Air Canada Agrees to $5.9 Billion Aid Package, Giving Ottawa Equity Stake in Airline

Air Canada Agrees to $5.9 Billion Aid Package, Giving Ottawa Equity Stake in Airline
An Air Canada Boeing 737 MAX 8 jet arrives at Halifax Stanfield International Airport on April 9, 2021. THE CANADIAN PRESS/Andrew Vaughan
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OTTAWA—After months of negotiations, Ottawa has reached a multibillion-dollar rescue deal with Air Canada that will give the government an equity stake in the pandemic-battered airline.

Under the agreement, Air Canada can access up to $5.9 billion from the public purse but must refund passengers whose flights were cancelled due to COVID−19, cap executive compensation at $1 million and restore service to regional airports.