Feds could make $177M over 10 years from Air Canada deal, PBO says

1 year ago 89

By Staff The Canadian Press

Posted August 12, 2021 10:43 am

 'Air Canada reaches bailout woody  with Ottawa, refund plans for customers' 5:13 Air Canada reaches bailout woody with Ottawa, refund plans for customers

Business newsman Anne Gaviola breaks down the fiscal assistance bundle that Air Canada volition person from the national authorities and what this could mean for customers. – Apr 13, 2021

The Parliamentary Budget Officer says the national authorities could marque astir $177 cardinal implicit 10 years from a enactment woody it reached with Air Canada.

The PBO estimation is based connected Air Canada utilizing lone portion of the $5.9-billion assistance bundle that the hose agreed to with the authorities successful April.

The bundle included the authorities taking a six per cent involvement successful the hose for $500 million, $1.5 cardinal successful secured credit, $2.475 cardinal successful unsecured credit, positive different $1.4 cardinal successful unsecured recognition intended to refund travellers impacted by COVID-19.

The PBO forecast is based connected Air Canada utilizing astir $1.2 cardinal of the funds intended to refund travellers, but not utilizing the different disposable credit.

Trending Stories

Story continues beneath advertisement

Air Canada has said it would support the authorities recognition arsenic security portion going up with different refinancing options. On Wednesday, the hose announced it had completed a $7.1-billion refinancing transaction.

The woody with Ottawa required that Air Canada refund passengers whose flights were cancelled owed to COVID-19, portion further restrictions would beryllium imposed if the hose were to entree the different recognition facilities.

 'Air Canada to connection    refunds successful  speech   for national  pandemic aid' 4:08 Air Canada to connection refunds successful speech for national pandemic aid

Air Canada to connection refunds successful speech for national pandemic assistance – Apr 13, 2021

© 2021 The Canadian Press

Read Entire Article