TORONTO (Sputnik) – Air Canada and the federal authorities have struck a deal that may see the nation’s flag service be given entry of as much as $4.68 billion in liquidity by way of a federal COVID-19 stimulus program for big companies, the airliner mentioned.
“Air Canada announced today that it has entered into a series of debt and equity financing agreements with the Government of Canada, which will allow Air Canada to access up to $5.879 billion [$4.68 billion USD] in liquidity through the Large Employer Emergency Financing Facility (LEEFF) program,” the corporate mentioned in a press launch on Monday.
Air Canada shall be eligible to obtain funding by way of a mix of secured and unsecured credit score services, however the firm has vowed to attract on credit score solely as required.
Canada’s flag service should start offering prospects with refunds starting on April 30, on the newest, and the corporate has dedicated to sustaining present staffing ranges. Air Canada at present employs 14,859 workers, though hundreds have been laid off because the onset of the pandemic final March.
Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland added that the entire nation’s business airways can now apply for federal funding to reimburse passengers for canceled flights. Canadian vacationers have grown more and more annoyed with the nation’s airways reimbursing canceled flights with vouchers as a substitute of refunds amid the novel coronavirus (COVID-19) pandemic.
Freeland famous that firm executives shall be restricted to $800,000 in whole compensation as a part of the settlement.
The Canadian authorities has been mulling a attainable enhance for the beleaguered business because the onset of the pandemic final spring, however no concrete bulletins had been made till at the moment. Freeland defended the federal government’s response, saying it has offered further help all through the previous 12 months whereas noting that good offers “sometimes take a little time” to make.