Travel

Air Transat to cancel all flights from Western Canada to U.S., sun destinations this winter

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Deal Fanatic
Aug 10, 2019
6130 posts
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Ontario

Air Transat to cancel all flights from Western Canada to U.S., sun destinations this winter

The airline is scrubbing all southbound routes that were slated to take off from Winnipeg, Calgary, Edmonton, Vancouver and Victoria, Air Transat parent Transat AT told customers this week.

The only routes out of western gateways between Nov. 1 and April 30 will be from Vancouver to Toronto and Montreal, and some connecting flights to Europe via Toronto.

Would-be passengers to automatically receive full refund rather than company credit.

https://www.cbc.ca/news/business/air-tr ... -1.5662967
16 replies
Deal Addict
Jul 26, 2007
1425 posts
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I'm surprised transat is still able to do refunds. I feel like they'd be one of the very first airlines to go under with what's happened so far.
Sr. Member
Oct 22, 2016
893 posts
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Comox Valley
If Air Transat canceled these flights, from the West.
Why are they still flying from Eastern Canada to sun destinations this winter?
Deal Addict
May 16, 2017
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User452441 wrote: If Air Transat canceled these flights, from the West.
Why are they still flying from Eastern Canada to sun destinations this winter?
It is all about demand and capacity reductions. Clearly, they believe they can fill flights originating from Eastern Canada. There isn't anything special about the West apart from from business considerations.
Sr. Member
Aug 3, 2017
980 posts
763 upvotes
robsaw wrote: It is all about demand and capacity reductions. Clearly, they believe they can fill flights originating from Eastern Canada. There isn't anything special about the West apart from from business considerations.
The eastern ones may yet follow perhaps. I can imagine that WS has far more of the leisure market share in the west vs TS being strong out of Quebec.
Deal Fanatic
Nov 25, 2010
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Abbottabad
Looks like Transat is done folks.

2000 employees permanently laid off in Canada.
Member
Mar 16, 2006
394 posts
453 upvotes
Vancouver
Bummer. I hope other don't follow this. It would suck to lose our non-stops out of YVR.
Sr. Member
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Jul 30, 2015
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BrunetteGirl wrote: https://globalnews.ca/news/7326534/tran ... ronavirus/

2100 staff is hardly a marker of being “done” given the current circumstances.

Pretty much every airline in the world has laid off a substantial number of staff.
Exactly.

Those 2100 employees were ''laid off'' for months already but got recalled because of CEWS. Now with major changes to CEWS announced by government Trudeau last month, those who benefits CEWS will eventually (in the following weeks i guess) have to go on EI.
Never argue with stupid people, they will drag you down to their level and then beat you with experience.
Sr. Member
Aug 3, 2017
980 posts
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The TS business model puts them in a pretty precarious position. The really have no traffic until summer 2021 europe flying resumes (in an optimistic view there will be much of a summer 2021 vacation season) or winter 2022. At least WS/AC can cart around essential workers, family visits/emergencies and some cargo. TS are not set up for any of that. I suspect they may need to close shop and see if AC or WS picks up the pieces for the Quebec traffic down the road. Their investors were hoping for a big payoff with the AC purchase, but I suspect that is just a lost dream at this point.
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Jul 30, 2015
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dolfan1980 wrote: The TS business model puts them in a pretty precarious position. The really have no traffic until summer 2021 europe flying resumes (in an optimistic view there will be much of a summer 2021 vacation season) or winter 2022. At least WS/AC can cart around essential workers, family visits/emergencies and some cargo. TS are not set up for any of that. I suspect they may need to close shop and see if AC or WS picks up the pieces for the Quebec traffic down the road. Their investors were hoping for a big payoff with the AC purchase, but I suspect that is just a lost dream at this point.
Well clearly they are, as they have 2 x A330s flying cargo only now(been announced back in June). They also increased their domestic program and lots of ''friends and family'' pax flying to France and PAP.

Short term leisure travel is basically non existent, but eventually it will come back while I think business travel will take a while to recover. Much longer than leisure travel in fact.
Never argue with stupid people, they will drag you down to their level and then beat you with experience.
Sr. Member
Aug 3, 2017
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Latitude57 wrote: Well clearly they are, as they have 2 x A330s flying cargo only now(been announced back in June). They also increased their domestic program and lots of ''friends and family'' pax flying to France and PAP.

Short term leisure travel is basically non existent, but eventually it will come back while I think business travel will take a while to recover. Much longer than leisure travel in fact.
As legacy carriers start flying again, the cargo runs will dry up and I can't see how much France traffic TS will have going into the fall/winter, not to mention this is really just a sliver of their normal network. I'd be pleasantly surprised if they are doing well, but their model (similar to Sunwing) has to be hurting really bad with a difficult outlook. If they were doing just great, there would be less rumours about AC walking from the merger and TS being the ones pushing for a government bailout - https://www.theglobeandmail.com/busines ... -deal-hits
Deal Fanatic
Dec 20, 2018
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Transat asks for federal bailout as it's not able to raise funding and cash burn is higher than anticipated even with the cost cutting

The AC deal saved them from Bankruptcy last year but looks like the same deal will push them to it during the pandemic

Air Canada can object to them taking on more debt and nix any financing deal and in effect cancel the takeover deal when Transat goes under cause it can't get financing

https://www.theglobeandmail.com/busines ... /#comments
Transat renews call for bailout as stalled Air Canada deal hampers its ability to borrow



Airline and tour operator Transat A.T. Inc. said it needs more cash to survive the pandemic that hammered demand for air travel, but its ability to borrow is restricted by wording in the stalled Air Canada takeover deal.

Benoît Poirier, a stock analyst at Desjardins Securities, said Transat’s attempts to save cash are not working as expected. Excluding customer deposits and deferred revenue, Transat has $219-million in cash, less than the $489-million Mr. Poirier expected.

Still, the company said it needs to raise more money, and it is not clear Air Canada will permit it to do so.

“The covenants undertaken under the arrangement agreement with Air Canada restrict and govern the corporation’s capacity to obtain additional sources of financing and may require Air Canada’s prior consent,” Transat said on Thursday in a statement releasing its third-quarter financial results. “Although the agreement provides that Air Canada’s consent may not be unreasonably withheld, there is no certainty that Air Canada will consent to the obtaining of additional sources of financing by the corporation.”
Last edited by StatsGuy on Sep 10th, 2020 7:19 pm, edited 1 time in total.
Sr. Member
Aug 3, 2017
980 posts
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StatsGuy wrote: Transat asks for federal bailout as it's not able to raise funding and cash burn is higher than anticipated even with the cost cutting

The AC deal saved them from Bankruptcy last year but looks like the same deal will push them to it during the pandemic

Air Canada can object to them taking on more debt and nix any financing deal and in effect cancel the takeover deal when Transat goes under cause it can't get financing

https://www.theglobeandmail.com/busines ... /#comments
Perhaps this will be the out AC wants - agree to cancel the deal if TS waives the break fee.
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Jul 30, 2015
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StatsGuy wrote: Transat asks for federal bailout as it's not able to raise funding and cash burn is higher than anticipated even with the cost cutting

The AC deal saved them from Bankruptcy last year but looks like the same deal will push them to it during the pandemic
What? Your comment makes no sense. :facepalm: Either way, my signature applies to you.
Never argue with stupid people, they will drag you down to their level and then beat you with experience.
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Aug 3, 2017
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Latitude57 wrote: What? Your comment makes no sense. :facepalm: Either way, my signature applies to you.
They were near bankruptcy last year and the AC merger basically saved them bankruptcy, but now the inability to make market decisions or conclude the deal might sink them yet. I'm not sure why StatsGuy's post doesn't make sense? Certainly not to the point to be rude about it.
Deal Fanatic
Dec 20, 2018
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Latitude57 wrote: What? Your comment makes no sense. :facepalm: Either way, my signature applies to you.
You should take it up with the globe and mail then as it came from them but pretty straight forward

Transat was saved by AC merger deal but now that same deal is preventing them from borrowing money to stay afloat and wait/hope for merger to be approved. Europe says they'll decide by December but then still needs to be approved by competition bureau which doesn't have timeline. Transat may not have enough cash to burn until those approvals and can't borrow any or they breach covenants in the takeover deal

Yes your signature is a good disclaimer to others for your posts but I don't have any issues with educating people even if they may not be able to absorb the material.

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