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777luver
Topic Author
Posts: 462
Joined: Fri Jun 26, 2020 2:44 am

Air Canada to get federal aid

Mon Apr 12, 2021 9:07 pm

After more than a year since the pandemic began, the Canadian govt and Air Canada have come to agreement on federal aid. More details to be released tonight.

Sorry the link is behind a paywall, couldn't find an open link right now but as it's breaking news it should be picked up by other outlets.

https://www.theglobeandmail.com/politic ... ir-canada/
 
codyul
Posts: 161
Joined: Wed Feb 07, 2018 6:43 pm

Re: Air Canada to get federal aid

Mon Apr 12, 2021 9:44 pm

"Equity stakes have been ruled out, so the rescue package, which the sources said will be worth billions of dollars, is expected to be a mix of low-cost loans and wage subsidies, and to come with restrictions related to executive compensation. Two of the sources said the package would ensure key regional routes would be maintained and that current orders for aircraft would not be cancelled if jobs in Canada were affected. It is unclear whether equipment purchases are part of the package."
YUL PNC :weightlifter:
 
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piedmontf284000
Posts: 496
Joined: Wed Jun 15, 2016 12:00 pm

Re: Air Canada to get federal aid

Mon Apr 12, 2021 11:17 pm

https://aircanada.mediaroom.com/2021-04 ... ty-Program

*Government of Canada will allow Air Canada to access up to $5.879 billion in liquidity through the Large Employer Emergency Financing Facility (LEEFF) program.

*Beginning tomorrow, offering eligible customers who purchased non-refundable fares but did not travel due to COVID-19 since February 2020, the option of a refund to the original form of payment.

*Obligations to maintain employment at levels which are no lower than those at April 1, 2021

*The completion of the airline's acquisition of 33 Airbus A220 aircraft, manufactured at Airbus' Mirabel, Quebec facility. Air Canada has also agreed to complete its existing firm order of 40 Boeing 737 Max aircraft.
 
MIflyer12
Posts: 9303
Joined: Mon Feb 18, 2013 11:58 pm

Re: Air Canada to get federal aid

Tue Apr 13, 2021 12:15 am

piedmontf284000 wrote:
*The completion of the airline's acquisition of 33 Airbus A220 aircraft, manufactured at Airbus' Mirabel, Quebec facility.


That suggests the dozen A220s it cancelled in Nov. 2020 stay cancelled - not 'just a bargaining chip' as posited by some.
 
Airlinerdude
Posts: 231
Joined: Tue Mar 30, 2010 3:07 am

Re: Air Canada to get federal aid

Tue Apr 13, 2021 1:06 am

Great news for all parties involved - particularly all the struggling aviation sector workers.

I can't help but point out the coincidence between the timing of the Air Transat deal falling through and the finalization of this bailout. Looks to me like AC was waiting to the bitter end to acquire TS before willing to agree to the bailout terms.
 
dr1980
Posts: 212
Joined: Tue Jun 14, 2016 9:55 pm

Re: Air Canada to get federal aid

Tue Apr 13, 2021 1:48 am

CBC is reporting that the Canadian Government is in fact taking a $500m equity stake:

https://www.cbc.ca/news/politics/air-ca ... -1.5984543

"Under the deal, the government will provide the country's largest airline with up to $5.4 billion through a variety of low-interest loans and take an equity stake in the company worth $500 million."
Dave/CYHZ
 
777luver
Topic Author
Posts: 462
Joined: Fri Jun 26, 2020 2:44 am

Re: Air Canada to get federal aid

Tue Apr 13, 2021 1:49 am

Airlinerdude wrote:
Great news for all parties involved - particularly all the struggling aviation sector workers.

I can't help but point out the coincidence between the timing of the Air Transat deal falling through and the finalization of this bailout. Looks to me like AC was waiting to the bitter end to acquire TS before willing to agree to the bailout terms.


Very interesting point I hadn't thought about. They had to have known this aid was coming and it just wasn't worth it
 
dr1980
Posts: 212
Joined: Tue Jun 14, 2016 9:55 pm

Re: Air Canada to get federal aid

Tue Apr 13, 2021 2:05 am

The CTV article lists the destinations that need to have service resume by June 1. Some of these had been previously announced anyway but perhaps it's another city pairing that hadn't been previously announced:

https://www.ctvnews.ca/politics/air-can ... -1.5384479

"The suspended destinations slated for a return no later than June 1 include, Bathurst, Comox, Fredericton, Gander, Goose Bay, Kamloops, North Bay, Penticton, Prince Rupert, St. John, Sydney and Yellowknife. Air Canada must also work with third parties to restore service to its permanently cancelled destinations."

I wonder if third parties just means Jazz or if they'll look to anyone else (Evas in Atlantic Canada)?
Dave/CYHZ
 
basspaul
Posts: 62
Joined: Fri Jan 26, 2018 8:18 pm

Re: Air Canada to get federal aid

Tue Apr 13, 2021 8:01 pm

I hope the feds left some cake for the other airlines. AC isn't the only one that got hurt with the COVID pandemic.

Though, to be fair, it has been nice not having a Porter Q400 fly overhead at home every 45 minutes or so (spoken with sarcasm, of course).
 
777luver
Topic Author
Posts: 462
Joined: Fri Jun 26, 2020 2:44 am

Re: Air Canada to get federal aid

Tue Apr 13, 2021 8:16 pm

basspaul wrote:
I hope the feds left some cake for the other airlines. AC isn't the only one that got hurt with the COVID pandemic.

Though, to be fair, it has been nice not having a Porter Q400 fly overhead at home every 45 minutes or so (spoken with sarcasm, of course).


Transat has said talks for aid are in the advanced stage. Westjet by the sounds of it is going at it on their own
 
Whiteguy
Posts: 1628
Joined: Sat Nov 29, 2003 6:11 am

Re: Air Canada to get federal aid

Tue Apr 13, 2021 8:56 pm

777luver wrote:
basspaul wrote:
I hope the feds left some cake for the other airlines. AC isn't the only one that got hurt with the COVID pandemic.

Though, to be fair, it has been nice not having a Porter Q400 fly overhead at home every 45 minutes or so (spoken with sarcasm, of course).


Transat has said talks for aid are in the advanced stage. Westjet by the sounds of it is going at it on their own


All airlines have been on their own for the past 2 weeks....
 
CXH
Posts: 161
Joined: Sun Oct 31, 2004 10:37 am

Re: Air Canada to get federal aid

Tue Apr 13, 2021 10:41 pm

I was looking to see if Air Canada's use of LEEFF has appeared on the website yet, but it hasn't. You can see Sunwing's $50M loan (out of $375M) from February on the very short list. That is, only four large employers in Canada have applied and have been accepted.

https://www.ceefc-cfuec.ca/approved-loans/

More on LEEFF and CEEFC here:
https://www.cdev.gc.ca/home-ceefc/
I've seen the future, I can't afford it. - Martin Fry
 
Dominion301
Posts: 2962
Joined: Wed Jul 20, 2016 1:48 pm

Re: Air Canada to get federal aid

Tue Apr 13, 2021 11:06 pm

dr1980 wrote:
The CTV article lists the destinations that need to have service resume by June 1. Some of these had been previously announced anyway but perhaps it's another city pairing that hadn't been previously announced:

https://www.ctvnews.ca/politics/air-can ... -1.5384479

"The suspended destinations slated for a return no later than June 1 include, Bathurst, Comox, Fredericton, Gander, Goose Bay, Kamloops, North Bay, Penticton, Prince Rupert, St. John, Sydney and Yellowknife. Air Canada must also work with third parties to restore service to its permanently cancelled destinations."

I wonder if third parties just means Jazz or if they'll look to anyone else (Evas in Atlantic Canada)?


So I wonder if that means AC could contract say PAL to restore the likes of Sarnia, Kingston, Blair-Comeau, Mont-Joli, etc.? Could be an opportunity for Canadian North to expand and put those all-pax AT5s to good use that aren’t very cost effective in the North?
 
dr1980
Posts: 212
Joined: Tue Jun 14, 2016 9:55 pm

Re: Air Canada to get federal aid

Wed Apr 14, 2021 9:52 pm

I would think they could based on their ability to use third parties. It will be interesting to see if they extend beyond using Jazz...I would think that needing smaller aircraft would be the only thing to push them to someone other than Jazz though in the short term since Jazz likely will have plenty of available crews/aircraft (or ability to get them up and running) for the foreseeable future.
Dave/CYHZ
 
9252fly
Posts: 1115
Joined: Thu Sep 22, 2005 7:19 am

Re: Air Canada to get federal aid

Wed Apr 14, 2021 10:54 pm

dr1980 wrote:
I would think they could based on their ability to use third parties. It will be interesting to see if they extend beyond using Jazz...I would think that needing smaller aircraft would be the only thing to push them to someone other than Jazz though in the short term since Jazz likely will have plenty of available crews/aircraft (or ability to get them up and running) for the foreseeable future.


Well, considering Jazz is removing the DH3 fleet by year end, it certainly creates an opportunity for other service providers to fill the small market regional vacuum.
 
dr1980
Posts: 212
Joined: Tue Jun 14, 2016 9:55 pm

Re: Air Canada to get federal aid

Wed Apr 14, 2021 11:27 pm

Agreed...if Air Canada wants to be associated with any flying in aircraft smaller than the Q400. They seem to have been gradually moving away from that even pre-covid.
Dave/CYHZ
 
samuelx88
Posts: 93
Joined: Thu Jan 31, 2019 5:16 pm

Re: Air Canada to get federal aid

Thu Apr 15, 2021 12:37 am

According to Les Ailes du Québec, Air Canada will interline with Pascan to restore service to Gaspé, Baie-Comeau, Iles-de-la-Madeleine, Mont-Joli and Wabush. Pascan will use their Saab 340B for these routes. They will also share cargo. Their first interline will be on June 10th

https://www.lesailesduquebec.com/pascan ... ir-canada/
 
dr1980
Posts: 212
Joined: Tue Jun 14, 2016 9:55 pm

Re: Air Canada to get federal aid

Thu Apr 15, 2021 7:08 pm

There we go, that answers the question of whether they’ll go beyond Jazz. Should be interesting to see what else happens.
Dave/CYHZ

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