Transat-Air Canada merger pushed to fourth quarter

Transat AT, the parent company of Canadian holiday specialist Air Transat, says its merger with Air Canada is still on track and now due to close in Q4 of 2020. Transat said Thursday that it is “firmly committed to completing the transaction”. But, it added that factors “beyond its control” and related to the global coronavirus pandemic have delayed the tie-up, which received overwhelming approval by shareholders last year. Originally, the merger with Air Canada had been scheduled to close in Q2. “The market conditions of the global industry have been completely transformed. Among other things, the vast majority of North American, European and international air carriers have announced reductions in capacity and requested financial assistance measures,” Transat wrote Thursday. “This could impact the possibility of reaching an agreement with regulatory authorities regarding an appropriate package of remedies aimed at obtaining the necessary approvals.” The merger has been under scrutiny for quite some time from various regulatory agencies.<br/>