Photo: Graham Hughes Archive The canadian Press
The prime minister of Québec, François Legault, is not closing the door to a possible support to Transat.
The uncertainty about the future of air transportation Air Transat concerned about the prime minister of Québec, François Legault, who does not close the door to assistance.
In August 2019, the shareholders of Transat A. T., parent company of the air carrier, had approved the sale of the company to Air Canada. The transaction was valued at 720 million. But since the pandemic COVID-19, and the reluctance of the authorities to approve the transaction may have cooled the enthusiasm of Air Canada, who could ultimately give it up.
At a press conference on Thursday, Mr. Legault stated that the minister of the Economy and Innovation, Pierre Fizgibbon, had discussions with the directors of Transat and Air Canada, as well as with the federal government. “This is a situation that is very difficult to Air Transat. Stone Fizgibbon and Investissement Québec speak with the executive officer of Air Transat. It is a situation that is worrying,” said the prime minister.
He acknowledged the complexity of the case and the gravity of the crisis caused by the pandemic. “It is perhaps the sector most affected. Find the volume of passengers that we had before the crisis could take years. The rents in the long term on aircraft is expensive. This requires an agreement with the creditors and those who hold the debt on the aircraft. It is very complex.”
In addition to the pandemic, the authorities were reticent towards the transaction, in Europe as in Canada. In march, the competition Bureau of Canada had expressed a negative opinion, arguing that it could have a negative impact on at least 83 links, of which 49 between Canada and Europe. Transport Canada has provided its assessment to the federal minister of Transport, Marc Garneau. Ottawa is expected to decide by the end of the month of June, according to the original schedule.
The annual meeting of the shareholders of Air Canada will take place in a virtual way on the 25th of June. The subject of the transaction does not appear on the agenda.