Air Canada and Air Transat – Tying the knot?

Air Canada and Air Transat were due to tie the knot and get married by 15 February 2021. But like many proposed marriages during the pandemic, this one is also set to be delayed. Not directly by Covid-19, although the dowry Air Canada were due to pay Air Transat shareholders has been reduced by 72% from $520m to $190m Bernard Lavelle reports.
See BTN 15 February.

This deal was approved by Air Transat’s shareholders and Canadian government approval was granted on 11 February. A happy march down the aisle was beckoning until the European Union (EU) once again delayed its response to ‘some point in H1 this year.’  As both airlines fly into Europe, the EU raised competition concerns on certain routes such as London and Dublin.

The deal deadline date was 16 February but Air Canada declined to extend this date.

Now either party can file for divorce, or in this case, decline to get married.

In the interim, Ed Sims, CEO of WestJet published a blog on 12 February, criticising the government’s approval, saying it marks the end of competition. Also lying in the wings is Pierre Karl Peladeau, the CEO of Quebecor, a Canadian media company. Will he bring Air Transat to the alter or will Air Canada respond again?

The future of flights from Toronto to London and Glasgow may be dependent on what happens next.

www.aircanada.com   www.airtransat.com

www.westjet.com   www.quebecor.com

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