February 26, 2021

Government approves Air Canada airline contract | News

The Canadian government has approved a deal with Air Canada to acquire smaller rival Air Transat.

The revised contract, now worth $ 190 million, was agreed in October last year following the suspension of the Covit-19 international tour.

The agreement is with Air Canada Agreement Material Company, which is designed to ensure effective competition in the market.

The approval of the European Commission on Air Transat is still pending and a result is expected in the first half of this year.

We are currently working on adjusting all the deadlines, including our financial agreements, to co-ordinate the Commission’s review process in anticipation and completion, ā€¯commented Jean-Yves LeBlanc, Chairman of the Board of Directors’ Special Committee. Relocation.

Transat Air will discuss with Canada the eligibility to extend the out-of-date date for completion of the arrangement under the terms of the agreement set out today.

After this date, unless it is extended and terminated by one party, the contract will remain in effect.

Air Canada

Last week, total revenue for the Air Canada 2020 fund was $ 5.8 billion, down 70 percent from C $ 13.3 billion recorded in the previous year.

Flag-carrier reported an operating loss of $ 77,776 billion in 2020, compared to $ 1.650 billion in operating revenue in 2019.

Unrestricted cash flow stood at C $ 8 billion at the end of December.

“With the release of the fourth quarter and full year results of 2020, we are closing the book on the darkest year in the history of commercial aviation after reporting many years of record results and record growth at Air Canada,” said CEO Colin Rovinscu. Of Air Canada.

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“The catastrophic impact of the travel restrictions and isolation imposed by Govt-19 and the government has been felt throughout our entire network, deeply affecting all of our partners.”