Air Canada seeks to address EU concerns on Transat purchase

Industry:    2020-11-30

Air Canada has offered concessions related to its proposed acquisition of Canadian tour operator Transat to address EU antitrust concerns, a European Commission filing showed on Thursday.

The Commission, which oversees competition policy in the 27-nation European Union, said the commitments had been submitted on Nov. 25. As a result, it has extended the deadline for its decision by three weeks to Jan. 29.

The Commission opened an investigation in May on concerns that the deal could push up prices and reduce choice for flights between Europe and Canada.

Air Canada last month cut its offer price for Transat by nearly 75% to about C$188.7 million ($145.13 million) because of the COVID-19 impact on travel demand.

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