Could AC Buy Transat? 16May19 Update: AC enters into agreement to buy Transat
May 16, 2019, 8:22 am
#76
Formerly known as newbie elite
Join Date: Feb 2002
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And I know some people that prefer Transat to AC. The plural of anecdote is not data.
Last edited by tcook052; May 16, 2019 at 9:23 am Reason: off topic
May 16, 2019, 9:19 am
#78
Join Date: Aug 2009
Location: YLW
Programs: AC- SE100 1MM, Hilton Diamond, Marriott Platinum, National Executive, Nexus/GE
Posts: 4,309
So Rouge will now become a lot bigger and will defiantly change the vacation/package landscape if done properly. AC will get stronger with a much larger route network.
WJ will now need to expand swoop!
For low-cost carriers who are in the market or are about to get into the market, this will be interesting for them.
WJ will now need to expand swoop!
For low-cost carriers who are in the market or are about to get into the market, this will be interesting for them.
May 16, 2019, 9:33 am
#80
Join Date: Dec 2008
Location: Delta, BC
Posts: 1,646
I'm certainly not an expert, but the way I read it, it's not a purchase agreement yet. It's an exclusivity agreement to undertake 30 days of negotiations to get to a definitive agreement.
https://www.transat.com/en-CA/corpor...eleases/124223
https://www.transat.com/en-CA/corpor...eleases/124223
May 16, 2019, 9:40 am
#81
Join Date: Aug 2013
Location: YVR - MILLS Waypoint (It's the third house on the left)
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Posts: 6,232
So, what will we get:
a) The Rougification of Transat?
or
b) The Transatification of Rouge?
And what happens to poor little Sunwing?
Oh, and I think our Aeroplan flight options in 2020 could get way more 'interesting'. Or maybe that should be 'enhanced'.
a) The Rougification of Transat?
or
b) The Transatification of Rouge?
And what happens to poor little Sunwing?
Oh, and I think our Aeroplan flight options in 2020 could get way more 'interesting'. Or maybe that should be 'enhanced'.
May 16, 2019, 10:00 am
#82
Join Date: Nov 2017
Posts: 3,359
This is a very troubling development indeed! Perhaps AC will pull an IAG and shift all the Rogue routes to their Transat subsidiary so that you earn no PQMs on UA and * partners nor *A benefits. As much as I enjoy griping on Rogue, at least there was always assurance that I would have access to the MLL at YYZ and have an additional checked bag with my flight. Slowly these perks are eroding 
-James
-James
May 16, 2019, 10:06 am
#83
Join Date: Jun 2008
Location: YYC, Canada
Programs: AC 35k
Posts: 1,898
I suspect Transat will be merged into Rouge. Some of the newer planes might go to mainline, and depending on the age of the 333s those could go to mainline. Transat is the definition of slave ship though.
Frankly I am surprised the competition bureau will allow this. Transat overlaps Air Canada's network, and is particularly a large competitor in YUL. There is huge potential for prices to go up in the Montreal market for leisure travel if this sale goes through, and in general likely route discontinuation or reductions in frequency as Air Canada redeploys the legacy AT fleet (after retirements). I can't see AC keeping AMS or LGW in YYC, for example.
Frankly I am surprised the competition bureau will allow this. Transat overlaps Air Canada's network, and is particularly a large competitor in YUL. There is huge potential for prices to go up in the Montreal market for leisure travel if this sale goes through, and in general likely route discontinuation or reductions in frequency as Air Canada redeploys the legacy AT fleet (after retirements). I can't see AC keeping AMS or LGW in YYC, for example.
May 16, 2019, 10:11 am
#84
Join Date: Nov 2017
Posts: 3,359
Frankly I am surprised the competition bureau will allow this. Transat overlaps Air Canada's network, and is particularly a large competitor in YUL. There is huge potential for prices to go up in the Montreal market for leisure travel if this sale goes through, and in general likely route discontinuation or reductions in frequency as Air Canada redeploys the legacy AT fleet (after retirements). I can't see AC keeping AMS or LGW in YYC, for example.
-James
May 16, 2019, 10:30 am
#85
A FlyerTalk Posting Legend
Join Date: May 2002
Location: YEG
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Posts: 56,449
FWIW TS of today is a far better operation than it was a decade ago.
May 16, 2019, 10:34 am
#86
Join Date: Dec 2002
Posts: 8,003
The former is a merger or two large Eastern Canadian operators.
The latter is just a change of ownership with the eventual strengthening of a business plan going forward.
The talk of WS joining an alliance has been around since alliances started.
Sounds like many peoples experience with AC. Without the rebooking on WS.
May 16, 2019, 10:36 am
#87
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May 16, 2019, 10:42 am
#88
Join Date: Apr 2016
Posts: 296
As were talking about break fees, my speculation was that Onex’s intention was to lock up Westjet and just pay the break fee and cancel the deal if they couldn’t grab Transat too.
maybe AC isn’t serious, but it’s their way of driving up the cost of Onex’s potential plan to buy Transat. Or maybe AC never wanted Transat, but they’d rather take Transat so Onex doesn’t.
If AC does get Transat, what will the regulators make AC sell off? The holiday business? There will definitely be some holiday routes with a lot less competition. But I don’t expect the regulators to do a whole lot for consumers other than a few token changes.
i love speculating, heh.
maybe AC isn’t serious, but it’s their way of driving up the cost of Onex’s potential plan to buy Transat. Or maybe AC never wanted Transat, but they’d rather take Transat so Onex doesn’t.
If AC does get Transat, what will the regulators make AC sell off? The holiday business? There will definitely be some holiday routes with a lot less competition. But I don’t expect the regulators to do a whole lot for consumers other than a few token changes.
i love speculating, heh.
May 16, 2019, 10:57 am
#89
Join Date: Jun 2008
Location: YYC, Canada
Programs: AC 35k
Posts: 1,898
Do you honestly think AC would pull a stunt like this if WS wasn't themselves being acquired by a third party? Combine the WS acquisition with talks of WS joining SkyTeam and it's no wonder AC is leveraging these developments to grab some more of the Canadian airfare market. It remains to be seen if a merged Transat will be bad for competition. Just because a company gets acquired doesn't necessarily mean higher costs on consumers. I also welcome TS finally having somewhat respectable operations. I've purchased tickets on 3 separate occasions with TS and each time the flight had rolling delays leading to cancellation and rebooking on WS.
-James
-James
May 16, 2019, 11:00 am
#90
Join Date: Jun 2008
Location: YYC, Canada
Programs: AC 35k
Posts: 1,898
It does if the combined entity controls 80% of the market. Air Transat has huge operations in Montreal, and so does Air Canada. Most of the other airlines operating are international and most are Star Alliance, which means they are all immunized against anti-trust. I can't see how prices don't go up in that market for leisure travel.