Is Air Transat going to merge with Air Canada?

Air Transat (a Canadian company based in Montreal that is the 3rd biggest airline in the entire country) is Air Canada’s biggest competitor in the long haul market. On Monday, the European Commission announced that it would review, for the second time, the proposed merger of the 2 airlines. It believes that the merger would reduce or eliminate competition in 33 city pairs in Canada and Europe. If Air Canada and Air Transat were to join forces, they would control some 60 % of the Europe to Canada market. Not great, seeing that small airlines are already reeling under pressure from the coronavirus. This is not the 1st time that the 2 airlines have attempted to merge: last year, they signed a tentative merger deal in a $500 million “blockbuster”. After this event, the competition regulators got involved and started to assess the effects of the merger on competiton in the industry… and they are still discussing about it now. What do you think about this affair? Should the European Commission allow Air Canada and Air Transat to merge? Or should it refuse, so as to keep every airline’s place in the market safe? Please let me know your opinion by writing a comment at the bottom of this post. 29th of May 2020.

Should they or should they not?

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