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

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.

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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.