Air Canada made this announcement:
Air Canada is pleased by the announcement, earlier today, by Transat A.T. Inc. (“Transat”) of the approval, by a majority of nearly 95% of its shareholders, of its Arrangement Agreement with Air Canada under which Air Canada will acquire all its issued and outstanding shares.
“We are pleased with the outcome of Transat’s special meeting and grateful to Transat shareholders for this overwhelming show of support,” said Calin Rovinescu, President and Chief Executive Officer of Air Canada. “We will build a combined company greater than the sum of its parts that we can all be proud of. We now look forward to engaging with Transport Canada and the Competition Bureau to secure the required approvals to complete the transaction and welcome the opportunity to demonstrate the many benefits it will bring.”
“This is the best possible outcome for all stakeholders,” added Mr. Rovinescu. “For shareholders of Transat and Air Canada, the combination delivers excellent value, while also providing increased job security for both companies’ employees through greater growth prospects. Air Canada plans to preserve the Transat and Air Transat brands and maintain the Transat head office and its key functions in Montreal. Travellers will benefit from the combined companies’ enhanced capabilities in the highly competitive, global leisure travel market and from access to new destinations, more connecting traffic and increased frequencies. Customers and the Quebec economy will derive maximum advantage of having a Montreal-based, growth-oriented global champion in aviation, the world’s most international business, spurring more employment and securing Montreal’s position as a leader among world aviation centres.”
Plan of Arrangement
The acquisition will proceed by way of a court-approved plan of arrangement pursuant to the Canada Business Corporations Act. The transaction remains subject to court and regulatory approvals and the other closing conditions set out in the Arrangement Agreement. If such approvals are obtained and conditions are met, the transaction is expected to be completed in early 2020. Further details regarding the transaction are provided in Transat’s management proxy circular for the special meeting of shareholders and in the Arrangement Agreement and the Amending Agreement entered into between Air Canada and Transat.
Note: If the acquisition is approved, Air Transat is expected to continue to operate as a separate brand.
Top Copyright Photo: Air Transat Airbus A321-271NX WL C-GOIF (msn 8876) BOD (Ton Jochems). Image: 947385.
Air Transat aircraft slide show:
JetBlue Airways today (June 29) quietly took delivery of its first Airbus A321neo which will allow the carrier to launch new longer routes, especially London.
The pictured N2002J, with a new unnamed tail fin design, arrived at the New York JFK base this afternoon.
Airbus and JetBlue have not yet announced the delivery or the name of the new design.
Copyright Photo: JetBlue Airways Airbus A321-271NX WL N2002J (msn 8823) JFK (Fred Freketic). Image: 946819.
JetBlue aircraft slide show:
Lufthansa has made this announcement:
- New, innovative seats make travelling even more comfortable
- USB port, tablet holder and more personal space
- First Airbus A321neo delivered with single cabin for all Network Airlines
- Reduction of CO2 emissions through new engines
Lufthansa customers can now enjoy a completely new flight experience on short- and medium-haul routes.
The Group has now received its first Airbus A321neo in Frankfurt (top), which will be operated by Lufthansa. New on board: a new, improved seat for an even more comfortable travel experience, which is jointly introduced by the three Network Airlines, Lufthansa, SWISS and Austrian Airlines.
The Italian manufacturer Geven clearly won the contract to produce the seat. The comfortable full-structure upholstery of the seat and the backrest ensure a noticeably pleasant sitting experience thanks to ergonomic pressure distribution. Thanks to the innovative slimming of the backrest, guests enjoy even more personal space. This is achieved by the newly developed horizontal arrangement of the literature bag above the table. In addition, travelling is not only more comfortable during the flight, but also during taxiing, take-off and landing: instead of the previous 12 degrees during these three phases, guests travel constantly comfortably with a 20 degree inclination of the backrest; business class guests can even adjust the backrest to 26 degrees during the cruise.
Each row of seats has its own USB ports in the current and future standard, which for the first time in the Lufthansa Group will also be available on short-haul flights. In future, Lufthansa Group passengers will also be able to set up their own tablets even more conveniently. A special column has been inserted into the table to facilitate the tablet holder.
“Many customer feedbacks have been incorporated into the design of the seat. We received a lot of positive feedback on the new features. We are therefore convinced that the new seat and the modern ambience of the cabin will further improve the travel comfort of our guests,” says Paul Estoppey, Head of Product Management Cabin Lufthansa Group Hub Airlines.
Uniform cabin for all Network Airlines
The first A321neo now flies for the first time with a cabin harmonized for all three Network Airlines. The three airline brands Lufthansa, SWISS and Austrian remain clearly recognizable thanks to individual design elements. The standardization applies to all aircraft of the A320 family, which will be delivered to the three hub airlines from now on. The standardization focused on the large, cost-intensive components such as the cabin design and the galleys.
The Airbus A321neo is now configured and unified in such a way that aircraft can be adapted quickly and easily when transferred between Lufthansa Group airlines. This enables the Lufthansa Group to react faster and more flexibly to current developments and to move aircraft and capacities more easily and efficiently to another airline or to another hub. Costs for adjustments and lay times can be significantly reduced. In addition, the standardization will lead to further synergies in aircraft purchasing.
Reduction of CO2 emissions through new engines
In addition to benefits for customers, the reduction of weight and thus CO2 emissions as well as maintenance costs were the focus of development. The Lufthansa Group Airlines expect more than 100 brand-new Airbus A320neo family aircraft by 2025. The newly developed engine technologies from Pratt & Whitney and CFM International as well as the aerodynamic wingtips (sharklets) with which the aircraft are equipped will lead to a significant fuel reduction of up to 20 per cent per seat kilometer. An A320neo taking off has a 50 percent smaller noise contour than other aircraft of this type.
Top Copyright Photo: Lufthansa Airbus A321-271NX WL D-AIEA (msn 8761) FRA (Bernhard Ross). Image: 946595.
Lufthansa aircraft slide show:
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:
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: