Transat Says Airline Talks With Ottawa Are At Advanced Stage

Image: Air Transat (Transat Media License)
Image: Air Transat (Transat Media License)
by Jim Byers
Last updated: 4:35 PM ET, Tue April 6, 2021

Talks between the Canadian airline industry and the Liberal government are in their "advance stages," Air Transat says.

Transat spokesman Christophe Hennebelle told the Toronto Star that talks are "in their advance stages, both for relief and for sectoral aid."

Hennebelle told TravelPulse Canada he has no reason to expect that that's the case just for Air Transat.

"I would know only for Transat, but I have no reason to think that talks are progressing only for us," he said.

Unifor leader Jerry Dias recently said he expected an agreement was coming soon. He has suggested that a financial package for Canada's airlines could be worth more than $7 billion.

Officials have suggested that federal assistance likely will come in the form of low-interest loans.

Writing on his Twitter feed last Friday, Transport Minister Omar Alghabra said the Liberal government is engaged in "active discussions" with Canadian airlines.

The Trudeau government has said any assistance package will come with conditions, including restoration of cancelled air routes in Canada and refunds for customers who had flights cancelled due to COVID-19.

The major airlines have said they have no problem with either condition.

Transat and Air Canada last Friday called off a deal that would've seen the two companies combine into one airline.

That clears the way for another bidder to bid for Transat. Quebecor Inc. President and CEO Pierre Karl Peladeau has previously offered to buy Transat and repeated his interest last week.

Hennebelle said Transat hasn't had any discussions with Peladeau in the past few weeks.

"We will now have whatever contacts are necessary to consider all our options," he said. "I will not elaborate any further at this stage."

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Jim Byers

Senior Editorial Director

Jim Byers was travel editor for five years at the Toronto Star, which has the largest travel section in North America. He has...

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