Business rebounds as forced Air Canada to pulls out of federal aid program

The company has used the aid package to refund guests’non-refundable tickets, the airline said Friday. Out of the total aid available,$3.975 billion was not used.

“ We are recalling workers, adding new routes and frequence to our network, and restoring services, and, last quarter, we completed a$7.1-billion backing,” said Michael Rousseau, president and CEO of Air Canada, in a statement.
“ We deeply appreciate the Government of Canada’s support as this helped maintain a position playing field at a time when governments around the world, recognizing the significance of air trip to their husbandry, were also abetting their public carriers in the face of the unknown downturn caused by COVID-19.”

Rousseau added the government’s aid saved thousands of jobs, and helped Air Canada raise fresh liquidity on its own to manage the epidemic and plan for thepost- epidemic request.
In April, the civil government announced it would be supporting Air Canada with amulti-billion bone deal to help manage with massive financial losses and millions in customer refunds for cancelled trip because of the epidemic.
The agreement with the government handed access to over to$5.375 billion in interest bearing loans and$ 500 million in equity for a total of$5.875 billion in liquidity, Air Canada said.
Roughly 58 per cent of eligible guests requested refunds, and the airline used$1.2 out of the$1.4 billion available for customer refunds.

As part of the deal, the government bought$ 500 million worth of shares at$23.18 per share, representing about a six per cent equity stake in the company. It gave the government a stake in the airline for the first time since its privatization in 1989, and it continues to hold those shares, Air Canada said.
With$3.975 billion not used, Air Canada said it was entitled to terminate the deal at any time without penalty under the terms of the agreement.