Ottawa pays Air Canada US$4.7 billion, buys 9.7pc share of carrier

AIR CANADA received US$4.7 billion of loans and equity from the Canadian government to help the airline get through the Covid crisis, reports London's Air Cargo News.

The state sold off its ownership interest in the 1980s, but will once again own a piece of the country's largest airline. The state is expected to own 9.7 per cent.



In return, Air Canada has agreed to restrict share buybacks and dividends, keep employment at April 1 levels and follow through on a deal to buy 33 Airbus SE A220s made at a factory in Quebec.



Executives also won't be allowed to earn more than $800,000, while the airline will resume service on suspended routes to distant locations such as Gander and Yellowknife.



'We wanted a good deal, not just any deal. And getting a good deal can sometimes take a little time,' said Finance Minister Chrystia Freeland.



Air Canada is expected to pay back customers who didn't take flights they had booked because of the Covid crisis.


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