Transat seeks US$398m as Air Canada deal hangs by a thread

With its purchase by Air Canada in jeopardy, tour operator Transat said it’s exploring a government emergency loan that could come as early as this month.Transat said Thursday that it’s looking for at least C$500m (US$398m) in long-term financing to cover its needs in case the transaction, which is still under EU review, falls through. One of the options is the government’s Large Employer Emergency Financing Facility, known as LEEFF, which has been used by only one airline as the industry negotiates for a bailout program including cheaper loans. A LEEFF agreement has been in the cards for a long time, but “now we’re pushing faster,” CEO Jean-Marc Eustache said. “And they are working with us faster, to be sure that we’re going have the cash necessary to continue the organization if the deal doesn’t go through.” The company is also in talks with other parties, including Quebec’s investment arm, he said.<br/>