Provincial Aerospace Ltd. is receiving $1 million from federal government to maintain regional connectivity and employment
Targeted ACOA support for Newfoundland and Labrador’s air ecosystem will help maintain jobs, re-establish regional connections
August 10, 2021 · St. John’s, Newfoundland and Labrador · Atlantic Canada Opportunities Agency (ACOA)
Regional air transportation is crucial to local economic growth, the movement of goods and the connectivity of Canadians across the country. The pandemic has had major impacts on regional air transportation ecosystems, impacting communities and local businesses from coast to coast to coast.
The Government of Canada’s Regional Air Transportation Initiative (RATI), launched in March 2021, supports access to air transportation and regional aviation ecosystems. In particular, it enables the continuation of existing air routes and ensures airports remain operational and able to contribute to regional economic growth, while adapting to new post-COVID-19 realities and requirements.
Federal government supports operating capital, establishing routes
With this in mind, the Honourable Seamus O’Regan Jr., Minister of Natural Resources and Member of Parliament for St. John’s South-Mount Pearl, on behalf of the Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for ACOA, today announced $1 million in financial support for Provincial Aerospace Ltd. (PAL Group of Companies).
This global aerospace and defence company operates a regional airline and specializes in intelligence, surveillance and reconnaissance, in-service support solutions and aircraft engineering. This non-repayable contribution will enable PAL to enhance its services to accommodate public health and safety requirements that resulted during the pandemic.
Regional air transportation is key to the economic development of communities and businesses right across Canada. It is essential to connecting Canadians living in rural and remote communities to urban centres, delivering Canadian goods to the global market and welcoming international visitors to all parts of the country, when it is safe to do so.
“It is important to protect our regional air transportation ecosystems for the thousands of workers employed by this sector and for the many businesses and communities that depend on it. We know that air connectivity to all regions is essential to healthy, inclusive economic growth, and supporting it is part of our plan to build back a stronger, more resilient economy.”
- The Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for ACOA
“I am so proud of Provincial Aerospace. They’ve become an international leader in many essential and specialized aerospace services. This investment will give them the boost they need to get over the pandemic hump to continue doing what they do best—provide services to Newfoundlanders and Labradorians and others around the world.”
- The Honourable Seamus O’Regan Jr., Minister of Natural Resources and Member of Parliament for St. John’s South-Mount Pearl
“Over the course of the pandemic, PAL has worked diligently to take action that preserves our operations and safeguards our essential services. This funding facilitates that important work and helps PAL keep delivering for our customers.”
Jake Trainor, CEO of the PAL Group of Companies
The Regional Air Transportation Initiative (RATI), administered by the regional development agencies (RDAs), has a national budget of $206 million.
The Initiative supports regional air ecosystems—which include regional air carriers and airports, as well as small- and medium-sized enterprises and non-profit organizations—in developing and implementing enhanced services for improved regional connectivity.
The funding announced today is conditional on the signing of a contribution agreement between the Atlantic Canada Opportunities Agency (ACOA) and Provincial Aerospace Ltd. (PAL.)
The RATI complements measures implemented by Transport Canada.
Established in 1972, PAL is a diversified group of Canadian aviation-related companies. With aerospace operations active across Canada and around the world, and substantial commercial aviation operations throughout Eastern and Atlantic Canada, PAL are leaders in their industry and vital partners in the communities they serve. The company is also a global aerospace and defence provider specializing in intelligence, surveillance and reconnaissance, in-service support solutions and aircraft engineering.
Office of the Minister of Economic Development and Official Languages
Director of Communications
Atlantic Canada Opportunities Agency, Newfoundland and Labrador
Senior Vice President Public Affairs
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