Canada Sells Stake in Air Canada

The Canadian government has sold its 6% stake in Air Canada, concluding its direct ownership after initially acquiring the shares as part of a $5.9 billion bailout during the COVID-19 pandemic. The stake was purchased at approximately $23.18 per share, and the government managed to sell it for around $25 per share, reflecting a modest profit. This bailout aimed to stabilize Air Canada, which faced severe financial difficulties, including a 73% drop in passenger traffic and significant layoffs. The government's involvement included strict conditions such as refunds for canceled flights and capped executive compensation. The sale signals a shift back to private industry as the airline's financial position improves, aligning with global trends of government divestment post-pandemic. Critics have questioned the appropriateness of government ownership in the private sector, highlighting the complexities of such interventions.