Provincial subsidy fund for Winnipeg flights to L.A., Atlanta runs dry

CBC

24-04-2025

A Manitoba provincial fund set aside to subsidize WestJet flights between Winnipeg and two U.S. cities has run out of cash, raising questions about the future of direct air connections between Winnipeg's Richardson International Airport and both Los Angeles and Atlanta.
A $4.8-million flight subsidy fund created by the former Progressive Conservative government under Heather Stefanson government is all used up, said Ryan Stelter, a spokesperson for Manitoba Premier Wab Kinew.
The fund, which was managed by the Winnipeg Airports Authority, will not be topped up with additional public money under the current NDP government, Stelter added.
"The previous government entered into $4.8-million agreement with the Winnipeg Airport Authority in June 2023 for flights to Los Angeles and Atlanta. That agreement … was honoured and paid out in full," Stelter said Wednesday in a statement.
The flight subsidy fund was originally envisioned to last until this October, Stelter said. Its demise comes at a time when trade tensions, economic uncertainty and anti-U.S. sentiment have already reduced Canadian demand for travel south of the border.
This, in turn, has prompted WestJet, Air Canada and Porter to cut back on some Canada-U.S. routes and muse about suspending or cancelling others.
WestJet said Wednesday it is reviewing its Canada-U.S. flight schedule for the summer months "due to the changing demand surrounding travel to the United States."
Details around adjustments will be finalized in the coming weeks, WestJet public relations manager Jen Booth said Wednesday in a statement.
WestJet has already announced new flights out of Winnipeg will start in July to serve Canadians seeking to travel to Europe and within Canada, said Booth.
That includes new flights between Winnipeg and St. John's added "to meet increased domestic and transatlantic travel demand," along with increased service between Winnipeg and Halifax, she said.
The Winnipeg Airports Authority did not comment Wednesday. It is slated to hold its annual general meeting on Thursday morning.
Economic Development Winnipeg also declined to comment Wednesday.
Manitoba Film and Music, which speaks on behalf of the film industry in this province, said Wednesday it has received no word of changes to the funding for the Winnipeg-Los Angeles flight and does not know what the impact of such a change would be.
The Manitoba film industry spent years lobbying successive NDP and PC governments to subsidize a direct Winnipeg-Los Angeles air connection.
"We are grateful to the province for their support in bringing the direct flight from L.A. to Winnipeg, as it had a positive impact on our ability to promote the film and television industry and bring production to Manitoba," Manitoba Film and Music CEO Lynne Skromeda said Wednesday in a statement.
Price Industries, a Winnipeg manufacturer whose head office is located in an Atlanta suburb, did not respond to a request for comment Wednesday.
Price's Gateway Road facility served as the setting for the original announcement by Stefanson and WestJet about the start of direct flights to Atlanta.
Stelter said he is not aware of requests by the Winnipeg Airports Authority, WestJet or other entities to top up or extend subsidies for the Los Angeles and Atlanta flights.
Flights between Winnipeg and Los Angeles started in 2022. Winnipeg-Atlanta flights began the following year.
Former premier Stefanson joined WestJet's board of directors in 2024, after she left office, and is still listed as a member of the airline's board.