Air Canada pulls out of federal aid deal as finances improve

MONTREAL – Air Canada said it is withdrawing from federal government financial assistance as its financial situation has improved.

The airline said its recovery from the COVID-19 pandemic was continuing and it was able to make the move due to improved liquidity.

Air Canada reached a $5.9 billion deal with Ottawa in April for an aid package that provides loans to the airline, but also limits executive compensation and offers a commitment to recover. serves several airports in the area.

The airline said it borrowed about $1.2 billion under a line of credit dedicated to refunding customers, while other loans available under the package went unused. Air Canada said the amount used for non-refundable tickets will be refunded under the terms of the agreement.

The aid package also sees the federal government buying $500 million worth of Air Canada shares, which Air Canada says Ottawa continues to hold.

Air Canada also agreed to issue share warrants to the government. It said with the termination of active credit facilities, half of these warrants, which have not been issued, have been canceled and it plans to call the issued warrants for cancellation at market value. reasonable.

– This report by the Canadian Press was first published on November 19, 2021.


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