Transat A.T. Inc. (Air Transat) issued this statement:
Transat A.T. Inc. has announced that the Canadian government has approved the arrangement with Air Canada contemplated under the revised arrangement agreement between Transat and Air Canada dated October 9, 2020.
This authorization is subject to the implementation of significant undertakings agreed to by Air Canada, the object of which is firstly to ensure effective competition, and secondly to ensure public interest benefits (including maintaining a Transat head office in Québec, the preservation of jobs and the Transat brand, and the launch of new routes).
With the approval of Canadian authorities now in hand, the other significant regulatory approval remaining to allow the parties to consummate the Arrangement is the approval of the European Commission. Given the time required for the Commission to review the last additional information requested, the review period has been extended and a decision of the Commission is now expected to be rendered in the first half of 2021.
Transat will discuss with Air Canada the appropriateness of extending the outside date for the consummation of the Arrangement under the Arrangement Agreement, which is currently set at February 15, 2021. After this date, if it is not extended, the Arrangement Agreement will remain in effect, unless terminated by one of the parties.
“We are currently working on adjusting all of the deadlines, including our financing agreements, in order to align them with the anticipated completion of the Commission’s review process” commented Mr. Jean-Yves Leblanc, Chair of the special committee of the Board of Directors of Transat.