Premier Danielle Smith recently discussed a subsidy program aimed at enhancing regional air service in Alberta to promote defense and aerospace spending statewide. Following the cessation of daily flights to Calgary by WestJet in cities like Medicine Hat and Lethbridge, the province is considering proposals from airlines to establish links between regions, potentially with subsidies to cover revenue shortfalls.
The Alberta Ministry of Transportation solicited proposals from air carriers this summer to introduce or expand commercial travel to regional airports. Six companies submitted proposals, which could result in up to $5 million over two years in exchange for service guarantees. Minister Justin Wright noted that evaluations are underway before direct discussions with carriers.
Premier Smith emphasized the importance of the program in expanding flights across the province, especially to attract defense sector investments in areas with Canadian Forces bases like CFB Suffield near Medicine Hat and CFB Cold Lake. She highlighted the necessity of regular flights for workers, executives, and air freight services to appeal to potential investors.
In addition, Smith mentioned the possibility of servicing the Air Force base at CFB Cold Lake through regional airports in Cold Lake or Lloydminster, both of which lost WestJet service in April 2024. Other key regional airports in Alberta include those in Grande Prairie, Red Deer, and Fort McMurray.
Cameron Prince, the general manager of Lethbridge Airport, stressed the importance of local air service for both travelers and business development, echoing the sentiment shared by Medicine Hat officials regarding the revenue loss resulting from the WestJet service cuts.
Notably, if approved, Alberta would join other provinces in providing financial support to carriers in exchange for air service coverage. The approach taken by Alberta has been commended for its design, focusing on smaller aircraft for shorter routes with lower volumes. This model, though potentially requiring some level of subsidy, is seen as crucial for supporting remote regional economies.
Overall, the initiative aims to boost connectivity, attract employers, facilitate business travel, enhance medical access, and strengthen supply chains in smaller cities, underscoring the vital role of air service in sustaining regional economies.