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codyul
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sat Oct 10, 2020 10:52 pm

CrewBunk wrote:
With regard to the Air Canada / Canadian Airlines acquisition, one has to look at the intent; namely, what did Air Canada want?

At the time, the Minister of Transport, David Collinette stated publicly (but really aimed at Air Canada) that if Canadian Airlines shut down, Air Canada would not “automatically” get Canadian’s international route authorities. Air Transat was public about wanting the South America routes, Canada 3000 the South Pacific, Royal had eyes on several European routes.

The only given was CP’s Asian routes. And, another fly in the ointment .... at the time NRT slots were the most valuable on the earth and CP had 6 daily slots. The Japanese Government stated that if CP shut down, the NRT slots would go back to them, and any new Canadian carrier would “get in line” to apply.

The only way AC could be assured all of CP’s international authorities, including the NRT slots was to buy all of CP, keep it going, and merge operations. THAT is what AC wanted, and that is what they got.

So look today. AC could easily have backed out of the Transat acquisition with minimal penalties. But they didn’t. So again, one has to ask ..... Why? What is on the table that they want?

It could be something as mundane as Transat’s fleet would fit nicely ..... to something more sinister. Keeping a well known Quebec company out of the hands of Westjet/Onex. Let’s face it, Westjet’s Quebec operations are pathetic at best. Give them a Quebec company, liked by québécois, and it would scare the crap out of AC!

Only those at AC’s board in YUL HQ, know for sure. We though, have front row seats. Get the popcorn.

Love this post. Popcorn in the microwave. Although I should be more biased and concerned as I am employed by of these companies hahahaha.
YUL PNC :weightlifter:
 
codyul
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sat Oct 10, 2020 10:54 pm

I found this to be the most detailed article so far.
https://www.cp24.com/news/air-canada-re ... -1.5140964
YUL PNC :weightlifter:
 
Thenoflyzone
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sat Oct 10, 2020 10:56 pm

Since the onset of this pandemic, it was obvious AC was never going to spend $18 a share to acquire TS. I have to say, i'm surprised the deal went through, but with TS agreeing to a $5 per share price, I can understand why they felt the need that it was now or never.

CrewBunk wrote:
With regard to the Air Canada / Canadian Airlines acquisition, one has to look at the intent; namely, what did Air Canada want?...... Get the popcorn.


Well said.

It's clear why AC wanted this deal so bad, and it's a combination of what you said, plus a few more.

1. TS fleet fits in nicely into AC fleet.
2. AC doesn't want Onex to purchase TS.
3. By purchasing TS, they get valuable prime time slots and gates at YYZ and YUL, as both those airports are congested during peak times, with lack of slot availability. In doing so, they get a huge chunk of the pie when it comes to YUL/YYZ-Europe flights. Hence why the European commission is so keen at looking into this as well.
us Air Traffic Controllers have a good record, we haven't left one up there yet !!
 
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cirrusdragoon
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sat Oct 10, 2020 11:49 pm

I suppose it is very plausible to say all three brands will remain post acquisition of TS. A carrier for each market segment. Very interesting future for sure :)
 
MIflyer12
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 12:05 am

I wouldn't bet on that. Three brands, three fleets, three work forces... that's a great way to waste money.
 
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cirrusdragoon
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 1:33 am

MIflyer12 wrote:
I wouldn't bet on that. Three brands, three fleets, three work forces... that's a great way to waste money.


True, unless each different unit has different cost advantages , it wouldn’t make sense , true.
 
santi319
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 2:34 am

I fully expect Transat to be the new Rouge. Merge Rouge with Transat and keep AC mainline as it was. Everybody wins, happy employees and happy Government.

Leisure post-pandemic is the future of aviation. So this was THE RIGHT MOVE.
 
codyul
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 3:08 am

Just not sure about everyone being happy if rouge and Transat join together and end up being larger than they were alone. Mainline employees would again feel the squeeze.
YUL PNC :weightlifter:
 
dr1980
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 2:29 pm

Thenoflyzone wrote:
3. By purchasing TS, they get valuable prime time slots and gates at YYZ and YUL,


The start of AC operating of of T3 at Pearson?
Dave/CYHZ
 
santi319
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 3:06 pm

codyul wrote:
Just not sure about everyone being happy if rouge and Transat join together and end up being larger than they were alone. Mainline employees would again feel the squeeze.

100% this will happen. Business travel is dead for the foreseeable future.
 
777luver
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 4:44 pm

santi319 wrote:
codyul wrote:
Just not sure about everyone being happy if rouge and Transat join together and end up being larger than they were alone. Mainline employees would again feel the squeeze.

100% this will happen. Business travel is dead for the foreseeable future.


I could see this happening also, rouge 2.0. Very smart move
 
codyul
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 5:02 pm

santi319 wrote:
codyul wrote:
Just not sure about everyone being happy if rouge and Transat join together and end up being larger than they were alone. Mainline employees would again feel the squeeze.

100% this will happen. Business travel is dead for the foreseeable future.

Understood that it's a smart business move. My point is mainline groups will NOT be happy. So not everyone will be happy.
YUL PNC :weightlifter:
 
777luver
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 5:28 pm

codyul wrote:
santi319 wrote:
codyul wrote:
Just not sure about everyone being happy if rouge and Transat join together and end up being larger than they were alone. Mainline employees would again feel the squeeze.

100% this will happen. Business travel is dead for the foreseeable future.

Understood that it's a smart business move. My point is mainline groups will NOT be happy. So not everyone will be happy.


Why would they not be happy?
 
codyul
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 5:36 pm

777luver wrote:
codyul wrote:
santi319 wrote:
100% this will happen. Business travel is dead for the foreseeable future.

Understood that it's a smart business move. My point is mainline groups will NOT be happy. So not everyone will be happy.


Why would they not be happy?

That's flying that gets assigned to Rouge/Transat that they no longer have access to. When AC created Rouge the FA group voted to strike. Only the feds ruled it illegal as they were essential service. Funny, when it comes to applying for other benefits accorded to essential workers, the feds then renegged. Ha
YUL PNC :weightlifter:
 
santi319
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 6:31 pm

codyul wrote:
777luver wrote:
codyul wrote:
Understood that it's a smart business move. My point is mainline groups will NOT be happy. So not everyone will be happy.


Why would they not be happy?

That's flying that gets assigned to Rouge/Transat that they no longer have access to. When AC created Rouge the FA group voted to strike. Only the feds ruled it illegal as they were essential service. Funny, when it comes to applying for other benefits accorded to essential workers, the feds then renegged. Ha

Um at this point I think ANY airline employee is grateful to just have a job...
 
Airlinerdude
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 7:22 pm

Just to reiterate what the articles have said, AC’s acquisition of TS isn’t a done deal until shareholders vote in December. What has been concluded is an amended offer of $5 per share, or an exchange for 0.2862 of Air Canada shares.

I don’t recall the original deal having the provision to exchange for AC shares, but someone can correct me here since it’s been a while. I have to hand it to AC, this is a very smart strategy to acquire TS with little to no actual cash being expended by AC. If AC can get their share price above $17.47, then there’s no reason a TS shareholder wouldn’t take the exchange for AC shares because they’ll be worth more than the $5 offered.

While the Canadian government hasn’t explicitly bailed-out any single airline in Canada, the implicit subsidies of not enforcing the airlines to refund passengers are almost the same. The key difference being that it allows the airlines with the greatest cash to burn ratio or most accessibility to cash to survive the longest. This likely positions AC and WS to be the most favourable in this regard. There has been a lot of chatter of airline bailouts in Canada media lately and if that were to happen, I’m not sure why any TS shareholder would agree to this deal.

Another interesting part of this deal was that it allows TS shareholders to consider bids at $6 a share. If ONEX has an additional ~$228M of cash sitting around, it may want to consider submitting a bid.

I’m also interested to hear the perspective of our AC pilots on this forum for their sentiment. I know the AC pilot union just voted in favour of an amended agreement concerning scope, codeshares, and Rouge all to protect some layoffs until March. I don’t have much insight on how, if at all, this acquisition would impact AC’s pilots.
 
777luver
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 9:57 pm

codyul wrote:
777luver wrote:
codyul wrote:
Understood that it's a smart business move. My point is mainline groups will NOT be happy. So not everyone will be happy.


Why would they not be happy?

That's flying that gets assigned to Rouge/Transat that they no longer have access to. When AC created Rouge the FA group voted to strike. Only the feds ruled it illegal as they were essential service. Funny, when it comes to applying for other benefits accorded to essential workers, the feds then renegged. Ha


I think we need to wait to see what they do before jumping to conclusions, but I do remember you’re referring to. Too bad the govt doesn’t consider airlines essential now...
 
jimbo737
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Sun Oct 11, 2020 11:52 pm

If Onex wanted Transat, there’s nothing stopping them from offering $7.50 a share on Tuesday morning after the long weekend.

An Onex owned Transat would have a far easier time of it dealing with the EU’s competition concerns that will certainly result in a number of significantly undesirable undertakings by AC if the deal completes.

The GoC had its own concerns about the deal and a report was supposed to have been issued about 4 months ago. Perhaps it was. I don’t recall.

Regardless, I think it highly unlikely Onex / WS had / have any bonafide interest in merging operations. It would be a dogs breakfast and would completely destroy what’s left of WS’s corporate culture. There’s nothing Transat has that WS can’t live without or acquire organically, as it has done over the past 24+ years.
 
 
MIflyer12
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Thu Nov 26, 2020 1:38 pm

Air Canada offers concessions to gain EU approval, and again decision deadline is pushed out.

The Commission, which oversees competition policy in the 27-nation European Union, said the commitments had been submitted on Nov. 25. As a result it, it has extended the deadline for its decision by three weeks to Jan. 29.

https://www.reuters.com/article/us-tran ... SKBN2860ZT
 
beechnut
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Tue Dec 15, 2020 4:33 pm

La Presse reports this morning that Air Transat shareholders have approved the revised Air Canada takeover at $5 per share. Article in French:

https://www.lapresse.ca/affaires/entrep ... canada.php

There was apparently another suitor but the AC offer was approved by 91% of shareholders. Speculation that the other suitor was Pierre-Karl Péladeau.

Beech
 
alan3
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Tue Dec 15, 2020 5:28 pm

Sorry if this has been addressed but I haven't been on here in a long time....can someone remind me why does the EU have the authority to decide whether two Canadian-registered, Canadian-based airlines can merge?
 
MIflyer12
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Tue Dec 15, 2020 6:46 pm

alan3 wrote:
Sorry if this has been addressed but I haven't been on here in a long time....can someone remind me why does the EU have the authority to decide whether two Canadian-registered, Canadian-based airlines can merge?


Because AC and AirTransat fly to EU destinations, and the combination could lead to materially less competition (and higher avg fares) on Canada-EU routes. Why did the EU threaten to block a merger between (U.S.) Honeywell and (U.S.) GE?

https://www.wsj.com/articles/SB994164822646614367

There are hundreds of new examples every year - not just seeking EU approval, but U.S., China...
 
multimark
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Tue Dec 15, 2020 8:41 pm

MIflyer12 wrote:
alan3 wrote:
Sorry if this has been addressed but I haven't been on here in a long time....can someone remind me why does the EU have the authority to decide whether two Canadian-registered, Canadian-based airlines can merge?


Because AC and AirTransat fly to EU destinations, and the combination could lead to materially less competition (and higher avg fares) on Canada-EU routes. Why did the EU threaten to block a merger between (U.S.) Honeywell and (U.S.) GE?

https://www.wsj.com/articles/SB994164822646614367

There are hundreds of new examples every year - not just seeking EU approval, but U.S., China...


What's stopping any EU carrier from starting/adding to their own service to Canada?
 
YYZatcboy
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Tue Dec 15, 2020 10:12 pm

multimark wrote:
MIflyer12 wrote:
alan3 wrote:
Sorry if this has been addressed but I haven't been on here in a long time....can someone remind me why does the EU have the authority to decide whether two Canadian-registered, Canadian-based airlines can merge?


Because AC and AirTransat fly to EU destinations, and the combination could lead to materially less competition (and higher avg fares) on Canada-EU routes. Why did the EU threaten to block a merger between (U.S.) Honeywell and (U.S.) GE?

https://www.wsj.com/articles/SB994164822646614367

There are hundreds of new examples every year - not just seeking EU approval, but U.S., China...


What's stopping any EU carrier from starting/adding to their own service to Canada?


Slots. Lots of European airports are slot controlled, where AC and TS both serve the airport. The EU and Canadian regulators (and others) will be looking at all of that and may require slot divestitures or reduced frequencies to allow other airlines to obtain access and operate competing service. This could be ordered at any applicable airport or city pair that both AC and TS serve, which I believe are not an inconsequential number.
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alan3
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Wed Dec 16, 2020 12:02 am

YYZatcboy wrote:
multimark wrote:
MIflyer12 wrote:

Because AC and AirTransat fly to EU destinations, and the combination could lead to materially less competition (and higher avg fares) on Canada-EU routes. Why did the EU threaten to block a merger between (U.S.) Honeywell and (U.S.) GE?

https://www.wsj.com/articles/SB994164822646614367

There are hundreds of new examples every year - not just seeking EU approval, but U.S., China...


What's stopping any EU carrier from starting/adding to their own service to Canada?


Slots. Lots of European airports are slot controlled, where AC and TS both serve the airport. The EU and Canadian regulators (and others) will be looking at all of that and may require slot divestitures or reduced frequencies to allow other airlines to obtain access and operate competing service. This could be ordered at any applicable airport or city pair that both AC and TS serve, which I believe are not an inconsequential number.


So they can't legally stop the merger, but they can control their slot allocation, or both? And if they operate as separate airlines with the same parent company (eg: Jetstar, Qantas) does that count as one?Presumably the mergers of AA-US, CO-UA and DL-NW duplicated a lot of the same slots as well.
 
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Polot
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Wed Dec 16, 2020 12:56 am

alan3 wrote:
YYZatcboy wrote:
multimark wrote:

What's stopping any EU carrier from starting/adding to their own service to Canada?


Slots. Lots of European airports are slot controlled, where AC and TS both serve the airport. The EU and Canadian regulators (and others) will be looking at all of that and may require slot divestitures or reduced frequencies to allow other airlines to obtain access and operate competing service. This could be ordered at any applicable airport or city pair that both AC and TS serve, which I believe are not an inconsequential number.


So they can't legally stop the merger, but they can control their slot allocation, or both? And if they operate as separate airlines with the same parent company (eg: Jetstar, Qantas) does that count as one?Presumably the mergers of AA-US, CO-UA and DL-NW duplicated a lot of the same slots as well.

All those US mergers also required EU approval. Technically I don’t think the EU has the power to legally stop the merger, but can make their European operations difficult enough where a merger wouldn’t be seen as worth it.
 
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CrewBunk
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Wed Dec 16, 2020 1:00 am

At what airports within the EU do both AC and TS hold slots?

Looking at their report from last year, all city pair markets were analyzed. The ones resulting in a near monopoly after a merge were all secondary markets to airports not slot controlled, reflecting the leisure nature of both Rouge and Air Transat.

As one would imagine, the large slot controlled airports also offered the most competition after a merge.
 
pictues1981
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Wed Dec 16, 2020 2:36 am

aemoreira1981 wrote:
The loser in all of this may be Boeing. I expect that AC will order more A320neo/321neo planes instead of the MAX. (The A321LR is definitely a long and thin plane from YUL to secondary France.) I also see more A330-300s being added but not the age of most of the TS A330 fleet, giving an A333 fleet of reasonable size. The B788 fleet can then head to Rouge, freeing up B789s for TPAC, India, Israel, and some transcontinental (like LAX, SFO, and EWR).

funny that is why Air Canada cancelled the B737-9Max was because they liked the A321's and were already looking into ordering the A321 LR
 
boeing767300
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Thu Dec 17, 2020 5:33 pm

As per The Globe and Mail yesterday Air Canada can still walk away if the deal is not approved by February 15th 2021. In the same article Air Transat stated that if the deal does not go forward they will need a cash infusion of $500,000,000. Just a personal opinion but I don’t think EU approval will happen before 15th February. This story is far from over.
 
alan3
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Thu Dec 17, 2020 6:10 pm

CrewBunk wrote:
At what airports within the EU do both AC and TS hold slots?

Looking at their report from last year, all city pair markets were analyzed. The ones resulting in a near monopoly after a merge were all secondary markets to airports not slot controlled, reflecting the leisure nature of both Rouge and Air Transat.

As one would imagine, the large slot controlled airports also offered the most competition after a merge.


AC and TS overlap in a number of places including Amsterdam, Brussels, Barcelona, Madrid, Rome, Lisbon, Marseille and Dublin. But I'm not sure how many of those airports are slot-controlled.
 
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CrewBunk
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Thu Dec 17, 2020 7:17 pm

alan3 wrote:

AC and TS overlap in a number of places including Amsterdam, Brussels, Barcelona, Madrid, Rome, Lisbon, Marseille and Dublin. But I'm not sure how many of those airports are slot-controlled.


..... and dozens of leisure markets across Europe and Central America/Caribbean. But the issue about slots is that as none are slot controlled, any competing airline is free to move in.

The only airport I can think of that may be slot controlled is AMS. It was in the past, us it still? AC only held one slot pair for its daily YYZ-AMS flight. I am not sure how often TS flew to AMS. But they pale in comparison to KLM’s 8 daily flights to Canada during the summer.
 
9252fly
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Re: Updated: Air Canada/Transat A.T. Inc. Conclude Amended Transaction for Combination of the Two Companies

Thu Dec 17, 2020 8:57 pm

boeing767300 wrote:
As per The Globe and Mail yesterday Air Canada can still walk away if the deal is not approved by February 15th 2021. In the same article Air Transat stated that if the deal does not go forward they will need a cash infusion of $500,000,000. Just a personal opinion but I don’t think EU approval will happen before 15th February. This story is far from over.


The EU decision has been delayed until January 8th and should sufficiently meet the deadline.

https://www.reuters.com/article/transat ... SL1N2HS1KB

Transport Canada decision on approval likely forthcoming shortly according to the minister Marc Garneau.

https://www.theglobeandmail.com/busines ... t-is-very/
 
Jetty
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Air Canada Drops Transat Takeover After EU Competition regulator concerns

Fri Apr 02, 2021 7:08 pm

Air Canada dropped its takeover of vacation operator Transat AT Inc. because it couldn’t convince European regulators to approve the deal on acceptable terms.

https://www.bloomberg.com/news/articles ... ith-europe

I wonder if Air Canada intentionally made an offer they knew would be unacceptable to the EU given the pandemic after the deal was struck.
 
FlyingElvii
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 7:29 pm

Goodbye, Transat
 
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lesfalls
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 7:39 pm

Why does this come under the power of EC? AA and US Airways didn't need the EC approval for their merger.
Lufthansa: Einfach ein bisschen besser.
 
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PatrickZ80
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 8:00 pm

lesfalls wrote:
Why does this come under the power of EC? AA and US Airways didn't need the EC approval for their merger.


They could have merged without permission from the EU, however that likely would have meant the new joint airline would have to give up slots at a number of European airports to make room for competition. Otherwise the new airline would get a too big market share.

This didn't go for the US market, where there's a lot more competition. American Airlines and US Airways were far from the only airlines flying between Europe and the US, people could always fly Delta, United or one of the many European airlines. However the choice of airlines between Europe and Canada is way more limited, meaning there is a risk a certain airline such as the joint Air Canada/Air Transat would become too big and therefor too powerful.
Last edited by PatrickZ80 on Fri Apr 02, 2021 8:02 pm, edited 1 time in total.
 
CALMSP
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 8:01 pm

lesfalls wrote:
Why does this come under the power of EC? AA and US Airways didn't need the EC approval for their merger.


I think Queen Elizabeth, as Head of State for Canada, said no. :lol:
 
sevenair
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 8:25 pm

CALMSP wrote:
lesfalls wrote:
Why does this come under the power of EC? AA and US Airways didn't need the EC approval for their merger.


I think Queen Elizabeth, as Head of State for Canada, said no. :lol:


Keep us out of it! This is between the EU and Canada. Nothing to do with us :)
 
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Polot
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 8:30 pm

lesfalls wrote:
Why does this come under the npower of EC? AA and US Airways didn't need the EC approval for their merger.

Of course they did:

https://ec.europa.eu/commission/pressco ... /IP_13_764
 
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armagnac2010
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 8:49 pm

Keep us out of it! This is between the EU and Canada. Nothing to do with us :)


Fully agreed. Nobody cares about the opinion of Elizabeth Alexandra Mary Windsor (aka Elizabeth II), including in Canada.

The EC has proven a very though guardian of real competition. As a result, most services are now cheaper in the EU compared to North America.

As a Canadian passenger, I am very grateful for this decision. The only concurrence on transatlantic routes would have been Skyteam, direct airfares are already prohibitive is some markets under Star alliance control (Germany for instance). Canada needs more competition, not consolidation.
 
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JannEejit
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 9:05 pm

Jetty wrote:
I wonder if Air Canada intentionally made an offer they knew would be unacceptable to the EU given the pandemic after the deal was struck.


The thought crossed my mind, and if Air Transat now closes, the cynic in me wonders if this is a new and novel way of taking out the competition ?
 
MIflyer12
Posts: 9316
Joined: Mon Feb 18, 2013 11:58 pm

Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 9:09 pm

JannEejit wrote:
Jetty wrote:
I wonder if Air Canada intentionally made an offer they knew would be unacceptable to the EU given the pandemic after the deal was struck.


The thought crossed my mind, and if Air Transat now closes, the cynic in me wonders if this is a new and novel way of taking out the competition ?


Is there any evidence the break-up fee here is less than what was negotiated (and renegotiated)?
 
HVNandrew
Posts: 567
Joined: Tue Jan 31, 2006 1:05 am

Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 9:09 pm

I wonder if the Québec government would consider providing emergency assistance to Transat, potentially through a loan? Different times/relative economic impact, but they did provide assistance to Bombardier a few years ago when things were looking pretty bleak.
 
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JannEejit
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Joined: Sat Jun 18, 2016 4:04 pm

Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 9:10 pm

lesfalls wrote:
Why does this come under the power of EC? AA and US Airways didn't need the EC approval for their merger.


It doesn't, they could have proceeded but at a cost in terms of routes/slots at it's EU destinations, in the interests of competition.
 
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JannEejit
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Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 9:13 pm

HVNandrew wrote:
I wonder if the Québec government would consider providing emergency assistance to Transat, potentially through a loan? Different times/relative economic impact, but they did provide assistance to Bombardier a few years ago when things were looking pretty bleak.


According to the above article, they've secured loan funding until end of June. But that is not awfully far away now. They really need to be flying, as does everyone else of course.
 
777luver
Posts: 469
Joined: Fri Jun 26, 2020 2:44 am

Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 9:18 pm

JannEejit wrote:
lesfalls wrote:
Why does this come under the power of EC? AA and US Airways didn't need the EC approval for their merger.


It doesn't, they could have proceeded but at a cost in terms of routes/slots at it's EU destinations, in the interests of competition.


To add to that, AC suggested even more significant concessions than what was already on the table and the EC still said it might not go through. Almost sounds like they just wanted to make it so difficult that AC and Transat would just walk away. It worked. I know there anti trust is playing a part in this among other stuff I'm just giving an oversimplified opinion
 
cschleic
Posts: 1864
Joined: Sat Feb 16, 2002 10:47 pm

Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 9:47 pm

Was this avoidable, in terms of AC foreseeing the issue with the EC before they made the bid for Transat or at least have had an idea what concessions would work vs. not work?
 
IADCA
Posts: 2266
Joined: Mon Feb 26, 2007 12:24 am

Re: Air Canada Drops Transat Takeover After Battle With Europe

Fri Apr 02, 2021 9:57 pm

MIflyer12 wrote:
JannEejit wrote:
Jetty wrote:
I wonder if Air Canada intentionally made an offer they knew would be unacceptable to the EU given the pandemic after the deal was struck.


The thought crossed my mind, and if Air Transat now closes, the cynic in me wonders if this is a new and novel way of taking out the competition ?


Is there any evidence the break-up fee here is less than what was negotiated (and renegotiated)?


No, the break-up fee was paid in full, per media.
 
777luver
Posts: 469
Joined: Fri Jun 26, 2020 2:44 am

Re: Air Canada Drops Transat Takeover After Battle With Europe

Sat Apr 03, 2021 2:03 am

cschleic wrote:
Was this avoidable, in terms of AC foreseeing the issue with the EC before they made the bid for Transat or at least have had an idea what concessions would work vs. not work?


Probably not considering covid upended the whole industry, I think it would've gone through covid aside but maybe not, just guessing
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