Blueknows
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Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 4:08 pm

They just announced they have had interest in being bought
Last edited by SQ22 on Tue Apr 30, 2019 5:22 pm, edited 1 time in total.
Reason: Title was misleading
 
foxalphazulu
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Re: TRANSAT sale

Tue Apr 30, 2019 4:17 pm

I wonder what this means. I was under the impression they were doing well with the A321 fleet renewal.
 
robsaw
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Re: TRANSAT sale

Tue Apr 30, 2019 4:34 pm

https://www.cbc.ca/news/business/transa ... -1.5116543

Appears to be for the sale of the entire Transat A.T. company, not just the airline.

https://www.transat.com/en-CA/corporate ... ses/124217
 
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SQ22
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Re: TRANSAT sale

Tue Apr 30, 2019 5:23 pm

robsaw wrote:
https://www.cbc.ca/news/business/transat-in-preliminary-talks-for-takeover-1.5116543

Appears to be for the sale of the entire Transat A.T. company, not just the airline.

https://www.transat.com/en-CA/corporate ... ses/124217


Thanks for providing links to sources, you saved the thread from being deleted.
 
SpaceshipDC10
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Re: TRANSAT sale

Tue Apr 30, 2019 5:34 pm

foxalphazulu wrote:
I was under the impression they were doing well with the A321 fleet renewal.


Transat struggles amid rising Canadian competition for sun destinations

https://www.ctvnews.ca/business/transat ... -1.4217040

Transat confronts 'weak outlook' as stock plummets to six-year low

https://business.financialpost.com/pmn/ ... dges-lower

The A321 is part of the need to renew and simplify the fleet, but also to reduce costs.
 
ltbewr
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 5:35 pm

Who would be the likely buyers ? European based travel companies would likely be the best fit.
 
SpaceshipDC10
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 6:02 pm

ltbewr wrote:
Who would be the likely buyers ? European based travel companies would likely be the best fit.


This is from the CBC report link above:

"Transat did not name the potential bidders, but analyst Benoit Poirier of Desjardins Capital Markets said they could be the same groups that have expressed interest in Thomas Cook."

However, I don't remember who were these groups.
 
Blueknows
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 7:29 pm

I know the planes could be a good score for another airline looking throw quick. My though was JETLINES. They could get a quick AOC and eventually change certificate name
 
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TWA772LR
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 7:32 pm

B6 :stirthepot:
When wasn't America great?


The thoughts and opinions shared under this username are mine and are not influenced by my employer.
 
LightChop2Chop
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 7:54 pm

maybe Sunwing buys them out since the "own the hotel" part of the biz is familiar to Sunwing. Sunwing could then divest some assets to AC and WS to help pay for the transaction.
 
Dominion301
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 8:16 pm

Wouldn't be surprised if this were Thomas Cook, especially with TS and TCX now trading aircraft by the season and the large amount of Airbus fleet commonality.
 
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OzarkD9S
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 8:32 pm

TWA772LR wrote:

B6 :stirthepot:


Porter/AA. :stirthepot: :stirthepot: :stirthepot:
C'mon BA, bring your tail to STL. :airplane:
 
yulexpansion
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 8:34 pm

What if it's WestJet's thought of proper entry into the Quebec market.
 
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cirrusdragoon
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 8:38 pm

SpaceshipDC10 wrote:
ltbewr wrote:
Who would be the likely buyers ? European based travel companies would likely be the best fit.


This is from the CBC report link above:

"Transat did not name the potential bidders, but analyst Benoit Poirier of Desjardins Capital Markets said they could be the same groups that have expressed interest in Thomas Cook."

However, I don't remember who were these groups.


Primarily Chinese tourism giant Fosun, as well as some private equity groups, unnamed.

https://skift.com/2019/04/20/thomas-coo ... -interest/
 
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cirrusdragoon
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 8:43 pm

yulexpansion wrote:
What if it's WestJet's thought of proper entry into the Quebec market.


Mais non, WestJet has always favoured organic growth vs growth through acquisitions or mergers. Never say never although, but highly unlikely for WS to be a suitor. WS’s focus right now is to execute their current initiatives , Swoop , dreamliner and J class delivery and create returns for investors and show the analysts they can perform. 100% certain WS is not about to tackle a merger on top, that would surely be unwise.
 
alan3
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 9:00 pm

ltbewr wrote:
Who would be the likely buyers ? European based travel companies would likely be the best fit.


"TUI Canada"?
 
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cirrusdragoon
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 9:07 pm

alan3 wrote:
ltbewr wrote:
Who would be the likely buyers ? European based travel companies would likely be the best fit.


"TUI Canada"?


Tui possibly but they do already have a 49% equity stake and as well a 25% voting interest stake in Sunwing travel Group. https://business.financialpost.com/tran ... hip-limits
 
SpaceshipDC10
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 10:08 pm

cirrusdragoon wrote:
Primarily Chinese tourism giant Fosun, as well as some private equity groups, unnamed.

https://skift.com/2019/04/20/thomas-coo ... -interest/


Thanks:


"Air Canada or Germany's TUI Group could emerge as possible buyer of Transat, analysts say"

https://business.financialpost.com/tran ... p-analysts
 
ac7e7
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Re: Media: Air Transat in Talks of Selling the Company

Tue Apr 30, 2019 11:49 pm

My bet is Air Canada will be making a bid.
 
yulexpansion
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 12:27 am

Don't think it's fair for the Quebec government to be subsidizing a Quebec based company for a bid. Especially considering the Prime Minister's ties to Transat.
 
Salomon
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 2:31 am

My guess is Fosun International takes control of Thomas Cook/Transat and sets them up like TUI/Sunwing.
Takeoffs are optional; landings are mandatory.
 
wrongwayup
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:06 am

yulexpansion wrote:
Don't think it's fair for the Quebec government to be subsidizing a Quebec based company for a bid. Especially considering the Prime Minister's ties to Transat.


What ties does he have? Genuine question.
 
tribird1011
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:16 am

wrongwayup wrote:
yulexpansion wrote:
Don't think it's fair for the Quebec government to be subsidizing a Quebec based company for a bid. Especially considering the Prime Minister's ties to Transat.


What ties does he have? Genuine question.


I'm thinking he means the Premier of Quebec - he was a co-founder of Transat back in 1987.
Not sure of any links between the Prime Minister and Transat/Air Transat, other than leasing a 737 during the 2015 election campaign.
 
yulexpansion
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:28 am

tribird1011 wrote:
wrongwayup wrote:
yulexpansion wrote:
Don't think it's fair for the Quebec government to be subsidizing a Quebec based company for a bid. Especially considering the Prime Minister's ties to Transat.


What ties does he have? Genuine question.


I'm thinking he means the Premier of Quebec - he was a co-founder of Transat back in 1987.
Not sure of any links between the Prime Minister and Transat/Air Transat, other than leasing a 737 during the 2015 election campaign.


Yes, François Legault, the Prime Minister of Quebec, is the co-founder of Transat alongside the current CEO, Jean-Marc Eustache.
 
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aerolimani
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:52 am

yulexpansion wrote:
tribird1011 wrote:
wrongwayup wrote:

What ties does he have? Genuine question.


I'm thinking he means the Premier of Quebec - he was a co-founder of Transat back in 1987.
Not sure of any links between the Prime Minister and Transat/Air Transat, other than leasing a 737 during the 2015 election campaign.


Yes, François Legault, the P̶r̶i̶m̶e̶ ̶M̶i̶n̶i̶s̶t̶e̶r̶ Premier of Quebec, is the co-founder of Transat alongside the current CEO, Jean-Marc Eustache.
 
codyul
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:59 am

aerolimani wrote:
yulexpansion wrote:
tribird1011 wrote:

I'm thinking he means the Premier of Quebec - he was a co-founder of Transat back in 1987.
Not sure of any links between the Prime Minister and Transat/Air Transat, other than leasing a 737 during the 2015 election campaign.


Yes, François Legault, the P̶r̶i̶m̶e̶ ̶M̶i̶n̶i̶s̶t̶e̶r̶ Premier of Quebec, is the co-founder of Transat alongside the current CEO, Jean-Marc Eustache.

In French premier is premier ministre, which when directly translated into English is prime minister.
YUL PNC :weightlifter:
 
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cirrusdragoon
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 5:06 am

he doesn’t own any shares in the company since he left Transat in 1997 and went into politics .https://www.cbc.ca/news/business/air-tr ... -1.5116543
 
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usxguy
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 6:14 am

The Canadian government has already stalled First Air/Canadian North, again, for the 3rd time. So I'm not sure they'd approve Air Canada or WestJet swallowing up Transat unless the company is REALLY hurting, which I don't think it is.

Sunwing, however, tied in with TUI and the Royalton group, could make this a bit more interesting...
xx
 
mattyfitzg
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 9:29 am

As suggested above, I think there's a good chance this could be a Thomas Cook/Air Transat tie up, since both airlines are up for sale, and already work heavily with each other.
 
Skywatcher
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 1:20 pm

yulexpansion wrote:
Don't think it's fair for the Quebec government to be subsidizing a Quebec based company for a bid. Especially considering the Prime Minister's ties to Transat.


What subsidies are you referring to? Transat is a public company and I'm sceptical that any government funding has been disclosed.
 
yulexpansion
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 1:39 pm

Skywatcher wrote:
yulexpansion wrote:
Don't think it's fair for the Quebec government to be subsidizing a Quebec based company for a bid. Especially considering the Prime Minister's ties to Transat.


What subsidies are you referring to? Transat is a public company and I'm sceptical that any government funding has been disclosed.


Link in french only: https://www.lapresse.ca/affaires/entrep ... ction_POS4
 
ExMilitaryEng
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:12 pm

yulexpansion wrote:
Skywatcher wrote:
yulexpansion wrote:
Don't think it's fair for the Quebec government to be subsidizing a Quebec based company for a bid. Especially considering the Prime Minister's ties to Transat.

What subsidies are you referring to? Transat is a public company and I'm sceptical that any government funding has been disclosed.

Link in french only: https://www.lapresse.ca/affaires/entrep ... ction_POS4


I guess the word "subsidies" is not exact. The "prêt à investir" mentionned in the article literally means "ready to invest".

Now I agree, investments are often considered subsidies by the WTO...
 
yulexpansion
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:21 pm

ExMilitaryEng wrote:
yulexpansion wrote:
Skywatcher wrote:
What subsidies are you referring to? Transat is a public company and I'm sceptical that any government funding has been disclosed.

Link in french only: https://www.lapresse.ca/affaires/entrep ... ction_POS4


I guess the word "subsidies" is not exact. The "prêt à investir" mentionned in the article literally means "ready to invest".

Now I agree, investments are often considered subsidies by the WTO...


At the end of the day, it's not up to a provincial government to decide the matter at hand given that the Competition Bureau is a federal institution and they have the power to authorize an acquisition in such an oligopolistic industry.
 
FlyingColours
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:43 pm

Have the foreign ownership rules been relaxed? I recall the issue when Canada 3000 first launched in the 80s and was majority owned by Air 2000 from the UK, they were forced to sell up.

I think Thomas Cook would be the ideal partner but they haven't got the money, if the Chinese bidder bought Thomas Cook Group (not just the airline) and then took on Air Transat then that's a different story but the EU has foreign ownership rules too... Of course if they only buy 'x' amount of shares it could pass.

Phil
FlyingColours
Lifes a train racing towards you, now you can either run away or grab a chair & a beer and watch it come - Phil
 
yulexpansion
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 3:46 pm

FlyingColours wrote:
Have the foreign ownership rules been relaxed? I recall the issue when Canada 3000 first launched in the 80s and was majority owned by Air 2000 from the UK, they were forced to sell up.

I think Thomas Cook would be the ideal partner but they haven't got the money, if the Chinese bidder bought Thomas Cook Group (not just the airline) and then took on Air Transat then that's a different story but the EU has foreign ownership rules too... Of course if they only buy 'x' amount of shares it could pass.

Phil
FlyingColours


It has recently been increasing to 49% from 25% for airlines. However, it is Transat A.T. that is for sale, the parent company of Air Transat.
 
ExMilitaryEng
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 4:02 pm

To yulexpansion:

I personnaly have no problems in having (by example) the Caisse de Dépôt et de Placement du Québec (CDPQ) investing further (they already own some) in Air Transat. They are clever investors and if with the same token they can help keep some activities locally, that's fine with me.

Such an investment would not mess / dictate anything with the Competition Bureau. They'll professionnaly assess the situation and render a decision in line with Canadian consumers interests. (Actually, CDPQ might even save the day for them).

Regards
 
YOWVIEWER
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 4:39 pm

Note that Air Canada is already using Air Transat to fill in some gaps due to the Max shortage. Saw a Transat A330 operate the AC flight from Cancun to YUL last week while spotting. Is this the beginning of a long lasting friendship ? Time will tell, although I also agree that Sunwing or TUI group would be a good fit.
 
Skywatcher
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 5:23 pm

ExMilitaryEng wrote:
yulexpansion wrote:
Skywatcher wrote:
What subsidies are you referring to? Transat is a public company and I'm sceptical that any government funding has been disclosed.

Link in french only: https://www.lapresse.ca/affaires/entrep ... ction_POS4


I guess the word "subsidies" is not exact. The "prêt à investir" mentionned in the article literally means "ready to invest".

Now I agree, investments are often considered subsidies by the WTO...


Could you imagine the Toronto centric media frenzy if it were to be a Federal investment? Since it's only a "possible" minority investment in order to keep 5,000 jobs in Canada I do understand the concept even though I hate government involvement. The truth is both the Federal government and Quebec government would likely lose far more tax revenue than any potential investment if they do pull the trigger. As another poster said Investissement Quebec actually makes money on their investment portfolio anyway although it could be argued that they possibly squeeze out private investors.
 
ExMilitaryEng
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 6:31 pm

I definitely don't see any possible federal investment here for the obvious reasons you stated. And that's why nobody brings this possibility.

But if Investisment Québec or most probably CDPQ can "profitably" help in a win - win transaction, I'm all for it.

Believe me, Québec is really lucky for not having to rely on Toronto's Bay St $$ in those strategic transactions (I'm diplomatic here).
 
by738
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 6:50 pm

if there are issues with profitability etc at TS, I wonder why TUI would want to take on that baggage. The new A321s dont fit with TUI group making yet another subfleet
Air Canada taking over would surely raise a few competition eyebrows?
 
mattyfitzg
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 6:51 pm

by738 wrote:
if there are issues with profitability etc at TS, I wonder why TUI would want to take on that baggage. The new A321s dont fit with TUI group making yet another subfleet
Air Canada taking over would surely raise a few competition eyebrows?


Which is why Thomas Cook, with the majority Airbus, in particular 321 heavy fleet would make a lot more sense.

They already use each others aircraft over the winter.
 
ExMilitaryEng
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 7:03 pm

Apparently, one interested of the interested parties is local:

https://www.lapresse.ca/affaires/entrep ... becois.php
 
Skywatcher
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 7:45 pm

ExMilitaryEng wrote:
I definitely don't see any possible federal investment here for the obvious reasons you stated. And that's why nobody brings this possibility.

But if Investisment Québec or most probably CDPQ can "profitably" help in a win - win transaction, I'm all for it.

Believe me, Québec is really lucky for not having to rely on Toronto's Bay St $$ in those strategic transactions (I'm diplomatic here).


I have dealt with them and their lawyers/accountants in the past. Not pretty. As I stated I hate the interventionist style of the Quebec state but I can sort of see why it evolved that way given the tactics of the Bay street style with Federal government backing via lobbying and media control over the decades.

My bet is on a private deal involving a minority participation by a Quebec pension plan/investment fund. I can't at all see WestJet's culture blending well with Transat's and why would a foreign player only accept 49%? Air Canada will be disallowed by the feds.
 
ExMilitaryEng
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 8:12 pm

Maybe a spin off of Air Canada Vacation and then a merger with AT? A321NEOs and A330s would be a great fit here - particularly when considering the use of Rouge's older 767 eqpt.
 
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cirrusdragoon
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Re: Media: Air Transat in Talks of Selling the Company

Wed May 01, 2019 9:54 pm

It appears the odds are low for a foreign entity to acquire Transat Group. https://www.cbc.ca/news/business/air-tr ... -1.5118046

Most likely contenders would be one of three canadian counterparts.

Air Canada, WestJet or Sunwing

Air canada: Taking over Transat's fleet of Airbus 330s and 321s could get Air Canada through its current turbulence, while buying profitable routes for the long run.

Westjet: WestJet is trying to expand its long-haul routes such as flights to Europe, and Chiang says to do that they will need to buy more planes that can handle long haul flights such as Boeing 787s or something similar, something which could cost the airline up to $2 billion.

Sunwing: buying Transat could be "addition by subtraction" for the company because it would remove a key competitor and bring a more rational competitive dynamic to the sun destinations markets. It would also allow them to expand into europe finally.
 
jimbo737
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Re: Media: Air Transat in Talks of Selling the Company

Thu May 02, 2019 5:34 pm

Barring imminent collapse, which is not the situation, the Competition Bureau would not allow an AC takeover of Transat without some pretty onerous conditions.

I would think the divesture of a few LHR slots would be a starting point on the TATL given the dominance the combined operation would have from Canada to the U.K. AC would be loath to give up 3 or more daily LHR slots to its principle domestic competitor.

There’d be other restrictions too.

I can’t see AC being at all interested in the hotel business.

There are bits and pieces of a Transat carcass that would interest AC, WS and SG.

I don’t see the point of new money flowing in simply to fund future losses. What would be done differently that Transat isn’t already trying to do?
 
Dominion301
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Re: Media: Air Transat in Talks of Selling the Company

Thu May 02, 2019 5:59 pm

jimbo737 wrote:
Barring imminent collapse, which is not the situation, the Competition Bureau would not allow an AC takeover of Transat without some pretty onerous conditions.

I would think the divesture of a few LHR slots would be a starting point on the TATL given the dominance the combined operation would have from Canada to the U.K. AC would be loath to give up 3 or more daily LHR slots to its principle domestic competitor.

There’d be other restrictions too.

I can’t see AC being at all interested in the hotel business.

There are bits and pieces of a Transat carcass that would interest AC, WS and SG.

I don’t see the point of new money flowing in simply to fund future losses. What would be done differently that Transat isn’t already trying to do?


It's also entirely possible that someone like the Caisse de dépôt et placement du Québec is the interested party and will simply mean Transat goes private with a single shareholder. The Caisse have deep enough pockets, that $2B is pocket change for them.

As for AC, WS & WG:
1) I agree that AC would have far more to lose than to gain by acquiring Transat. Hell would freeze over before AC relinquishes LHR slots to WS to acquire an airline/travel company that they already have no issues competing with and provide AC with marginal growth.
2) This may sound silly, but WestJet aren't French enough to acquire TS (i.e., if they can't figure out something as basic as YUL-FLL, good luck at figuring out YUL-PRG...and 50 other YUL TS routes, including YUL-FLL!!!).
3) WG has the most to gain by acquiring TS.

TS have stated multiple parties, so I'd be shocked it Thomas Cook isn't one of them.
 
jimbo737
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Re: Media: Air Transat in Talks of Selling the Company

Fri May 03, 2019 2:54 am

From a corporate culture perspective, Transat and WS are about as far apart on the scale as one can imagine. Add the language factor and, at least from WS’s perspective, TS would be about as desirable as a bad dose of the clap.

In the short term, very short term, WS could use some Transat lift to mitigate the Max issue, but in the grand scheme of things, it’s a blip on the timeline and not worth blowing your brains out with a silly acquisition.

The Bureau’s market dominance test on the U.K. and France, let alone other markets, virtually precludes AC as being a serious buyer. AC would be forced to shed LHR slots to WS. Not going to happen. No way, no how.

AC are probably interested in having a good peak under the hood though. Why not? WS will,probably do the same.

WS figured out YUL-FLL long ago. If others want to blow their brains out on one of the lowest yielding markets in the network, full of Aeroplan burners, it’s a “fill yer boots” deal. Chasing marketshare with excess capacity has never been WS’s MO. There’s a good reason why AC’s results are perpetually weak in the winter and YUL-FLL on multiple daily flights on 767-300’s is a fine example of why that’s the case. No US carrier offers WB service from NYC to Florida, when obviously, they could, and would, if it were a profitable way to do things. Compare their winter margins to those of AC’s. Night and day.
 
SpaceshipDC10
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Re: Media: Air Transat in Talks of Selling the Company

Fri May 10, 2019 10:06 am

Based on headlines I've seen on CTV and the Globe, it seems that Pierre Karl Péladeau, the boss of Québecor, is considering buying Transat.
 
Blueknows
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Re: Media: Air Transat in Talks of Selling the Company

Fri May 10, 2019 11:04 am

Maybe JETLINES comes in with a buyout

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Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos