Halifax airport requests relief from creditors amid low travel demand

Halifax airport requests relief from creditors amid low travel demand
Share this article

 

Halifax’s airport operator has asked its creditors for leniency in meeting its debt obligations, in the latest sign of financial trouble facing the airline industry.

In a statement Friday, the Halifax International Airport Authority says it is making the request out of an abundance of caution, to reduce the chance of default in case its revenues are lower than anticipated this year and in subsequent years.

The decline in air travel during the COVID-19 pandemic has hit Canada’s airports hard, forcing them to lay off staff and drastically reduce other costs.

The announcement comes after Air Canada earlier this week cancelled or temporarily suspended several routes in Atlantic Canada.

The airport’s request to its creditors includes relief from obligations to sell or lease any of its assets in order to meet certain conditions of their agreement.

The airport is asking creditors to approve the request before the end of the year.

This report by The Canadian Press was first published Dec. 11, 2020.

The Canadian Press

Related posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.