TORONTO (Pakistan Point News / Sputnik - 12th February, 2021) Canadian Transport Minister Omar Alghabra approved the purchase of the country's third-largest airline Air Transat by flag carrier Air Canada.
"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," Transport Canada said in a statement on Thursday.
The coronavirus pandemic played a major role in the decision, with Air Transat facing the possibility of going under in the near future, the statement said.
The deal comes with the stipulation that Air Canada must maintain the company's head office and brand in Quebec and relocate 1,500 employees still on payroll to other departments. Air Transat staffed more than 5,000 employees prior to the pandemic.
Transport Canada said that the issue of outstanding refunds would be addressed during deliberations about the industry bailout package Ottawa has mused about since last spring.
