Transat sales: What happens to travel credits?

After the federal government approved the sale of Transat to Air Canada, there was uncertainty over the travel credits given to Transat customers whose flights were canceled due to the epidemic.

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Air Canada is likely to honor the travel credits given to Air Transat customers, said Javier Barsalou-Duval, a shipping spokesman for Black Cubacois.

“In bonds [liées à l’achat de Transat], The Air Transat brand should continue for five years, ”the deputy explained in an interview with LCN.

However, Air Canada Airlines may decide to go bankrupt, meaning customers will lose their travel credits.

“If they deliberately cause Air Transat to go bankrupt they will have nothing to do with it and saying good evening thank you, credits will not be honored, it is clear,” Mr Barsalou-Duval continued.

“We hope it’s not going to happen. With another buyer, we’m sure it’s going to happen, but with Air Canada, you never know what to expect,” he added.

Although the Government of Canada has approved the transaction, Air Canada is likely to waive the transat purchase as there is a provision in the purchase agreement.

Air Canada has announced a $ 13.3 billion decline in revenue for 2020, down 70% from the previous year.