This is a week for Canadian aviation. At the beginning of the week, it was announced that WestJet would acquire a private equity firm of $ 5 billion. There is now another airline business, currently consolidating Canadian airlines.
Air Canada intends to acquire Air Transat
It is announced today that Air Canada has entered into an exclusive agreement with Air Transat to acquire all outstanding and outstanding shares
The proposed transaction is valued at approximately 520 million USD or USD 13 per share.
Calin Rovinescu, CEO of Air Canada, had the following information:
"Combination with Transat is a great opportunity for both companies. This includes both Transat and Air Canada shareholders, employees of both companies who will benefit from increased job security and growth prospects, and Canadian travelers who will benefit from the merged entity's improved ability to participate as a competitive leisure travel leader throughout the travel in the world. The acquisition provides a unique opportunity to compete with the best in the world when it comes to leisure travel. It will also allow us to continue to grow our center at Montréal-Trudeau Airport, where from 2012 we will be able to grow. We have added 35 new routes that benefit the Montreal and Quebec communities, and of which, in 2018, we carried 10 million of them. Customer.  Not yet done, so we can expect further announcements only after final agreements are signed
Taking over my Air Canada via Air Transat
Most of you are probably familiar with Air Canada ". although Air Transat is an airline not everyone knows. The Montreal airline has about 40 aircraft and has a fairly diverse fleet, including A310s (!!!), A330s, A321s and 737, and they have A321LR to upgrade their fleet over time (replacing A310)
] Air Transat A321LR
Air Transat primarily operates leisure routes, most of which are seasonal. They are rarely operating in transatlantic markets, as well as in the Caribbean, Mexico and Canada.
It is interesting that Air Canada has its own low-cost Rouge company operating in some of the same destinations
It would be interesting to see if Air Canada plans to return Air Transat to " Rouge and remove the processor, or if they follow individual brands.
I think Air Transat will become a part of Rouge, although some planes may fly to Air Canada's main fleet, so the air carrier can maintain some consistency.
According to the current Air Transat fleet:
- Although Rouge has been using 767 for a long time, I could also see them using Air Transat for A330 long-haul flights
- Air Transat A310s is likely to be coming soon retire and replace A321LRs
- Air Transat has a small 737 m. Air Canada has only 737 MAXs, so it's wondering if Rouge will actually launch a small 737 year old fleet, or if they just retire
- I wonder if Air Transat's A321LR orders can to go to Air Canada Main Line because it doesn't seem to fit the Rouge business model, and I could see A321LR profit on the Air Canada fleet
Air Canada Acquired Air Transat looks as good as Air Transat could join the Rouge fleet. With such an agreement, Air Canada could remove a competitor.
Although Air Canada talks about the benefits of such an agreement, it would almost certainly benefit consumers. The CEO of Air Canada says that consumers will "benefit from the merged entity's ability to participate in the leading competitive leisure travel market around the world".
The greater reality for consumers is that Canadian aviation is not so competitive and we would like the airline to be eliminated. This leads to a larger airline ticket…
What do you do in Air Canada's plans to take over Air Transat? Do you think they just fold the airline to Rouge, or?