Air Canada proposes takeover of Air Transat

The tail of an Air Transat Airbus A330 at Toronto Pearson Airport. Photo: © Jan-Hendrik Fiedler / IFN

Montreal-based Air Canada and Air Transat’s parent Transat A.T. Inc have announced that the Canadian flag-carrier has proposed a plan to acquire the latter company.

The deal, which is subject to regulatory approval, is valued at CA$520 million with each share valued at CA$13. Transat A.T. Inc has previously mentioned that it intends to sell Air Transit to a Quebec-based company.

This comes only days after Westjet announced that it is being acquired by Onex Corporation and thereby going private.

Air Canada CEO Calin Rovinescu said in a statement that “a combination with Transat represents a great opportunity for stakeholders of both companies.” Definite merger talks between the two companies are to be held over a 30-day period.

Air Canada is the country’s largest airline with over 200 aircraft in its fleet. It operates most out of its hubs in Toronto, Montreal, Calgary and Vancouver to destinations in North and South America, Asia, Australia and Europe.

Transat A.T. Inc is a travel company operating several vacation-related objects mainly in the Caribbean and is the owner of Air Transat, which operates a fleet of 40, mostly Airbus aircraft to leisure destinations in Mexico, the Caribbean and Europe. It is currently replacing its aging Airbus A310 fleet with new aircraft. The airline recently received its first Airbus A321LR.