Tag: Air Transat

Air Canada to operate three services from Montreal with leased A330-200

News provided by The Blue Swan Daily – line to full story

November 8, 2019

Air Canada plans to operate the following frequencies with A330-200 equipment leased from Air Transat during the winter 2019 and 2020 season (Routes Online, 07-Nov-2019):

  • Montreal-Cancun: Daily from 01-Dec-2019;
  • Montreal-Puerto Vallarta: Three times weekly from 15-Dec-2019;
  • Montreal-San Jose (Costa Rica): Four times weekly from 17-Dec-2019.

New Orleans and São Paulo Starting out of YUL this Winter

Provided by Aéroports de Montréal/CNW

MONTRÉAL, Nov. 4, 2019 /CNW Telbec/ – New direct flights now confirmed for the winter season will soon be offered out of YUL Montréal–Trudeau International Airport, as the city continues to attract travellers from all over the world. Such a wide variety of available destinations continues to establish YUL as an important international hub.

Highlights for the winter:

  • Two new destinations will be added to YUL’s offering: New Orleans, Louisiana, reachable year-round via Air Transat (November 3), and São Paulo, Brazil, operated by Air Canada during the winter season as of December 11.
  • Accessible for the first time out of YUL by direct flight, São Paulo will offer business travellers an opportunity to easily reach one of the most important economic and industrial centres.
  • The winter season will also see an increase in the number of seats offered to several destinations, including 6% more to sun destinations and 12% more to Europe, the Middle East and Asia. Additionally, the international sector will experience 11% growth this winter.
  • Air Canada will add four weekly flights to its Montréal–Tokyo route, and will increase seating by 50%.
  • Air Transat will now operate its flight to Madrid year-round, while Austrian Airlines, a new carrier that just joined the YUL family on April 29, will offer its Montréal–Vienna service during the winter season.
  • Corsair will fly to Paris year-round, while Air Canada will increase service on its Montréal-Lyon route to four flights weekly.

SOURCE Aéroports de Montréal

New flavours on board Air Transat this winter with the Gourmet menu by Chef Daniel Vézina

Provided by Transat A.T. Inc/CNW

MONTREAL, Oct. 31, 2019 /CNW Telbec/ – Air Transat is proud to announce that the new meals of the winter 2019-2020 Gourmet menu by Chef Daniel Vézina are available for pre-order by passengers flying in Economy Class as of November 1. These include two delicious breakfast options, the grilled ham and cheese croissant and the buttermilk pancakes with blueberry purée, maple butter and bacon, as well as a main dish, Quebec grain-fed chicken hunter-style. As always, the Gourmet menu will feature two options for breakfast and six for lunch/dinner. 

Air Transat's Gourmet menu by Daniel Vezina (CNW Group/Transat A.T. Inc.)
Air Transat’s Gourmet menu by Daniel Vezina (CNW Group/Transat A.T. Inc.)

“Every season, travellers tell us how much they enjoy the quality and refinement of the meals in the Gourmet menu by Chef Daniel Vézina,” says Jean-François Lemay, President-General Manager of Air Transat. “As the World’s Best Leisure Airline at the Skytrax World Airline Awards, Air Transat strives daily to offer passengers an experience that lives up to this title. The Gourmet menu is one of the fabulous perks of our Club Class, and it’s available for purchase in Economy Class by anyone looking to kick off their vacation in style or end it on a high note.” 

“Nothing pleases me more than to showcase Quebec products in my creations,” explains Chef Daniel Vézina. “I’ve been featuring them at my restaurant Laurie Raphaël for 28 years, and I do the same with the recipes I create for my Gourmet menu served on board. This winter, passengers will get to taste homegrown products like the blueberries and maple syrup that come with the pancakes, as well as the delicious chicken from the Ferme des Voltigeurs in Drummondville.”

The Gourmet menu is offered for free in Club Class, where the main dishes are accompanied by the chef’s own strawberry shortcake or chocolate fondant. In Economy Class, the meals must be pre-ordered at least 72 before departure. The breakfast options are $18, while the lunch/dinner dishes are $25. 

Breakfast*

  • New: Grilled ham and cheese croissant
  • New: Buttermilk pancakes with blueberry purée, maple butter and bacon

*Each breakfast is served with a plain croissant, yogourt, orange juice and coffee.

Lunch/Dinner*

  • New: Quebec grain-fed chicken hunter-style
  • Turkey medallions in a truffle-flavoured cranberry sauce
  • Pulled beef shepherd’s pie
  • Spinach and artichoke lasagna with ricotta
  • Gnocchi with Bolognese sauce
  • Cheese and tomato orzo risotto

*Each lunch/dinner dish is served with a salad, dessert and a glass of wine.

Passengers can now pre-order the meals created by Chef Daniel Vézina by calling the Booking Centre at 1-877-TRANSAT or by visiting the Air Transat website. 

Air Transat flight makes emergency stop in Paris before continuing to Montreal

News provided by CTV News – link to full story and updates

Montreal

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

The Canadian Press – Published Sunday, October 20, 2019

MONTREAL — More than 300 passengers resumed their journey to Montreal Sunday after their Air Transat flight from Italy had to make an emergency landing in France.

The airline says flight TS571 took off from Venice Saturday but had to make an emergency stop at Paris-Charles de Gaulle airport due to a technical problem with a floor heating panel.

Spokeswoman Debbie Cabana says the landing went smoothly and the health of the passengers was not compromised.

The 310 passengers spent the night in Paris and departed for Montreal Sunday morning in a different aircraft.

Cabana says the passengers will be eligible for compensation.

Air Transat introduces flights to San Diego, enhances U.S. offering

Provided by Transat A.T. Inc./CNW

  • Introduction of the only direct route between Montreal and San Diego
  • New Orleans to be offered all year round in 2020
  • More flights to Florida from Montreal and Quebec City

MONTREAL, Oct. 15, 2019 /CNW Telbec/ – Air Transat, named the World’s Best Leisure Airline by Skytrax, will launch the only direct flight between Montreal and San Diego, California, in the summer of 2020. In addition, in light of the great interest in New Orleans, a new destination Air Transat will be offering for the first time this winter, the airline will extend its flights to the summer of 2020. Finally, more flights to Florida from Montreal and Quebec City will be added to the program.

Air Transat introduces flights to San Diego, enhances U.S. offering (CNW Group/Transat A.T. Inc.)
Air Transat introduces flights to San Diego, enhances U.S. offering (CNW Group/Transat A.T. Inc.)

“We are enriching our offering to the western and southern United States, in line with growing travellers’ expectations,” says Annick Guérard, Chief Operating Officer of Transat. “The North American tourism market is strong, and as the No. 1 leisure airline in Canada, we are happy to increase our destinations and frequencies, all while strengthening our Montreal hub.”

“We are very pleased to welcome the first direct route to San Diego from Montreal,” adds Philippe Rainville, President and CEO of Aéroports de Montréal. “Thanks to our partner Air Transat, YUL Montréal-Trudeau International Airport will be offering a broader and enriched air service, with an increased frequency of flights to the southern and western United States. Quebecers will be able to enjoy a wide range of choices during the summer of 2020 with even more destinations to discover.”

San Diego: vacations under the sun on the Pacific coast

A growing number of travellers are drawn to San Diego and beyond in California. Located on the Pacific coast, San Diego is a world-class holiday destination, famous for its zoo, old town, romantic Coronado Beach and sunsets in the Sunset Cliffs Natural Park. San Diego is also a good base for visiting Los Angeles, Disneyland and many national parks, including the Torrey Pines State Natural Reserve, a favourite among hikers.

Direct flights from Montreal to San Diego will be offered three times a week, on Mondays, Wednesdays and Sundays, from June 15 to October 28, 2020.

New Orleans: all year round in 2020

Starting in November, Air Transat will offer two flights a week from Montreal to New Orleans, on Thursdays and Sundays. To respond to the high demand for this destination, the airline will be extending its service to next summer.

New Orleans is more popular than ever with Canadian tourists, and the city welcomes more visitors from Canada than from any other country, especially in the summer. This is not surprising, as New Orleans is a colourful, lively city, where music, local cuisine and history compete for travellers’ attention. It’s also a city of festivals: the Essence Festival (African music), the Crescent City Blues and BBQ Festival, the Satchmo SummerFest in honour of Louis Armstrong, and the New Orleans Oyster Festival, among others.

Florida: more flights to this iconic destination

Beloved by many Quebecers, Florida keeps attracting travellers of all ages, thanks to the scope of its offering. Next summer, Air Transat will add four flights a week to Fort Lauderdale—three from Montreal, and one from Quebec City. The latter will be the only direct flight between Quebec City and Fort Lauderdale during the summer season. Air Transat will also add two more flights from Montreal to Orlando.

The full Air Transat summer 2020 flight program will be announced shortly.

Canadian air carriers inspect Boeing aircraft for cracks after FAA directive

News provided by CTV News – link to full story – with a hint from P.N.

FAA directive

Westjet Boeing
A Westjet Boeing 737-700 taxis to a gate after arriving at Vancouver International Airport in Richmond, B.C., on Monday February 3, 2014. THE CANADIAN PRESS/Darryl Dyck

The Canadian Press, Thursday, October 3, 2019

CALGARY – WestJet Airlines, Sunwing Vacations Inc. and Transat A.T. said Thursday they were examining their fleets of Boeing 737 Next Generation aircraft for cracks after a U.S. regulator ordered the inspections.

Calgary-based WestJet says it has 43 aircraft that fall under an inspection directive issued by the U.S. Federal Aviation Administration.

The company says it has had no structural cracks in its 737 NG fleet and expects minimal disruptions from the inspections.

Sunwing Vacations Inc. said it had received the directive from the FAA and will be inspecting its fleet as appropriate but didn’t expect any disruptions to its schedule.

The company did not say how many of its planes require inspection, but it has more than 40 of the Boeing 737 NG aircraft in its fleet.

Air Transat said it has five 737 NG planes in its fleet plus a temporary one. It said two of the planes would require a visual inspection that would take about an hour, but none of its planes have flown enough to require a more extensive check.

Air Canada says it does not have any of the Boeing 737 NG planes.

The FAA said that if the cracking was not addressed it could lead to a loss of control of the airplane.

The inspection order comes as Boeing remains under scrutiny after two deadly crashes led to a grounding of its Boeing 737 Max aircraft in March.

The crashes in Ethiopia and Indonesia killed a total of 346 people on board, including 18 Canadians.

WestJet announced in September that it was removing 737 Max jets from its holiday schedule while Air Canada warned the impact of the grounded jet on its operations may ripple well into 2021.

Sunwing said in August that its four Maxes will be absent from the rotation until mid-May, with some 3,000 flights having been affected over the summer alone.

This report by The Canadian Press was first published Oct. 3, 2019.

Air Transat to offer direct service between Montreal and Copenhagen

Provided by Transat A.T. Inc./CNW

Airbus A321neoLR

MONTREAL, Oct. 1, 2019 /CNW Telbec/ – Air Transat, recently named the World’s Best Leisure Airline by Skytrax for the second year in a row, is pleased to announce that it will offer direct flights between Montreal and Copenhagen, Denmark, next summer. The new service will operate twice a week from June 16 to September 20, 2020. Passengers will fly on the Airbus A321neoLR, a next-generation aircraft recently added to the Air Transat fleet that delivers an improved inflight experience.

WATCH: Air Transat video on the Airbus A321neoLR

Air Transat to offer direct service between Montreal and Copenhagen (photo credit: Martin Heiberg) (CNW Group/Transat A.T. Inc.)
Air Transat to offer direct service between Montreal and Copenhagen (photo credit: Martin Heiberg) (CNW Group/Transat A.T. Inc.)

“Air Transat is proud to be the only air carrier to offer non-stop service to Copenhagen out of Montreal,” says Annick Guérard, Chief Operating Officer, Transat. “This brings the number of European destinations we will be offering next summer to 27. The introduction of Airbus A321neoLRs to our fleet marked a milestone in our air operations management. These long-range narrow-body aircraft are improving our efficiency and flexibility, and enabling us to continue expanding our vacation destination offering.”

Copenhagen is one of the fastest-growing tourism destinations in Europe. A model of green development, the city surrounded by water and parks is a cyclist’s paradise. Noted among other things for its rich design culture, museums and fine dining, Copenhagen offers an extremely diversified range of tourist activities and attractions.

“We are delighted to welcome the addition of Copenhagen to YUL Montréal-Trudeau International Airport’s air service,” explains Philippe Rainville, President and CEO of ADM. “Quebecers now have a choice of 155 destinations to be discovered leaving from our city, further underscoring its role as a hub for international air traffic. Thanks to Air Transat, our travellers will find it easier than ever to visit and do business with the capital of Denmark, known as a green, innovative and smart city.”

“We are pleased to have Air Transat fly to Denmark with this new direct route to Copenhagen,” says Morten Tranberg Mortensen, Director of Airline Sales & Route Development, Copenhagen Airport. “This new service from Montreal to Scandinavia’s largest airport will bring great travel opportunities for both Canadians and Scandinavians. It underlines the attractiveness of Air Transat’s new Airbus A321neoLR, a game-changing aircraft that opens new and exciting routes. This new route was made possible by the efforts of both Air Transat and CPH.”

“This new flight reinforces Montreal’s position as an international city that’s open to the world,” says Yves Lalumière, President and CEO of Tourisme Montréal. “We will do our part in ensuring the touristic and economic success of this new collaboration between the two cities, all while working closely with our Montreal partners.”

Full details of Air Transat’s Summer 2020 program will be announced shortly, along with hotel, packages and tour offerings in Copenhagen and elsewhere in Denmark.

Thomas Cook collapse means headaches for Transat as partnership deal dies

News provided by The Globe and Mail – link to full story and updated – also a hint from P.N.

By Christopher Reynolds, Montreal, THE CANADIAN PRESS, 23 September 2019

Thomas Cook planes sit on the tarmac at Duesseldorf Airport on Sept. 23, 2019.WOLFGANG RATTAY/REUTERS

Transat Inc. could face fallout from the collapse of Thomas Cook Group PLC after a partnership between the companies died on Monday.

The tour operator, which runs Air Transat, was in the second year of a seven-year deal to exchange aircraft with the British company’s airline on a seasonal basis.

The Montreal-based Transat was slated to receive at least seven jetliners from Thomas Cook this fall, but “the partnership is dead because the company no longer exists,” spokesman Christophe Hennebelle said.

He said Transat, which is working to complete its takeover by Air Canada next year, is “confident” the Airbus A321 planes will still come through, but is making contingency plans.

“We’re not waiting until the last minute. We’re working to receive the planes, and at the same time we’re thinking of other plans to make sure that the schedule will be respected,” Mr. Hennebelle told The Canadian Press.

Hundreds of thousands of travellers were stranded across the world on Monday after Thomas Cook collapsed, halting almost all its flights and hotel services and laying off all its employees as the company ceased trading.

The liquidation of the 178-year-old travel company, which helped create the package-tour industry, will have sweeping effects across the European and North African tourism industry and elsewhere, as hotels worried about being paid and confirmed bookings for high-season winter resorts were suddenly in doubt.

Nasim Lalji, who lives in Brampton, Ont., was scheduled to take a Thomas Cook flight from London to Turkey next week with her husband until the flight was cancelled on Monday.

The couple, who paid about $307 each for the trip, said they were promised a full reimbursement and were in the process of rebooking with another airline on Monday.

“But that is going to cost us way more than what our initial price was,” Ms. Lalji said in a phone interview.

Flights from London to Turkey’s Dalaman Airport costing less than $500 early on Monday morning rose to nearly $600 a few hours later, she said.

“Every minute you delay booking your flight, the prices go up … because everybody is now trying to find other options,” Ms. Lalji said. “It is a major inconvenience.”

Global Affairs Canada said Canadian citizens in need of consular assistance should contact its emergency watch and response centre in Ottawa.

“To date, we have no reports of any Canadian citizens being affected by the collapse of the British tour operator Thomas Cook,” the department said in an e-mail.

Thomas Cook said four of its five airlines will be grounded, and its 21,000 employees in 16 countries – including 9,000 in the U.K. – will lose their jobs.

Overall, about 600,000 people were travelling with the company as of Sunday, though it was unclear how many of them would be left stranded, as some travel subsidiaries were in talks with local authorities to continue operating.

The company, whose airlines, resort and hotels served 19 million people a year in 16 countries, had a limited presence in Canada.

Condor Flugdienst, Thomas Cook’s main German carrier, is the only one that flies to Canada, with seasonal flights from Frankfurt to Toronto, Vancouver, Calgary, Halifax and Whitehorse. While all flights took off as planned Monday, Condor has requested financial aid from the German government in a bid to keep the subsidiary afloat, it said in a release.

The impact of Thomas Cook’s downfall is “pretty small” for Canadian airlines, travel agents and tourists, said Robert Kokonis, president of Toronto-based consulting firm AirTrav Inc.

“We’d only see a benefit really 1/8 to Air Canada3/8 if Condor stops flying. Their capacity to Canada is not that large.” he said.

“Most of what Thomas Cook was doing was vacation business out of Europe – out of the U.K., out of Scandinavia, out of Germany – primarily to sun destinations. And that’s the business that’s been hit hard. It’s not like your average Canadian travel agent had a bunch of brochures on their racks to buy it.”

The company, which began in 1841 with a one-day train excursion in England, has been struggling for years due to competition from budget airlines and the ease of booking low-cost accommodations through the internet, particularly in Europe.

“Whether it’s easyJet or Ryanair or Wizz Air or Norwegian, you can go get an el cheapo flight…and then go get your own hotel and design your own tour,” Kokonis said.

The British government said it was taking charge of getting the firm’s 150,000 U.K.-based customers back home from vacation spots across the globe, the largest repatriation effort in the country’s peacetime history. The process began Monday and officials warned of delays.

A stream of reports Monday morning gave some sense of the extent of the travel chaos: some 50,000 Thomas Cook travellers were stranded in Greece; up to 30,000 stuck in Spain’s Canary Islands; 21,000 in Turkey and 15,000 in Cyprus alone.

An estimated one million future Thomas Cook travellers also found their bookings for upcoming holidays cancelled. Many are likely to receive refunds under travel insurance plans.PLAY VIDEO1:39Thomas Cook goes out of business leaving hundreds of thousands of vacationers stranded.

REUTERS

With files from The Associated Press

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

Provided by Transat A.T. Inc/CNW

Third quarter results are up;
Acquisition of the Corporation is pending regulatory approvals

For the third quarter:

  • Revenues of $698.9 million.
  • Adjusted operating income of $21.8 million (operating loss of $7.6 million). *
  • Adjusted net income of $5.7 million (net loss attributable to shareholders of $11.0 million). * 
  • The Corporation took delivery of its first two Airbus A321neoLRs.

For the nine-month period:

  • Revenues of $2.2 billion.
  • Adjusted operating loss1 of $12.9 million (operating loss of $73.3 million). *
  • Adjusted net loss3 of $36.6 million (net loss attributable to shareholders of $53.5 million). * 

Potential transaction:

  • Arrangement plan with Air Canada to acquire the Corporation approved by 94.7% of the shareholders on August 23 and through the issuance of a final approval order by the Superior Court of Québec on August 28.
  • Transaction expected to close by the second quarter of the 2020 calendar year if the required regulatory approvals are obtained and conditions are met.

MONTRÉAL, Sept. 12, 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 third quarter ended July 31, 2019.

 “We’re very satisfied with the strong support received from our shareholders and the final approval of the arrangement plan. The planned transaction is good news for our shareholders, our employees, our clients and our community, and we’re currently working to obtain the required regulatory approvals to complete it,” stated Jean-Marc Eustache, President and Chief Executive Officer of Transat. “Meanwhile, we remain focused on our operations and note an improvement in our adjusted results for the quarter compared with last year.”

* NOTE: Figures in parentheses and not designated as adjusted on this page refer to IFRS financial measures for the current year

Third-quarter highlights

The Corporation posted revenues of $698.9 million for the quarter, up $34.3 million (5.2%) compared with 2018. This increase was attributable to the higher average selling prices and improved load factors across all markets. The number of travellers rose 4.3% in the transatlantic market, the Corporation’s main market for the period.

Operations generated adjusted operating income1 of $21.8 million, compared with $2.4 million in 2018, an improvement of $19.5 million. This increase was mainly driven by the higher average selling prices and improved load factors across all markets.

Net loss attributable to shareholders amounted to $11.0 million or $0.29 per share (diluted) compared with $5.0 million or $0.13 per share (diluted) in 2018. The net loss attributable to shareholders included professional fees of $6.0 million and compensation expenses of $7.7 million recorded in connection with the potential acquisition transaction of the Corporation by Air Canada. The compensation expenses are mainly related to the provisions recorded for stock-based compensation plans which include a change of control clause and to adjustments made to stock-based compensation plan provisions subsequent to the significant rise in the share price. Excluding non-operating items, Transat reported adjusted net income3 of $5.7 million ($0.15 per share) for the third quarter of 2019, compared with an adjusted net loss3 of $5.0 million ($0.13 per share) in 2018.

Nine-month period highlights

The Corporation recognized revenues of $2.2 billion, up $63.8 million or 2.9% from 2018. The higher revenues recorded during the winter season 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, resulting from the decision to increase capacity in that market. The increase in revenues was offset by a greater proportion of flight-only sales, which generate lower unit revenues than packages. For the summer season, the increase was attributable to the higher average selling prices and improved load factors across all markets. The number of travellers rose 4.3% in the transatlantic market.

For the nine-month period, operations generated an adjusted operating lossof $12.9 million compared with $14.3 million in 2018, an improvement of $1.4 million. This increase resulted from the higher adjusted operating income1 during the summer season, partly offset by the increase in adjusted operating loss for the winter season. 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 exceeded the increase in the average selling prices of packages during the winter season.

Net loss attributable to shareholders amounted to $53.5 million or $1.43 per share (diluted) compared with $0.3 million or $0.01 per share (diluted) for the corresponding nine-month period of 2018. The net loss 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 $36.6 million ($0.98 per share) for the period ended July 31, 2019, compared with $37.7 million ($1.01 per share) in 2018.

Financial position

As at July 31, 2019, cash and cash equivalents amounted to $723.8 million, compared with $867.2 million on the same date in 2018. This change resulted primarily from the purchase of land in Mexico ($75.7 million), from the purchase of a replacement engine for the Airbus A321neoLR fleet ($16.8 million), 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 ($21.3 million), from the adjusted net loss for the past 12 months ($23.0 million) and from commissioning costs for aircraft added to the fleet ($13.8 million).

The working capital ratio was 1.19, compared with 1.41 as at July 31, 2018.

Deposits from customers for future travel amounted to $611.1 million, compared with $587.2 million as at July 31, 2018.

Off-balance-sheet agreements, excluding contracts with service providers, stood at $2.4 billion as at July 31, 2019, compared with $2.5 billion as at October 31, 2018. The $152.8 million decrease resulted primarily from repayments made during the nine-month period, partially offset by the weakening of the dollar against the U.S. dollar.

Outlook

2019 fourth quarter – 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 August to October 2019, Transat’s capacity is similar to that deployed on the same date last year. To date, 83% of the capacity has been sold, the load factors are lower by 0.9% compared with summer 2018 and selling prices of bookings taken are 2.1% higher than 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, 83% of capacity is sold and the load factors are 5.6% higher compared with 2018. Unit margins are currently higher compared with those recorded on the same date last year.

If the current trends hold, the Corporation expects its results for the fourth quarter to be slightly higher than those of last year.

2020 winter – On the sun destinations market, the Corporation’s main market during the winter season, Transat’s capacity is 9% higher than that deployed on the same date last year. To date, 27% of the capacity has been sold and load factors are 1.8% higher compared with 2019. The impact of lower fuel costs, combined with fluctuations of the Canadian dollar, 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 Corporation believes it is still too early to draw any conclusions regarding winter season results.

Discussions relating to the sale of the Corporation

On August 23, 2019, a significant majority of the Corporation’s shareholders voted in favour of the special resolution approving the plan of arrangement entered into on June 27 pursuant to which Air Canada is expected to acquire all of the issued and outstanding Class A variable voting shares and Class B voting shares of Transat for a cash consideration of $18.00 per share.

On August 29, 2019, the Corporation announced that the Superior Court of Quebec issued a final order approving the plan of arrangement with Air Canada. The arrangement remains subject to certain closing conditions, including regulatory approvals described in Transat’s management information circular dated July 19, 2019, as well as other customary closing conditions. In addition, a public interest assessment regarding the arrangement is being undertaken by Transport Canada with input from the Commissioner of Competition. If the required regulatory approvals are obtained and conditions are met, it is now expected that the transaction will close by the second quarter of the 2020 calendar year.

The management information circular dated July 19, 2019 contains additional information regarding the arrangement.

The Corporation has agreed to limit its undertakings and expenses related to the execution of its hotel strategy in the period leading up to the closing of the potential transaction.

Restatement

On June 27, 2019, the Corporation announced that it needed to restate its consolidated financial statements and management’s discussion and analysis (“MD&A”) for the year ended October 31, 2018 as well as for the first quarter ended January 31, 2019 and the second quarter ended April 30, 2019. Management has concluded that a restatement of its consolidated financial statements was necessary regarding the carrying amount of the non-controlling interest in the Trafictours Canada Inc. subsidiary.

The carrying amount of the non-controlling interest is related to the Trafictours Canada Inc. subsidiary and the right of the minority shareholder to require the Corporation to purchase the Trafictours Canada Inc. shares it holds at a price calculated in accordance with a pre-determined formula, subject to adjustment based on the circumstances, payable in cash. The estimated repurchase value of this option is taken into account in the carrying amount of the non-controlling interest. The difference results from the application of a different formula than as per the contract for the calculation of the purchase price of the minority interest. As a result, the Corporation restated its financial statements to increase the liability for the non-controlling interest reported under Trade and other payables in the consolidated statements of financial position which was undervalued by $25.9 million, $23.3 million and $20.5 million as at October 31, 2018, January 31, 2019 and April 30, 2019, respectively. The recording of these adjustments had no impact on the Corporation’s consolidated statements of income for the aforementioned periods as these adjustments are recorded as equity transactions in Retained earnings.

As part of the restatement of its consolidated financial statements as at October 31, 2018, the Corporation had to review subsequent events up to September 11, 2019, the new date of authorization to publish the financial statements for the year ended October 31, 2018. On June 5, 2019, the Corporation settled without admission of liability, for an amount of US$5.0 million [$6.7 million], a litigation whereby plaintiffs alleged misappropriation of confidential information and solicitation of employees. The amount was recorded under Special items in the restated consolidated statement of income for the year ended October 31, 2018. This adjustment is included under Trade and other payables and Retained earnings in the consolidated statements of financial position as at October 31, 2018. No provision was recorded in the financial statements as at October 31, 2018 as initially published as it was not possible to determine with any degree of certainty the extent of any financial liability that would have arisen had the Corporation been unsuccessful in its defence of this lawsuit.

Crackdown on Canadian airlines nothing more than a ‘token gesture’: advocate

News provided by CityNews1130.com – link to full story and updates

By TARRAH HARVEY AND THE CANADIAN PRESS, Sep 5, 2019

An airplane prepares to land at Pearson International Airport in Toronto, Thursday September 30, 2004. Air safety authorities say the runway setup at Toronto’s Pearson International Airport poses a serious risk of crashes. THE CANADIAN PRESS/ Adrian Wyld

SUMMARY

  • WestJet was fined $17,500, Air Canada was fined $12,500, Air Transat and Porter Airlines were fined $7,500 each
  • Air passenger protection regulations allow a fine of $25,000 per infraction

VANCOUVER (NEWS 1130) — A passenger rights advocate is calling the $45,000 fine imposed on four Canadian airlines a “token gesture,” saying regulations allow for them to be fined 10 times as much.

Gábor Lukács, founder of Air Passenger Rights, says the fine is a drop in the bucket for airlines and sends a clear signal to passengers.

“The message that this lousy fine is sending to the public and the airlines is that the regulator is not really wiling to enforce rights of passengers,” he says.

WestJet Airlines Ltd. was fined $17,500, Air Canada was fined $12,500, and Air Transat and Porter Airlines were fined $7,500 each for breaching federal regulations.

Air passenger protection regulations allow a fine of $25,000 per infraction, meaning the airlines could have been on the hook for a combined $450,000.

Lukácssays the announcement of the fines is nothing more than “smoke and mirrors,” strategically timed to try to convince Canadians that the current government cares about passenger right before the federal election.

The rule that the airlines violated was one that states airlines must display a notice at the check-in desk, self-service kiosks and departure gate that passengers who are denied boarding or whose luggage is lost or damaged may be entitled to compensation.

The regulator says airlines failed to alert travellers to their rights ahead of several flights out of Halifax, Quebec City, Calgary and Edmonton between July 22 and Aug. 7.

New rules came into effect July 15 beefing up compensation for passengers whose flights were delayed or luggage damaged, which have been met with criticism from both the industry and consumer advocates.

Under the new rules, airlines will now have to provide compensation — up to a maximum of $2,400 — to anyone bumped from a flight. Changes also mean airlines will have to compensate passengers if their flight is severely delayed, if their luggage is lost, or if flights are overbooked, as long as the situation is within the company’s control.