• ITVI.USA
    15,845.180
    -15.980
    -0.1%
  • OTLT.USA
    2.806
    0.013
    0.5%
  • OTRI.USA
    21.590
    0.130
    0.6%
  • OTVI.USA
    15,846.760
    -20.840
    -0.1%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
    -0.240
    -14.9%
  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
    2.320
    0.220
    10.5%
  • TSTOPVRPM.LAXSEA
    4.110
    0.250
    6.5%
  • WAIT.USA
    126.000
    0.000
    0%
  • ITVI.USA
    15,845.180
    -15.980
    -0.1%
  • OTLT.USA
    2.806
    0.013
    0.5%
  • OTRI.USA
    21.590
    0.130
    0.6%
  • OTVI.USA
    15,846.760
    -20.840
    -0.1%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
    -0.240
    -14.9%
  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
    2.320
    0.220
    10.5%
  • TSTOPVRPM.LAXSEA
    4.110
    0.250
    6.5%
  • WAIT.USA
    126.000
    0.000
    0%
Air CargoCanadaNews

Air Canada to buy Transat

Air Canada (TSE:AC) will acquire Transat A.T. (TSE:TRZ), the parent company of Canada’s third-largest airline, strengthening its position as the country’s dominant carrier. 

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. 

Nate Tabak, Border and North America Correspondent

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at ntabak@freightwaves.com.

We are glad you’re enjoying the content

Sign up for a free FreightWaves account today for unlimited access to all of our latest content

By signing in for the first time, I give consent for FreightWaves to send me event updates and news. I can unsubscribe from these emails at any time. For more information please see our Privacy Policy.