Provided by Fonds de solidarité FTQ/CNW
Air Canada’s positive intentions must translate into
concrete and lasting actions
MONTRÉAL, Aug. 23, 2019 /CNW Telbec/ – During the special meeting of shareholders of Transat A.T. (“Transat”) (TSX: TRZ) on August 23, 2019, the Fonds de solidarité FTQ (the “Fonds”) voted in favour of the plan of arrangement announced on June 27, 2019 and amended on August 11, 2019.
A partner of Transat since 1990, the Fonds has always supported the company in its growth. This is the second longest partnership in the Fonds’ history. Through thick and thin, Fonds shareholders’ savings supported Transat, particularly in the months following 9/11 and during the 2008-2009 financial crisis. Over the years, the executives and employees of this Québec flagship company have built a corporate culture that resonates with Québec consumers and has been recognized by its industry.
To preserve Transat’s socioeconomic spinoffs in Québec, the Fonds expressed its concerns to Air Canada about certain aspects of the proposed deal. In their discussions, the Fonds raised the issues of jobs and Transat’s headquarters in Québec, as well as maintaining and improving French-language services. Regional air service was also discussed. Air Canada’s positive intentions, made public during the arrangement process, are a step in the right direction. However, they must translate into concrete and lasting actions.
While imperfect, this transaction could allow Transat to be included in a larger group, thus allowing it to better deal with growing international competition. It is now up to Air Canada to seize the opportunity to increase jobs and economic spinoffs in Québec.
As of August 23, 2019, the Fonds beneficially owned 4,360,426 common shares of Transat, or 11.6% of the common shares outstanding.