Air Canada has reached a definitive agreement to acquire Air Transat's parent, with an unanimous vote in favour of the deal by Transat's board. Air Canada's cash purchase of outstanding Transat stock at C$13 ($9.90) per share is estimated at C$520 million and still requires approval from regulators and shareholders. The two companies expect to close the deal in "early 2020". "Travellers will benefit from the merged companies' enhanced capabilities in the highly competitive, global leisure travel market and from access to new destinations, more connecting traffic and increased frequencies," says Air Canada chief executive Calin Rovinescu.

Source: FlightGlobal

IAG chief executive Willie Walsh expects further European airline bankruptcies in 2019 amid "stubbornly" high fuel prices and competitive pressures in what is likely to be a "tough" year for the sector. Walsh predicts that "there will be some M&A [merger and acquisition] activity" but adds: "When we talk about consolidation in Europe, do talk about it in the context of airlines disappearing as well. Unlike 20 years ago, I think, when an airline disappears it's rare to see that airline replaced."
He notes: "It's not always the case, but a lot of the capacity is now provided by airlines already in operation, which leaves very little space for somebody to try to come in and start up." Ryanair chief commercial officer David O'Brien agreed. He says he expects a number of airline failures in the next six months in Europe, including, possibly, some "sizeable" carriers.


Source: FlightGlobal

Nordica has made this dramatic announcement that will retire the Nordica brand:
Nordica and LOT have signed a renewed cooperation agreement under which LOT will take over the management of ticket sales and customer service and Nordica will focus solely operating flights. As a result of the reorganization, five unprofitable routes will be suspended from the end of October until an improvement in the competitive situation is seen. Flights will continue from Tallinn to Stockholm, Brussels and Warsaw, which will be serviced by LOT from the July 1, 2019.

Source: World Airline News