Canada approves Air Canada purchase of Transat, with conditions

Canada has approved Air Canada’s purchase of troubled rival Transat, subject to a number of conditions, Transport Minister Omar Alghabra said Thursday. Alghabra said the COVID-19 pandemic was a key factor in the decision, given that Air Transat had already made clear a slump in travel was hitting its finances. Air Canada’s commitments include encouraging and helping other airlines to take up former Transat routes to Europe, preserving the Transat head office in the province of Quebec and facilitating aircraft maintenance in Canada, he added. In December, Transat shareholders approved a sharply discounted C$188.7m buyout offer from Air Canada, after COVID-19 hit travel demand.<br/>