The Federal Government is putting close to 6 billion dollars into Air Canada, including an equity stake in the airline |
The Federal Government is getting back into the aviation business, yesterday announcing plans for 5.879 Billion dollars in liquidity to Air Canada, taking on an equity stake in the national carrier which once upon a time was an airline owned by the Government.
The Trudeau government won't be taking a huge share of ownership, with the plan announced on Monday one which will see the Government taken on towards 500 million dollars worth of Air Canada shares, which is about a six percent ownership of the airline.
Chrystia Freeland, Deputy Prime Minister and Minister of Finance took the lead on yesterday's announcement by the Federal Government, with job protection in the airline sector the main talking point for the financial boost.
“From coast to coast to coast, it is essential we maintain connections between people and our communities, large and small. Protecting Canadian customers is important. And maintaining a competitive Canadian air sector, Canadian airlines, and the thousands of good jobs in this sector is a priority. This is what today’s announcement with Air Canada guarantees.”
The Federal Government also is in negotiations with other airline carriers in the country, looking to address their concerns over the state of the industry at this point of the pandemic period.
Negotiations continue with other Canadian carriers on financial support and any agreement reached in those negotiations will include a requirement that the airline also refund pandemic related-cancelations. In the event that an airline does not need liquidity support from the government, the government remains open to helping all airlines provide voucher refunds to their customers.
A companion statement from Air Canada looked ahead to the days of Canadians returning to the skies en masse, resuming their travels that for the most part have been suspended for over a year to this point.
"As vaccine deployments ramp up, we continue to work with the Government of Canada on the evolution of safe and science-based test and quarantine relief measures with a view to safely restarting our sector. We know that Canadians are looking forward to re-connecting with friends and family and taking those long-awaited vacations and business trips and we will be ready to safely connect Canadians within Canada and Canada to the world," -- Michael Rousseau, President and CEO of Air Canada.
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