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Originally Posted by whatnext
The wage subsidy program helps the employees not the company. If the company is till having to pay medical and other benefits those surplus employees are a drag on its bottom line. As is the 25% top up to full salary. It would be different if a restart of normal travel was imminent but it isn't. But axing thousands of workers does the government no good either.
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No, but Air Canada isn't keeping people on just to keep seats warm. They laid off a whole pile of employees. Westjet culled a bunch of employees too.
They're getting a 75% discount on the labour they currently do employ, which is not an insubstantial subsidy.
The US government had a different problem with large-scale airline employee layoff. Unemployed people there don't have health insurance, which tends to be bad during a pandemic. So, the CARES act provided a subsidy to keep people employed, but mandated a whole bunch of continued airline service. So, basically, planes were flying around empty because the Department of Transportation mandated that certain routes had to be maintained.