Due diligence on binding agreement due to be completed by end
of June
MONTREAL, June 4, 2019 /CNW Telbec/ - Air Canada today
said that it is in the process of finalizing its binding agreement
to purchase all of the issued and outstanding shares of Transat AT
Inc. and its combination with Air Canada to create an industry
leading, Quebec-based leader in
the global leisure travel industry. Air Canada announced on May
16, 2019 that it had entered into an exclusive agreement
with Transat regarding the proposed transaction and that the
agreement was subject to Air Canada completing a 30-day due
diligence period now expected to be complete towards the end of
June.
Air Canada's acquisition will
result in job creation and economic growth in Quebec, given the travel and tourism
opportunities. Moreover, Air Canada has all necessary funding to
complete the transaction and therefore it is not subject to
financing conditions and does not require government or taxpayer
assistance.
The transaction, valued at $520
million, remains subject to the finalization of definitive
agreements, confirmatory due diligence, regulatory and shareholder
approvals and other closing conditions usual in this type of
transaction. There is no assurance that the transaction will be
completed as described in this news release or at all.
Air Canada presence and investment
in Montreal and the Province of Quebec.
Air Canada is proud to have been named one
of Montreal's top employers for each of the last six
years. Headquartered in Montreal since 1949, Air Canada
maintains one of the largest global head offices in Quebec.
Air Canada employs 36,000 employees globally, with close
to 10,000 of those in the province of Quebec where it has
created over 2,600 new jobs over the last five years.
Air Canada's Executive Committee members (President and
Chief Executive Officer, Chief Financial Officer, Chief Commercial
Officer and Executive Vice-President, Operations) in addition to
many other key members of the Executive Management team are all
based in the Montreal Headquarters.
Air Canada serves 11 airports
across Quebec. The international reach of Air Canada's network
makes Quebec a gateway to the world and is an important
tool for economic development, including tourism.
Montréal-Trudeau Airport is a strategic hub for Air Canada
connecting its Quebec and Atlantic
Canada domestic network, with its U.S.
transborder, Caribbean, European, North African, Asian and
South American flights. To the U.S. alone, Air Canada connects
Montreal-Trudeau to some 24 cities.
Since 2012, Air Canada has launched 35 new routes from
Montréal-Trudeau to global markets
including Shanghai, Beijing, Tokyo, Tel
Aviv, Lima, Sao Paulo, and Casablanca. This growth
has allowed Montreal to rank amongst the top 50 most
internationally connected cities in the world and to become one of
the largest North American hubs.
Air Canada served more than 10 million passengers
in Montreal in 2018.
Caution Regarding Forward-Looking Information
This news release includes forward-looking statements within
the meaning of applicable securities laws. Forward-looking
statements, by their nature, are based on assumptions and are
subject to important risks and uncertainties. Forward-looking
statements cannot be relied upon due to, amongst other things,
changing external events and general uncertainties of the business.
Actual results may differ materially from results indicated in
forward-looking statements due to a number of factors. The
acquisition of Transat A.T. Inc. is subject to the
satisfactory negotiation of transaction
documents, Transat A.T. Inc. shareholder
approval, court approval, regulatory approvals, and
certain customary and other conditions and there are no assurances
that the acquisition will be completed as described in this news
release or at all. Any forward-looking statements contained in this
news release represent expectations as of the date of this news
release and are subject to change after such date. However, except
as required under applicable securities regulations, any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
is disclaimed.
About Air Canada
Air Canada is Canada's largest domestic and
international airline serving nearly 220 airports on six
continents. Canada's flag carrier is among the 20 largest
airlines in the world and in 2018 served nearly 51 million
customers. Air Canada provides scheduled passenger
service directly to 62 airports in Canada, 54 in the
United States and 100 in Europe, the Middle
East, Africa, Asia, Australia,
the Caribbean, Mexico, Central
America and South America. Air Canada is a
founding member of Star Alliance, the world's most
comprehensive air transportation network serving 1,317 airports in
193 countries. Air Canada is the only international
network carrier in North America to receive a Four-Star
ranking according to independent U.K. research firm Skytrax, which
also named Air Canada the 2018 Best Airline in North America.
For more information, please visit: aircanada.com/media,
follow @AirCanada on Twitter and join Air Canada
on Facebook.
SOURCE Air Canada