Struggling tour operator Air Transat is in talks with the federal government on aid but may not reach a deal by an April debt deadline, a source close to the situation said, putting pressure on Quebec to ride to the rescue of another troubled aerospace brand in the province. Quebec’s government is also following the situation very closely. Visit our Community Guidelines for more information and details on how to adjust your email settings. THE CANADIAN PRESS/Paul Chiasson. A new $250-million credit facility, which matures on June 30, will need to be replaced or extended before that date. Having recently revamped its fleet with modern, fuel-efficient Airbus A321neoLR jets, Transat must now squarely tackle the challenge of filling its planes without the benefit of a regional network of feeder carriers such as the one that Air Canada boasts, said ATB Capital’s Murray. COVID-19 in Alberta: 1,731 cases reported Sunday as more admitted to ICU, Why so many Americans are skipping their second COVID-19 shot, India's coronavirus death toll hits new record, Ontarians 18+ in 114 hot spots can book their COVID-19 vaccine starting tomorrow, Proud Boys Canada dissolves itself, says it was never a 'white supremacy' group, How a sign war in this Ont. Transat had previously said the bid lacked the required level of financing. Péladeau, who proposed buying Transat for $5 a share, said on Friday his offer is still available. (Additional reporting by Steve Scherer in Ottawa; Writing by Amran Abocar), Air Transat and an Air Canada aircrafts are seen on the tarmac at Montreal-Trudeau International Airport in Montreal, on Wednesday, April 8, 2020. Profitez de millions d'applications Android récentes, de jeux, de titres musicaux, de films, de séries, de livres, de magazines, et plus encore. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. “We won’t leave Transat without support,” Mathieu St-Amand, a spokesperson for Economy Minister Pierre Fitzgibbon, told the Montreal Gazette. Canada’s largest carrier first bid for Transat in 2019 and discounted its offer last year as the pandemic decimated the travel and tourism sector. The separatist Bloc Quebecois said it wanted to ensure Quebec ownership would be favored for the carrier and blamed Ottawa, which approved the merger in February, for delaying an airline aid package. The carrier employs 5,000 people, mostly in Quebec, home to much of Canada’s aerospace sector. Founded in 1986, it is the country's third-largest airline, operating scheduled and charter flights, serving 60 destinations in 25 countries. breaks daily COVID-19 record with over 2,400 new cases, Federal guidance after vaccinations coming 'shortly': Hajdu. "It is in our collective interest that its decision-making center as well as its control remain in Quebec." A second source familiar with the matter said Péladeau’s offer did not call for funding from the Quebec government, which said in February it was looking at scenarios for Transat "with or without Air Canada.". We apologize, but this video has failed to load. Transat, which last month suspended flights until June due to pandemic guidelines, has said it needs at least C$500 million in financing this year. The $5-a-share proposal “is still valid and includes certain conditions that Mr. Péladeau wishes to lift quickly in order to remove the company from the state of uncertainty in which it has been mired for several months,” a spokesperson for the Québecor CEO said Friday. Transat weighing alternatives to Air Canada deal, says multiple options exist, Caisse CEO urges Transat to consider all options in case Air Canada deal dies. © 2021 Montreal Gazette, a division of Postmedia Network Inc. All rights reserved. Read more about cookies here. (Reuters) -Air Canada scrapped its proposed acquisition of Transat AT Inc on Friday after being advised by the European Commission that it would still face high regulatory hurdles, clearing the way for other domestic suitors for the tour operator. Transat reiterated Friday it needs at least $500 million in new financing this year. (Bloomberg) -- Transat AT Inc., the Montreal-based vacation operator that Air Canada gave up trying to buy earlier this month, obtained C$700 million ($570 million) in emergency aid from the Canadian government to stay afloat during the pandemic.The company took loan facilities of C$390 million for operations and another C$310 million to finance customer refunds for flights canceled … Airlines have been in talks with Ottawa since last year about a possible aid package. Air Canada’s deal to buy Transat A.T. Inc. is dead. Quebec has come to the aid of struggling aerospace companies before. Friday’s announcement caps a tumultuous takeover saga that began in June 2019 when Air Canada agreed to pay $13 a share for all of Transat’s shares. The offer “includes a rigorous business plan focusing on areas of the company with high growth potential, on expertise and job creation in Quebec, and on the development of the head office in Montreal.”. town is lifting local spirits, Shrieking birds swarming Australia compared to horror scene, Frankie revealing the realities of pet pig ownership, About 22,000 guns melted into 60 tons of steel, CTV National News: Unfolding COVID-19 catastrophe. Péladeau, chief executive of Quebecor Inc, said in a statement that his offer includes "a rigorous business plan focusing on areas of the company with high growth potential, on expertise and job creation in Quebec” and a continued Montreal head office. “The most important thing for our government is to protect jobs in Quebec and across Canada, as well as preserving the long-term viability of Transat,” Alghabra said. Market-share dominance on some routes was a key concern of regulators. Duke and Duchess of Cambridge share new photo of Princess Charlotte for her 6th birthday, Rare 'super blood moon' will be visible from Canada later this month, Accountants, politicians call on Canada Revenue Agency to delay income tax deadline, Filing 2020 taxes late could lead to months of delays for COVID-19 financial aid, says CRA, Why doctors, advocates are calling for permanent paid sick days for Canadian workers, Sickness benefit available, feds willing to help provinces vaccinate: PM Trudeau. Sign up for our weekly email newsletter delving into climate science and life on a changing planet. Air Transat is a Canadian airline based in Montreal, Quebec. 365 Bloor Street East, Toronto, Ontario, M4W 3L4. The CEO told financial analysts last month that the company had already begun weighing alternatives to Air Canada in case the deal unraveled. À tout moment, où que vous soyez, sur tous vos appareils. It has obligations due on April 29 for a $50 million revolving facility and a C$250 million short-term loan that matures on June 30. Days of operation: All 7 days (including public holidays) Timings: 0900 Hrs- 1800 Hrs. The federal government therefore absolutely has to come up with a solution," the source added, noting that "Transat has more of a cachet in Quebec (than Air Canada).". It is the largest airline in Malaysia by fleet size and destinations. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. If it does not meet the April 29 requirements, or obtain another extension, creditors could accelerate the repayment obligation. A spokesman for Quebec’s economy minister declined comment on Sunday. No longer constrained by the terms of the Air Canada accord, Transat is now “free to take the necessary steps to ensure a successful long-term future,” starting with long-term financing, Eustache said. Both companies said Friday they’ve mutually agreed to terminate the agreement, having concluded they wouldn't be able to secure European Commission approval. With a rejuvenated fleet that includes dozens of new Airbus A220 and Boeing 737 Max aircraft, “Air Canada is going to be a ferocious competitor coming out of this deal,” said Murray. The company also said it has “been taking and will continue to take” all measures available to preserve cash. Markets were closed for Good Friday. Into climate science and life on a changing planet this website uses cookies to your! A termination fee of $ 12.5 million a Canadian airline based in Montreal, Quebec ''! 60 destinations in 25 countries has “ been taking and will continue to take ” measures. 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