This turns into a whole week for Canadian aviation. At the beginning of the week it was announced that WestJet will be acquired by a private investment company in a $ 5 billion deal. Now, the airline continues to operate, this time in the form of consolidation among Canadian airlines.
Air Canada intends to purchase Air Transat
Today it was announced that Air Canada entered into an exclusive Air Transat deal
The proposed deal is estimated at about $ 520 million, or $ 13 per share.
General Director of Air Canada, Calin Rovinescu, said the following:
"The combination of Transat is a great opportunity for the stakeholders of both companies. This includes both Transat and Air Canada shareholders, both companies that benefit from increased security and growth prospects, as well as Canadian travelers who benefit from the enhanced ability of the company to participate as a leader in highly competitive recreation. global travel market. Acquiring offers a unique opportunity to compete with the best in the world when it comes to leisure. This will also allow us to continue to develop our center at Montreal-Trudeau airport, where from 2012 we added 35 new routes to the benefit of the communities of Montreal and Quebec, and from which we transported 10 million customers only in 2018. " This has not yet been done, so we can expect further ads only after signing final agreements.
My Air Canada Reception Receives Air Transat
Most of you are probably familiar with Air Canada, although Air Transat is an airline with which everyone is not familiar. The Montreal Airlines has a fleet of about 40 aircraft, and they have a fairly diverse fleet, including A310 (!!!), A330s, A321s and 737s, and they have A321LRs to upgrade their fleet in the long run
Air Transat A321LR
Air Transat primarily provides recreational routes, most of which are seasonal. They operate in numerous transatlantic markets, as well as in the Caribbean, Mexico and flights to Canada.
What makes this interesting is that Air Canada has its own cheap carrier, Rouge, which works in the same direction.
It would be interesting to see if Air Canada plans to build Air Transat in Rouge and eliminate a competitor in the process, or if they will keep branding separately.
I think that the Air Transat will become part of the Rouge, although it is possible in the course of the process some of the planes would go to Airline's & # 39; s mainline fleet, only so the airline can keep some sequence.
Based on Air Transat's current fleet:
- While Rouge currently uses 767s for long Aircraft Transit, I could see them using the A330s Air Transat for long flights, as well as
- A310s Air Transat, probably will soon be released, and replaced by A321LRs
- Air Transat has a small fleet of 737s; Air Canada has only 737 MAXs, so I wonder if Rouge will actually launch a small 737s submarine, or if they just get out of it
- I'm almost surprised if the A321LR Air Transat order can just go to the Air Canada mainline, as it's not It seems that it definitely fits into the Rouge business model and I could see the merit of A321LRs in the Air Canada Navy
The Lower Line
Air Canada acquired Air Transat seems to be well suited as Air Transat can join to the Rouge fleet. With such an agreement, Air Canada will be able to eliminate a competitor.
Although Air Canada is talking about the benefits of such an agreement, it will almost certainly not be beneficial for consumers. General Director of Air Canada said that consumers "will benefit from the company's enhanced ability to participate as a leader in the highly competitive tourism market worldwide."
A much more realistic reality for consumers is that Canadian aviation is not so competitive and we saw that the airline was eliminating. This leads to an increase in fares …
What do you plan to do with Air Canada's plans for the purchase of Air Transat? Do you think they would just roll up the airline in Rouge, or?