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Canada’s WestJet lays off another 415 pilots
07.04.2021 – 09:58 UTC
The Airline Pilots Association of Canada has strongly criticised Ottawa for procrastinating in responding to the COVID-19 crisis in Canadian aviation after WestJet (WS, Calgary) laid off another 415 pilots on April 1, 2021, while uncertainty continues at other major carriers, including Air Transat (TS, Montréal Trudeau).
“Unfortunately, the government continues in its failure to respond adequately to the effects of the COVID-19 crisis on Canada’s aviation sector. As the government continues to procrastinate, the industry grows more vulnerable with every passing day, and jobs continue to disappear,” charged Tim Perry, president of the Air Line Pilots Association, Int’l (ALPA) Canada, who was amongst those laid-off at WestJet.
“Almost 10,000 WestJet careers remain in limbo, with only 4,800 employees remaining on staff, compared to the 14,000 employed just 12 months ago,” he said.
In addition, the employment status of nearly 5,000 highly skilled workers at Air Transat remained unknown. “In addition to failing to mitigate the fallout from the pandemic, our government spent 18 months deliberating over the pending sale of this airline…
Air Transat mulls options after EC thwarts Air Canada tie-up
05.04.2021 – 20:18 UTC
Air Canada (AC, Montréal Trudeau) has abandoned plans to acquire Air Transat (TS, Montréal Trudeau), after efforts to secure antitrust consent from the European Commission (EC) failed.
In a joint statement, the two Canadian carriers said they had mutually agreed to terminate plans for Air Canada to acquire the airline’s parent Transat Inc., initially announced in June 2019 and then revised in October 2020 as a result of the severe economic impact of the COVID-19 pandemic, after the EC rejected Air Canada’s enhanced package of remedies aimed at placating European competition concerns.
“Following recent discussions with the EC, it has become evident, however, that the EC will not approve the acquisition based on the currently offered remedy package,” Air Canada said in a statement.
“After careful consideration, Air Canada has concluded that providing additional, onerous remedies, which may still not secure an EC approval, would significantly compromise Air Canada’s ability to compete internationally, negatively impacting customers, other stakeholders and future prospects as it recovers and rebuilds from the impact of the COVID-19 pandemic….
Canada’s Air Transat urgently needs C$500mn to survive
16.03.2021 – 11:14 UTC
Air Transat (TS, Montréal Trudeau) urgently needs to secure CAD500 million Canadian dollars (USD401 million) in long-term financing to ensure its operations’ continuity should its acquisition by Air Canada (AC, Montréal Trudeau) not go ahead, parent company Transat A.T. Inc. said in its first-quarter 2021 financial report.
Even though the Canadian government, shareholders, and the Superior Court of Québec have approved the Air Canada deal, a February 15 “outside date” deadline for a decision by the European Commission (EC) passed after it requested additional information from the parties. The EC is now expected to make a decision sometime in the first half of 2021. Air Canada has informed Transat it will not agree to an extension of the outside date. Meantime, a revised “Arrangement Agreement” between Air Canada and Transat remains in force, but each party may terminate it at any time following the stipulated terms.
“As of January 31, 2021, there exists material uncertainty that may cast significant doubt on the corporation’s ability to continue as a going concern. Should the transaction…
Transat AT extends $198mn loan facility termination date
22.02.2021 – 02:49 UTC
Air Transat (TS, Montréal Trudeau) parent Transat AT has announced that it has extended the termination date of its CAD250 million Canadian dollar (USD198 million) short-term loan facility by three months, giving it some financial flexibility while it waits for the European Commission’s regulatory ruling on its planned takeover by Air Canada (AC, Montréal Trudeau).
As previously reported, the tour operator group announced on October 10 last year that it had been able to implement the loan facility with export credit agency Export Development Canada and the National Bank of Canada – the country’s sixth-largest commercial bank – as lead arranger.
The facility will terminate either on June 30 or at the closing of the arrangement with Air Canada, whichever is the earliest date, Transat AT explained in a statement on February 18.
“It may still be drawn in tranches at any time before a date now set at May 31, 2021, subject to meeting the relevant prior conditions and applicable borrowing conditions. Those conditions have not been amended, and include certain…
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