MONTREAL, Feb. 11, 2021 /CNW Telbec/ - Transat A.T. Inc. ("Transat" or the "Corporation") announced today that the Canadian government has approved the arrangement with Air Canada (the "Arrangement") contemplated under the revised arrangement agreement between Transat and Air Canada dated October 9, 2020 (the "Arrangement Agreement").
This authorization is subject to the implementation of significant undertakings agreed to by Air Canada, the object of which is firstly to ensure effective competition, and secondly to ensure public interest benefits (including maintaining a Transat head office in Québec, the preservation of jobs and the Transat brand, and the launch of new routes).
With the approval of Canadian authorities now in hand, the other significant regulatory approval remaining to allow the parties to consummate the Arrangement is the approval of the European Commission (the "Commission"). Given the time required for the Commission to review the last additional information requested, the review period has been extended and a decision of the Commission is now expected to be rendered in the first half of 2021.
Transat will discuss with Air Canada the appropriateness of extending the outside date for the consummation of the Arrangement under the Arrangement Agreement, which is currently set at February 15, 2021. After this date, if it is not extended, the Arrangement Agreement will remain in effect, unless terminated by one of the parties.
"We are currently working on adjusting all of the deadlines, including our financing agreements, in order to align them with the anticipated completion of the Commission's review process" commented Mr. Jean-Yves Leblanc, Chair of the special committee of the Board of Directors of Transat.
Caution regarding Forward-Looking Statements
This press release contains certain forward-looking statements about Transat concerning a potential transaction involving the acquisition of all of the Shares of Transat. These statements are based on certain assumptions deemed reasonable by Transat, but are subject to certain risks and uncertainties, several of which are outside the control of Transat, which may cause results to vary materially. Transat disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by securities laws.
In particular, the process to obtain the regulatory approval of the Commission is complicated by the COVID-19 pandemic and its impact on the international commercial aviation market. The market conditions of the global industry have been completely transformed. Among other things, the vast majority of North American, European and international air carriers have requested financial assistance measures, but have had to implement reductions in capacity (as the Corporation did). There can be no assurance that the Commission will approve the Arrangement, or that if it does, it will be with acceptable conditions, even if the Canadian authorities have approved the Arrangement.
Transat is a leading integrated international tourism company specializing in holiday travel. It offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands to some 60 destinations in more than 25 countries in the Americas and Europe. Transat is firmly committed to sustainable tourism development, as reflected in its multiple corporate responsibility initiatives over the past 14 years, and was awarded Travelife certification in 2018. Based in Montreal, the company has 5,000 employees (TSX: TRZ).
SOURCE Transat A.T. Inc.