Air Canada is the flag carrier and the largest airline of Canada by fleet size and passengers carried. The airline, founded in 1937, provides scheduled and charter air transport for passengers and cargo to 207 destinations worldwide. It is a founding member of the Star Alliance. Air Canada’s corporate headquarters are in Montreal, Quebec, while its largest hub is at Toronto Pearson International Airport.The airline’s regional service is Air Canada Express. Info From Wikipedia
Air Transat is a Canadian leisure airline based in Montreal, Quebec, operating scheduled and charter flights, serving 60 destinations in 25 countries. The airline is owned and operated by Transat A.T. Inc. Info From Wikipedia
Air Canada is in talks to buy Air Transat at a cost of $13 CAD per share valuing the company at about half a billion dollars. Air Transat said about a month ago that they had been approached by another airline to be purchased. This was speculated to be Westjet or Air Canada. The CEO of Air Transat had this to say about the deal:
“This announcement is good news for 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.” - Air Transat CEO, Jean-Marc Eustache
With Air Transat making up 20% of the flights to Europe and 22% percent of the flights to the Caribbean from Canada, Air Canada stands to benefit greatly. Air Transat is a big competitor to their subsidiary, Air Canada Rouge. By buying the airline they eliminate competition and get the upper hand on Westjet.
Most of the info that I got about the purchase came from this article by the CBC
What do you guys think about the purchase?