Air Liaison contests Quebec's decision to terminate financial assistance agreement

Air Liaison contests Quebec's decision to terminate financial assistance agreement

Company requests review of what it calls an 'unfounded and unjustified decision'

The regional airline Air Liaison is contesting the Quebec government's decision to terminate its financial assistance agreement, saying the Ministry of Transport made the move "without notice or prior consultation."

Last week, the Quebec government revealed it terminated its agreement, citing “false declarations” made by the company.

Transport Minister Benoit Charette failed to respect the conditions of its funding agreement, and the province has initiated a claims process to recover overpaid amounts.

The province's findings were shared with UPAC, Quebec's anti-corruption unit.

The Transport Ministry has been auditing the regional air access program, also known as Programme d'accès aérien aux régions (PARR), since 2025 and uncovered irregularities regarding the number of subsidized tickets purchased by individuals, according to its statement.

The government program offers a 50 to 85 per cent discount on flights for personal, non-profit, or student travel. It generally caps usage at six one-way tickets per year for most Quebecers, though limits do not apply to residents living in certain remote regions.

As of July 2, Air Liaison was no longer authorized to sell tickets at the PARR rate.

But in a news release published Monday, the company maintains that it has not breached its contract with the ministry and is requesting a review of what it calls an "unfounded and unjustified decision."

"Air Liaison intends to fully assert its rights and is assessing all available recourses to challenge this decision," the news release said.

Air Liaison said it decided to cover an amount equivalent to the PARR subsidy on tickets sold as steps are being taken to resolve the situation.

Customers wishing to obtain details are encouraged to contact the company's customer service department.

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