Air Canada shares close marginally lower after government takes equity stake | Canada News Media
Connect with us

News

Air Canada shares close marginally lower after government takes equity stake

Published

 on

By Allison Lampert and Maiya Keidan

MONTREAL (Reuters) -Air Canada stock ended marginally lower in volatile trading on Tuesday on concerns that existing shareholdings would be diluted after the federal government took an equity stake in the carrier as part of C$5.9 billion ($4.7 billion) in aid.

Analysts and investors said Air Canada‘s decision to accept the bigger-than-expected aid package was the right decision for Canada‘s largest carrier as it tries to cope with the crippling downturn in air travel caused by the coronavirus pandemic.

“Definitely a positive development because it’s giving them access to a very attractively priced backstop credit facility at very reasonable terms,” said Catharine Sterritt, portfolio manager at CIBC Asset Management, a top shareholder.

The deal announced on Monday gives Ottawa a roughly 6% stake in the airline at a discount of 14%, which prompted several analysts to cut their price targets.

“We believe some investors could be negatively surprised by equity dilution and a repayable loan for refunds,” Scotiabank’s Konark Gupta wrote in a note, while reiterating a “sector perform” rating on the stock.

Air Canada shares opened more than 4% higher before sinking about 6.7% and closed down 0.44% at C$26.88 in Toronto.

“In spite of the dilution we see, we still see a path for this company to be worth in excess of at least C$40 when the COVID situation and the airline situation normalizes all a bit more,” Paul Younes, an investment analyst at Letko Brosseau and Associates, which holds the stock, told Bloomberg TV.

Canada is wrestling with soaring COVID-19 cases driven by coronavirus variants and a comparatively slower vaccination rollout than in the United States, raising questions about the reopening of air travel.

“The bigger issue for AC and its investors is the timing around the vaccine rollout and eventual lifting of travel restrictions, as most markets that have reopened show strong pent-up demand,” Raymond James analyst Savanthi Syth said in a note.

Prime Minister Justin Trudeau on Tuesday praised the deal with Air Canada as “good and fair.”

The agreement – the largest individual coronavirus-related loan that Ottawa has arranged with a company – came after the airline industry criticized Trudeau’s Liberal government for dawdling.

TD Securities analyst Tim James said the access to capital would prove to be insurance as opposed to necessary liquidity required to finance operations or capital expenditures in 2021 and beyond. He cut his target price on Air Canada to C$29 from C$31, while reaffirming a “hold” rating.

Air Canada would ease restrictions on future refunds for passengers, a key part of the government talks.

Canada‘s government also is engaged in aid talks with WestJet Airlines Ltd and Transat AT Inc.

($1 = 1.2589 Canadian dollars)

(Reporting by Allison Lampert in Montreal and Ankit Ajmera in Bengaluru; Additional reporting by David Ljunggren in Ottawa and Maiya Keidan in Toronto; Editing by Paul Simao and Peter Cooney)

Continue Reading

News

Canada’s Denis Shapovalov wins Belgrade Open for his second ATP Tour title

Published

 on

BELGRADE, Serbia – Canada’s Denis Shapovalov is back in the winner’s circle.

The 25-year-old Shapovalov beat Serbia’s Hamad Medjedovic 6-4, 6-4 in the Belgrade Open final on Saturday.

It’s Shapovalov’s second ATP Tour title after winning the Stockholm Open in 2019. He is the first Canadian to win an ATP Tour-level title this season.

His last appearance in a tournament final was in Vienna in 2022.

Shapovalov missed the second half of last season due to injury and spent most of this year regaining his best level of play.

He came through qualifying in Belgrade and dropped just one set on his way to winning the trophy.

Shapovalov’s best results this season were at ATP 500 events in Washington and Basel, where he reached the quarterfinals.

Medjedovic was playing in his first-ever ATP Tour final.

The 21-year-old, who won the Next Gen ATP Finals presented by PIF title last year, ends 2024 holding a 9-8 tour-level record on the season.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



Source link

Continue Reading

News

Talks to resume in B.C. port dispute in bid to end multi-day lockout

Published

 on

VANCOUVER – Contract negotiations resume today in Vancouver in a labour dispute that has paralyzed container cargo shipping at British Columbia’s ports since Monday.

The BC Maritime Employers Association and International Longshore and Warehouse Union Local 514 are scheduled to meet for the next three days in mediated talks to try to break a deadlock in negotiations.

The union, which represents more than 700 longshore supervisors at ports, including Vancouver, Prince Rupert and Nanaimo, has been without a contract since March last year.

The latest talks come after employers locked out workers in response to what it said was “strike activity” by union members.

The start of the lockout was then followed by several days of no engagement between the two parties, prompting federal Labour Minister Steven MacKinnon to speak with leaders on both sides, asking them to restart talks.

MacKinnon had said that the talks were “progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved” — a sentiment echoed by several business groups across Canada.

In a joint letter, more than 100 organizations, including the Canadian Chamber of Commerce, Business Council of Canada and associations representing industries from automotive and fertilizer to retail and mining, urged the government to do whatever it takes to end the work stoppage.

“While we acknowledge efforts to continue with mediation, parties have not been able to come to a negotiated agreement,” the letter says. “So, the federal government must take decisive action, using every tool at its disposal to resolve this dispute and limit the damage caused by this disruption.

“We simply cannot afford to once again put Canadian businesses at risk, which in turn puts Canadian livelihoods at risk.”

In the meantime, the union says it has filed a complaint to the Canada Industrial Relations Board against the employers, alleging the association threatened to pull existing conditions out of the last contract in direct contact with its members.

“The BCMEA is trying to undermine the union by attempting to turn members against its democratically elected leadership and bargaining committee — despite the fact that the BCMEA knows full well we received a 96 per cent mandate to take job action if needed,” union president Frank Morena said in a statement.

The employers have responded by calling the complaint “another meritless claim,” adding the final offer to the union that includes a 19.2 per cent wage increase over a four-year term remains on the table.

“The final offer has been on the table for over a week and represents a fair and balanced proposal for employees, and if accepted would end this dispute,” the employers’ statement says. “The offer does not require any concessions from the union.”

The union says the offer does not address the key issue of staffing requirement at the terminals as the port introduces more automation to cargo loading and unloading, which could potentially require fewer workers to operate than older systems.

The Port of Vancouver is the largest in Canada and has seen a number of labour disruptions, including two instances involving the rail and grain storage sectors earlier this year.

A 13-day strike by another group of workers at the port last year resulted in the disruption of a significant amount of shipping and trade.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



Source link

Continue Reading

News

The Royal Canadian Legion turns to Amazon for annual poppy campaign boost

Published

 on

The Royal Canadian Legion says a new partnership with e-commerce giant Amazon is helping boost its veterans’ fund, and will hopefully expand its donor base in the digital world.

Since the Oct. 25 launch of its Amazon.ca storefront, the legion says it has received nearly 10,000 orders for poppies.

Online shoppers can order lapel poppies on Amazon in exchange for donations or buy items such as “We Remember” lawn signs, Remembrance Day pins and other accessories, with all proceeds going to the legion’s Poppy Trust Fund for Canadian veterans and their families.

Nujma Bond, the legion’s national spokesperson, said the organization sees this move as keeping up with modern purchasing habits.

“As the world around us evolves we have been looking at different ways to distribute poppies and to make it easier for people to access them,” she said in an interview.

“This is definitely a way to reach a wider number of Canadians of all ages. And certainly younger Canadians are much more active on the web, on social media in general, so we’re also engaging in that way.”

Al Plume, a member of a legion branch in Trenton, Ont., said the online store can also help with outreach to veterans who are far from home.

“For veterans that are overseas and are away, (or) can’t get to a store they can order them online, it’s Amazon.” Plume said.

Plume spent 35 years in the military with the Royal Engineers, and retired eight years ago. He said making sure veterans are looked after is his passion.

“I’ve seen the struggles that our veterans have had with Veterans Affairs … and that’s why I got involved, with making sure that the people get to them and help the veterans with their paperwork.”

But the message about the Amazon storefront didn’t appear to reach all of the legion’s locations, with volunteers at Branch 179 on Vancouver’s Commercial Drive saying they hadn’t heard about the online push.

Holly Paddon, the branch’s poppy campaign co-ordinator and bartender, said the Amazon partnership never came up in meetings with other legion volunteers and officials.

“I work at the legion, I work with the Vancouver poppy office and I go to the meetings for the Vancouver poppy campaign — which includes all the legions in Vancouver — and not once has this been mentioned,” she said.

Paddon said the initiative is a great idea, but she would like to have known more about it.

The legion also sells a larger collection of items at poppystore.ca.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



Source link

Continue Reading

Trending

Exit mobile version