I’m sure this will be popular, but what a mess.

In normal times if Govt is going to subsidize business, I understand such restrictions (though they’re still probably counterproductive). But airlines are losing $ because of Covid/Govt-imposed restrictions. https://calgaryherald.com/news/politics/federal-government-looks-to-impose-limits-on-dividends-executive-pay-from-airlines-who-receive-bailout/wcm/9546461f-b9cc-42a3-a36b-cbf7ce573378/amp/?__twitter_impression=true

There is a whole conversation to be had about Canadian airline economics and competition and service standards (and, yes, CEO pay and dividend policy generally). But in this case it is Govt imposing conditions that make it harder for airlines to run efficiently/profitably:

See: “He also said no aid would come if airlines wouldn’t promise to maintain important regional connections throughout the country, as well as continuing to purchase key goods and services from the Canadian aerospace industry.”

So Govt is telling Canadian airlines they have to run money-losing routes and buy more expensive domestic goods to prop up Bombardier et al.—in the middle of a pandemic that is already killing their business—and *also* adding extra strings to the grudging provision of relief?

I don’t like bailouts, but the Govt is already providing massive grants and loans to businesses large and small (well, medium and small—the article notes the Govt’s attempts to help large businesses have been a major bust because they were either designed badly—or not to help).

So, if you are going to provide support to a business and you want it to succeed and eventually pay you (taxpayers) back—remember these are loans at quite high interest rates, if LEEFF is the model as claimed—then you should restrict its normal operations as little as possible.

Usually the mob knee-caps someone when they fail to pay back a loan, not at the time they lend them the money. That the Govt isn’t as savvy as the mob is no surprise, but this smacks of cheap populism and regional aid, not the taxpayer protection measure they will sell it as.

Again, this isn’t about how much CEOs should make or when companies should issue dividends. Those are (good) issues for another (normal) day. And I get Govt concern about appearances, but that usually shapes bad policy. The issue here is whether Govt help will *in fact* help.

For that ask (1) Who do you trust knows how to run an airline, the CEOs of Air Canada/WestJet or the Liberal caucus? (2) If we want airlines to exist after the pandemic, will political micro-managing make that more or less likely? (3) Why will this succeed where LEEFF has failed?