Opinion: An Air Canada bailout should stick in the craw of Canadian taxpayers

One reason Air Canada’s stock had outperformed the market had to do with the company’s share repurchase program.Until the coronavirus crisis stuck, Air Canada had been on an unprecedented roll. In 2019, Canada’s flag carrier posted record revenues, record liquidity and a record stock price. Indeed, since emerging from court protection from its creditors in 2004, the Montreal-based carrier had gone from industry laggard to one of the world’s top performing airlines.

The coming months promise to be painful for workers. However, no one should shed a tear for Air Canada’s shareholders or top executives. They’ve been richly rewarded in recent years, which will make the thought of their airline now getting bailed out by taxpayers hard to swallow for many Canadians. In the United States, Democratic politicians have sought restrictions on share buybacks and executive compensation packages as part of the rescue packages approved under legislation that passed Congress last week. The US$2-trillion bill signed by President Donald Trump provides for tens of billions of dollars in aid to the country’s airline industry, prompting a major push back from left-leaning Democrats and other critics of corporate largesse.

globebusiness If it’s not paid back in full sure it should.

globebusiness If they need a bailout, let them issue shares for the governnent (or market) to purchase. There's no reason we should hand public dollars to private, for-profit interests without some quid pro quo.

globebusiness Should come with shares that would make some money at a later date.

globebusiness Oh wow. The idiots are out tonight. Keep wrecking your economy and infrastructure and see what’s happens. I’m sure they’ll accept your carbon credits at the grocery store

globebusiness We would guess so Chrétien said we didn’t need public air travel in the mid 90’s he privatized it along with rail and shipping. Why are we paying now this is what they and their Corporate friends wanted

globebusiness More long distance passenger rail (fast, modern and affordable) is needed in this continental country to combat climate emergency. Bailing out Air Canada is not the smart way to go.

globebusiness Maybe they shouldn’t have bought Air Transat - do a sell off because why would taxpayers bail them out monopoly

globebusiness Air Canada is not a crown corporation anymore!

globebusiness Is it gonna be the next Bombardier bailout? Bailout by Canadian tax payers now but in 5 years it wil be sold $1 to a foreign corporation.

globebusiness Fucking right it does

MFS001 globebusiness Just allow European airlines to enter the market and fill the void. The monopoly is bad for canadians.

globebusiness The engines are shut down and the workers have EI , no planes in the sky reduces emissions and reduced emissions mean lower Carbon tax -a win win I say as they have been bailed out before-but I don’t believe that the fuel tax was ever taken off the tickets Maybe I am wrong?

globebusiness Unless Air Canada serves a decent meal, is competitive with their prices, fixes horrendous service NO BAILOUT MONEY! AC is almost a monopoly and doesn’t deserve our support.

globebusiness Nationalise it. Bailouts are now purchases.

globebusiness How many jobs are lost without it?! G&M is trying to promote its far left agenda, again. Sigh.

globebusiness When was the last time you heard “stick in the craw” used? Never I bet.

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