Montreal-based travel company Transat A.T. Inc. announced on Tuesday that it has started preliminary discussions with interested parties concerning a potential sale of the company.
The announcement came as Air Transat’s parent company was preparing to hold its annual shareholders’ meeting in Montreal. The company indicated that the discussions are the result of “expressions of interest” and that a special committee has been formed to evaluate the various proposals.
“I want to reiterate that the discussions are at a preliminary stage and no decision has been made on a potential transaction,” said Jean-Marc Eustache, President and Chief Executive, Transat A.T. Inc, at the beginning of the meeting.
The company was founded 33 years ago by a group of businessmen including Eustache and Quebec Premier François Legault, who left the business in 1997 to enter politics.
Transat A.T. has been facing increased competition from Canadian carriers Air Canada Rouge, WestJet and Sunwing Airlines. TUI has a 49% stake in Toronto-based Sunwing Travel Group, which is thought to to be among the potential buyers.