The federal government has approved Air Canada’s purchase of competing airline Transat A.T. Inc. under a series of strict terms and conditions the government says “are in the interest of Canadians.”
A statement released by the transport minister’s office said the impact of COVID-19 was a key factor in the final decision to approve the purchase.
“Given the devastating impact of the COVID-19 pandemic on the air industry, the proposed purchase of Transat A.T. by Air Canada will bring greater stability to Canada’s air transport market,” said Transport Minister Omar Alghabra in a media statement.
“It will be accompanied by strict conditions which will support future international competition, connectivity and protect jobs. We are confident these measures will be beneficial to travellers and the industry as a whole.”
Those conditions include: maintaining Transat’s head office and brand in Quebec; encouraging other airlines to take up former Transat routes to Europe; ensuring aircraft maintenance contracts remain in Canada, prioritizing Quebec over other provinces; launching new routes within five years; and committing 1,500 employees to the merged company’s new travel business.
The deal also stipulates that because Transat is now a subsidiary of Air Canada, it must provide bilingual services to customers across the country.
In a statement, Transat noted that Air Canada has agreed — under the terms of the purchase — to ensure a number of public benefits, namely, to maintain a Transat head office in Quebec, to preserve jobs and the Transat brand, and to launch new routes.
The federal government said it will “continue to take into account the needs of” Transat customers who are still waiting for refunds for flights cancelled due to the pandemic, and that those refunds are key to negotiations with the airlines on a bailout package.
Doubts about Transat’s ability to continue operating — a situation that was exacerbated by the pandemic — was another key factor in the decision process.
“The proposed acquisition offers the best probable outcomes for workers, for Canadians seeking service and choice in leisure travel to Europe, and for other Canadian industries that rely on air transport, particularly aerospace,” the Transport statement said.
Mixed support for deal
At a Feb. 4 meeting of the House of Commons transport committee, Andrew Gibbons, WestJet’s director of government relations and regulatory affairs, said his company has “grave concerns” about the purchase.
“For that critical part of the global market, this would effectively be a merger between Bell and Rogers,” Gibbons said. “Air Canada would hold a combined 94 per cent share of Canadian carrier capacity to Europe. Air Canada would have an almost 70 per cent market share on routes from Toronto to London, Paris and Rome.”
Flair Airlines is also against the deal.
“This further reduction in competition in the Canadian aviation industry underlines the need for a true independent ultra low-cost carrier like Flair. We strongly oppose the merger, and we look forward to bringing competition back to the industry,” said Flair Airlines president and CEO Stephen Jones in an email to CBC News Thursday.
But last month, Stephen Hunter, chief executive officer of Sunwing, told the Globe and Mail that the merger would be good for Canada because it would help Air Canada compete with foreign airlines globally.
“Unless we want Canada completely controlled by foreign carriers, we have to allow this,” Hunter told the newspaper. “Our main fear is, and what we’ve got to watch out for, is all the European and other international carriers coming in and taking market share away from Canadian airlines. And this is one way to defend them.”
Toronto-Dominion Bank has named new co-heads of its U.S. commercial banking business.
TD says Andy Bregenzer and Jill Gateman will jointly lead the operations.
The bank says the appointments follow the announcement earlier this year of Chris Giamo’s retirement.
Bregenzer will focus on leading all aspects of the regional commercial bank, including small business.
Gateman will lead TD’s national commercial banking effort in the U.S., including middle market, sponsor-backed finance and TD’s other specialty lending lines of business.
TD, which is working to resolve investigations into failures in its anti-money laundering program in the U.S., announced last week that chief executive Bharat Masrani would retire next year and be replaced by Raymond Chun.
This report by The Canadian Press was first published Sept. 26, 2024.
MONTREAL – Lightspeed Commerce Inc. says it is conducting a review of its business and operations including talks relating to a range of potential strategic alternatives.
The Montreal-based payments technology company made the comments after reports concerning a potential transaction involving the company.
Lightspeed says it periodically undertakes a review of its business and operations with a view of realizing its full potential.
A strategic review is often seen by investors as a prelude to a sale by a company.
Lightspeed says its board of directors is committed to acting in the best interests of the company and its stakeholders.
Company founder Dax Dasilva returned to the role of chief executive officer earlier this year and has been working to return the company to profitability.
This report by The Canadian Press was first published Sept. 26, 2024.
MONTREAL – National Bank of Canada says it has cleared a key regulatory hurdle in its proposed acquisition of Canadian Western Bank.
The Montreal-based bank says it has received the Competition Bureau’s clearance for the deal.
The transaction still requires approval by the Office of the Superintendent of Financial Institutions and the minister of finance.
Canadian Western shareholders voted to approve the deal earlier this month.
National Bank announced an all-stock deal to buy Canadian Western earlier this year in a proposal that valued the Edmonton-based bank at about $5 billion.
It has said its acquisition of Canadian Western will significantly expand its western footprint and create a stronger national competitor.
This report by The Canadian Press was first published Sept. 26, 2024.
