AIR CANADA’S PROPOSAL TO ACQUIRE TRANSAT A.T.
LOCATION: NATIONAL
Issue/Source: GOVERNMENT OF CANADA APPROVAL OF AIR CANADA’S PROPOSAL TO ACQUIRE TRANSAT A.T.
Date: MARCH 17, 2021
Suggested ResponseS
- On February 11, 2021, the Government of Canada approved the proposed purchase of Transat A.T. by Air Canada, following a thorough assessment of public interest considerations.
- This approval is subject to strict terms and conditions to ensure that the interests of Canadians are advanced and protected.
- It is now up to the parties to complete this transaction, subject to regulatory approval from European authorities.
BACKGROUND INFORMATION
- The impact of COVID-19 was a key factor in the Governor in Council’s final decision that the proposed purchase of Transat by Air Canada would be in the public interest.
- Conditions associated with approval of the proposed acquisition include:
- Measures to facilitate and encourage new entrants to take up certain former Transat routes to Europe;
- Preserving the Transat head office and brand in Quebec;
- Employment commitments of 1,500 employees around the new entity’s leisure travel business for a minimum of two years;
- Commitments to facilitate aircraft maintenance in Canada;
- A price-monitoring mechanism; and
- The launch and operation of new destinations within the first five years.