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

Air Liaison is contesting Quebec’s decision to terminate its financial assistance agreement, arguing the Transport Ministry acted without notice or prior consultation. The province said the contract ended due to “false declarations” by the airline and has started a claims process to recover overpaid amounts. Transport Minister Benoit Charette’s ministry is auditing the regional air access program, Programme d’accès aérien aux régions (PARR), since 2025 and reported irregularities involving the number of subsidized tickets purchased by individuals. The program provides a 50% to 85% discount on flights for personal, non-profit, or student travel, typically capping usage at six one-way tickets per year, with exceptions for residents in certain remote regions. As of July 2, Air Liaison was no longer authorized to sell tickets at the PARR rate. The airline says it has not breached the contract and is seeking a review.