Category: Air Transat

Air Canada enters into Exclusive Agreement with Transat A.T. Inc. to pursue a Combination of the two Companies

Provided by Air Canada/CNW

Combination of two Quebec-based travel leaders to benefit all stakeholders; Control of Transat A.T. Inc. to remain in Quebec

  • Purchase of all outstanding Transat A.T. Inc. shares at $13 per share, subject to confirmatory due diligence, regulatory and shareholder approvals and final documentation.
  • Combination of two respected Quebec-based aviation and travel brands to create Montreal-based global leader in leisure, tourism and travel distribution offering Canadians choices to more destinations and promoting two-way tourism. 
  • Made-in-Quebec solution to maintain high-quality head office jobs and key functions in Montreal as well as provide a platform for future growth and employment.

MONTREAL, May 16, 2019 /CNW Telbec/ – Air Canada announced today that it has entered into an exclusive agreement with Transat A.T. Inc. (Transat) regarding the proposed purchase by Air Canada of all issued and outstanding shares of Transat and its combination with Air Canada. The proposed transaction, valued at approximately $520 million or $13.00per share of Transat (on a fully-diluted basis), will create a Montreal-based global travel services company in leisure, tourism and travel distribution operating across Canada and internationally. Air Canada has all the necessary funding required to complete the transaction which is accordingly not subject to financing conditions.

“A combination with Transat represents a great opportunity for stakeholders of both companies.  This includes the shareholders of both Transat and Air Canada, employees of both companies, who will benefit from increased job security and growth prospects, and Canadian travellers, who will benefit from the merged company’s enhanced ability to participate as a leader in the highly competitive leisure travel market globally. The acquisition presents a unique opportunity to compete with the very best in the world when it comes to leisure travel. It will also allow us to further grow our hub at Montréal-Trudeau Airport, where we have added 35 new routes since 2012 to the benefit of the Montreal and Quebec communities, and from which we carried 10 million customers in 2018 alone,” said Calin Rovinescu, President and Chief Executive of Air Canada.

The transaction remains subject to the finalization of definitive agreements, confirmatory due diligence, regulatory and shareholder approvals and other closing conditions usual in this type of transaction. There is no assurance that the transaction will be completed as described in this news release or at all. No further announcements are expected to be made by Air Canada until the signature of the definitive agreements unless required by law. Air Canada has retained Morgan Stanley as its financial advisor.

Air Canada presence and investment in Montreal and the Province of Quebec.

Air Canada is proud to have been named one of Montreal’s top employers for each of the last six years. Headquartered in Montreal since 1949, Air Canada maintains one of the largest global head offices in Quebec. Air Canada employs 36,000 employees globally, with close to 10,000 of those in the province of Quebec where it has created over 2,600 new jobs over the last five years. Air Canada’s Executive Committee members (President and Chief Executive Officer, Chief Financial Officer, Chief Commercial Officer and Executive Vice-President, Operations) in addition to many other key members of the Executive Management team are all based in the Montreal Headquarters.   

Air Canada serves 11 airports across Quebec. The international reach of Air Canada’s network makes Quebec a gateway to the world and is an important tool for economic development, including tourism.

Montréal-Trudeau Airport is a strategic hub for Air Canada connecting its Quebec and Atlantic Canada domestic network, with its U.S. transborder, Caribbean, European, North African, Asian and South American flights. To the U.S. alone, Air Canada connects Montreal-Trudeau to some 24 cities.

Since 2012, Air Canada has launched 35 new routes from Montréal-Trudeau to global markets including Shanghai, Beijing, Tokyo, Tel Aviv, Lima, Sao Paulo, and Casablanca. This growth has allowed Montreal to rank amongst the top 50 most internationally connected cities in the world and to become one of the largest North American hubs. 

Air Canada served more than 10 million passengers in Montreal in 2018. 

Transat AT Inc. announces execution of exclusivity agreement with Air Canada for the acquisition of Transat AT Inc

Provided by Transat A.T. Inc/CNW

MONTREAL, May 16, 2019 /CNW Telbec/ – Transat AT Inc. (“Transat”) announces that it has agreed to a 30-day period of exclusive negotiations with Air Canada pursuant to a letter of intent contemplating a transaction by which Air Canada would acquire all of the shares of Transat at a price of $13.00 per share. During such exclusivity period, it is contemplated that Air Canada will complete its due diligence review and the parties will finalize the negotiation of a definitive agreement regarding this transaction, the material terms of which are announced today.

“This announcement is good news for Transat”, said Jean-Marc Eustache, President and Chief Executive Officer of Transat. “This is an opportunity to team up with a great company that knows and understands our industry and has had undisputable success in the travel business. This represents the best prospect for not only maintaining, but growing over the long term the business and jobs that Transat has been developing in Quebec and elsewhere for more than 30 years.”

Transat would like to point out that its operations continue in the normal course and that there will be no change for its clients, suppliers and employees. In particular, travellers and clients of Transat can continue to travel and book their vacation packages with Transat like before.

Context of the Announcement

The Board of Directors of Transat has agreed to the exclusivity agreement based on a unanimous recommendation from a special committee of independent directors that was charged with examining any proposals for the acquisition of the shares of Transat, with the assistance of financial and legal advisors, and with considering all strategic options, as was announced on April 30, 2019. After being solicited by several parties and having considered available alternatives, the Board of Directors has determined that it is now in the interests of Transat and its stakeholders to finalize negotiations on an exclusive basis with Air Canada with a view to completing the transaction. In its recommendation, the special committee considered many factors, including the interests of the Corporation and its stakeholders, the economic and regulatory environment in which Transat operates, the proposed price of $13.00 per share, which represents a premium of 148.5% over the 20-day weighted average trading price prior to the announcement of April 30, 2019, a premium of 47.8% over the 20-day weighted average trading price for the period ended May 15, 2019, the terms of Air Canada’s proposal, which it deemed reasonable and acceptable taken as a whole, including the duration of the exclusivity period, the disclosure of the main terms of the letter of intent, the covenants of Air Canada and the contemplated terms of the definitive agreements.

Additional Terms of the Letter of Intent

The letter of intent sets forth certain terms that will be required in the definitive agreement. These terms include a break fee of $15 million payable by Transat in case of termination of the transaction, including upon acceptance of an unsolicited superior proposal, and a reverse break fee of a maximum of $40 million payable by Air Canada in the event that the agreement is terminated because regulatory or governmental approvals are not obtained. In addition, the non-solicitation provision will be subject to the usual withdrawal right based on fiduciary duties if an unsolicited proposal is made at a firm price per share that is at least $1.00 higher than the price offered by Air Canada, in the event such proposal is not matched by Air Canada. Moreover, the execution of a definitive agreement by Air Canada will be subject to the execution of support and voting agreements by certain large shareholders of Transat.

Finally, Transat has agreed to limit its undertakings and expenses relating to the implementation of its hotel strategy during the exclusivity period.

Any agreement will also contain numerous conditions customary for this type of transaction, including applicable regulatory approvals and the approval of the shareholders of Transat.

There is no assurance that a definitive agreement will be reached in relation to any transaction following the exclusivity period and the ongoing discussions. No assurance may be given that a transaction will occur in relation to the proposed transaction or otherwise, or regarding the definitive terms of such transaction, if any.

Quebecor CEO mulls Transat acquisition

News provided by Canadian Press

Quebecor CEO mulls Transat acquisition
Pierre Karl Peladeau

Friday, May 10, 2019 | By: The Canadian Press

MONTREAL — The head of communications company Quebecor Inc. says he is exploring a possible acquisition of Montreal-based tour operator Transat A.T., but another prospective buyer is already a step ahead.

Chief executive Pierre Karl Peladeau said Thursday he has commissioned a financial analysis by an investment firm.

“I believe it’s a very good brand. I think Quebecers like Transat,” he said Thursday after Quebecor’s annual shareholder meeting.

“I will continue to fight for Quebec companies to stay here. I think that that could be an interesting…opportunity.”

Peladeau, the controlling shareholder of Quebecor and son of its deceased founder, said he personally ordered the analysis – not his company – but “it’s premature to close any sorts of doors.”

Peladeau is not the only interested party. Montreal developer Vincent Chiara, who owns Groupe Mach, which bought the former CBC tower in Montreal in 2017, told The Canadian Press he has already submitted an offer following several months of talks.

“We had the idea of building a portfolio in the hospitality industry and they had a platform and projects in their plans to build exactly that,” said Chiara, referring to Transat’s $750-million plan to develop a hotel chain in Mexico’s Riviera Maya and the Caribbean.

He said Transat’s fleet of about 40 planes is particularly appealing to Groupe Mach, which until now has focused on Quebec real estate.

“They have the means to move the passengers who go to the destination…They have an important capacity to fill rooms and with this capacity, we eliminate a lot of risks for hotel development.

“Of course, we want to privatize…Our proposal is to buy out all the shareholders,” he added.

Quebec Economy Minister Pierre Fitzgibbon said that more than two potential buyers have their eyes on Transat.

The business is geared toward “knowledgeable adults,” he said in a scrum in Quebec City, noting the fierce competition of the airline and holiday tour industries.

“Historically, a lot of people have had failures…I’m not expecting to have 25 buyers.”

Transat confirmed last week it had spoken with several parties about a possible sale of the company.

Last year the travel company bought a pair of adjacent properties in the village of Puerto Morelos – less than 40 kilometres from Cancun – with the goal of building a beach resort.

Quebecor more than doubled its dividend as it reported its first-quarter profit rose compared with a year ago.

The media and telecommunications company said Thursday it will now pay a quarterly dividend of 11.25 cents per share, up from 5.5 cents.

The increased payment to shareholders came as Quebecor says it earned $189.0 million or 74 cents per share in the first quarter of 2019, up from $57.1 million or 24 cents per share a year earlier.

Revenue totalled nearly $1.03 billion for the quarter ended March 31, compared with $1.00 billion in the first quarter of 2018.

On an adjusted basis, Montreal-based company said it earned 44 cents per share from continuing activities compared with 38 cents per share a year ago.

A first in Quebec: 1,200 participants expected to run YQB’s runway

Provided by Aéroport de Québec/CNW

QUÉBEC CITY, May 10, 2019 /CNW Telbec/ – On Saturday, August 24, 2019, Québec City Jean Lesage International Airport (YQB) will be holding the first YQB 5K, where some 1,200 participants will have the chance to run the airport’s main runway. The YQB 5K is a unique opportunity for people in the Québec City area to see the airport from a different angle—one that’s normally not available to the public. This type of race has already proven successful at other Canadian airports, but this will be a first in Quebec. Avjet and Air Canada have partnered with the airport to sponsor the event.

“I’m thrilled with the idea of welcoming more than 1,000 people from the greater Québec City area to our airport. I can’t wait to bring them to the heart of the action, where planes take off and land every day. YQB’s employees and partners are working hard to make this an exciting experience for the runners and everyone who comes to cheer them on. The entire airport community has stepped up to help with this event, which will support two leading local organizations,” stated Stéphane Poirier, President and CEO of YQB.

This promises to be a festive and family-friendly event with a quick course. Participants can take advantage of their trip to the airport to get a behind-the-scenes look at airport operations and see some interesting equipment, including aircraft.

The money raised for this event will go to the Fondation CERVO, which supports mental health research, and Centraide Québec et Chaudière-Appalaches, which supports a large network of community organizations.

Registration opens on May 10, 2019, at The first 200 participants will receive an early-bird rate.

Date: Saturday, August 24, 2019
Time: 7AM to 12 PM
Location: Québec City Jean Lesage International Airport
5K starting price: $30 early-bird rate (first 200 participants) and $35 normal rate until June 15
1.5K starting price: $10 per child

Thank you to our partners

This unique event is made possible by the help of numerous partners: Avjet, Air Canada, Air Transat, Sunwing, PAL Airlines, Le Soleil and Rouge FM.

Air Transat introduces non-stop flights between Montreal and New Orleans (Louisiana)

Provided by Transat A.T. Inc/CNW

MONTREAL, May 9, 2019 /CNW Telbec/ – Air Transat, named the 2018 World’s Best Leisure Airline, is pleased to announce that it will add New Orleans, Louisiana, to its portfolio of fall and winter destinations. Beginning in November 2019, the airline will offer two direct flights a week from Montreal, giving travellers a chance to experience the festive atmosphere of jazz clubs or a contemplative stroll along the Bayou.

“With the steady demand for New Orleans, Air Transat is pleased to be the only airline to offer non-stop service from Montreal to this unique vacation destination, and to be enhancing its offering for next winter with this distinctive option,” says Annick Guérard, Chief Operating Officer, Transat. “Adding this new route strengthens Air Transat’s status as a Canadian leader in leisure travel while also providing greater flexibility to business travellers visiting Louisiana, who will have the option of extending their stay.”

“We are extremely pleased to welcome this first direct connection to New Orleans from Montréal,” said Philippe Rainville, President and CEO of Aéroports de Montréal. “Thanks to Air Transat, travellers will be able to discover a vibrant and culturally rich destination. Known as the birthplace of Jazz, New Orleans is definitely worth the trip! With this new link, YUL is further enhancing its air service and now offers a total of 152 direct destinations.”

“We are thrilled to have Air Transat provide this convenient direct connection between New Orleans and Montreal—two great North American cities with rich cultures and shared historical ties to France,” said Kevin Dolliole, Aviation Director for the Louis Armstrong New Orleans International Airport. “The addition of this new flight brings us to a total of 8 international destinations, which allows us to connect more and more people from around the world to everything New Orleans has to offer.”

“Tourisme Montréal is delighted with this first non-stop route between Louisiana and our metropolis, which will certainly help us reach our objective of welcoming 13.5 million tourists annually by 2022. Each year, more and more travellers visit us from the United States. This important addition opens up a promising market of people, which will certainly be open to discovering Montreal’s authenticity and creativity. I would like to congratulate Air Transat for its dynamism and its contribution, year after year, to the development of tourism in Montreal and Quebec, “said Yves Lalumière, President and CEO of Tourisme Montréal.

Air Transat will fly twice a week to New Orleans, on Thursdays and Sundays, beginning November 3, 2019. Details of Air Transat’s 2019 winter flight program will be announced shortly.  

Transat A.T. Inc. receives final court approval to increase permitted foreign ownership levels to the levels permitted under the Canada Transportation Act

Provided by Transat A.T. Inc

MONTREAL, May 8, 2019 /CNW Telbec/ – Transat A.T. Inc. (“Transat”) a leading integrated international tourism company specializing in holiday travel and active in air transportation, accommodation, travel packaging and distribution, is pleased to announce that the Quebec Superior Court issued earlier today a final order approving the previously announced plan of arrangement under the Canada Business Corporations Act effecting amendments to Transat’s articles of incorporation to align the permitted level of non-Canadian ownership and control of its voting shares within its articles with those prescribed by the new definition of “Canadian” under the Canada Transportation Act (the “CTA”) as amended in June 2018.

Prior to the CTA amendments, no more than 25% of the voting interests of a Canadian air carrier (or a Canadian air carrier’s holding company) could be owned or controlled by non-Canadians. The Government of Canada’s stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers. At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25%.

Transat will file its amended articles and expects them to become effective on or about May 8, 2019. Further details regarding the amendments are set out in the management proxy circular of Transat dated March 19, 2019 and in Transat’s February 15, 2019 news release which are available on SEDAR under Transat’s profile at

Air Transat begins the renewal of its fleet

Provided by Transat A.T. Inc.

Montreal, May 3, 2019 – Today, Air Transat, named the 2018 World’s Best Leisure Airline, is taking delivery of the first of 15 Airbus A321neoLRs that will be added to its fleet by 2022.

“The arrival of this new generation of aircraft is an important moment for our company and our passengers in many respects,” says Annick Guérard, Chief Operating Officer at Transat. “The Airbus A321neoLR represents what Air Transat stands for today and what we strive for in the coming years. It reinforces our position as a leader in sustainable tourism, while also offering our passengers a superior on-board experience. In addition, the aircraft’s long range will optimize our operations in our core markets, namely in our destinations in Europe, the Caribbean, and Central and South America.”

Greenest in its class

The Airbus A321neoLR is in perfect sync with Air Transat’s continued efforts in sustainable tourism. It is powered by Pratt & Whitney engines with the lowest fuel consumption and greenhouse gas emissions (CO2 and NOX) in their class. Compared to previous generation Airbus aircraft, the Airbus A321neoLR consumes over 15% less fuel, generates 50% less noise in the cabin and communities, produces about 5,000 fewer tonnes of CO2 a year and lowers NOX emissions—which contribute to smog and acid rain— by 50%.

Renewed on-board experience

Passengers will step into an entirely redesigned cabin, where comfort is crucial. “A key element behind all of our decisions is that we want travellers to feel like they’re on vacation from the moment they set foot on board,” explains Guérard.

Air Transat and Airbus went over every detail of the cabin interior to ensure the best inflight experience possible. “We are proud to deliver the A321LR to Air Transat and to be associated with such a fine, innovative airline,” says Christian Scherer, Airbus Chief Commercial Officer.

Club Class, with its exclusive cabin and personalized service, was given a new look. Its 12 deep-blue natural leather seats, with their wider individual touch screens, are even more ergonomic and have a leg rest for maximum comfort.

In Economy Class, the 187 light-blue natural leather seats are wider than those of previous generations of Airbus, providing passengers with more personal space. They’re equipped with a state-of-the-art entertainment system, with larger individual touch screens and USB ports to charge electronic devices.

Air Transat’s second Airbus A321neoLR is set to land in June, with four more arriving in fall 2019. New planes will be gradually added, leading to an all-Airbus fleet by 2022. Air Transat has signed a deal with AerCap for the long-term lease of 15 Airbus A321neoLRs.

Travel company Transat AT in talks regarding possible sale of company

News provided by CityNews/The Canadian Press


An Air Transat sign is seen in Montreal on May 31, 2016. THE CANADIAN PRESS/Paul Chiasson

Transat AT Inc. says it is in preliminary talks regarding the possible sale of the company.

The announcement came as the company prepared to hold its annual meeting in Montreal.

The travel company says it is in talks with more than one party regarding a potential transaction following expressions of interest it received.

Transat says it has formed a special committee of independent directors to evaluate the proposals with the assistance of financial and legal advisers.

The company noted the talks are at a preliminary stage and that there can be no assurance that any transaction will take place.

Transat offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands.

Air Transat & Westjet Route Updates

News provided by

Air Transat W19 A321neo LR Trans-Atlantic network as of 28APR19

By Jim Liu | Posted 29 April 2019

Air Transat in last week’s schedule update filed planned Airbus A321neo LR European service for winter 2019/20 season, from late-October 2019. Planned A321neo LR Trans-Atlantic routes and frequency as of 28 APR 19 as follows.

Toronto – Glasgow eff 30OCT19 2 weekly
Toronto – London Gatwick eff 22OCT19 1 daily
Toronto – Manchester eff 04NOV19 2 weekly
Toronto – Porto eff 03NOV19 1 weekly

Additional routes to be filed in the next few weeks. With the exception of Glasgow, winter operation for routes listed above is scheduled until 30 APR 20.

WestJet discontinues Halifax – Boston service in early-June 2019

By Jim Liu |Posted 29 April 2019

WestJet from early-June 2019 is discontinuing Halifax – Boston service, reflected in recent schedule update. This daily service operated by WestJet Encore Dash8-Q400 aircraft is now scheduled until 02 JUN 19.

WS3712 YHZ 1240 – 1332 BOS DH4 D
WS3713 BOS 1850 – 2134 YHZ DH4 D

No other information provided from source. Canadian Aviation News

Transat’s Sustainability Commitment Lasts Far Beyond Earth Day

News provided by Travel Plus Canada

JIM BYERS | APRIL 22, 2019

Avion d'Air Transat
An Air Transat aircraft.

Earth Day has come and gone. But Transat’s commitment to be a leader in sustainable tourism continues day after day and year after year.

“Our goal is to be the North American leader in the tourism industry when it comes to sustainable development,” the airline’s website states. “In 2015, we began the process of obtaining Travelife certification, and in 2018 we became the first major international tour operator to be Travelife certified for all its activities.”

To obtain that status, Transat had to report on its accomplishments with regard to more than 200 indicators, an exercise that enabled it to develop a new, seven-part action plan whose implementation should enable the company to maintain our certification until 2020.

“Twelve years ago, we began a structured approach aimed at becoming a model of sustainable tourism,” Annick Guérard, Chief Operating Officer, Transat, said after the Travelife certification was announced last year. “In the process, we strengthened our environmental management and our social engagement, including toward children, trained our teams on the importance of sustainable development, retooled our operations to better address customers’ concerns, and urged our partners to implement sustainability practices. Today, we are very proud to receive the Travelife Certified attestation, recognizing best practices in responsible tourism across all of our tour operator and travel agency activities, which were painstakingly reviewed to secure certification.

“We will now work steadfastly to pursue the continuous-improvement processes required to maintain this certification and become a company that shows ever-increasing respect for the principles of sustainable development. Like our customers and partners, we care about these issues that are so crucial to the future of our industry and the planet,” Guérard added.

To obtain that status, Transat had to report on its accomplishments with regard to more than 200 indicators, an exercise that enabled it to develop a new, seven-part action plan whose implementation should enable the company to maintain our certification until 2020.

“Twelve years ago, we began a structured approach aimed at becoming a model of sustainable tourism,” Annick Guérard, Chief Operating Officer, Transat, said after the Travelife certification was announced last year. “In the process, we strengthened our environmental management and our social engagement, including toward children, trained our teams on the importance of sustainable development, retooled our operations to better address customers’ concerns, and urged our partners to implement sustainability practices. Today, we are very proud to receive the Travelife Certified attestation, recognizing best practices in responsible tourism across all of our tour operator and travel agency activities, which were painstakingly reviewed to secure certification.

“We will now work steadfastly to pursue the continuous-improvement processes required to maintain this certification and become a company that shows ever-increasing respect for the principles of sustainable development. Like our customers and partners, we care about these issues that are so crucial to the future of our industry and the planet,” Guérard added.

Annick Guérard, chef de l'exploitation de Transat.
Annick Guerard, Chief Operating Officer, Transat.

The company has four pillars of action in its corporate responsibility program: reducing its environmental footprint, working with communities, improving the workplace and improving its operations.

Although air transportation accounts for just two per cent of worldwide greenhouse gas emissions, Air Transat believes that everyone must do their part to combat climate change and support airline industry standards and goals established by international authorities. To that end, the company 15 years ago installed a fuel management program “which has since become one of the most innovative and rigorous in the industry.”

Efforts undertaken by Transat include:

  • Installation of sophisticated flight-planning software that optimizes fuel consumption for a flight based on factors such as weather, traffic, winds, etc.
  • Using software tools that enable detailed tracking and analysis of fuel consumption.
  • Optimizing flight procedures for their pilots
  • Using cost indexing to determine the most economical speed for aircraft on specific routes., and
  • – Giving pilots comprehensive fuel-efficiency training.

The company also works hard on the ground.

In 2011, for example, the Air Transat head office building in Montreal became the first building in Canada to earn LEED-EB Platinum certification.

In 2015, Air Transat carried out energy optimization work at its hangar in Montreal. This included installation of a solar wall that is generating GHG emissions savings of 260 tonnes per year.

Air Transat replaced more than 5,200 traditional light fixtures with LED lighting in Montreal and Toronto, realizing annual electricity savings equivalent to the annual usage of 30 single-family homes.

They’ve also worked with employees on awareness programs regarding saving energy, recycling, proper disposal of hazardous waste and other issues. Building managers have been encouraged to implement new initiatives to reduce water and energy use.

The company also maintains and promotes sustainable transportation programs available to its workers, including such things as OPUS fare cards and Green Commute.

At their destinations, Transat set up a recycling program in the offices of its incoming tour operator in Mexico and the Dominican Republic (subject to locally available services)

Transat works closely with its destination countries on various charitable initiatives, including a partnership with SOS Children’s Villages and contribution to implementation projects in their destination countries. The company also supports four international development missions each year, and works to get 300 participants a year volunteering day activities in their various communities.

Transat also conducts an in-house fundraising campaign; executing the Big Hearts Challenge campaign benefitting Centraide/United Way (Canada) and SOS Children’s Villages (international).