Author: Canadian Aviation News

Air Canada Introduces Maple Leaf Lounge Express: Another Convenient Way to Work or Relax before Flying to the U.S. from Toronto Pearson

Provided by Air Canada/CNW

Second Transborder Lounge at Pearson is just steps from U.S. departure gates

MONTREAL, June 14, 2019 /CNW Telbec/ – Air Canada today unveiled another convenient way for premium customers to work or relax prior to their flight with the Maple Leaf Lounge Express, located in the Toronto Pearson International Airport Terminal 1-transborder departure area. The lounge joins the existing Maple Leaf Lounge as the second premium lounge product available to customers departing to the US from Toronto-Pearson. Business Class customers or those with select Altitude Status, as well as Star Alliance Gold members departing on an Air Canada, or United Airlines flight will be eligible to access the Maple Leaf Lounge Express.

Air Canada Introduces Maple Leaf Lounge Express: Another Convenient Way to Work or Relax before Flying to the U.S. from Toronto Pearson (CNW Group/Air Canada)
Air Canada Introduces Maple Leaf Lounge Express: Another Convenient Way to Work or Relax before Flying to the U.S. from Toronto Pearson (CNW Group/Air Canada)

“We are excited to welcome Air Canada and Star Alliance customers travelling to the United States in our new Maple Leaf Lounge Express. This unique space has been created to enhance the overall travel experience of our premium customers and represents a commitment to our transborder product,” said Andrew Yiu, Vice President, Product at Air Canada. “This all-new lounge is just steps from the Air Canada commuter gates, making it easy to enjoy comfort on the go before flying to the U.S. Customers will be warmly received by a premium agent, and enjoy a calm environment in which to work or relax before their Air Canada flight.”

The Express lounge, just steps away from departure gates F84-F99, has seating for 50 customers. The new space features a self-serve bar, offering a wide selection of beverages, including Canadian wines and Lavazza specialty coffee and a selection of light snacks. Business travellers planning to work on site may also take advantage of complimentary Wi-Fi.

Air Canada Introduces Maple Leaf Lounge Express: Another Convenient Way to Work or Relax before Flying to the U.S. from Toronto Pearson (CNW Group/Air Canada)
Air Canada Introduces Maple Leaf Lounge Express: Another Convenient Way to Work or Relax before Flying to the U.S. from Toronto Pearson (CNW Group/Air Canada)

A new commuter facility was recently opened at Toronto Pearson Terminal 1 to provide additional access and to better service commuter narrow body aircraft flying to the United States. This new commuter facility was developed by the Greater Toronto Airports Authority and improves airport efficiencies within the new Terminal 1 building.  The new Maple Leaf Lounge Express further enhances the customer experience in this gate area.

As a leading global carrier, Air Canada offers eligible customers access to 23 Maple Leaf Lounges worldwide including 17 at Canadian airports, plus the Signature Suite at Toronto Pearson global hub featuring 5-star dining. Customers travelling abroad may also enjoy lounges at New York-LaGuardia, New York-Newark, Los Angeles, London Heathrow, Frankfurt and Paris. More information about Air Canada’s award-winning Maple Leaf Lounges is here.

WestJet unveils refreshed on-board experience as part of Dreamliner launches

Provided by WESTJET, an Alberta Partnership/CNW

Enhanced service offerings and products highlight WestJet’s Canadian roots across the airlines’ Business, Premium and Economy cabins

CALGARY, June 13, 2019 /CNW/ – Following the successful launch of WestJet’s Dreamliners from Calgary to London (Gatwick), Paris and Dublin, guests travelling across WestJet’s global network can now experience the airline’s elevated amenities and on-board experience. 

Business Cabin Amenity Kits featuring Matt & Nat (CNW Group/WESTJET, an Alberta Partnership)
Business Cabin Amenity Kits featuring Matt & Nat (CNW Group/WESTJET, an Alberta Partnership)

Tailored to showcase WestJet’s authentic Canadian story, enhanced service offerings and products are featured across WestJet’s Boeing 787 Dreamliners, 767 and 737 transatlantic service. Guests can expect to see updates continue to roll across the WestJet fleet throughout 2019 and 2020.

Business Cabin Amenity Kits featuring Matt & Nat and Province Apothecary (CNW Group/WESTJET, an Alberta Partnership)
Business Cabin Amenity Kits featuring Matt & Nat and Province Apothecary (CNW Group/WESTJET, an Alberta Partnership)
Canmore’s Rocky Mountain Soap Company Premium Cabin amenities (CNW Group/WESTJET, an Alberta Partnership)
Canmore’s Rocky Mountain Soap Company Premium Cabin amenities (CNW Group/WESTJET, an Alberta Partnership)

“Our guests are going to love our uniquely Canadian products and we are proud to showcase our like-minded partners who share our passion for thoughtful, quality products created in Canada,” said Louis Saint-Cyr, WestJet’s Vice-President, Guest Experience. “WestJet continues our global transformation and these elevated products and services complement the award-winning onboard experience we are known for.”

The Boarding Sessions with Sean Jones (CNW Group/WESTJET, an Alberta Partnership)
The Boarding Sessions with Sean Jones (CNW Group/WESTJET, an Alberta Partnership)

The Boarding Sessions with Sean Jones
For the first time in Canadian music history, guests will hear a soundtrack of soulful music onboard an aircraft from Canadian Juno award-winning recording artist Sean Jones. During boarding guests are treated to original music and classic covers of iconic Canadian artists – like The Band, Sarah McLachlan and The Guess Who – that Jones drew inspiration from for his album. The album is available for download and the story behind The Boarding Sessions is available to watch onboard WestJet’s Dreamliners.

Business Cabin Amenity Kits featuring Matt & Nat and Province Apothecary
Business cabin guests departing on European-bound transatlantic flights will receive tan-coloured amenity kits, designed by Montreal’s Matt & Nat, while guests departing to Canada receive navy-coloured kits. These beautiful kits feature organic skincare products from Toronto’s Province Apothecary that use only the highest quality ingredients sourced from provinces across Canada.

Canmore’s Rocky Mountain Soap Company Premium Cabin amenities
Guests flying on select flights in WestJet’s Premium cabin receive Rocky Mountain Soap Company kits that feature handmade products with simple, natural ingredients for healthy and beautiful skin. Rocky Mountain Soap Company lavatory products including foaming hand wash, hand cream and refreshing wellness sprays are also available throughout most of the airline’s Premium and Economy cabins.  

To see detailed inspiration behind the products, click here.

Additional Quotes: 
“I’m so proud of what we’ve accomplished with Boarding Sessions and grateful to WestJet for bringing this music to life,” said Sean Jones. “Working on this project has been one of the highlights of my career and I’m excited to have built a playlist of my music that will be heard by people not just in Canada but across WestJet’s global network.”

“As a fellow Alberta-based company, we’re excited to be part of the new in-flight experience on the Dreamliner and the improved experience on other select WestJet Flights,” said Karina Birch, Rocky Mountain Soap Company, co-owner and CEO. “Influenced by the nature that surrounds us, we’re unwavering in our commitment to using only simple natural ingredients and to working with local partners.  We’re thrilled WestJet travellers can now take nature with them wherever they go.”

“We are so excited to be a part of the WestJet onboard experience by sharing our exclusive vegan and cruelty-free amenity kits with their guests,” said Manny Kohli, President and CEO of Matt & Nat. “Partnering with a fellow Canadian brand is an honour for us and a wonderful opportunity for travellers to discover our recycled vegan line of goods.”

“We are beyond excited to be bringing holistic skincare and wellness to WestJet’s onboard experience,” said Julie Clark, CEO and Founder of Province Apothecary. “As a Canadian brand focused on sustainable and high-quality products, it is an honour to be sharing this partnership with like-minded Canadian brand, Matt & Nat, and to be sharing our values with WestJet guests near and far.”

Airline battle heats up as Montreal real estate investor submits rival bid for Transat

News provided by The Globe and Mail – link to full article

submits rival bid for Transat

Eric Atkins, Transportation Reporter, 13 June 2019

The battle for Transat A.T. Inc. is set to heat up as Montreal real estate investor Group Mach Inc. submits a formal offer for the airline and vacation company that is in friendly takeover talks with Air Canada.

Vincent Chiara, chief executive officer of Mach, said he would file the takeover proposal with Transat by Thursday evening for a deal worth $14 a share – trumping Air Canada’s $13 offer.

Transat CEO Jean-Marc Eustache said on Thursday that the Air Canada talks that began in late May will continue until June 26. On a second-quarter earnings conference call with analysts on Thursday morning, Mr. Eustache said Mach had to yet to make its offer formal, and he did not consider Mach’s June 4 press release of its intentions an actual bid. “Therefore we do not have any comment to make on it. Should any other proposal be communicated to the company before or after the end of the exclusivity period, it will be addressed by our board of directors,” Mr. Eustache said.

Two big investors in Transat have said the all-cash $520-million Air Canada takeover price is too low or poorly timed, raising doubts it will receive the required two-thirds approval from shareholders. FNC Capital of Montreal has also told The Globe and Mail it is interested in submitting an offer for Transat.

Mach said in the June 4 press release that its offer is conditional on $120-million in Quebec government financing, and its minority partner will be TM Grupo Inmobiliario, a Spanish vacation property developer and hotel operator that does business in Mexico and the Mediterranean.

Mr. Chiara said Mach has submitted a business plan to the province of Quebec’s finance wing, Investissement Québec, and expects to know within a week if the government will provide the loan.

“We were under the impression that the press [release] offer was an offer but now that we understand that [Transat] didn’t consider it to be a formal offer, we’ll formalize it and send it to them by 5 o’clock today,” Mr. Chiara said from Montreal on Thursday.

He said he is optimistic his bid is superior to that of Air Canada given the higher price, in addition to the lack of overlapping airline operations that would be expected to draw the scrutiny of the Competition Bureau.

Transat employs 5,000 people and has a fleet of about 40 planes, depending on the season. It sells tour and hotel packages in Europe and the Caribbean. In 2018, it spent $76-million on beachfront land in Puerto Morelos, Mexico, to build a resort, but has agreed to limit spending on that project while in talks with Air Canada.

Transat on Thursday posted a smaller profit in the second quarter as fuel costs rose and the Canadian dollar slipped against the U.S. currency.

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Transat’s net income fell to $2.3-million or 6 cents a share from $7.9-million or 21 cents in the same period a year earlier. Updating the company’s plane fleet also added costs.

Excluding a court settlement and other items, Transat’s adjusted net loss was $6.3-million or 17 cents a share, compared with a loss of $500,000 or 1 cent in the second quarter of 2018. Revenue rose by 3.5 per cent to $897-million.

Expenses rose by 5.4 per cent, driven by a 13.5-per-cent jump in fuel costs and a 9-per-cent rise in salaries and benefits, outpacing the increase in revenue.

Annick Guerard, chief operating officer of WestJet, said that the company is facing “fierce competition” on its transatlantic routes this summer as WestJet and other carriers add new service and slash ticket prices.

“We are seeing pressure … from WestJet in Europe this summer. They have added additional flights from Calgary to Paris and Dublin, and out of Toronto to Gatwick and Barcelona … They are increasing their presence, not only WestJet but others as well,” Ms. Guerard said.

For this summer travel season, Mr. Eustache said bookings are up by almost 2 per cent and 64 per cent of seats are sold. Ticket prices are little changed from a year ago, and Transat said the third-quarter results will be “slightly higher” than those of the same period in 2018.

Air Canada is proud to support Franco festivals across the country

Provided by Air Canada/CNW

Air Canada is proud to support Franco festivals across the country

MONTREAL, June 13, 2019 /CNW Telbec/ – Air Canada is proud to partner with major Francophone festivals across the country, notably the two that kick off today in Ottawa and Vancouver. The Festival franco ontarienin our nation’s capital runs from June 13-15 and on the West Coast, the Festival d’été francophone de Vancouver is from June 13-23.

“As Canada’s largest private-sector customer-facing company offering bilingual services in Canada and around the world, we proudly support events that highlight Canada’s unique culture and our two official languages. Stretching from coast to coast, the Franco festivals showcase French Canadian culture through music, arts and language,” said Arielle Meloul-Wechsler, Senior Vice President, People, Culture and Communications and Champion of Official Languages at Air Canada.

In Ottawa, Air Canada will have a kiosk at Major Hill’s Park on June 15, while in Vancouver a street booth will promote the careers we offer as well as our international francophone destinations. Air Canada is also sponsoring the closing show on June 23 featuring Diane Tell.

Early next month, Air Canada will also be present at the Franco-Fête de Toronto, which runs from July 5-7.

In addition, Air Canada participates in a number of other events to promote its commitment to bilingualism, such as les Rendez-vous de la Francophonie, Canadian Parents for French and Fédération des Communautés Francophones et Acadiennes du Canada (FCFA).

We value our role in promoting bilingualism in Canada both at our head office in Montreal and throughout our global network.

When recruiting new front-line employees, Air Canada always gives priority to bilingual candidates. Since 2017, approximately 50% of Air Canada’s new employees speak both French and English. Each year, the airline invests in language training, offers new employees awareness sessions and showcases its language training programs to familiarize employees with its active offer of bilingual services. More than 2,400 employees attended French classes in 2018.

Air Canada is also recognized as a leader in the promotion of diversity in the workplace, being named one of Canada’s Best Diversity Employers for four years in a row.

Longview Aviation Capital to Showcase Breadth of Aircraft Portfolio at Paris Airshow

Provided by Longview Aviation Capital Corp./CNW

Significant progress announcements expected across range of aircraft programs

VICTORIA, CALGARY and TORONTO, June 13, 2019 /CNW/ – Longview Aviation Capital (“Longview”), manager of a portfolio of long-term investments in the Canadian aerospace industry, will have a robust presence at the 2019 Paris Air Show – the world’s foremost event for the aviation industry – running June 17-20 in Paris, France.

Building on the momentum of the recent launch of De Havilland Aircraft of Canada Limited – the trade name of the subsidiary company that will operate the worldwide Dash 8 aircraft business including the 100, 200 and 300 series and the in-production 400 program – during the show Longview will showcase its range of in-demand passenger and utility aircraft, and discuss developments from across its portfolio.

De Havilland Canada and Viking Air Ltd. will each host media events during the show, as well as issue news announcements. In particular, Longview and Viking expect to make a significant progress announcement regarding the CL-515, a newly developed, technically advanced multi-mission aerial firefighting aircraft.

Longview’s presence at the Air Show will be based at Chalet A238, hosting exhibits from both De Havilland Canada and Viking. In addition, two aircraft will be on static display:

  • All-new Guardian 400 – the special missions variant of the Viking Series 400 Twin Otter. Viking will demonstrate a simulation of the aircraft’s capabilities including the sensor package within the SCAR (Self Contained Aerial Reconnaissance) Pod. 

  • Dash 8-400 in 90-seat configuration – first delivered to launch operator SpiceJet in September 2018, the 90-seater highlights De Havilland Canada’s commitment to evolving the program to meet customer needs.

Chorus Aviation announces a sale-leaseback transaction with IndiGo, for six new ATR72-600 aircraft

Provided by Chorus Aviation Inc/CNW

Third-party leased aircraft fleet commitments reach US $1.1 billion

Delivering regional aviation to the world

HALIFAX, June 13, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today that Chorus Aviation Capital (‘CAC’) has entered into agreements to deliver six new ATR72-600 aircraft to InterGlobe Aviation Limited (‘IndiGo’) of India under a sale and leaseback transaction. Deliveries are anticipated in the second and third quarters of 2019.

“We are delighted to welcome IndiGo, as our 14th lease customer,” said Steve Ridolfi, President, Chorus Aviation Capital. “The Indian aviation market is vibrant and dynamic with regional air transportation expanding rapidly to connect previously unserved communities. IndiGo is perfectly positioned to capitalize on this exciting growth. This is Chorus Aviation Capital’s second leasing transaction this year in India, one of the world’s fastest growing aviation markets.”

“We’re maturing and building scale as a worldwide regional aircraft lessor through the addition of yet another well-established lessee,” commented Joe Randell, President and Chief Executive Officer, Chorus. “This latest transaction expands Chorus Aviation Capital’s leasing portfolio to 561 aircraft worth some US $1.1 billion and with US $830.0 millionin future contracted lease revenue.”

Upon the completion of this transaction, CAC’s announced portfolio commitments include 44 turboprops and 12 regional jets. When combined with the 47 aircraft leased under the Capacity Purchase Agreement with Air Canada, Chorus’ fleet of leased aircraft comprises 103 aircraft valued at approximately US $1.7 billion.

Cargojet Wins Carrier of Choice Award

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, June 13, 2019 /CNW/ – Cargojet once again is excited to announce that it has been awarded the Shipper’s Carrier of Choice Award by the Canadian Shipper magazine, a leading industry publication.  Cargojet continues to surpass shipper expectations as well as the industry benchmark in the total Industry Sector Average and particularly in the key areas of On-time Performance, Leadership in Problem Solving, Ability to Provide Value-Added Services, Customer Service, Quality of Equipment & Operations, Competitive Pricing, and Sustainable Transportation Practices. Cargojet’s total aggregate score was 168.46 which was measured against the overall 2018 benchmark of excellence of 153/54. Cargojet is the only Canadian Air Cargo carrier to receive this honour for the seventieth year.

“Cargojet continues to exceed the expectations of our customers by delivering a premium product into the marketplace. We remain focused on exceeding our customers expectation and provide them value-added services. This award is a testament to the e Cargojet team’s dedication, hard work and loyalty. Our professional team is truly the driving force of Cargojet,” says Dr. Ajay K. Virmani, President & CEO.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft.

Transat A.T. Inc. – Results for second quarter of 2019

Provided by Transat A.T. Inc./CNW

Winter results in line with first quarter; due diligence underway

For the second quarter:

  • Revenues of $897.4 million.
  • Operating loss of $19.8 million.
  • Adjusted operating income1 of $3.0 million
  • Net income attributable to shareholders of $2.3 million.
  • Adjusted net loss3 of $6.3 million.
  • Letter of intent entered into with Air Canada on May 16, 2019 for the acquisition of the Corporation:
    • Exclusivity period up to the end of the 30-day due diligence review scheduled for June 26, 2019;
    • Undertakings and expenses relating to the hotel strategy restricted during this period.
  • The Corporation took delivery of its first A321neoLR aircraft.

For the first six months:

  • Revenues of $1.5 billion.
  • Operating loss of $72.4 million.
  • Adjusted operating loss1 of $34.7 million.
  • Net loss attributable to shareholders of $47.4 million.
  • Adjusted net loss3 of $42.3 million.

MONTRÉAL, June 13, 2019 /CNW Telbec/ – Transat A.T. Inc. (“Transat” or the “Corporation”), one of the largest integrated tourism companies in the world and Canada’s holiday travel leader, announces its results for the second quarter ended April 30, 2019.

“The second quarter is similar to the first in terms of results. We incurred a comparable increase in our costs resulting from fuel prices and exchange rates as well as fleet transition, and we ended the winter with a larger loss than last year. While the due diligence resulting from the letter of intent signed with Air Canada is also underway, we remain focused on achieving the improvements set out in our strategic plan. We remain confident about completing these initiatives if the transaction does not take place,” said Jean-Marc Eustache, President and Chief Executive Officer of Transat.

Second-quarter highlights

The Corporation posted revenues of $897.4 million for the quarter, up $30.3 million or 3.5% compared with 2018. This increase is attributable to higher average selling prices across all markets, combined with a 2.3% rise in the number of travellers in the sun destinations market, the Corporation’s main market for the period, resulting from the decision to increase capacity in that market. The higher revenues were partially offset by a greater proportion of flight-only sales, which generate lower unit margins than packages.

Operations generated adjusted operating income1 of $3.0 million, compared with $12.1 million in 2018, a decrease of $9.1 million. This change resulted primarily from the increase in fuel prices, combined with the weakening of the dollar against the U.S. dollar and the additional costs incurred for the transition and optimization of the Corporation’s fleet, which in total exceeded the increase in the average selling prices of packages. Adjusted operating income1 for 2019 includes expenses of $2.5 million related to the potential acquisition of the Corporation, comprising professional fees and adjustments to certain provisions related to stock-based compensation following the significant rise in the share price.

Net income attributable to shareholders amounted to $2.3 million or $0.06 per share (diluted), compared with $7.9 million or $0.21 per share (diluted) in 2018. For the second quarter of 2019, the net income attributable to shareholders includes the settlement of a litigation in the courts of the state of New York, in the United States; this amount was recorded as Special items in the consolidated statement of income. Excluding non-operating items, Transat reported an adjusted net loss3 of $6.3 million ($0.17 per share) for the second quarter of 2019, compared with $0.5 million ($0.01 per share) in 2018.

Six-month period highlights

The Corporation recognized revenues of $1.5 billion, up $29.4 million or 1.9% from 2018. The higher revenues recorded during the six-month period is mainly attributable to the increase in average selling prices across all markets, combined with a 2.8% rise in the number of travellers in the sun destinations market, the Corporation’s main market for the period, resulting from the decision to increase capacity in that market. The higher revenues were partially offset by a greater proportion of flight-only sales, which generate lower unit margins than packages.

For the winter season, operations generated an adjusted operating loss1 of $34.7 million compared with $16.6 million in 2018, a deterioration of $18.1 million. This change resulted primarily from the increase in fuel prices, combined with the weakening of the dollar against the U.S. dollar and the additional costs incurred for the transition and optimization of the Corporation’s fleet, which in total exceeded the increase in the average selling prices of packages.

Net loss attributable to shareholders amounted to $47.4 million or $1.26 per share (diluted) compared with net income of $4.7 million or $0.13 per share (diluted) for the corresponding six-month period of last year. Net income for 2018 included a $31.3 million gain on the sale of the Corporation’s subsidiary Jonview. Before non-operating items, Transat reported an adjusted net loss3 of $42.3 million ($1.13 per share) for the first six months of 2019, compared with $32.7 million ($0.87 per share) in 2018.

Financial position

As at April 30, 2019, cash and cash equivalents amounted to $796.3 million, compared with $903.3 million on the same date in 2018. This change resulted primarily from the purchase of land in Mexico ($75.7 million), from commissioning costs for aircraft added to the fleet ($19.9 million) and from the change in the calculation of cash and cash equivalents to be held in trust following the adoption of the new revenue recognition standard IFRS 15 ($13.3 million).

The working capital ratio was 1.24, compared with 1.41 as at April 30, 2018.

Deposits from customers for future travel amounted to $629.7 million, compared with $604.9 million as at April 30, 2018.

Off-balance-sheet agreements, excluding contracts with service providers, stood at $2.45 billion as at April 30, 2019, compared with $2.51 billion as at October 31, 2018. The $52.7 million decrease resulted primarily from repayments made during the six-month period, partially offset by the weakening of the dollar against the U.S. dollar,

IFRS update

On November 1, 2018, the Corporation adopted IFRS 9, Financial Instruments, and IFRS 15, Revenue from Contracts with Customers. The 2018 comparative figures have been restated to reflect these changes.

In short, the adoption of these standards resulted in a $2.6 million increase in shareholders’ equity as at October 31, 2017. For the quarter and six-month period ended April 30, 2018, the adoption of these standards resulted in increases in net income attributable to shareholders of $1.3 million and $4.6 million, respectively. The main changes related to the adoption of IFRS 9 and IFRS 15 are described in note 3 to the interim condensed consolidated financial statements for the quarter ended April 30, 2019.

Outlook

Summer 2019 – The transatlantic market outbound from Canada and Europe accounts for a substantial portion of Transat’s business during the summer season. For the period from May to October 2019, the Corporation’s capacity is higher by 1%. To date, 64% of the capacity has been sold, the load factors are higher by 0.7% compared with summer 2018 and selling prices of bookings taken are similar to those recorded at the same date in 2018. The impact of currency variations, combined with lower fuel costs in U.S. dollars, will not result in a significant increase in operating costs if aircraft fuel prices remain stable and the dollar remains at its current level against the U.S. dollar, the euro and the pound.

On the sun destinations market outbound from Canada, for which summer is low season, Transat’s capacity is similar to the one deployed on the same date last year. To date, 60% of the capacity has been sold and load factors are comparable to those of 2018. Unit margins are currently higher compared with those recorded on the same date last year.

If the current trends hold, Transat expects its results for the third quarter to be slightly higher than those of last year. However, the Corporation believes it is still too early on in the season to draw conclusions regarding the fourth quarter given the number of seats and packages sold at this stage of the season.

Discussions relating to the sale of the Corporation and strategic plan

Following the April 30 announcement on discussions with more than one party regarding the potential sale of the Corporation, the Corporation announced on May 16 that a letter of intent was signed with Air Canada for the potential acquisition of the Corporation, with an exclusivity period extending until the end of a 30-day due diligence period.

Since due diligence officially began on May 27, the exclusivity period ends on June 26, 2019.

Investments in the hotel division have been slowed down, in accordance with the commitment made in the letter of intent. Work in this division is currently focused on preparing construction on the land in Puerto Morelos and reviewing future opportunities.

Meanwhile, work on other aspects of the strategic plan continues as previously, moving forward at the expected pace.

The Corporation has taken note of the press release of Group Mach Inc. issued on June 4 concerning its expressed interest to privatize the Corporation. Nevertheless, as of this date, the Corporation has not received any formal proposal in relation to Group Mach Inc.’s June 4 press release.

Additional information

The Corporation adopted IFRS 9, Financial Instruments, and IFRS 15, Revenue from Contracts with Customers, on November 1, 2018, and restated the quarterly financial information shown in the table below for 2018.

The results were affected by non-operating items, as summarized in the following table:

Highlights and impact of non-operating items on results
(in thousands of C$)

Second quarterFirst six months
2019201820192018
Revenues897,413867,1541,544,9791,515,543
Operating results(19,802)(3,180)(72,357)(46,708)
Special items6 7006 700
Depreciation and amortization16,22515,31031,14230,079
Premiums related to derivatives matured during the period(77)(167)
Adjusted operating income (loss)13,04612,130(34,682)(16,629)
Income (loss) before taxes4,64013,304(61,714)458
Special items6,7006,700
Fuel-related derivatives and other derivatives(18,401)(10,935)291(9,072)
Gain on business disposals(368)(31,064)
Premiums related to derivatives matured during the period(77)(167)
Adjusted pre-tax income (loss)2(7,138)2,001(54,890)(39,678)
Net income (loss) attributable to shareholders2,2697,938(47,377)4,743
Special items4,9454,945
Fuel-related derivatives and other derivatives(13,470)(8,026)213(6,659)
Gain on business disposals(368)(30,736)
Premiums related to derivatives matured during the period(56)(122)
Adjusted net income (loss)3(6,312)(456)(42,341)(32,652)
Earnings (loss) per share – diluted0.060.21(1.26)0.13
Special items0.130.13
Fuel-related derivatives and other derivatives(0.36)(0.21)0.01(0.18)
Gain on business disposals(0.82)
Premiums related to derivatives matured during the period(0.01)
Adjusted net income (loss) per share3(0.17)(0.01)(1.13)(0.87)

Hedging – The Corporation records in the statement of income any gains or losses resulting from mark-to-market adjustments of the derivative financial instruments used to manage aircraft fuel-price risk, as well any gains or losses resulting from mark-to-market adjustments of certain hedging instruments used to manage exchange rate exposure. In the second quarter of 2019, this resulted in a $18.4 million non-cash gain ($13.5 million after income taxes), compared with $10.9 million ($8.0 million after income taxes) in 2018. For the six-month period, this resulted in a $0.3 million non-cash loss ($0.2 million after income taxes), compared with a $9.1 million gain ($6.7 million after income taxes) in 2018.

The Corporation uses derivative financial instruments to mitigate exchange rate exposure arising from its expenses and/or revenues in foreign currencies. Accordingly, under applicable accounting standards, any fluctuations resulting from the effective portion of mark-to-market adjustments of these instruments that are designated as hedging instruments are recorded in the consolidated statement of financial position and consolidated statement of comprehensive income rather than in the consolidated statement of income. For the second quarter of 2019, Transat recorded a loss of $0.3 million ($0.3 million after income taxes) on these foreign exchange derivatives, compared with a gain of $19.8 million ($14.6 million after income taxes) in 2018. For the six-month period, Transat recorded a loss of $4.2 million ($3.1 million after income taxes) on these foreign exchange derivatives, compared with a gain of $0.4 million($0.3 million after income taxes) in 2018.

NOTES

The following are non-IFRS financial measures used by management as indicators to evaluate ongoing and recurring operational performance.

  1. Adjusted operating income (loss): Operating income (loss) before depreciation and amortization expense, restructuring charge and other significant unusual items, including premiums for fuel-related derivatives and other derivatives that matured during the period. The Corporation uses this measure to assess the operational performance of its activities before the aforementioned items to ensure better comparability of financial results.
  2. Adjusted pre-tax income (loss): Income (loss) before income tax expense before change in fair value of fuel-related derivatives and other derivatives, gain (loss) on business disposal, restructuring charge, asset impairment and other significant unusual items, and including premiums for fuel-related derivatives and other derivatives matured during the period. The Corporation uses this measure to assess the financial performance of its activities before the aforementioned items to ensure better comparability of financial results.
  3. Adjusted net income (loss): Net income (loss) attributable to shareholders before net income (loss) from discontinued operations, change in fair value of fuel-related derivatives, gain (loss) on business disposal, restructuring charge, asset impairment and other significant unusual items, and including premiums for fuel-related derivatives and other derivatives that matured during the period, net of related taxes. The Corporation uses this measure to assess the financial performance of its activities before the aforementioned items to ensure better comparability of financial results. Adjusted net income (loss) is also used in calculating the variable compensation of employees and senior executives.

Air Transat A321neo LR Winter 2019 Montreal sun destinations as of 10 June 2019

News provided by RoutesOnline.com – link

By Jim Liu – Posted 12 June 2019 (based on information provided as of 10 June 2019)

Air Transat in the last few days adjusted Airbus A321neo LR operation from Montreal, for Sun Destinations during winter 2019/20 season. Updated changes include the following.

Montreal – Cancun 02FEB20 – 29MAR20 1 weekly (2 weekly from 21FEB20; Previous plan: 1 weekly from 05JAN20)
Montreal – Cartagena 15FEB20 – 28MAR20 2 weekly
Montreal – Cayo Largo 16FEB20 – 29MAR20 1 weekly
Montreal – Cozumel 07FEB20 – 03APR20 1 weekly
Montreal – Fort Lauderdale 03FEB20 – 27APR20 1 weekly (Previous plan: eff 06JAN20)
Montreal – Holguin 10APR20 – 24APR20 1 weekly (Previous plan: eff 10JAN20)
Montreal – Montego Bay 06FEB20 – 09APR20 1 weekly (Previous plan: eff 07NOV19)
Montreal – Pointe-a-Pitre 19FEB20 – 25MAR20 1 weekly
Montreal – Punta Cana 01FEB20 – 28MAR20 1 weekly (Previous plan: eff 11JAN20)
Montreal – Roatan 17FEB20 – 30MAR20 2 weekly
Montreal – Santa Clara 21FEB20 – 27MAR20 1 weekly 

FAA has no ‘timetable’ for Boeing 737 Max’s return to the skies

News provided by The Globe and Mail/Reuters – Link

12 June 2019 by David Shepardson and Rachit Vats – REUTERS

The Federal Aviation Administration said on Wednesday it does not have a specific timetable on when Boeing Co.’s troubled 737 Max jet would return to service after two fatal crashes led to the airplane’s worldwide grounding in March.

FAA spokesman Greg Martin said the agency has “no timetable” for allowing the 737 Max to resume flying and will act “only when it is safe to return to service.”

Bloomberg reported earlier that the troubled 737 Max aircraft will be back in the air by December, citing a top FAA safety official.

Boeing did not immediately respond to a request for comment, and has not given a timeline on when the planes would be back in service.

Boeing is not expected to submit its formal software fix to the FAA this week or conduct a certification test flight that is required before it can submit the fix and training upgrade for approval, two people briefed on the matter said.

A battered aviation industry has been speculating on when Boeing will win regulators’ approval to put the plane back in the air along with a batch of software upgrades and training.

American Airlines Group Inc. said on Sunday it was extending cancellations of about 115 daily flights into September due to the grounding of the 737 Max.