Air Canada said it’s in exclusive talks to buy one of the country’s largest travel tour operators, Transat A.T., for about C$520m (US$387m) amid a wave of consolidation in the Canadian airline industry. The airline said it was prepared to pay $13 a share for the Montreal-based company, a 23% premium to Transat’s closing share price Wednesday. The offer is more than double Transat’s price April 30 when it announced it was in talks with at least one potential buyer. The move comes just 3 days after WestJet Airlines agreed to be acquired by Canadian private equity firm Onex Corp. "A combination with Transat represents a great opportunity for stakeholders of both companies," said CE Calin Rovinescu. "The acquisition presents a unique opportunity to compete with the very best in the world when it comes to leisure travel." <br/>
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THAI reported a steep drop in profits for the March quarter, although the airline is also moving closer to gaining approval for a major aircraft order. THAI is seeking govt permission to place orders for 38 aircraft, most of which will replace older models. The carrier said it received board approval for the order in January, and gained clearance from 2 govt agencies in March and April. Thailand’s cabinet is now in the process of deciding on the fleet plan, the airline said. Net profit for Q1 fell to THB456m (US$14.4m), down from THB2.7b in the same period last year. THAI recorded an operating loss of THB828m for this year’sQ1, but was boosted to a net profit by a larger gain from foreign exchange movements and other items. Revenue was down by 6.9% to THB49.8b in the quarter. <br/>
SIA Group posted record revenue of SGD16.3b (US$12b), up 3.2% year-over-year for its 2018-19 fiscal year. However, the group—including LCCs SilkAir and Scoot—saw net profit fall 47.5% YOY to SGD683m from SGD1.3b in financial year 2017/18. SIA points the decline to increased expenditure in 2018, primary because of the rising costs of fuel, which jumped 25%. Operating costs rose 7% YOY to SGD15.3b with fuel taking up SGD4.6b. The carrier added that net finance charges increased SGD45m, as the group raised more borrowings during the year for aircraft purchases. Parent airline SIA managed to achieve SGD991m in profits, although down 35% YOY. It also saw an increase of SGD149m in non-fuel costs, because of expansion in operations and increase in staff strength. <br/>