Canadian transportation shareholders beware as Air Canada gets its state aid

Westjet will likely despair at the news that Ottawa is to help Air Canada deal with its $4.2bn deficit in its pension plan. The rules imposed on Air Canada in exchange for the relief set limits on executive pay and prevent dividends and stock buy-back activity. Small fry when you consider this deal will allow Air Canada to invest in new aircraft and create a low cost arm. Now how is that remotely fair to WestJet which in the very same market had been able to show quality profits? Air Canada in its defence will argue that they have been