It was Transat AT itself that confirmed the information by disclosing its results for the second quarter of the current fiscal year on Thursday.
The press release from the air carrier indicates continuing discussions with Mr. Pelado.
There is no certainty that the deal will produce.
Quebecor’s controlling shareholder made an offer in early April in which his company Gestion MTRHP proposed to acquire Transat AT At $5.00 per share, the show that was Turned down by the main shareholder, Letko Prosso. in the middle of may Mr. Pillado claimed that he was no longer interested With this purchase, Transat responded that it had not been formally notified of this lack of interest.
Like all airlines, Transat AT has been hit hard by the health crisis and also announced that it is abandoning the hotel sector to focus solely on airline activities.
This does not mean that we will stop selling packages – this remains an important part of our business – but we will not invest in building the hospitality division as we planned to do. The pandemic has hampered our ability to do this by depleting our cash reserves, the company’s president and CEO, Annick Guérard, explained in a conference call.
Thus, Transat AT’s real estate portfolio in solar destinations, valued at US$38 million, is up for sale.
Annick Guérard, who has been the company’s president and CEO since the end of May, agreed Display 24 • 60 His first television interview in this regard.
In addition, international departures will only be from Quebec, Ontario, and The Maritimes. Western Canada service will continue to be offered, but only for domestic flights. The airline also wants to reduce the number of aircraft models in use from four to two to simplify operations and increase the use of its aircraft in order to make its use more profitable.
Although we are not out of the doldrums yet, we now see the future with confidencesaid Girard, who is expecting another very difficult year in 2022.
However, it made clear that pessimistic analyzes that did not predict a return to travel to the 2019 level before 2024 or 2025 have been revised.
We expect that after 2022 we will be able to go back to something more balanced and maybe see profitability at that time.
The flight will resume in August
Transat AT will resume operations on July 30 and plans to fly from Montreal in August to three destinations: Paris, Cancun and Punta Cana. Air operations were suspended on January 29.
However, Ms. Girard did not miss the opportunity to press Ottawa.
Most countries are in the process of creating or at least preparing plans for a safe resumption of travel and we appeal to Canada to do the same in the near future.
We urgently need a clearer plan from the federal government to define next steps so that we can effectively plan for reopening our operations.
Meanwhile, Transat AT’s bleak results are not surprising in the context of the pandemic. The tourism company increased its adjusted net losses in the second quarter of the current fiscal year compared to the corresponding period of fiscal year 2020.
It rose from $38.8 million to nearly $103.3 million.
The Montreal-based company’s revenue has plummeted during the COVID-19 pandemic, dropping from the second quarter to the next from $571.3 million to just over 7.5 million.
Transat AT signed an agreement with the Government of Canada a few weeks ago to borrow Additional liquidity up to a maximum of 700 million, of which 310 million can be used to compensate customers.
Deposits received from customers for future trips were 560.4 million as of April 30.
Customers have until August 26 to claim a refund, and the Transat boss was clear: Refunds will not be automatically made by Transat; Only customers who order one can get it.