Air lobby | IATA receives 20 million to stay in Montreal

Nothing will prevent the International Air Transport Association (IATA) from reducing its Quebec workforce by about 10% in four years, even if the airline lobby will receive 20 million in subsidies to maintain its presence in Montreal.

Julien Arsenault
The Press

Less than a year after announcing its intention to abandon the metropolis in favor of Geneva – where its other main office is located – the organization has changed its tune following negotiations with Quebec and Ottawa.

The agreement reached with the two orders of government, which will contribute 10 million each over the next decade, will oblige IATA to maintain its current level of 250 employees, particularly in the areas of law, finance and information over the next four years. Thereafter, nothing will prevent the workforce from shrinking by 25 positions.

“These are jobs that bring an extraordinary contribution to Montreal,” defended the Minister of International Relations and La Francophonie, Nadine Girault, Monday, at a press briefing in the offices of the organization which represents some 290 airlines. .

Accompanied by Pascale St-Onge, Head of the Economic Development Agency of Canada, the Director General of IATA, Willie Walsh, and the President and CEO of Montreal International, Stéphane Paquet, M^me Girault formalized the agreement reached with the airline lobby.

The head office of IATA is in Montreal in the Tour de la Bourse, downtown, near the International Civil Aviation Organization (ICAO). Last year, the Association announced its intention to move work to Geneva. It was not a threat, according to Mr.^me Girault. The boss of IATA agreed, saying that health restrictions had weighed in the balance.

“We felt that the division of labor between two offices was inefficient,” said Walsh. This was especially the case during lockdowns during the pandemic. This made business extremely difficult. »

Keep footprint

Since the start of the pandemic, IATA has criticized the Trudeau government more than once for maintaining health protocols deemed too rigid by the organization while other countries are making relief.

The grants from Quebec City and Ottawa will essentially be used to preserve the achievements of IATA’s Montreal facilities. The top management of the organization will remain in Switzerland. The only promise made by Mr. Walsh consists in visiting the metropolis more frequently since the sanitary rules allow it.

To maintain a head office, governments are often caught between the tree and the bark, underlines the professor in the management department of Laval University Yan Cimon. The latter are forced to play the game of international organizations in a context of strong competition.

“Many places do not hesitate to find mechanisms or financial incentives to attract offices of this size,” he points out. Montreal has the advantage of having a remarkable ecosystem with the ICAO, but the impact of international competition should not be overlooked. »

IATA, which has about 1,400 employees, had already cut about 10% of its international workforce as part of a restructuring.