Email to the Canadian Government

[Jamie]

UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND
Security Classification: OFFICIAL

To: Invest in Canada CEO, Ian McKay Alex
Cc:
Subject: Air Canada Buyout

Dear Mr McKay,

I hope you are well.

I am emailing in relation to the recent announcement from Sparrow Industries that will see the closure of their defence and investment branches, and the wider impact this is going to have across the globe. The recent publications suggest a significant excess for the Canadian Government in lieu for the loan taken out with them.

Building relations with Canada is something we'd very much like to explore further, especially considering the vast history we share. We would also like to support you economically, at the moment the UK sits as the highest growing economy and feel like we would be able to offer you an agreement that would have long-lasting benefits for you economically and remove the imminent mass of debt pushed onto you by the authoritarian CEO of Sparrow.

British Airways are seeking to expand its operations and would like to raise the possibility of adding Air Canada to the British Airways family.
Based on the operations carried out by Air Canada, we've estimated the net worth to amount to $ 9,520,520,625.00.

We understand this would also incorporate an ownership transfer fee of the same amount. Therefore, we would like to make the offer of twenty-billion dollars to purchase Air Canada. A breakdown of costs can be found below:

Transfer of Ownership Fee 9,520,520,625.00
Gross Amount 10,479,479,375

This would cover the vast majority of the loan owed to Sparrow.

We would be happy to discuss this further, I also have re-assurances from British Airways that there are no plans for a huge overhaul of the current system employed by Air Canada; just part of British Airways as its own operation.

Please let me know if you have any questions or if this is something you would be willing to look into further.

Kindest Regards,
Charlotte Baker

Charlotte Baker | Business Secretary |

 

[Alex]

Message to the United Kingdom of Great Britain and Northern Ireland
Private & Encrypted

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To: Charlotte Baker, Secretary of Business
From: Ian McKay, CEO of Invest in Canada Agency

Honourable Ms. Baker,

We have carefully reviewed your proposal and appreciate your outreach.

However, after a thorough assessment of the financial standing and assets of Air Canada, we find the offered purchase amount of 20 billion dollars and the accessed net worth of 9.5 billion dollars to be significantly below our estimated net worth of the airline. The assets and operations of Air Canada are estimated by the Canadian government to be worth somewhere around 14.610 billion dollars and that does not include its subsidiaries of Air Canada Cargo (ACC), Air Canada Express (ACE), Air Canada Jetz (ACJ), and Air Canada Rouge (ACR). While we value the desire to assist in resolving the financial implications arising from Sparrow Industries sudden liquidation, the proposed amount does not align with the true value of Air Canada.

If the British government is open to meet our estimate for the proposed purchase amount and engaging in more detailed discussions regarding the terms of the acquisition—including three of our own required terms before allowing the purchase—we would be pleased to continue this dialogue.

Please let us know if you are open to adjusting the offer, and we can proceed with more in-depth discussions.

Kindest Regards,
Ian McKay
Chief Executive Officer, ICA
Kingdom of Canada

Jamie