Setting the record straight on WELFAREAdding to my previous post about the welfare (grants and low intrest loans) given to the US Airline industry. I'd like to make an addition to that topic.
Don't forget about the Canadian Govt's., aid given recently to Air Canada. $5.9B. To which 5.4B is a repayable loan at 1% and the other $500M is non-payble. The $500M non-repayable is in an Equity portion taken by the Govt in Air Canada, in the form of 21 Million in shares. The Govt gets and Equity position for the low interest loan. What a government? They should learn something from the US government. After all the Covid recession was invented by the Governments not industry. But leave it to the Canadian govt. to benefit from that too from it's own industry..
It seems to me that the Canadian Govt. is a taker not a giver from that loan structure. Just like they did with Trans Mountain. Bought it outright with taxpayers money.
I'm glad that Bombardier stopped borrowing money from the Federal Govt..If they would have become reliant on Govt loans? They would have gotten much less than they did for BT. Giving an equity position for lower interest rates.
Let's see what they say in Q1/2021 on the remaining loan front. I get the feeling that the Bomber will start to stand on it's own 2 feet soon, and that will be good news for all of us shareholders. They'll finally learn to be fiscally responsible and work on better margins and profits.