**Air Canada to Purchase Air Transat, Creating a Global Tourism Leader**
Air Canada has made headlines with its recent announcement of plans to acquire its competitor, Air Transat, for $520 million. The proposed deal involves Air Canada acquiring all existing shares of Air Transat’s parent company, Transat AT, at a price of $13 per share.
Although the acquisition is subject to approval from Transat AT shareholders, both companies have publicly expressed optimism about the agreement. In a joint statement, they highlighted the potential for the merger to establish a leading global entity based in Montreal, specializing in leisure, tourism, and travel distribution. This partnership aims to enhance travel options for Canadians and promote reciprocal tourism opportunities.
With Air Canada standing as one of the world’s prominent airlines, absorbing Air Transat will add around 5,000 employees to its workforce. Furthermore, Air Transat operates as a full-service travel agency, offering not only air transport but also hotel accommodations and travel packages. The CEO of Transat has endorsed the move, stating that it is beneficial for employees, suppliers, partners, and shareholders.
Following the acquisition, Air Canada has affirmed its commitment to maintain the Air Transat and Air Transit brands. Passengers will continue to have the ability to book flights with Air Transat, and all existing bookings will be honored without disruption. The purchase conclusion is anticipated in 2020, pending shareholder approval and regulatory clearance after a month-long negotiation process.
