Description: Well, after months of public debate, Air Canada is finally prepared to offer rebates to customers whose travel plans were shelved by the Covid-19 shutdown. This policy change appears to come in the midst of negotiations for some sort of federal bailout for Air Canada in these difficult economic times. Unfortunately, there has not been much discussion lately of Air Canada’s over $800 million in share buybacks since 2015. Wouldn’t some of that cash been handy to for Air Canada to have had in its coffers during this ‘rainy day?’ https://www.theglobeandmail.com/business/commentary/article-an-air-canada-bailout-should-stick-in-the-craw-of-canadian-taxpayers/
Date: March 3, 2021
Source: cbc.ca & the globeandmail.com
1) Are you or any of your classmates waiting for a refund from Air Canada because of cancelled travel?
2) Are you in favour of a bailout for Air Canada, given the previous buyouts of shares?
3) Starting on page 11-9 of Wiley’s Financial Accounting: Tools for Business Decision-Making, is a section on share buybacks or repurchases. What is the journal entry for a repurchase if the shares are bought back at greater than their average cost?