Air Liaison (DU, Québec) is contesting a Québec government decision to remove the carrier from the province’s Regional Air Access Program (PAAR), arguing that the suspension was imposed on July 2 without prior notice or consultation and that it has not breached the terms of its agreement with the province’s Ministry of Transport and Sustainable Mobility.

The airline has requested a review of the decision and is considering legal action to restore its participation in the support scheme, which includes other carriers such as Air Canada, Air Creebec, Air Inuit, Central Mountain Air, PAL Airlines (Canada), Pascan Aviation, and Propair.

While the review takes place, Air Liaison said it would absorb an amount equivalent to the government subsidy, allowing passengers to continue purchasing tickets at reduced fares without additional costs. All of its scheduled routes will continue to operate normally.

PAAR, which runs until March 31, 2027, subsidises 50% to 85% of eligible airfares on routes within Québec.

The Québec government said the partnership was terminated because Air Liaison failed to comply with the financial assistance agreement, making it ineligible to continue selling tickets under the scheme.

“I take this situation very seriously. Since Air Liaison has not respected the terms of the agreement, it is therefore terminated,” the province's transport minister Benoit Charette said. He added that due to the importance of air transport for isolated and remote Canadian regions, the ministry is “evaluating possible options to ensure that the communities served by Air Liaison continue to receive financial support from the government.”

Air Liaision operates a fleet of wet-leased aircraft including five Beech 1900Ds from Skyjet Aviation (Canada), and one CRJ200 and one DHC-8-300 from Great North Airlines.