Transat A.T., parent of Air Transat, secures further C$250m in state support
Transat A.T. has obtained an additional C$250 million credit line from a Canadian state funding body, on top of C$150 million granted in July, as high fuel costs weigh on the airline.
Transat A.T., which owns Air Transat, has secured an additional credit line of 250 million Canadian dollars, about 156 million euros, from the Canada Enterprise Emergency Funding Corporation. Ottawa had already lent the company 150 million Canadian dollars, roughly 93 million euros, in July.
Air Transat blamed high fuel costs for the need for support. Competition on the transatlantic market was strong enough that the carrier could not pass those costs on through ticket prices, it said. Fuel surcharges would have reduced demand, and competitors answered with special offers.
Transat lost 106.6 million Canadian dollars, around 66 million euros, in the quarter ending in late July.
Sources
- aerotelegraph.comMutter von Air Transat erhält weitere 250 Millionen Dollar Staatshilfe