Category Archives: Air Transat

Transat AT gives Air Canada 30 days of exclusive negotiations to acquire Air Transat

First Airbus A321neo, delivered as C-GOIE on May 3, 2019

Transat AT Inc. has made this announcement:

Transat AT Inc. has announced that it has agreed to a 30-day period of exclusive negotiations with Air Canada pursuant to a letter of intent contemplating a transaction by which Air Canada would acquire all of the shares of Transat at a price of $13.00 per share.

During such exclusivity period, it is contemplated that Air Canada will complete its due diligence review and the parties will finalize the negotiation of a definitive agreement regarding this transaction, the material terms of which are announced today.

“This announcement is good news for Transat”, said Jean-Marc Eustache, President and Chief Executive Officer of Transat. “This is an opportunity to team up with a great company that knows and understands our industry and has had undisputable success in the travel business. This represents the best prospect for not only maintaining, but growing over the long term the business and jobs that Transat has been developing in Quebec and elsewhere for more than 30 years.”

Transat would like to point out that its operations continue in the normal course and that there will be no change for its clients, suppliers and employees. In particular, travellers and clients of Transat can continue to travel and book their vacation packages with Transat like before.

Context of the Announcement

The Board of Directors of Transat has agreed to the exclusivity agreement based on a unanimous recommendation from a special committee of independent directors that was charged with examining any proposals for the acquisition of the shares of Transat, with the assistance of financial and legal advisors, and with considering all strategic options, as was announced on April 30, 2019. After being solicited by several parties and having considered available alternatives, the Board of Directors has determined that it is now in the interests of Transat and its stakeholders to finalize negotiations on an exclusive basis with Air Canada with a view to completing the transaction. In its recommendation, the special committee considered many factors, including the interests of the Corporation and its stakeholders, the economic and regulatory environment in which Transat operates, the proposed price of $13.00 per share, which represents a premium of 148.5% over the 20-day weighted average trading price prior to the announcement of April 30, 2019, a premium of 47.8% over the 20-day weighted average trading price for the period ended May 15, 2019, the terms of Air Canada’s proposal, which it deemed reasonable and acceptable taken as a whole, including the duration of the exclusivity period, the disclosure of the main terms of the letter of intent, the covenants of Air Canada and the contemplated terms of the definitive agreements.

Additional Terms of the Letter of Intent

The letter of intent sets forth certain terms that will be required in the definitive agreement. These terms include a break fee of $15 million payable by Transat in case of termination of the transaction, including upon acceptance of an unsolicited superior proposal, and a reverse break fee of a maximum of $40 million payable by Air Canada in the event that the agreement is terminated because regulatory or governmental approvals are not obtained. In addition, the non-solicitation provision will be subject to the usual withdrawal right based on fiduciary duties if an unsolicited proposal is made at a firm price per share that is at least $1.00 higher than the price offered by Air Canada, in the event such proposal is not matched by Air Canada. Moreover, the execution of a definitive agreement by Air Canada will be subject to the execution of support and voting agreements by certain large shareholders of Transat.

Finally, Transat has agreed to limit its undertakings and expenses relating to the implementation of its hotel strategy during the exclusivity period.

Any agreement will also contain numerous conditions customary for this type of transaction, including applicable regulatory approvals and the approval of the shareholders of Transat.

There is no assurance that a definitive agreement will be reached in relation to any transaction following the exclusivity period and the ongoing discussions. No assurance may be given that a transaction will occur in relation to the proposed transaction or otherwise, or regarding the definitive terms of such transaction, if any.

Top Copyright Photo: Air Transat’s first Airbus A321neo. Air Transat Airbus A321-271NX WL D-AZAJ (C-GOIE) (msn 8755) XFW (Gerd Beilfuss). Image: 946420.

Air Transat aircraft slide show:

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Air Transat to add nonstop flights from Montreal to New Orleans

Air Transat has announced that it will add New Orleans, Louisiana, to its portfolio of fall and winter destinations. Beginning in November 2019, the airline will offer two nonstop flights a week from Montreal, giving travelers a chance to experience the festive atmosphere of jazz clubs or a contemplative stroll along the Bayou.

Air Transat will fly twice a week to New Orleans, on Thursdays and Sundays, beginning November 3, 2019. Details of Air Transat’s 2019 winter flight program will be announced shortly.

No aircraft type was specified.

All images by the airline.

Airbus delivers the first A321LR to Canada’s Air Transat

First Airbus A321neo, delivered as C-GOIE on May 3, 2019

Air Transat, a Canadian leisure and holiday travel airline, took delivery of its first Airbus A321LR aircraft. The A321LR is one of 15 the Montreal-based carrier is scheduled to receive. Air Transat leases the A321LR from AerCap.

The A321LR, with its unique Airbus Cabin Flex configuration allowing for installation of additional fuel tanks, will have a range of up to 4,000 nautical miles. Air Transat plans to use the A321LR for long-distance flights out of Canada, principally on more extended, thinner routes to European, Caribbean, Central and South American destinations. The A321LRs will replace older planes with an ultra-modern, highly cost-efficient aircraft equipped with state-of-the-art interior amenities for an enhanced and enjoyable passenger experience.

The Air Transat A321LR is configured for 199 seats in two classes, including 12 premium Club Class seats in an exclusive cabin with personalized service and ergonomic seating. Economy Class seats are wider, provide more personal space and are equipped with a state-of-the-art entertainment system.

The A321LRs are part of a larger leasing deal Air Transat has with AerCap to convert to an all-Airbus fleet by 2022 as it phases out older widebody and narrowbody planes.

Air Transat is Canada’s number one holiday airline. It flies to some 60 destinations in more than 25 countries in the Americas and Europe, offers domestic and feeder flights within Canada, and carries some 5 million passengers every year. Based in Montreal, the company employs 3,000 people. Air Transat is a business unit of Transat A.T. Inc., a leading integrated international tourism company specializing in holiday travel and offering vacation packages, hotel stays and air travel.

Top Copyright Photo (others by Airbus): Air Transat Airbus A321-271NX WL D-AZAJ (C-GOIE) (msn 8755) XFW (Gerd Beilfuss). Image: 946420.

Air Transit aircraft slide show:

Transat AT Inc announces preliminary discussions concerning a potential sale of the corporation

Transat AT, Inc., the parent of Air Transit, has made this announcement:

The Corporation announces being in preliminary discussions with more than one party concerning a potential transaction involving the acquisition of the Corporation.

These discussions result from expressions of interest received by the Corporation. The Corporation has formed a special committee of independent directors to evaluate the proposals with the assistance of financial and legal advisors, consider, and if deemed advisable, undertake a process for the formal review of strategic alternatives, consider any alternative proposal, and make recommendations to the Board of Directors in the best interests of the Corporation and all its stakeholders.

This situation has no impact on the clients or employees of Transat, nor on its operations, which are continuing as usual.

The discussions are at a preliminary stage. No decision has been made as to any potential transaction. There can be no assurance that any transaction will take place. The Corporation does not intend to provide further updates or comments with respect to the foregoing except as required by law.

Situation in Haiti: Transat repatriates its travelers

Transat has announced that it repatriated its 113 travelers from the Royal Decameron Indigo Beach Resort and Spa in Haiti.

Air Transat flight TS667, an Airbus A310 of 250 seats, departed from Toussaint Louverture International Airport in Port-au-Prince at 4:30 p.m. and landed at the Montréal-Trudeau Airport at 8:50 p.m.

Air Transat Airbus A310-308 C-GLAT (msn 588) PRG (Ton Jochems). Image: 945712.

Above Copyright Photo (all others by the airline): Air Transat Airbus A310-308 C-GLAT (msn 588) PRG (Ton Jochems). Image: 945712.

Late afternoon on February 15, travellers were informed that they would be leaving the Royal Decameron Indigo Beach Resort & Spa, located on the Côte des Arcadins, by helicopter the following day. And, at around 9 a.m. on February 16, the first passengers were transported to the airport, and rotations continued for a few hours. The evacuation was orchestrated by Transat, in collaboration with the local authorities, the Canadian Embassy in Haiti and the Canadian government, to ensure the safety of the passengers.

Until further notice, Air Transat will continue to operate two flights a week to and from Toussaint Louverture International Airport in Port-au-Prince, on Wednesdays and Sundays.

About Transat

Transat A.T. Inc. is a leading integrated international tourism company specializing in holiday travel. It offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands to some 60 destinations in more than 25 countries in the Americas and Europe. Based in Montreal, the company has 5,000 employees.

Air Transit aircraft slide show:

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Air Transat adds Split, Croatia to its European destinations for summer 2019

Airline Color Scheme - Introduced 2017

Air Transat has announced it will be adding Split, Croatia, to its transatlantic flight program.

Starting in the summer of 2019, the airline will offer a weekly nonstop flight to Split.

Air Transat, besides adding Split, Croatia, to its destinations and is also increasing its nonstop flights for many of its main transatlantic markets, namely, Italy, Greece, Croatia, France and Portugal.

With 27 destinations in Europe and the Middle East accessible from six airports in Canada via connecting flights, Air Transat makes planning a dream vacation a breeze for Canadians. Moreover, as of summer 2019, passengers heading to destinations such as Nice, Porto and Basel will fly in one of two new Airbus A321neo LR airplanes being added to its fleet.

A new destination and a bigger footprint in key markets

Given Canadians’ growing interest in the Balkan Peninsula, Air Transat is pleased to be adding Split to its destinations. With its two flights to Zagreb, that makes three direct flights to Croatia every week from Toronto. There will be more direct flights to Greece and Italy, for a total of four weekly flights to Athens (Greece) from Montreal and Toronto. Lamezia (Italy), the gateway to the South of Italy, will be accessible twice a week from Toronto. The airline is increasing its departures to a number of other destinations as well: from Montreal, there will be three flights to Porto (Portugal), three to Nice (France)and two to Basel (Switzerland). Meanwhile, there will be five weekly flights to Dublin (Ireland) from Toronto.

The United Kingdom, France and the Mediterranean in demand

By flying direct every week from four Canadian cities, the airline makes London (England) accessible to vacationers with departures from Toronto (daily), Vancouver (daily), Montreal (three times a week) and Calgary (three times a week). Vacationers looking to discover other areas of the UK can count on five direct flights weekly to Manchester and Glasgow from Toronto, as well as connecting flights from Montreal, Vancouver, Quebec City, Calgary and Edmonton.

Air Transat, the leading airline between Canada and France, remains the benchmark for leisure travel in France. This year, Air Transat is once again offering direct flights from Montreal to the biggest cities in France, that is, Paris (daily direct flights), Marseille (five direct flights weekly), Lyon and Toulouse (four direct flights weekly), as well as Nice, Nantes and Bordeaux (three direct flights weekly). And with its vast network of connecting flights, Air Transat makes most of these destinations available to people in and around Quebec City, Vancouver, Toronto and Calgary.

Furthermore, Air Transat is set to offer passengers a new product combining air and rail travel, in partnership with SNCF, France’s national rail service. The airline’s customers will be able to purchase a single ticket comprising a flight to Paris plus TGV AIR service enabling them to complete their journey on the TGV high-speed rail network within France or to Brussels, Belgium, thus facilitating access to French provinces and Brussels on a daily basis. Air Transat and SNCF promise a simple service delivering several benefits: a single booking, a single fare and a single ticket. It will be available as of January 2019, and travellers will be able to book from Canada starting in December.

The Mediterranean region, with its idyllic turquoise waters, is vital to the airline’s flight program. First, there’s Spain, which remains an undeniable draw thanks to its dream combination of scenic beaches and captivating culture. Air Transat will continue its direct flights from Montreal to Barcelona (five direct flights weekly) and Malaga (three direct flights weekly) as well as from Toronto, with three direct flights weekly to Barcelona. These Spanish destinations remain accessible to people in the Quebec City, Vancouver, Calgary and Edmonton areas via Air Transat’s network of connecting flights. Finally, getting to Lisbon (Portugal) will be as easy as ever with five direct flights weekly from Montreal and four from Toronto.

Rome remains accessible too, with five direct flights from Montreal and seven from Toronto. The Italian capital will be easily reachable for travellers from Vancouver, Calgary and Edmonton via connecting flights through Toronto.

Tel Aviv, Prague, Brussels and Amsterdam: passenger favourites

Air Transat flies direct to Tel Aviv from Montreal twice a week and from Toronto once a week with a connecting flight. Brussels, the Belgian capital, is accessible from Montreal with three direct flights weekly, and from Toronto, Vancouver and Calgary with connecting flights.

The airline offers Canadians seven direct flights to Amsterdam, including four from Toronto, two from Vancouver and one from Calgary, along with two direct flights to Prague from Montreal.

Canada year round

For the past five years, Air Transat has been expanding its domestic flights, linking the country’s major cities. “These flights give an increasing number of Canadians access to more European destinations than ever, with connecting flights to Toronto and Montreal, as well as give access to other Canadian cities,” explains Annick Guérard.

It’s also worth noting Air Transat is launching a new summer flight between Edmonton and Toronto, opening the door to European travel to people in northern Alberta.

Top Copyright Photo: Air Transat Airbus A330-243 C-GTSN (msn 369) YYZ (TMK Photography). Image: 940475.

Air Transat aircraft slide show:

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Aeroplan announces Air Transat as a preferred partner

Air Transat's 2017 "30 Years Ans" logo jet

Aimia Inc. has announced a new preferred partnership arrangement with Air Transat, Canada’s number one holiday airline, effective in July 2020.

Aeroplan Miles will be earned and redeemed on all Air Transat flights and vacation packages.

Aeroplan continues to expand and enhance its member offering to provide Canadians with the best travel loyalty program experience come July 2020 including the flexibility to fly any airline, anywhere at any time. Preferred agreements, like the one announced today, coupled with bulk and block purchasing and stand-alone charters, unlock meaningful discounts supporting the delivery of great value to members on flight redemptions.

Top Copyright Photo (all others by Air Transat): Air Transat Airbus A330-342 C-GTSO (msn 132) (30 Years Ans) BCN (Tony Storck). Image: 940160.

Air Transit aircraft slide show: