$5.9B Air Canada deal should have ‘less onerous conditions’

After months of negotiations, Air Canada and Prime Minister Justin Trudea’s government struck a deal to provide the airline with a financial aid package worth up to $5.9 billion. The agreement provides Air Canada with access to up to $5.4 billion in low-interest loans, while Ottawa takes a $500 million stake in the company.

As part of the deal, Air Canada has agreed to provide refunds to passengers whose flights were cancelled due to COVID-19 as well as restore regional routes that were suspended due to the pandemic.

Sean Speer, fellow in residence at the Public Policy Forum, says some of those terms – particularly the route requirement – should "worry all Canadians." On this episode of Crisis Management, he explains why Ottawa should have avoided including those conditions in the deal, and what it could mean for Air Canada in the future.