22.01.2021 - 08:31 UTC
WestJet has urged the Canadian government to reject or modify the planned takeover by Air Canada of Montreal-based tour operator Transat and its airline Air Transat.
The Globe and Mail reports that WestJet Chief Executive Officer Ed Sims on January 3, 2021, sent a letter to Transport Minister Marc Garneau asking him to reject the deal as it stands, or at least make major modifications. These include the two airlines giving up some airport slots and not letting Transat customers access Air Canada’s Aeroplan loyalty programme.
“A fundamental element of Canada’s national transportation policy is to have at least two strong national airlines,” WestJet said. “WestJet’s ability to contribute to the Alberta economy and more broadly to the Canadian economy is imperilled by the proposed transaction.”
Concerns about the implications of the Air Canada-Air Transat merger on free competition earlier saw a similar appeal to Garneau by Pierre Karl Péladeau, Chief Executive Officer of Canadian media and telecommunications giant Quebecor. Péladeau offered to pay 20% more than Air Canada for Air Transat in order...
14.01.2021 - 03:50 UTC
The Board and special committee of the Board of Transat, supported by their financial and legal advisors, have reiterated their unanimous recommendation that Air Canada's planned takeover of the struggling Montreal-based tour operator and its airline Air Transat (TS, Montréal Trudeau) is "fair and in the best interests of the company".
In a statement on January 12, Transat reacted to what it labeled as incorrect and misleading media reports that Gestion MTRHP Inc., the investment firm of Pierre Karl Péladeau, Chief Executive Officer of Canadian media and telecommunications giant Quebecor, on December 22 had made a higher offer per share for Transat in the event that regulatory authorities rejected the Air Canada bid.
Canadian media reported that Péladeau had sent three letters to Transport Minister Marc Garneau calling for a rejection of the merger with Air Canada, promising to pay CAD223 million Canadian dollars (USD174.8 million) representing CAD6 (USD4.70) a share or 20% more than Air Canada to purchase Transat, in order to guarantee competition and fairer prices for Canadian travellers.
The CAD180 million (USD141.1...
22.12.2020 - 17:23 UTC
The Canadian government is considering buying five second-hand aircraft from the country's troubled carriers to replace five A310-300s operated by the Royal Canadian Air Force (CFC, Winnipeg Int'l), public broadcaster CBC News has reported.
Ottawa has been contemplating replacing the five Airbus aircraft, designated in their military variant as CC-150 Polaris, for several years. Out of the quintet, one aircraft is currently used as a VIP transport, one as a strategic transport aircraft, and three as aerial refuelling tankers. They were inducted into service by the then Canadian Forces between 1987 and 1988.
Sources told CBC that the replacement aircraft could be procured from Air Canada (AC, Montréal Trudeau), as a form of state aid. However, discussions are still at an early stage.
"When the government decided a few weeks ago to help the airline sector, there was a situation where it became possible to address two issues at once, namely helping the airline industry at the same time as replacing an ageing and polluting fleet," a source said.
...
21.12.2020 - 12:35 UTC
Despite receiving a late and higher-priced competing proposal, “an overwhelming majority” of shareholders in Air Transat (TS, Montréal Trudeau) parent Transat AT have approved a revised buyout offer from Air Canada (AC, Montréal Trudeau), the Montreal-based tour operator revealed in a statement.
It said that 91% of the shareholders present at the meeting, representing 60% of the shares, were in favour of Air Canada’s bid of CAD5 Canadian dollars (USD3.92) per share, a bid that had been recommended by Transat executives.
On October 10, as Covid-19 continued to drag on demand, the privately-owned flag carrier cut its offer by almost 75%, from CAD720 million (USD564 million) to about CAD188.7 million (USD148 million).
Nevertheless, the deal is still pending approval from European and Canadian regulators, the European decision deadline being February 9. The deal is then expected to close in early 2021.
“We are pleased with the shareholder support for this revised arrangement that will create a Montreal-based global leisure leader with the scope necessary to overcome the current turbulence in the industry...
