Two senior federal authorities sources have confirmed to Ontario Chronicle that the federal authorities has bought its stake in Air Canada.
The information was first reported by the Globe and Mail.
In the course of the COVID-19 pandemic in 2021, the federal government bought a six per cent stake within the airline for $500 million as a part of a bailout bundle.
Ottawa’s rescue take care of Air Canada on the time included a $5.9-billion mortgage from the federal government to assist help the airline after it misplaced billions of {dollars} throughout the pandemic.
As of Thursday afternoon, Air Canada shares closed at $25.28 on the Toronto Inventory Alternate, up 23 cents.
Ontario Chronicle reached out to the federal transport minister’s workplace and was referred as a substitute to Deputy Prime Minister and Minister of Finance Chrystia Freeland’s workplace, who has not but responded.
Final week, Transport Minister Anita Anand instructed Ontario Chronicle she was “inspecting the actual authorized relationship” with Air Canada in an effort to determine methods to dissuade the airline from bringing in extra carry-on charges.
Air Canada has but to answer Ontario Chronicle’ request for remark.
Ian Lee, affiliate professor at Carleton College’s Sprott College of Enterprise, says the federal government ought to have by no means purchased shares in Air Canada within the first place.
“Its function is the referee of the hockey sport, it shouldn’t personal the hockey group or inform Sidney Crosby when to shoot the puck,” he instructed Ontario Chronicle Channel.
“The federal government of Canada supplied billions of {dollars} to many hundreds of firms in Canada and didn’t take possession positions in all these different corporations.”
When requested about whether or not Ottawa promoting its shares in Air Canada is in any approach linked to the federal government’s spending announcement on Monday, Lee says sure.
“There’s an terrible lot of buzz that they are going to crank up spending but once more. And so, the federal government wants cash. They’re rattling the cabinets to see what bits and items could be bought off.”
