Quote:
Originally Posted by thenoflyzone
You and me both know if TS folds, Rouge and even Westjet will pick up the slack (Rouge to Europe and the Caribbean, Westjet mostly to the Caribbean). Montrealers wont stop flying to Europe/the Caribbean simply because TS folds. You might see a dip in passengers for a year, but eventually, other carriers will fill the void.
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My expectation is that any new ownership for TS or Transat AT will quickly restructure the airline to drop unprofitable flying. I also believe the unprofitable flying will not be replaced by Rouge, WestJet, Sunwing, etc.).
Air Canada mainline and Rouge will take the opportunity to firm up margins and yields in the YUL market. Rouge is getting near the max 50 aircraft. So any transition into YUL would have to come at the expense of other routes. Similarly, mainline widebody routes are doing above expectations, at least above the current margins for TS.
WestJet is perennially challenged to maintain french language obligations on existing YUL, YQB, and YQM services. I can only see a takeover of TS or the whole tour company as a viable solution to ws small presence in YUL and YQB.
Don't count out a TransAt AT takeover from the realm of possibilities. Stock market valuation is <$200 million so a competitive bid around $250-$275 million would take the whole company.