One year after the official declaration of a global pandemic, the wait is over for
Air Canada(TSX:AC). The federal government unveiled a financial support package for the beleaguered airline company. Negotiations with other airlines on possible aid agreements are ongoing.
The discussions leading to the deal were tortuous more than smooth. According to Finance Minister Chrystia Freeland, the breakthrough is overdue because the government wanted a good deal, not just any deal. Still, all is well that ends well. Freeland credits Deputy Finance Minister Michael Sabia for his role as lead negotiator.
The $5.9 billion-dollar deal
The Air Canada package is worth $5.9 billion, a combination of secured and unsecured credit facilities, plus a 6% equity stake for the federal government. The latter will purchase $500 million worth of the airline stock. Some industry observers weren’t surprised that the deal includes public participation in equity.
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The Bull Case on Air Canada Stock Today
More on: Image source: Getty Images
Air Canada(TSX:AC) stock has been a topic of constant discussion of late. And for good reason. This company remains a key reopening play for investors looking to benefit from the economic reopening coming out of this pandemic.
Indeed, Air Canada’s prospects look a lot better today than they have in the past. A new bailout and continued optimism around vaccine rollouts provide a nice thesis for this stock today.
Accordingly, here are two reasons I think investors may want to get bullish on Air Canada stock today.
April 16, 2021 April 16, 2021
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A recent deal struck between Air Canada and the federal government to keep the struggling airline afloat is an important step for Labrador air travel.
That is because it includes the return of flights to a number of rural communities across the country where it had cut service. One of those communities is Happy Valley-Goose Bay, which lost Air Canada flights in January.
Happy Valley-Goose Bay Mayor Wally Andersen said it’s good news that there will be a second company coming in and out of the central Labrador community again, offering flights to other parts of Canada that aren’t currently available, and wants to make sure they stay.
TORONTO — Once again, the CFL will not get an interest-free loan from the federal government.The two sides have maintained informal dialogue since last August when the CFL cancelled plans for an . . .