Morning Update: Ottawa to take equity stake in Air Canada as part of multibillion-dollar relief package

Good morning,

The federal government has unveiled a multibillion-dollar relief package for Air Canada in which Ottawa will take an equity stake in the country’s largest airline after months of negotiations over a pandemic rescue plan.

Finance Minister Chrystia Freeland and Transport Minister Omar Alghabra announced the government will allow Air Canada to access up to $5.9-billion through the Large Employer Emergency Financing Facility program. As part of the package, Ottawa is buying $500-million of Air Canada stock at just over $23 each and has the right to buy 14 million more. The federal government’s voting interest in the airline is capped at just below 20 per cent.

“This will give the Canadian government a stake in the company,” Freeland told a virtual news conference in Toronto. “This support comes with strict conditions to protect Canadian travellers, Canadian taxpayers and Air Canada’s workers. Air Canada workers’ jobs, pensions and collective agreements will be protected.”

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Canada surpasses COVID-19 critical-care peak; worst is yet to come

More Canadians are being treated for COVID-19 in intensive-care units than at any time in the pandemic, a situation that underscores the threat of the highly contagious variants.

The rising rate of new coronavirus infections in Canada is putting extraordinary pressure on hospitals, particularly in the Greater Toronto Area, the epicentre of the third wave. There is also a record number of COVID-19 patients in intensive-care units in British Columbia.

Although the total number of people fighting COVID-19 in hospitals across the country has not yet eclipsed the peak of the second wave, the number requiring critical care has.

Read more:

When workers comp claims for COVID-19 fall through the cracks, the costs often land on sick employees and taxpayers.

André Picard: The third wave of COVID-19 has flipped the health care script in Canada

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ALSO ON OUR RADAR

Proposal sets allowance for personal supply of illicit drugs: A person caught with three days worth of illicit drugs will not face criminal sanctions in Vancouver should a proposal by the city to decriminalize simple possession be approved.

Editorial: On decriminalization, cities across the country should follow Vancouver’s lead

Laurentian fires professors, slashes programs: Laurentian University fired dozens of professors and slashed its program offerings in an unprecedented round of cuts on Monday aimed at tackling the university’s insolvency.

Coroner’s inquest details chaos at Quebec retirement home during first wave of pandemic: In the confusion that swept through Manoir Liverpool after the Quebec retirement home was hit by COVID-19 last year, much of the personnel went missing, residents weren’t properly fed and medications no longer were properly dispensed, documents filed at a coroner’s inquest allege.

Move to vaccinate adults in Whistler frustrates other British Columbians: All adults living or working in Whistler are now eligible to receive the COVID-19 vaccine, but some British Columbians are frustrated that members of the resort town have been prioritized over other groups still waiting to be vaccinated.

Another pandemic Ramadan begins for Canadian Muslims: With the second Ramadan of the pandemic beginning today, Canadian Muslims say they’re approaching the holiest time of the year with a mixture of sadness and hope.

MORNING MARKETS

Global stocks were higher on Tuesday as robust China trade data boosted confidence for a rebound in its domestic demand, with market players awaiting U.S. data expected to show a pick-up in inflation. China’s exports in dollar terms rose by over 30% in March from a year earlier, while imports jumped 38%, their fastest pace in four years, suggesting a post-pandemic recovery in its domestic spending. The broad Euro STOXX 600 gained 0.3% to near record highs, with export-heavy German shares up 0.2%. Indexes in Paris and London shares fell 0.1%. Investors were focused on U.S. inflation data for March, due at 8:30 a.m. ET. Markets expect a forecast pick-up in inflation to accelerate recent moves by equity investors to rotate towards cyclical stocks. Wall Street futures gauges were flat.

TODAY’S EDITORIAL CARTOON

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LIVING BETTER

Globe Craft Club: Create paper flowers with Chantal Larocque

New Brunswick artist Chantal Larocque will be our guest at the seventh Globe Craft Club, teaching us to make a multicoloured paper flower bouquet, entitled Fleurs on Canvas. The piece can be mounted on a small canvas, or on a decorated piece of cardboard.

MOMENT IN TIME: APRIL 13, 2000

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Nisga’a Treaty is given royal assent

Twenty-one years ago, history was made when the Nisga’a Final Agreement (also known as the Nisga’a Treaty) was given royal assent by governor-general Adrienne Clarkson after more than 100 years of negotiations. It was the first treaty in British Columbia’s history to reinstate the power of the Indigenous people of Nass Valley to govern themselves. They were given the right to manage lands and resources, as well as access to health care, education and social services. The treaty was controversial. It underwent contentious constitutional debates in the House of Commons, Senate and B.C. Legislature. Critics challenged the legality of the agreement since the treaty takes away sovereign power from Canada and gives it to the Nisga’a people. There were also many lawsuits from neighbouring communities and non-Native landowners fighting for ownership of the land. In 2000, the bill was finally passed by the Senate with a vote of 52-15. Thirteen senators abstained. Joe Gosnell, president of the Nisga’a Tribal Council, along with a dozen Nisga’a representatives, made an appearance in Ottawa to witness the historic moment. They wore their ceremonial black-and-red capes reserved only for special occasions. The bill came into effect on May 11, 2000. Cindy Nguyen

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