ON TAR IO E D ITIO N ■ MO N D AY , MAR C H 3 0 , 2 02 0 ■ GLOBE AN D MAI L .

COM

[ MANUFACTURING ]

Airlines seek
subsidies, loans
and tax relief
from Ottawa
NICOLAS VAN PRAET
ERIC ATKINS

Canadian airlines are pushing for a wide-

ranging aid package to help their industry
weather the novel coronavirus pandemic
as anxiety builds that the country’s wider
air transport system is at risk of collapse
without government intervention.
Air Canada, WestJet and smaller carri-
ers are seeking all forms of help from the
federal government, including direct and
indirect subsidies, loans and tax relief –
for both the short-term and longer-term,
said one senior industry official familiar
with the communications between the
airlines and Ottawa.
The National Airlines Council of Cana-
da (NACC), which represents the four
largest air transporters, has also publicly
called for an immediate pause in non-
pandemic-related regulatory changes. George Courey Inc.’s supply of medical gowns was gone in just two days. CHRISTINNE MUSCHI/THE GLOBE AND MAIL
The combined value of the financial
help being sought is unclear because indi-
vidual carriers are not sharing their com-
pany-specific requests but it is certainly in
the billions of dollars, the official said Sat-
urday. The Globe and Mail is not identify-
ing the person because they were not au-
Canadian factories retool
thorized to speak about the situation.
The NACC declined to comment. The to meet demands of pandemic
airlines referred to recent statements out-
lining their need for aid but declined to
elaborate. Shortage of medical equipment sparks industrial transformation
AIRLINES, B6

TU THANH HA mounting demands for supplies, Canada’s

medical system requires companies to
pivot into new areas of production while
Mutual funds North of Toronto, a car-parts manufactur- learning to comply with medical safety
er is retooling its assembly line to enable standards.
face rising it to mass produce the components for
medical face shields. In Montreal, a maker
David Yeaman is in the midst of shift-
ing his plastic-injection moulding compa-
redemptions in of surgical garments is rushing to import
fabric and gowns by air rather than sea.
ny’s output from making auto parts to
producing components of medical face
Both companies illustrate the industri- shields. Molded Precision Components, a
turbulent market al transformation caused by the outbreak 60-person firm in Oro-Medonte Town-
of COVID-19 and the resulting shortage of ship, north of Toronto, normally makes
medical equipment. car housings, seals or cable fittings but
CLARE O’HARA In the short term, hospitals are turning “that’s all on hold. It’s all dried up,” Mr.
WEALTH MANAGEMENT REPORTER to their communities to donate unused Yeaman, MPC’s president, said.
respirators and protective gear – or even The company’s in-house engineers and
sew homemade masks for visitors so hos- tool designers have turned their attention
Canadian mutual fund companies are pitals can ration professional masks for to medical protective gear.
seeing fund redemptions begin to rise as medical personnel. But to truly meet the EQUIPMENT, B6
the novel coronavirus rattles global equi-
ty markets, leaving panicked investors
looking to hit the sell button.
CI Financial chief executive officer
Kurt MacAlpine held a special call for
analysts last week, saying the company’s
total assets under management have
been “directly impacted” by what’s hap-
pening in the markets.
After seeing improvements in net re-
For university students, high anxiety
demptions for the first two months of
2020, Mr. MacAlpine said March to date as coronavirus decimates job market
has been more “challenging.”
CI’s total net redemptions in the first MATT LUNDY
23 days of March were $350-million ECONOMICS REPORTER
higher than the same March period in
2019. “We have seen a differential of a cou-
ple hundred million dollars in net re- Canadian postsecondary students are
demptions on a month-over-month basis weeks away from stepping into a job
for the retail business,” Mr. MacAlpine market that is reeling from unprece-
said. dented layoffs, raising concern about
“Our business has been very resilient. how those returning to school in the
… Of course, in market conditions like fall will fund their studies and whether
this, nobody is immune to redemptions.” graduates will bear long-term scars of
In a quarterly earnings call last week, unfortunate timing.
AGF Management Ltd. president Judy Just weeks ago, the outlook was fa-
Goldring told analysts the company had vourable. At 5.6 per cent, the national
already seen a total of $65-million in new unemployment rate in February was
redemptions during the first 24 days in close to a record low and companies
March, up from $22-million in outflows in were struggling to find workers.
all of March, 2019. But in a short time, COVID-19 has
“We have seen, of course, a flight to decimated the labour market. Compa-
safety for investors,” Ms. Goldring said nies in virtually every industry have
during the call. “Obviously [investors] are laid off employees or reduced their
very nervous.” hours, and the federal government ex-
Although official industry numbers for pects four million people will apply for
March will not be released until late next emergency income aid. Students have University of Ottawa student Grace Gallien has a retail job lined up, one that raises
month, AGF executives outlined current seen interviews cancelled, summer her potential exposure to COVID-19. CHRISTOPHER KATSAROV/THE GLOBE AND MAIL
conditions last week in response to ques- programs put on hiatus and job list-
tions from analysts. ings dry up as they try to plan their said Tammy Schirle, an economics pro- decreased dramatically,” said Ms. Da-
“We usually provide guidance on when next move while juggling final assign- fessor at Wilfrid Laurier University. boo, who will soon graduate with a
we expect AGF to return to positive net ments and exams outside of campus. A month ago, Sweta Daboo was “ve- double major in biology and political
flows,” AGF CEO Kevin McCreadie told “This is going to have a long-term ry hopeful” about her job prospects. science from the University of Prince
analysts. impact on anyone who is just leaving Now, “if you look online, the rate at Edward Island.
REDEMPTIONS, B6 school and trying to start their career,” which new jobs are being posted has STUDENTS, B6

COMPANIES FAST FO OD SMAL L BU SINESS ROB C AR R IC K

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SILVERCREST METALS ............................ B5 from parent firm B3 as demand surges B3 Can they be trusted? B8
ZOOM VIDEO COMMUNICATIONS ......... B2

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