Air Canada has called off a proposed deal to acquire Air Transat after it became clear the move would not be approved by the European Union.
The revised deal, now valued at C$190 million, was agreed by the two carriers in October last year in the wake of the Covid-19 shutdown of international travel.
The amended transaction reflects the unprecedented impact of Covid-19 upon the global air transport industry, which has endured a severe decline in air travel since the initial agreement.
Air Transat has unveiled its winter timetable with plans to operate from airports across the UK during the season, thus restoring year-round operations.
Air Transat will resume flights from the UK to Canada tomorrow. Flights will be operated by a brand-new fleet of Airbus A321neoLR aircraft, with a choice of club class and economy.
The leisure carrier will offer a new flight schedule to 22 destinations in Europe, the United States and Canada from July 23rd until the end of the summer season on October 31st.
Air Transat has announced a gradual suspension of its flights to Europe until April 30th. This decision follows an announcement from the government of Canada that the country is closing its borders to foreign nationals.
As the merger with Air Canada approaches completion Gilles Ringwald, vice president of commercial with Air Transat, tells Breaking Travel News what the deal will mean for fliers in the country. With new frequencies also launching to London, he also tells us how important the city is to the future of the carrier.
Air Canada will face a competition probe before the airline can complete its proposed acquisition of Air Transat. Air Transat shareholders overwhelmingly voted last week in favour of the C$720 million deal, which valued the carrier at C$18-a-share.
Air Canada and Transat have concluded a definitive arrangement agreement that provides for flag-carrier’s acquisition of all issued and outstanding shares in the private carrier. The value of the all-cash transaction is approximately $520 million.
The flag-carrier hopes the proposed transaction, valued at approximately $13 per share, will create a Montreal-based global travel services company in leisure, tourism and travel distribution.