In return for the help, the carrier is offering refunds to customers who have purchased non-refundable fares but have not traveled due to the pandemic since February 2020.

Air Canada and the Canadian government on Monday agreed on funding that will provide the airline with access to C $ 5.9 billion (US $ 4.7 billion) to help it recover from the economic damage caused by the pandemic.

Deputy Prime Minister Chrystia Freeland said the aid includes C $ 4 billion (US $ 3.2 billion) in loans and C $ 500 million (US $ 398 million) in equity that will give Canadians a stake in Air Canada, which is the country’s largest airline.

As part of the financial package, Air Canada accepted a number of commitments related to customer reimbursements, service to regional communities, restrictions on the use of funds provided, employment and capital expenditures.

In return for the help, the carrier is offering refunds to customers who have purchased non-refundable fares but have not traveled due to the pandemic since February 2020.

Also in exchange for the bailout, the airline is resuming service for all regional communities where service was suspended.

Ms Freeland, also Canada’s finance minister, said the airline has also guaranteed there will be no more job losses. She said there will also be no share buybacks or dividends and executive compensation will be capped. Ms. Freeland said that the total compensation for any senior executive was capped at $ 1 million Canadian (US $ 800,000).

“These are difficult and unprecedented times for our airline industry and our workers as well as for Canadian travelers,” said Ms. Freeland in French. “The airline industry is a strategic sector.”

Freeland said the government is also talking to other Canadian airlines to determine what kind of help they need.

Air Canada lost C $ 4.6 billion (US $ 3.6 billion) in 2020, compared to a profit of C $ 1.5 billion (US $ 1.2 billion) the previous year.

Organizations supporting Air Canada’s rescue demands include unions like Unifor and the Canadian Air Traffic Control Association as well as the industry group of the National Airlines Council of Canada.

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