Air Canada withdraws from federal aid deal as financial position improves
Air Canada says it is withdrawing from further federal government financial support as its financial position has improved.
The airline says its recovery from the COVID-19 pandemic is continuing and that it's able to make the move due to its improved liquidity.
Air Canada reached a $5.9-billion deal with Ottawa in April for an aid package that made loans available to the airline, but also capped executive compensation and made commitments to restore service to some regional airports.
The airline says it borrowed about $1.2 billion under a credit facility dedicated to refunding customers, while other loans available under the package were not used. Air Canada says the money used for refunding the non-refundable tickets will be repaid under terms of the agreement.
The aid package also saw the federal government buy $500 million worth of Air Canada shares that Air Canada says Ottawa continues to hold.
Air Canada also agreed to issue share purchase warrants to the government. It says with the termination of the operating credit facilities, half of these warrants, which have not yet vested, have been cancelled and it plans to call the vested warrants for cancellation at fair market value.
- This report by The Canadian Press was first published Nov. 19, 2021.
CTVNews.ca Top Stories
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
House admonishes ArriveCan contractor in rare parliamentary show of power
MPs enacted an extraordinary, rarely used parliamentary power on Wednesday, summonsing an ArriveCan contractor to appear before the House of Commons where he was admonished publicly and forced to provide answers to the questions MPs said he'd previously evaded.
Leafs star Auston Matthews finishes season with 69 goals
Auston Matthews won't be joining the NHL's 70-goal club this season.
Trump lawyers say Stormy Daniels refused subpoena outside a Brooklyn bar, papers left 'at her feet'
Donald Trump's legal team says it tried serving Stormy Daniels a subpoena as she arrived for an event at a bar in Brooklyn last month, but the porn actor, who is expected to be a witness at the former president's criminal trial, refused to take it and walked away.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
Doug Ford calls on Ontario Speaker to reverse Queen's Park keffiyeh ban
Ontario Premier Doug Ford is calling on Speaker Ted Arnott to reverse a ban on keffiyehs at Queen's Park, describing the move as “needlessly” divisive.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Woman who pressured boyfriend to kill his ex in 2000s granted absences from prison
A woman who pressured her boyfriend into killing his teenage ex more than a decade ago will be allowed to leave prison for weeks at a time.
Customers disappointed after email listing $60K Tim Hortons prize sent in error
Several Tim Horton’s customers are feeling great disappointment after being told by the company that an email stating they won a boat worth nearly $60,000 was sent in error.