Air Canada Prepays EDC Financed Loans for 19 Airbus A220-300s
Air Canada has prepaid loans of around $650 million from the Export Development Corporation (EDC). The loans were originally used to help fund the carrier’s acquisition of 19 Airbus A220-300 aircraft.
On Wednesday (June 21, 2023), Air Canada announced that they have prepaid approximately $650 million in loans from the Export Development Corporation (EDC) used to fund the acquisition of 19 Airbus A220-300s. The payment, which was also subject to accrued interest, was made on June 21, 2023. The prepayment of loans for the A220-300s included a full prepayment of Air Canada’s 2021 credit facility with EDC for the acquisition of 15 A220-300s, and a partial prepayment of the airline’s 2020 credit facility with the EDC for the Acquisition of 18 A220-300s.
In Wednesday’s announcement, Air Canada’s EVP and Chief Financial Officer, Amos Kazzaz, said,
“One of Air Canada's major financial objectives is to deleverage its balance sheet following the COVID-19 pandemic and prepaying these loans we received for our A220 aircraft is a significant step toward this goal. We appreciate EDC's assistance in purchasing these Canadian-built aircraft, which not only advanced our fleet modernization program to improve our fuel efficiency and competitiveness, but also helped to ensure that the investments Air Canada is making directly support jobs in Canada's aerospace industry and contribute to the country's economy.”
Air Canada is Canada’s largest domestic and international airline. The Canadian flag carrier is a founding member of the Star Alliance and the only international network carrier in North America to receive a Four-Star ranking from Skytrax. Air Canada provides scheduled passenger service to 180 airports in Canada, the United States, and internationally on six continents. Through the carrier’s Aeroplan loyalty program, customers can earn and redeem points on the world’s largest airline partner network of 45 airlines. Air Canada Cargo offers air freight lift and connectivity to hundreds of destinations across six continents with a dedicated fleet of 767-300 Freighters and passenger aircraft belly hold capacity. Additionally, the airline has committed to a net zero emissions goal from all global operations by 2050.
Source: Air Canada/CNW