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Air Canada in talks to purchase Air Transat

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  • Jun 27th, 2019 8:38 am
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Air Canada in talks to purchase Air Transat

Updated news:

"Air Canada to buy Transat for $13 a share"

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"Air Canada in exclusive talks to acquire Air Transat. Air Canada's interest in buying rival Transat AT Inc. for about $520 million is getting positive feedback from industry watchers and stock traders."

https://www.ctvnews.ca/business/air-can ... -1.4424794

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"Transat AT Inc. says it is in preliminary talks regarding the possible sale of the company."

I really hope this doesn't affect anyone's travel plans (namely mine!). Not much info at this point, but something to keep an eye on.

https://business.financialpost.com/tran ... 1556634952
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Haha ...farewell to Air Transat.

Its co-founder, Francois Legault must be feeling the heat to dispose of his stake as soon as possible.
LIVE LONG and suffer ...


:arrow: PEACE :arrowl:
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Not surprised as they've been struggling and with free fall in their value, is a target to be swallowed up. Wonder if it's Sunwing ?

But their shares are up 42% to $8 today due to the takeover talks
Transat’s share price has fallen sharply since the start of 2018, when it was trading around $11. Before the market opened on Tuesday its shares were worth $5.67 apiece.

https://www.thestar.com/business/2019/0 ... lower.html

The company has boosted its seat capacity by two per cent compared to a year ago, but the sun destination industry as a whole saw capacity rise 10 per cent, he said.

Meanwhile the travel company reported a loss of $49.6 million in its latest quarter compared with a loss of $3.2 million a year earlier.

It said it was hurt by a rise in operating costs due to the weakening of the loonie against the U.S. dollar, higher fuel prices and additional costs related to the transition and optimization of its fleet.
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StatsGuy wrote:
Apr 30th, 2019 12:13 pm
Not surprised as they've been struggling and with free fall in their value, is a target to be swallowed up. Wonder if it's Sunwing ?

But their shares are up 42% to $8 today due to the takeover talks




https://www.thestar.com/business/2019/0 ... lower.html
I wonder if it’s WestJet for the airline portion. There’s not that much overlap and WJ is dying to expand into Europe, which is TS’s bread and butter.
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Here2day2 wrote:
Apr 30th, 2019 12:32 pm
I wonder if it’s WestJet for the airline portion. There’s not that much overlap and WJ is dying to expand into Europe, which is TS’s bread and butter.
The planes TS have and ordered don't fit in with WS fleet and WS supposedly are scaling back expansion plans especially long haul with their poor financials lately as they've expanded too fast in capacity and introduction of new equipment. AT doesn't have much to offer a traditional airline imo
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No airline in Canada have the finances to buy out Transat AT in my opinion. It’s going to be a foreign group just like Sunwing with TUI Group. My two cents.
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StatsGuy wrote:
Apr 30th, 2019 2:30 pm
The planes TS have and ordered don't fit in with WS fleet and WS supposedly are scaling back expansion plans especially long haul with their poor financials lately as they've expanded too fast in capacity and introduction of new equipment. AT doesn't have much to offer a traditional airline imo
Talks are for Transat AT not Air Transat. Of course sell of Transat AT includes the airline but there is much more to it.
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Its co-founder, Francois Legault must be feeling the heat to dispose of his stake as soon as possible.
He hasn't had anything to do with Transat for decades, ever since he went into politics. He sold all his shares in 1997 after a dispute with his partner of the time, Jean-Marc Eustache. They haven't talked since.
Last edited by admiralackbar on Apr 30th, 2019 4:10 pm, edited 1 time in total.
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Latitude57 wrote:
Apr 30th, 2019 2:41 pm
Talks are for Transat AT not Air Transat. Of course sell of Transat AT includes the airline but there is much more to it.
The sale could involve it being split up and going to different buyers. For example, the travel agency part going to an iTravel, etc. I only suggested WJ as they might be interested in the already established flight network for Europe that TS has. Granted they don’t operate any Airbus in their fleet; however they could theoretically retire them and gradually replace them with Boeing fleet. Anything is possible.
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Latitude57 wrote:
Apr 30th, 2019 2:40 pm
No airline in Canada have the finances to buy out Transat AT in my opinion. It’s going to be a foreign group just like Sunwing with TUI Group. My two cents.
I agree that Transat makes no sense for a traditional airline as a target as it's a leisure travel company with planes mostly to fly tourists to resorts/tour packages

But with a market value of only 220m as of yesterday close, it's not much for say AC to buy them out (heck they paid more than twice as much to buy Aeroplan ) . But they won't as it makes zero sense for them.
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Here2day2 wrote:
Apr 30th, 2019 3:39 pm
The sale could involve it being split up and going to different buyers. For example, the travel agency part going to an iTravel, etc. I only suggested WJ as they might be interested in the already established flight network for Europe that TS has. Granted they don’t operate any Airbus in their fleet; however they could theoretically retire them and gradually replace them with Boeing fleet. Anything is possible.
WestJet would surely love to have Air Transat flight network (and reputation) for Europe, but I dont think they can afford it now. As you said, they also have a completely different fleet so that would be a nightmare to deal with. They have to take care of other things first. Nobody knows for the moment...
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StatsGuy wrote:
Apr 30th, 2019 4:45 pm
I agree that Transat makes no sense for a traditional airline as a target as it's a leisure travel company with planes mostly to fly tourists to resorts/tour packages
That's heavily AC's business these days....
But with a market value of only 220m as of yesterday close, it's not much for say AC to buy them out (heck they paid more than twice as much to buy Aeroplan ) . But they won't as it makes zero sense for them.
FWIW, AC's been doing quite a few charters of TS recently to fill in the 737Max grounding gap. The fleet basically matches what AC operates. They're both Montreal-based. I think it could make a lot of sense. Now whether they could get it past the competition regulators...
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Latitude57 wrote:
Apr 30th, 2019 2:40 pm
No airline in Canada have the finances to buy out Transat AT in my opinion. It’s going to be a foreign group just like Sunwing with TUI Group. My two cents.
Agree.

There’s been long whispers of TUI acquiring TS as a similar scenario played out in the UK.

My second guess would be the Japanese company that purchased “Red Label Vacations” (Sunquest/ Red Tag/ Itravel/ Intair) earlier this year. Sunquest Vacations has been struggling for years since they lost Westjet charters, Thomas Cook and Skyservice. They already have contracts with TS. Their business model/operations would be similar to TUI if this happens and they are successful.

I know quite a few people who work for Sunwing, Transat and Red Label who speculate that it’s TUI vs the Japanese as two contenders eyeing TS.
Last edited by BrunetteGirl on Apr 30th, 2019 6:34 pm, edited 1 time in total.
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burnt69 wrote:
Apr 30th, 2019 5:19 pm
That's heavily AC's business these days....



FWIW, AC's been doing quite a few charters of TS recently to fill in the 737Max grounding gap. The fleet basically matches what AC operates. They're both Montreal-based. I think it could make a lot of sense. Now whether they could get it past the competition regulators...
It’s def not AC.

AC has nothing to gain buying TS it would be like buying the same t-shirt in every colour. AC and TS have more similarities then any other tour operator/airline/group in Canada.
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AC would very much like those A321s and 321LR build slots to replace MAX8 capacity. The 333s would be useful to them as well.

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