The Liquidity for Airline Sector Resilience (LASR) Facility is a financing program designed to help eligible Canadian passenger airlines address temporary liquidity pressures caused by elevated operating costs, particularly aviation fuel price volatility.

Administered by Canada Enterprise Emergency Funding Corporation (CEEFC), a subsidiary of Canada Development Investment Corporation (CDEV), the facility provides targeted financing support to Canadian airlines experiencing a rise in costs of fuel, a significant element of costs in the airline industry.

The facility will provide eligible Canadian airlines liquidity support by providing temporary, as-needed, bridge financing of up to $150 million, specifically to offset the impacts of fuel price increases. This support will reduce the amount of increased fuel costs passed down to passengers, thereby supporting affordability, protecting the market demand for air travel, protecting jobs, and maintaining routes and service levels.

Core elements of the new program are as follows:

• Borrowers will have access to funds based on their operational and liquidity needs with funds drawn in amounts specifically tied to fuel price increases.
• The schedule for loan paybacks will be four years, at rates above Canada’s cost of borrowing, but at rates favourable relative to market rates for affected companies.
• Funds through this facility will be available until November 1, 2026.

Financial assistance is provided on a time-limited basis and is subject to program requirements designed to promote the responsible use of public funds and support long-term financial stability.