quebec government allocating CAD 10 million in its 2023-2024 budget to extend the program, it chose not to renew it in September. Pascan Aviation, which learned of the decision recently, indicated that the removal of the subsidy would compel the airline to eliminate flights to financially non-viable regions.

Joël Arseneau, Parti Québécois MP for the Magdalen Islands, expressed concern about the decision, stating that the government was abandoning regional responsibilities. The termination of the program could adversely affect remote communities, impacting essential services and increasing dependence on maritime or airline services.

Transport Minister Geneviève Guilbault defended the decision, noting that most carriers had recovered or exceeded pre-pandemic traffic levels. However, Arseneau argued that the discontinuation of the program could lead to reduced flights to remote areas, affecting essential services and local populations.

Pascan Aviation, operating a fleet of six Saab 340Bs and three Jetstream 32s, faces uncertainties due to the subsidy program’s conclusion. The airline, which serves 18 routes across eight destinations, is yet to respond to requests for comment on the situation. Stay tuned for further updates on the impact of the subsidy program’s conclusion on Pascan Aviation’s operations and regional air services in Quebec.