Transat operates the nation's third-largest carrier, offering through its Air Transat brand vacation packages, hotel stays and air travel to about 60 destinations in the Americas and Europe. Its purchase by Air Canada - which still requires Canadian and European regulatory approvals - has raised consumer and competition concerns as it would bring half of all flights between Canada and Europe, for example, under Air Canada's wing.
Quebec businessman Pierre-Karl Peladeau, who has a 1.6 percent stake in Transat, said this level of market concentration is "unacceptable in any industry." Transat chief executive Jean-Marc Eustache, however, said in a statement that the combination will "create a leader in the travel industry able to compete on a global scale." Both companies are based in Montreal, and had been in merger talks for seven months. Earlier this month Air Canada raised its offer from Can$520 million to fend off a rival bid by Montreal real estate developer Groupe Mach.