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Air Canada has received a long-awaited aid package from the Canadian government, which equals C$5.9 billion ($4.69 billion) in funds.
Chris Murray, managing director, equity research at ATB Capital Markets, said the deal took into account the “specific needs of Air Canada in the short and medium-term without being overly onerous.” He added: “It gives them some flexibility in drawing down additional liquidity as needed.”
The deal requires Air Canada to resume services across Canada, offer eligible customers refunds, and execute planned purchases of 33 Airbus A220 aircraft and 40 Boeing 737 MAX airliners.
Moreover, Air Canada said it would maintain its workforce at current levels, respect collective bargaining agreements and protect workers’ pensions. At the moment, the company has 14,859 Canadian employees, although it employed over 38,000 employees before it was forced to start laying off tens of thousands of workers.