Air Canada, Ottawa agree to aid package worth up to $5 9 billion - Medicine Hat NewsMedicine Hat News medicinehatnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from medicinehatnews.com Daily Mail and Mail on Sunday newspapers.
Christopher Reynolds
An Air Canada Boeing 737 MAX 8 jet arrives at Halifax Stanfield International Airport on Friday, April 9, 2021. THE CANADIAN PRESS/Andrew Vaughan April 12, 2021 - 9:07 PM
OTTAWA - After months of negotiations, Ottawa has reached a multibillion-dollar rescue deal with Air Canada that will give the government an equity stake in the pandemic-battered airline.
Under the agreement, Air Canada can access up to $5.9 billion from the public purse but must refund passengers whose flights were cancelled due to COVID-19, cap executive compensation at $1 million and restore service to regional airports.
The package, which will see the federal government pay $500 million for a six-per-cent stake in the country s biggest airline, also requires the carrier to maintain employment at current levels or higher.
Air Canada, Canadian officials agree on bailout
AP, TORONTO
Air Canada and the Canadian government on Monday agreed on financing that would allow the airline to access as much as C$5.9 billion (US$4.7 billion) to help it recover from the economic damage caused by the COVID-19 pandemic.
Canadian Deputy Prime Minister Chrystia Freeland said that the support includes C$4 billion (US$3.2billion) in loans and C$500 million (US$398 million) in equity that would give Canadians a stake in Air Canada, which is the country’s largest airline.
As part of the financial package, Air Canada has agreed to a number of commitments related to customer refunds, service to regional communities, restrictions on the use of the funds provided, employment and capital expenditures.
Air Canada agrees to $5 9-billion aid package, giving Ottawa equity stake in airline - Medicine Hat NewsMedicine Hat News medicinehatnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from medicinehatnews.com Daily Mail and Mail on Sunday newspapers.