Air Canada-Air Transat Merger Clears Another Hurdle
Air Canada's takeover of leisure carrier Air Transat moved forward Thursday after the board of Air Transat's parent company unanimously approved the terms merger proposal.
The deal is worth approximately $520 million (Canadian), according to an Air Canada press release.
"We are very pleased to join forces with such a successful player in our industry. The combination with Air Canada will give Transat new perspectives of growth, with the support of a strong network offering many options for connecting traffic," Jean-Marc Eustache, Transat's president and CEO said in a statement.
Related: The 7 Best Starter Credit Cards
Air Transat is a leisure-focused airline and will remain as a standalone brand even after the merger is completed. That includes maintaining Transat's Montreal offices. While executives at both airlines say this is a move to help retain customer loyalty and differentiate their products, the "airline-within-an-airline" model can be a risky business proposition. The Lufthansa Group, for example, recently announced that it would terminate long-haul service on Eurowings, its low-cost subsidiary.
The deal, which was formally announced in May, still has to go through a court-approved plan under Canada's Business Corporations Act before being finalized. It comes amid broader shakeup in the Canadian airline industry. Also in May, WestJet -- Canada's No. 2 carrier -- announced its intention to go private after it agreed to a friendly acquisition from Toronto-based private-equity firm Onex Corp.
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app