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Air Canada To Purchase Air Transat


Johnboy

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OHHHH the implications...

AT will provide AC with the ability to do Maintenance anywhere it wants and wiggle around other provisions of the ACPPA.  Leave AT in Quebec and then move AC anywhere it wants.  

This could be a very good move for AC.

 

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1 hour ago, boestar said:

OHHHH the implications...

AT will provide AC with the ability to do Maintenance anywhere it wants and wiggle around other provisions of the ACPPA.  Leave AT in Quebec and then move AC anywhere it wants.  

This could be a very good move for AC.

 

I think there several reasons for this to be a good purchase for AC (and rouge) and the first one probably before Onex/WestJet gets their hands on AT. 

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Sounds like a desperate attempt to acquire a so-so company to stop Onex from getting them. 

AC can have them and the multiple issues they are going to have with that crowd in a merger however less problematic than if WJ acquired them being a Quebec company and all.

Unless they are just buying for the aircraft and intend on dissolving the company.

 

 

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... and there it is. The first slam at a group of hard working people who are just like the rest of us. They go to work each day and do their best to serve the customers. We should be better than this. Like it or not, we're all small puppets in someone else's sideshow. IMHO we should try to remember that and keep it civil.

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As I predicted.

For the price paid it is great value to AC. There will be some non-core asset sales but operationally it should remain largely intact (albeit with a new paint job).

AC will be making a giant leap in the packaged tour business well beyond the current market presence. Significant addition of capacity on the North Atlantic.

Consolidation of work force should be the labour objective. Hope that the unions handle it respectfully.

 

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18 minutes ago, thinair said:

Sounds like a desperate attempt to acquire a so-so company to stop Onex from getting them. 

AC can have them and the multiple issues they are going to have with that crowd in a merger however less problematic than if WJ acquired them being a Quebec company and all.

Unless they are just buying for the aircraft and intend on dissolving the company.

 

 

Transat has had its list of issues since their start-up but having flown with them several times over the last few years I can say with confidence there is nothing ‘so-so’ about their quality of service. 

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All it would take is a WJ/Onex offer of $14/share plus 15 million to walk away from the AC offer.

Does anyone remember how many times the back and forth bidding went last time?

It was a lot if I remember.  If it is Onex that wants Transat and WestJet together?  I don't know this as fact of course.  But if it is the case this is likely not over.

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There was an auction for Virgin America that was triggered by an unsolicited offer from JetBlue but won by a higher financial offer from Alaska Airlines. 

The resulting merger has not been a glowing success for a myriad of reasons.

Sometimes choosing the right partner is more important than accepting the highest offer.

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4 minutes ago, Turbofan said:

Agreed.

But is that even relevant to the shareholder who gets completely bought out?

Agreed.

However, notice the flowery language in the TRZ press release. Pretty obvious who they want to dance with. Certainly has to do with province of HQ.

If either WJ or ONEX make a richer offer then there may in fact be a sanctioned auction.

 

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The politics of our country will play a key part of this transaction. One Quebec based company taking a serious look at another. No rocket science needed here. 

Champagne corks should be popping around the TS offices as they have now become the ‘Bell of the Ball”.  

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Well there goes any competition when booking a vacation, I have for years always priced each airlines vacations to the same place and always in advance and have yet to find Air Canada even close to the price offered by Transat Vacations and I go back many years of travel to the Caribbean. we the customer need more competition not less, I hope this falls through big time

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2 hours ago, blues deville said:

Transat has had its list of issues since their start-up but having flown with them several times over the last few years I can say with confidence there is nothing ‘so-so’ about their quality of service. 

Yes good point.

My apology to the hard working people at Air Transat. I was assuming it’s the same organization from 20+ years ago so I suppose it’s a very different management today. 

I have heard they have a great service as well.

 

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CUPE wades in.

Merger of Air Canada and Transat: CUPE will hold the new employer accountable Français

Logo: Canadian Union of Public Employees (CUPE) (CNW Group/Canadian Union of Public Employees (CUPE))

News provided by

Canadian Union of Public Employees (CUPE)

May 16, 2019, 13:49 ET

 


OTTAWA, May 16, 2019 /CNW/ - The union representing Air Canada's and Air Transat's flight attendants will hold the new employer accountable for promises made to employees if a merger agreement is finalized.

"Air Canada President and Chief Executive, Colin Rovinescu said that employees of both companies will benefit from increased job security and growth prospects," said the president of the Air Canada Component of CUPE, Wesley Lesosky.

"According to Transat President and Chief Executive Officer Jean-Marc Eustache, this merger is the best prospect for not only maintaining, but growing the business and jobs," added the president of the Air Transat Component of CUPE, Julie Roberts.

"We will make sure that these commitments to our members are respected," noted Lesosky and Roberts.

"CUPE is Canada's biggest union with more than 680,000 members across the country. We will use all our collective power to defend the interests of our members at Air Canada and Air Transat," said CUPE National President Mark Hancock.

"In CUPE, we combine our resources to help each other. If the proposed merger translated into attacks against our members, CUPE National will be there in full strength to support them," said CUPE National Secretary-Treasurer Charles Fleury.

CUPE represents more than 9,000 flight attendants at Air Canada and Rouge and 2,000 flight attendants at Air Transat.

SOURCE Canadian Union of Public Employees (CUPE)

For further information: Philippe Gagnon, Communications Officer, 613-894-0146, pgagnon@scfp.ca

Related Links

https://cupe.ca/

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