Could AC Buy Transat? 16May19 Update: AC enters into agreement to buy Transat
May 16, 2019, 11:10 am
#91
Join Date: Apr 2011
Location: YYC
Programs: AC 50k 1MM, Marriott LT Titanium Elite
Posts: 3,400
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.
May 16, 2019, 11:32 am
#93
Join Date: Jan 2017
Location: Halifax
Programs: AC SE100K, Marriott Lifetime Platinum Elite. NEXUS
Posts: 4,569
The Competition Bureau has to consider the reality that if TS dies off then there will be reduced competition too, at least until some rich guy wants to turn $100 mil in to $1 mil.
May 16, 2019, 11:51 am
#94
Join Date: Dec 2008
Location: Delta, BC
Posts: 1,646
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.
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.
May 16, 2019, 12:05 pm
#95
Join Date: Jul 2001
Location: YYC
Programs: AC Basic, UA MP Gold, Marriott Gold Elite, SPG Gold, Amex Platinum
Posts: 3,008
I suspect that part of the 2 recent deals is because there is now a good chance for a change in government come October 21, 2019. The liberals inserted this section (which only applies to airlines) for a reason, both Onex and AC are using it too their advantage.
May 16, 2019, 12:11 pm
#96
Join Date: Mar 2002
Location: YYJ
Posts: 4,137
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.
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.
May 16, 2019, 12:15 pm
#98
Join Date: Mar 2002
Location: YYJ
Posts: 4,137
Prices have to go up - Transat is losing money and their business model is not sustainable. There's no part of fixing with or without AC that doesn't including raising prices or discontinuing routes. If routes/frequencies are discontinued then prices will naturally increase in the market due to less competition.
May 16, 2019, 12:42 pm
#100
Join Date: Jun 2008
Location: YYC, Canada
Programs: AC 35k
Posts: 1,898
That is certainly not the case. AC has joint ventures with a few Star carriers in a few markets, but apart from that all alliance members remain competitors from an anti-trust point of view.
Prices have to go up - Transat is losing money and their business model is not sustainable. There's no part of fixing with or without AC that doesn't including raising prices or discontinuing routes. If routes/frequencies are discontinued then prices will naturally increase in the market due to less competition.
Prices have to go up - Transat is losing money and their business model is not sustainable. There's no part of fixing with or without AC that doesn't including raising prices or discontinuing routes. If routes/frequencies are discontinued then prices will naturally increase in the market due to less competition.
May 16, 2019, 1:21 pm
#101
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Join Date: May 2002
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Posts: 56,448
https://montrealgazette.com/business...-to-air-canada
QUEBEC — Quebec Premier François Legault said he felt some emotion on hearing Air Transat — the company he co-founded — might be sold to Air Canada.
Air Canada was a competitor when he was at the head of Air Transat. But he said the good news is that Air Canada is a Canadian company with its head office in Montreal, which means it might be good for the province.
“It’s a lot of emotion for me because of course I was there for the first flight of Air Transat with all the employees crying with joy,” Legault said. “That was about 30 years ago.
QUEBEC — Quebec Premier François Legault said he felt some emotion on hearing Air Transat — the company he co-founded — might be sold to Air Canada.
Air Canada was a competitor when he was at the head of Air Transat. But he said the good news is that Air Canada is a Canadian company with its head office in Montreal, which means it might be good for the province.
“It’s a lot of emotion for me because of course I was there for the first flight of Air Transat with all the employees crying with joy,” Legault said. “That was about 30 years ago.
May 16, 2019, 1:38 pm
#102
Join Date: Mar 2002
Location: YYJ
Posts: 4,137
I do not think AC competes with *A at all on major international routes to and from Canada. Look at the recent move of Austrian from YYZ to YUL, so that AC could start its own route. It is all well orchestrated. Yes, YVR-AKL is a notable exception, but AC and NZ are only partners in name. For most TATL/TPAC routes AC actively cooperates with *A partners and others. In the end, we will see higher fares in YUL. Sure, fares probably needed to go up to ensure Transat's continued survival. Now they will go up even more to ensure Air Canada's continued profitability ;-)
UA & AC compete on many transborder routes, for instance, and are not able to share data on these.
May 16, 2019, 2:13 pm
#104
Join Date: Jan 2017
Location: Portland OR
Programs: United 1K 1MM, Marriott Bonvoy Platinum, Hilton HHonors Gold
Posts: 560
I do not think AC competes with *A at all on major international routes to and from Canada. Look at the recent move of Austrian from YYZ to YUL, so that AC could start its own route. It is all well orchestrated. Yes, YVR-AKL is a notable exception, but AC and NZ are only partners in name. For most TATL/TPAC routes AC actively cooperates with *A partners and others. In the end, we will see higher fares in YUL. Sure, fares probably needed to go up to ensure Transat's continued survival. Now they will go up even more to ensure Air Canada's continued profitability ;-)
May 16, 2019, 4:03 pm
#105
Join Date: Jun 2008
Location: YYC, Canada
Programs: AC 35k
Posts: 1,898