Air Canada buys Air Transat for $190 MILLION
Air Transat stopped all operations a few weeks prior to the announcement.
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Air Transat stopped all operations a few weeks prior to the announcement.
The Trudeau government has approved Air Canada to take over Air Transat, according to a Wednesday announcement from Transport Canada.
"The Honourable Omar Alghabra, Minister of Transport, today announced that the Government of Canada has approved the proposed purchase of Transat A.T. Inc. by Air Canada, subject to strict terms and conditions that are in the interests of Canadians," according to CTV.
This comes after Air Transat said it was facing "significant financing challenges," due to the COVID-19 pandemic. The air industry in general has taken a huge hit as a result of the pandemic. Air Canada lost 1,500 jobs on Tuesday, adding to the 1,900 lost in January.
The takeover will cost Air Canada $190 million.
Air Transat stopped all operations a few weeks prior to this announcement. In the news release, the government acknowledges frustrated passengers who have still not received refunds. The statement reads, "refunds are an integral part of the negotiations with airlines regarding any assistance plan."
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