Air Canada reached an agreement with the federal government on Monday local time on a long-awaited aid plan that will enable the company to receive up to 5.9 billion Canadian dollars (about 4.69 billion US dollars).
This is the largest outbreak related rescue agreement ever reached between the Canadian government and a company, after the Canadian aviation industry criticized Trudeau’s Liberal government for being slow.
As Canada’s largest airline, Air Canada was forced to cut 20000 employees last year, accounting for more than half of the total number of employees. In February, the company reported a net loss of C $4.65 billion in 2020.
As part of the aid agreement, Air Canada agreed to stop share buybacks and dividends, limit the annual compensation of senior executives to C $1 million, and retain jobs at the current level without further layoffs. The company currently has 14859 employees.
The agreement will also enable Air Canada to continue its plan to purchase 33 overhead passenger (29.74, – 0.50, – 1.65%) se 220 and 40 Boeing (249.52, – 2.84, – 1.13%) 737max aircraft.