Montreal, Quebec - Air Canada wants to take over the Air Transat's parent company Transat A.T. Inc. for 520 million Canadian dollars. Exclusive negotiations have been initiated between two companies to reach a final agreement.
Jean-Marc Eustache, the CEO of the Transat, called the possible Air Canada acquisition as a good development for the company. Eustache has also said that nothing would change for their customers for the time being and that they could continue to book vacations and plane tickets.
Transat A.T. Inc. is one of the largest tour operators in Canada and has its own airline with a fleet of 40 aircraft.
In the winter season, the airline mainly flies to the popular summer vacation destinations in the Caribbean and to European destinations in the summer such as Amsterdam and Brussels.
Air Canada is also a major player in the Canadian holiday market with Air Canada Vacations and Air Canada Rouge, a budget airline that partly flies to the same destinations as Air Transat.
It is not yet clear whether Air Canada wants to take over the entire company, or the aviation branch only. Air Transat is the third-largest airline in Canada following Air Canada and WestJet respectively.
The negotiations are expected to be concluded by mid-June.
Earlier this week, WestJet, Canada's second-largest airline operator was acquired for $5billion by a Toronto-based investment company Onex.
Rumors suggested that Onex was also looking at Transat A.T. Inc. The timing of Air Canada for Transat makes the industry experts think that the company does not want a bigger player than itself in the Canadian market.