The deal will see the Air Transat and Transat brands retained alongside the Air Canada and Air Canada Rouge brands, but will essentially reduce competition within the country and on transatlantic routes.
Air Canada’s acquisition of Transat is subject to regulatory and shareholder approval but is expected to proceed early next year.
“We are delighted to have reached this definitive agreement to combine Transat with Air Canada to achieve the best possible outcome for all stakeholders,” says Calin Rovinescu, President and CEO, Air Canada.
“Travellers will benefit from the merged companies’ enhanced capabilities in the highly competitive, global leisure travel market and from access to new destinations, more connecting traffic and increased frequencies.”
Jean-Marc Eustache, President and CEO, Transat, adds. “For our clients, it will offer even more choices and possibilities. For now, they can continue booking their flights and packages with complete confidence, as all bookings will be honoured before and after the closing of the transaction.”