Air Canada exits the $4.7b bailout it lobbied for

Air Canada, which for a year publicly pressed the government to offer emergency financial help to the airline industry, said it no longer needs the bulk of a C$5.9b ($4.7b) package announced just seven months ago. The airline said Friday it’s withdrawing from the crisis arrangement after using some of the loans to refund tickets. It cited the travel recovery and improved liquidity. Almost C$4b worth of loan facilities went unused, though the government still holds a 6% equity stake it bought as part of the bailout structure. “We deeply appreciate the Government of Canada’s support as this helped maintain a level playing field at a time when governments around the world, recognizing the importance of air travel to their economies, were also assisting their national carriers in the face of the unprecedented downturn caused by Covid-19,” CEO Michael Rousseau said. Canada’s largest airline was a critic of PM Justin Trudeau’s government during the first year of the pandemic, saying the absence of a bailout combined with strict travel restrictions was putting the industry at a global disadvantage. In April, the two sides announced a deal for loans and equity, making the federal government an Air Canada shareholder for the first time since the 1980s. <br/>