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Description: Canada’s Competition Bureau is warning against the proposed acquisition of Air Transat by Air Canada. The Bureau is concerned that the combination of the two carriers would make things worse for travelers by raising prices and reducing service. The two airlines have over 80 routes with overlap.

Date:  March 27, 2020

Source:  thestar.com

Link: https://www.thestar.com/business/2020/03/27/competition-watchdog-warns-against-air-canadas-proposed-deal-to-buy-transat.html?source=newsletter&utm_content=a09&utm_source=ts_nl&utm_medium=email&utm_email=760BE779956395955CFBBA5C497D22A3&utm_campaign=sbj_22980

 

Discussion points:

1) Have you traveled with both of these airlines? Which did you prefer?

2) What may be some of the strategic reasons Air Canada is proposing this purchase?

3) On page 495 of Wiley’s Financial Accounting : Tools for Business Decision-Making, is a chart showing some financial information selected from the financial statements of Transat A. T. Inc., Air Transat’s owner. A bit earlier in the chapter you will find financial information excerpted from WestJet’s financial statments. How does Air Transat compare to Westjet in terms of property, plant and equipment? How about in terms of net income?

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