The Canadian federal government has approved Air Canada's purchase of competing airline Transat A.T. Inc. under a series of strict terms and conditions the government says "are in the interest of Canadians."

The revised deal, now valued at 190 million Canadian Dollar, was agreed in October last year in the wake of the Covid-19 shutdown of international travel.

"Given the devastating impact of the COVID-19 pandemic on the air industry, the proposed purchase of Transat A.T. by Air Canada will bring greater stability to Canada's air transport market," said Transport Minister Omar Alghabra in a media statement.

The deal remains subject undertakings agreed to by Air Canada designed to ensure effective competition in the market. Air Transat said approval from the European Commission was still pending, with a decision expected in the first half of the year.

“We are currently working on adjusting all of the deadlines, including our financing agreements, in order to align them with the anticipated completion of the commission’s review process,” commented Jean-Yves Leblanc, chair of the special committee of the board of directors of Transat.

Transat will discuss with Air Canada the appropriateness of extending the outside date for the consummation of the arrangement under the arrangement agreement which is set for today. After this date, if it is not extended, the agreement will remain in effect, unless terminated by one of the parties.

Last week, Air Canada said total revenue for financial 2020 stood at Canadian Dollar 5.8 billion, down 70 per cent from the Canadian Dollar 13.3 billion recorded in the previous year.

Italy gets Inexperienced Super-ministry as Draghi Eyes EU Funds

US Embassy in Myanmar cautions its citizens as armored vehicles rolled into cities

Meghan Markle, Prince Harry expecting second child