Air Canada Exits the $4.7 Billion Bailout It Lobbied For
- Deal was clinched in April after months of pressing Trudeau
- Government still holds 6% stake in Canada’s largest airline
Photographer: Brent Lewin/Bloomberg
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Air Canada, which for a year publicly pressed the government to offer emergency financial help to the airline industry, said it no longer needs the bulk of a C$5.9 billion ($4.7 billion) package announced just seven months ago.
The airline said Friday it’s withdrawing from the crisis arrangement after using some of the loans to refund tickets. It cited the travel recovery and improved liquidity. Almost C$4 billion worth of loan facilities went unused, though the government still holds a 6% equity stake it bought as part of the bailout structure.