Air Canada Secures Government Aid: What Does This Mean for AC Stock Investors?
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Air Canada(TSX:AC) finally reached a financial aid agreement with the Canadian government. Investors want to know if this is a good time to buy Air Canada stock or bail out now that the details of the deal have emerged.
Air Canada aid deal
Air Canada began aid negotiations with the government back in November. The long process finally came to an end with the announcement of a massive $5.9 billion deal.
Under the agreement, Air Canada has access to $5.879 billion in liquidity provided under the government’s Large Employer Emergency Financing Facility (LEEFF).
Air Canada, struggling with a collapse in traffic due to the COVID-19 pandemic, reached a deal on Monday on a long-awaited aid package with Ottawa that would allow it to access up to C$5.9 billion ($4.69 billion), both sides said.
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OTTAWA/MONTREAL Air Canada, struggling with a collapse in traffic due to the COVID-19 pandemic, reached a deal on Monday on a long-awaited aid package with Ottawa that would allow it to access up to $5.9 billion, both sides said.
As part of the package, Air Canada said it would proceed with planned purchases of 33 Airbus SE 220 airliners and 40 Boeing Co 737 MAX airliners.
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“This financial support… will help Air Canada weather the current economic downturn and will protect thousands of Canadian jobs,” the federal finance ministry said in a statement.