Air Canada in discussions to buy Air Transat parent
Air Canada is planning to buy airline and tour operator business Transat AT for about $520 million.
Transat has agreed to a 30-day period of exclusive negotiations with Air Canada regarding a possible deal, which would value the company at $13 per share.
That is a 22% premium from its current share price.
The company sells tour packages, hotels and scheduled air travel under the Transat and Air Transat brands.
Transat said that after being courted by several interested parties, the board had chosen to finalize negotiations on an exclusive basis with Air Canada.
Transat announced earlier this month that it was in talks with several potential buyers.
The buyout would be subject to shareholder approvals.
"A combination with Transat represents a great opportunity for stakeholders of both companies," said Air Canada CEO Calin Rovinescu.
However Canada’s competition regular may take a very different view regarding consumer choice.
Canada’s transport minister Marc Garneau said the deal would likely be ‘subject to provisions’ of the Competition Act.
The Air Transat leisure airline business has about 20% of the transatlantic market out of Canada, and also flies to mostly vacation destinations in the Caribbean and Florida.
It flies to 26 countries, carrying nearly five million passengers annually.
It is unclear if Air Canada is interested in the airline operations only or the entire business which includes travel packages.
Transat is also building hotels in Caribbean destinations it flies to.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt