The companies announced on June 27 that they had reached a final agreement for Air Canada to pay C$520 million, or C$13 per share for Transat. (A Canadian dollar equals US$0.76.) Negotiations began in April.
The merger will bring “enhanced capabilities in the highly competitive, global leisure travel market and from access to new destinations, more connecting traffic and increased frequencies,” Air Canada CEO Calin Rovinescu said in a statement.
Transat is primarily a tour operator that specializes in vacation packages.
Its airline, Air Transat, serves serves 67 destinations from Canada, largely in the Carribean, South America and Europe. Air Transat has a fleet of 38 planes, 20 of which are widebody Airbus A330s.
Air Canada said it plans to preserve Transat’s brands.
Air Transat has offered air cargo services since 2009. Its 2018 annual results included C$135 million in revenue classified as “other,” which includes air cargo.
Overall, Transat posted a net income of C$7.3 million on revenue of C$2.99 billion for 2018. Air Canada recorded a net income of C$345 million on C$4.4 billion of revenue in 2018.
The companies said they expect the transaction to close in early 2020 after regulatory and shareholder approval.