Air Canada has secured a new deal to buy tour operator and airline group Transat AT for a bargain Covid price.
It will pay just C$190 million, much less than the original C$720 million sale price agreed last year before the Covid pandemic.
The new price reflects Transat’s value and the general state of the airline industry due to the pandemic.
"The amended transaction reflects the unprecedented impact of Covid-19 upon the global air transport industry, which has endured a severe decline in air travel," Air Canada said.
The acquisition still needs approval by regulators in Canada and the European Union, as well as Air Transat shareholders.
Transat’s board of directors has approved the sale.
"Air Canada intends to complete its acquisition of Transat, at a reduced price and on modified terms. This combination will provide stability for Transat’s operations and its stakeholders," said Calin Rovinescu, Ai Canada CEO.
The hugely discounted price is still about 30% higher than Transat’s current share price.
Written by Ray Montgomery, US Editor
