RE:RE:RE:RE:RE:AC bidMy opinion. The deal is DEAD!!!!!
Its that simple. AC will NOT spend $740 million to buy Transat. Not now, not any time in the future.
What many appear to be missing, the deal is NOT cemented in stone. There is a way for AC to get out. All they have to do is wait till end of December. If by then they dont have all approvals, the deal has run out of time, and becomes nul and void. Not even $40 million break fee. Nothing.
Actually, that could be the case already end of September. The contract has three one month extensions for closing as part of the deal. We are currently in those three months. They expire end of September. THEN, there are three more one month extensions possible (taking us to maximum end of December), BUT ONLY if both parties agree. Transat will agree. AC? I suppose to be politically correct they should agree, but with everyone fighting for survival, and with Uncle Justin not handing the airlines any cash, all bets are off!!!!!
Transat, if cut loose, could be in a phenominal position to cash in on this deal gone sour. You want to fly Trans Atlantic to Europe? With whom will you fly? After the demise of an endlessly long list, what non flag carrier still exist??? NONE!!!! Wow, Norwegian, Air Italy, Thomas Cook and its associates....Gone!!! A few others like Edelweiss and HiFly...pulled out.
They are mean and lean coming out of this, Rouge is gone too. Appart from flag carriers, they are the only alternative left. I management knows how to cash in on that monopoly!!! Then we might see $18 or more!!!
Cheers and GLTA