OTTAWA – Air Canada and Ottawa have agreed to financing deals that would allow the airline to access as much as $5.9 billion through the Large Employer Emergency Financing Facility program.
As part of the package, Air Canada has agreed to a number of commitments, including refunds for some customers who did not travel due to COVID-19 and a promise to resume service at some regional airports.
BREAKING: Federal Government has reached a financial agreement with Air Canada in the form of loans to the company. This comes with several conditions, including the Feds taking a stake in the company and customers getting refunds for pandemic related cancellations #cdnpoli pic.twitter.com/VQSaIV3P5E
— Cormac Mac Sweeney (@cmaconthehill) April 12, 2021
Other restrictions include limits on executive compensation and maintaining a minimum number of staff.
Travel restrictions introduced through the beginning of the pandemic have been catastrophic for the airline industry
Then-CEO Calin Rovinescu described it as the “bleakest year in the history of commercial aviation,” when the airline released its 2020 financial results in February.
The deal with Ottawa includes debt as well as an equity investment.