Agreement between the Government of Canada and Air Transat, customers will be able to ask for a full refund

MONTRÉAL, April 29, 2021

Transat A.T. Inc. announced today that it has reached an agreement with the Government of Canada to borrow up to $700 million in additional liquidity through the Large Employer Emergency Financing Facility (LEEFF).

  • An amount of $390 million, representing the liquidity needed to support Transat until its business has recovered to a level where it can generate cash once again.
  • An amount of $310 million consisting of an unsecured credit facility to provide reimbursement to travelers who were scheduled to depart on or after February 1, 2020, for whom a travel credit was issued as a result of COVID–19. This amount is repayable over a 7-year term and is loaned at the current 7-year Canada Bond rate of 1.2%.

In connection with the establishment of these credit facilities, Transat has made certain commitments, including:

  • The reimbursement of travelers who were scheduled to depart on or after February 1, 2020, to whom a travel credit has been issued due to COVID-19. Refunds will begin immediately, with terms to be communicated separately. As per the agreement, to be eligible, customers will need to expressly indicate their desire for a refund;
  • Restrictions on dividends, stock repurchases and executive compensation;
  • Maintaining active employment at the level of April 28, 2021.

Among the parameters set by government authorities, those who have a travel credit must submit their refund request to Transat by August 26, 2021. This is why they are invited to complete the request form available at airtransat.com/refunds as soon as possible. If they originally booked with a travel agent or online travel agency, they should contact them directly.

Réseaux sociaux / Social networks
  •  
  •  
  •  
  •  

Comments

comments

Default image
Michel Rochefort
Articles: 114