AIR Canada has reached a final agreement to acquire for CAD520 million (US$396
AIR Canada has reached a final agreement to acquire for CAD520 million (US$396.175 million) Transat A T, the parent company of Canada's third-largest airline. The tie up calls for Transat's brands to be preserved. The merger will deliver 'enhanced capabilities in the highly competitive, global leisure travel market and from access to new destinations, more connecting traffic and increased frequencies,' Air Canada CEO Calin Rovinescu said in a statement, reported New York's FreightWaves.
Transat is primarily a tour operator that specialises in vacation packages. Its airline, Air Transat, serves 67 destinations from Canada, chiefly located in the Carribean, South America and Europe with a fleet of 38 planes, including 20 Airbus A330s.
Air Transat has operated air cargo flights since 2009. Its 2018 annual results included CAD135 million in revenue classified as 'other', including airfreight.
Transat reported a total net income of CAD7.3 million on revenue of CAD2.99 billion for 2018. Air Canada last year earned CAD345 million on CAD4.4 billion of revenue.
The transaction is expected to be wrapped up in early 2020, subject to regulatory and shareholder approval.
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