Air Canada and Government of Canada Conclude Agreements on Liquidity Program

[Squid]

No way.

Rousseau is not going anywhere - at least not until this is done.

He will have this thing turned as soon as the travel gates re open. The debts will be repaid in short order with interest and the board will give him a fat payday for seeing covid through. The stock will make gains, the government will take a profit on selling their equity and all the ignorant commenters will continue with their complaints of it is their money bailing out Air Canada again and that time their neighbours luggage was lost in '94 and they'll never fly Air Canada again.
.

So are you simply saying AC didn’t need anything? I think we are in tougher shape than you believe to make it through this. Depending on recovery of course and the way the government handles re-opening this country more cash can be burned. Deeper debt we go the longer it may take but I admire your optimism.

[altiplano]

No way.

Rousseau is not going anywhere - at least not until this is done.

He will have this thing turned as soon as the travel gates re open. The debts will be repaid in short order with interest and the board will give him a fat payday for seeing covid through. The stock will make gains, the government will take a profit on selling their equity and all the ignorant commenters will continue with their complaints of it is their money bailing out Air Canada again and that time their neighbours luggage was lost in '94 and they'll never fly Air Canada again.
.

So are you simply saying AC didn’t need anything? I think we are in tougher shape than you believe to make it through this. Depending on recovery of course and the way the government handles re-opening this country more cash can be burned. Deeper debt we go the longer it may take but I admire your optimism.

I did not say anywhere that "AC didn't need anything." Indeed I don't think you read my comment at all.

This provides the stability in liquidity to ride this out. AC may have been able to hold on alone depending how long this continues, but possibly not with all its limbs intact.

What AC really needs is the end of the fear narrative, reopening of our border, end of covid detention hotels, and reopening of international routes.

When that comes, AC will rush to rebuild market share. That's our biggest battle now in the recovery. US and International airlines are all sniffing around at what they can pick off from Canada.

But AC was profitable going into this and they will be again coming out of this. As this is put in the rear view mirror and cash flow returns, these credit facilities will be among the first cleared out. It will be good for both AC and the government from a PR perspective, although Canadians will forget the loan is repaid as usual, and MR will be able to restore his pay day.

[elite]

The problem is that Justin and his cohorts do not understand economics and are driven by their socialist ideology as opposed to protecting Canada, its people and its economy. For over a year they have constantly attacked aviation industry by various limitations while they are clueless how to battle the pandemic or procure vaccines. It is simple economics. If they continue to put limitations on travel they must carry the cost of it too. For instance in the U.S furloughs have been very limited if any while in Canada there have been massive lay-offs and more coming still. While the aid in the states was very targeted to the sectors affected and as a result aviation was protected that all pilots are at work and hiring is restarting, here the response was very slow, very small, and very convoluted that companies didn’t even want to use it.

As a result, the so called “bail-out” that is offered to Air Canada and may be offered to other carriers is a joke and reminiscent of the aftermath of 911 during another liberal regime. What it demanded in return for “loan guarantees” for a lousy 75 million, not even the money itself but to back that loan, was such sweeping control in the airline that it was no use and sealed the fate of Canada 3000. The same is taking place now. The liberals are penny wise and pound foolish. They waste billions and billions but when it comes to actually helping industries that are affected, they always fail because they try to appear prudent to the public. If they were prudent however, there would not be so much corruption and wasted tax dollars.

Recent history shows that a combination of a liberal regime and a global event such as 911 or a pandemic means disaster for Canada. That combined with a politically uninitiated and apathetic public is a perfect storm!!

[“”Bob””]

I remember when Westjet barely made it through the three or so days of closed airspace the Liberals enacted at the behest of the US Bush administration.

Likewise the permanent addition of cockpit doors the Liberals enforced because of an FAA Airworthiness Directive and enhanced security measures which mirrored those enacted in the United States under the Aviation Transport Security Act (enacted 11 days after C3’s bankruptcy) nearly dealt Westjet a death blow.

['97 Tercel]

The problem is that Justin and his cohorts do not understand economics and are driven by their socialist ideology as opposed to protecting Canada, its people and its economy. For over a year they have constantly attacked aviation industry by various limitations while they are clueless how to battle the pandemic or procure vaccines. It is simple economics. If they continue to put limitations on travel they must carry the cost of it too. For instance in the U.S furloughs have been very limited if any while in Canada there have been massive lay-offs and more coming still. While the aid in the states was very targeted to the sectors affected and as a result aviation was protected that all pilots are at work and hiring is restarting, here the response was very slow, very small, and very convoluted that companies didn’t even want to use it.

As a result, the so called “bail-out” that is offered to Air Canada and may be offered to other carriers is a joke and reminiscent of the aftermath of 911 during another liberal regime. What it demanded in return for “loan guarantees” for a lousy 75 million, not even the money itself but to back that loan, was such sweeping control in the airline that it was no use and sealed the fate of Canada 3000. The same is taking place now. The liberals are penny wise and pound foolish. They waste billions and billions but when it comes to actually helping industries that are affected, they always fail because they try to appear prudent to the public. If they were prudent however, there would not be so much corruption and wasted tax dollars.

Recent history shows that a combination of a liberal regime and a global event such as 911 or a pandemic means disaster for Canada. That combined with a politically uninitiated and apathetic public is a perfect storm!!

Absolutely spot on

[Babar350]

The problem is that Justin and his cohorts do not understand economics and are driven by their socialist ideology as opposed to protecting Canada, its people and its economy. For over a year they have constantly attacked aviation industry by various limitations while they are clueless how to battle the pandemic or procure vaccines. It is simple economics. If they continue to put limitations on travel they must carry the cost of it too. For instance in the U.S furloughs have been very limited if any while in Canada there have been massive lay-offs and more coming still. While the aid in the states was very targeted to the sectors affected and as a result aviation was protected that all pilots are at work and hiring is restarting, here the response was very slow, very small, and very convoluted that companies didn’t even want to use it.

As a result, the so called “bail-out” that is offered to Air Canada and may be offered to other carriers is a joke and reminiscent of the aftermath of 911 during another liberal regime. What it demanded in return for “loan guarantees” for a lousy 75 million, not even the money itself but to back that loan, was such sweeping control in the airline that it was no use and sealed the fate of Canada 3000. The same is taking place now. The liberals are penny wise and pound foolish. They waste billions and billions but when it comes to actually helping industries that are affected, they always fail because they try to appear prudent to the public. If they were prudent however, there would not be so much corruption and wasted tax dollars.

Recent history shows that a combination of a liberal regime and a global event such as 911 or a pandemic means disaster for Canada. That combined with a politically uninitiated and apathetic public is a perfect storm!!

What's important for most of Canadians is being selfish and think the government is here to help.
They stated back in August that they wanted to have a strong regional air connection. That is all that matters.
Liberals are just there because they're giving free money to people.
The 705 should have put everyone on EI back in March. Why the US and most European airlines have been able to find common ground with their Government ?
Canadians think everything can be fix with talks. WRONG!
We have unions because we need them to be able to strike. Don't tell me Harper bill stuff, that is a none sense. If we really were essential we would have had this aid way before.

[ayseven]

Again more ignorance on how things work. Economics is not zero sum. The government has not dealt "a blow against aviation". And the government programmes were offered to pretty much everybody, NOT the airlines specifically. So because they did not specifically help airlines (and nobody else) you are saying they hurt the industry. A lot of industries are hurting, not just this one. The pandemic came here on an airplane. We know this. No trucks from the States, NO FOOD. Your argument does not hold up.

What I see here is typical Canadian negativity. If you don't agree with the government, whether it be Jason Kenney's lot, Doug Ford, J Trudeau, or whomever, just vote with your conscience. Could you have done better? Maybe, maybe not. These are tough times, but you are blaming the wrong target, and I do not see any solutions with where we are today proffered here.

[cloak]

What’s even more disturbing is that by this agreement the federal government has become a large shareholder in its former crown corporation again which makes its regulation of the industry even more challenging. Which begs the question why did it not provide an industry-wide aid package like the U.S? Also, its delay in supporting airlines has caused substantial erosion of market share for all Canadian carriers to foreign carriers which will put them at a great disadvantage for long. It becomes clear that in all aspects of managing the pandemic the federal government has simply failed Canadians, particularly regarding economy it is utterly clueless.

[EPR]

The problem is that Justin and his cohorts do not understand economics and are driven by their socialist ideology as opposed to protecting Canada, its people and its economy. For over a year they have constantly attacked aviation industry by various limitations while they are clueless how to battle the pandemic or procure vaccines. It is simple economics. If they continue to put limitations on travel they must carry the cost of it too. For instance in the U.S furloughs have been very limited if any while in Canada there have been massive lay-offs and more coming still. While the aid in the states was very targeted to the sectors affected and as a result aviation was protected that all pilots are at work and hiring is restarting, here the response was very slow, very small, and very convoluted that companies didn’t even want to use it.

As a result, the so called “bail-out” that is offered to Air Canada and may be offered to other carriers is a joke and reminiscent of the aftermath of 911 during another liberal regime. What it demanded in return for “loan guarantees” for a lousy 75 million, not even the money itself but to back that loan, was such sweeping control in the airline that it was no use and sealed the fate of Canada 3000. The same is taking place now. The liberals are penny wise and pound foolish. They waste billions and billions but when it comes to actually helping industries that are affected, they always fail because they try to appear prudent to the public. If they were prudent however, there would not be so much corruption and wasted tax dollars.

Recent history shows that a combination of a liberal regime and a global event such as 911 or a pandemic means disaster for Canada. That combined with a politically uninitiated and apathetic public is a perfect storm!!

BOOM... MIC DROP!

[alkaseltzer]

The problem is that Justin and his cohorts do not understand economics and are driven by their socialist ideology as opposed to protecting Canada, its people and its economy. For over a year they have constantly attacked aviation industry by various limitations while they are clueless how to battle the pandemic or procure vaccines. It is simple economics. If they continue to put limitations on travel they must carry the cost of it too. For instance in the U.S furloughs have been very limited if any while in Canada there have been massive lay-offs and more coming still. While the aid in the states was very targeted to the sectors affected and as a result aviation was protected that all pilots are at work and hiring is restarting, here the response was very slow, very small, and very convoluted that companies didn’t even want to use it.

As a result, the so called “bail-out” that is offered to Air Canada and may be offered to other carriers is a joke and reminiscent of the aftermath of 911 during another liberal regime. What it demanded in return for “loan guarantees” for a lousy 75 million, not even the money itself but to back that loan, was such sweeping control in the airline that it was no use and sealed the fate of Canada 3000. The same is taking place now. The liberals are penny wise and pound foolish. They waste billions and billions but when it comes to actually helping industries that are affected, they always fail because they try to appear prudent to the public. If they were prudent however, there would not be so much corruption and wasted tax dollars.

Recent history shows that a combination of a liberal regime and a global event such as 911 or a pandemic means disaster for Canada. That combined with a politically uninitiated and apathetic public is a perfect storm!!

Canada 3000 was doomed for failure after Royal airlines cooked the books and they fell for it and bought them.

That’s no fault of any government.

[‘Bob’]

No different than Air Canada after they bought CDN.

Thank god for government.

[newlygrounded]

What’s even more disturbing is that by this agreement the federal government has become a large shareholder in its former crown corporation again which makes its regulation of the industry even more challenging. Which begs the question why did it not provide an industry-wide aid package like the U.S? Also, its delay in supporting airlines has caused substantial erosion of market share for all Canadian carriers to foreign carriers which will put them at a great disadvantage for long. It becomes clear that in all aspects of managing the pandemic the federal government has simply failed Canadians, particularly regarding economy it is utterly clueless.

Because that would be unpopular with the public, and the CEWS was basically meant to be an expensive but voter neutral program that put money to workers

[cloak]

I was referring to the specific agreement with airlines that in the case of Air Canada made the federal government a very large (the largest perhaps?) shareholder, instead of a more neutral across the board program for all airlines, much like U.S and other countries.