No Commission Recall in Transat's $700M Bailout

Transat is getting its federal rescue package from the Trudeau government and will not be recalling commissions.

"Travel agents have shown unwavering resilience and support since the crisis began," said Chief Operating Officer Annick Guérard. "That's why we're pleased to confirm that commissions earned by agents will not be recalled if their customers opt for a refund."

Among the parameters set by government authorities, those who have a travel credit must submit their refund request to Transat by August 26, 2021.

It was announced earlier today that Transat will receive loan financing through the Large Employer Emergency Financing Facility ("LEEFF") totaling $700 million. As a condition of the loan agreement, Transat has agreed to provide refunds for all pandemic-related cancellations to eligible customers-$310 million of the total financing will be a repayable loan to finance these refunds.

"We've been impatiently waiting for this moment, and we know our customers have been, too," said Guérard. "Now that a funding agreement has been reached and the eligibility criteria have been established by the Government of Canada, we are delighted to be able to provide our customers with this long-awaited aid."

Customers and travel agents are invited to visit airtransat.com/refunds to consult Transat's frequently asked questions or learn about the refund eligibility criteria.

The LEEFF program also was used to help Sunwing, which received $375 million, and for Air Canada.

Speaking at today's annual shareholders meeting, Transat Chairman, President and CEO Jean-Marc Eustache said he's "strongly convinced that the post-COVID environment will be favourable to us, because we are operating in the right market, the leisure market. Whether it's visiting with friends or relatives, or holidays, all studies say this market will recover much strongly than the business travel market."

Eustache said the Montreal-based company is exploring a number of business opportunities.

"In the medium term, we will need to join forces with others to strengthen our network and our commercial clout in an increasingly concentrated airline landscape," he said. "Is it still possible that Transat will be purchased? This is an option that we will consider, along with continuing under the present conditions.

"In the short term, an opportunity to move in this direction could be presented by the expression fo interest by Pierre Karl Peladeau. And we will have to determine in the near future whether this possibility is in the best interest of all stakeholders."

Peladeau expressed interest in buying Transat some time ago. He repeated his offer after Air Transat and Air Canada walked away from a proposed merger earlier this year.

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