Christy Somos
CTVNewsca writer


Air Transat and an Air Canada aircraft will be launched on Wednesday, November 8th April 2020, seen on the tarmac at Montreal-Trudeau International Airport in Montreal THE CANADIAN PRESS / Paul Chiasson

Air Canada has been cleared by the federal government to acquire Air Transat, Transport Canada said on Thursday

“The Honorable Minister of Transportation, Omar Alghabra, announced today that the Government of Canada has approved the proposed Transat A purchase Inc from Air Canada under strict conditions that are in the best interests of Canadians, ”the press release announced

Air Transat announced in December 2020 that the COVID-19 pandemic had weighed heavily on its operations and was a key factor in the final decision as the airline faces “significant funding challenges”

Air Canada announced on Tuesday 1500 layoffs when the service was further downgraded, in addition to the 1st700 jobs cut in January The airline also suspended all operations on its Rouge line in February 8 indefinitely, laying off 80 workers

WestJet also laid off employees after the federal government urged airlines to stop all flights to Mexico and the Caribbean by Jan. April suspend

Air Transat announced two weeks ago that it would temporarily suspend all operations based on the government’s request until news of the approved sale to Air Canada broke on Thursday

In the press release, the government acknowledged that some Air Transat passengers are still awaiting their refunds for flights canceled due to COVID-19 and assured Canadians that “refunds are an integral part of negotiating an assistance plan with airlines are ”

Other conditions related to the proposed acquisition were listed as: Measures to allow other airlines to start Air Transat’s routes to Europe, maintain Air Transat’s brand and office in Quebec, 1Employing 500 people, commitments to facilitate aircraft maintenance in Canada and prioritizing Quebec contracts, a price monitoring mechanism, and starting operations for new destinations for the airline within the first five years

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Air Transat

World News – CA – Feds Approve Air Canada’s Acquisition of Air Transat