New planes for Air Transat...
Posted: Mon Jun 06, 2005 5:53 pm
Was reading that Air Transat are looking at new aircraft. Nothing corroborated, but I did read they are looking at either B777-200ERs or A350-900s to replace their current fleet. Could be just a rumour although they do have some money to spend.
Transat A.T. working on new business plan for spending excess cash
08:44 PM EDT Jun 06
ALLAN SWIFT
MONTREAL (CP) - Travel company Transat A.T. Inc. will have a new business plan by this fall that will include what to do with its excess cash, chief executive Jean-Marc Eustache told the company's annual meeting Wednesday.
The plan will provide a strategic outlook for three to five years for the integrated travel company, Eustache said.
Transat's liquidity - currently some $320 million and growing - has become almost an embarrassment to the company, as management continues to put off a decision on how best to use it.
Some investors are calling for a share buyback or a large dividend payout to shareholders.
Eustache said it is prudent for a travel company to keep cash on hand, to deal with crises like the Sept. 11, 2001, terrorist acts that devastated the industry and forced Transat to cut back operations suddenly.
Transat's subsidiaries include a tour operators, travel agencies and Air Transat, a major chartered airline. The company operates in Canada, France and the United Kingdom and flies to other countries around the world.
Transat is also scouting the United States for an acquisition that could use up part of the cash, Eustache said.
"It's true we have cash, and we'll generate more this year," Eustache said in response to a question at the meeting.
He said the board - of which he is chairman - met Wednesday and gave Transat's management until the fall to come up with a new strategy for how to spend or invest the reserves.
Besides its plans for growth abroad, Transat wants to become the travel market leader in Ontario, which accounts for half the Canadian market.
Transat currently has 20 per cent of the Ontario travel market, second after Sunquest Vacations, a division of MyTravel Group of Britain, while Transat is the largest player in the other three regions - the West, Quebec and the Maritimes.
Eustache said he wants to grow Transat's share in Ontario to 35 per cent to become market leader and to be able to improve margins.
"Once we're the leader we'll get the profit margins we have in the other three markets," he said.
Eustache said the growth will come by adding new Caribbean destinations and other Ontario markets such as Hamilton.
Even if an Ontario travel company were for sale, Eustache said it would add other aircraft types to its fleet at Air Transat, making it less efficient. Air Transat has 14 aircraft composed of two similar models, Airbus A330s and A310s.
Analyst Christian Godin of Montrustco Bolton said he was happy that Transat bought back some shares this month to soak up cash.
Godin also said he is satisfied with management's decision to become market leader in Ontario, by growth rather than acquisition.
"The Ontario market was always a bit chaotic," Godin said. "If they can get it to become more disciplined, things will go better."
Transat stock (TSX:TRZ.B was off 49 cents at $23.26 Wednesday.[/b]
Transat A.T. working on new business plan for spending excess cash
08:44 PM EDT Jun 06
ALLAN SWIFT
MONTREAL (CP) - Travel company Transat A.T. Inc. will have a new business plan by this fall that will include what to do with its excess cash, chief executive Jean-Marc Eustache told the company's annual meeting Wednesday.
The plan will provide a strategic outlook for three to five years for the integrated travel company, Eustache said.
Transat's liquidity - currently some $320 million and growing - has become almost an embarrassment to the company, as management continues to put off a decision on how best to use it.
Some investors are calling for a share buyback or a large dividend payout to shareholders.
Eustache said it is prudent for a travel company to keep cash on hand, to deal with crises like the Sept. 11, 2001, terrorist acts that devastated the industry and forced Transat to cut back operations suddenly.
Transat's subsidiaries include a tour operators, travel agencies and Air Transat, a major chartered airline. The company operates in Canada, France and the United Kingdom and flies to other countries around the world.
Transat is also scouting the United States for an acquisition that could use up part of the cash, Eustache said.
"It's true we have cash, and we'll generate more this year," Eustache said in response to a question at the meeting.
He said the board - of which he is chairman - met Wednesday and gave Transat's management until the fall to come up with a new strategy for how to spend or invest the reserves.
Besides its plans for growth abroad, Transat wants to become the travel market leader in Ontario, which accounts for half the Canadian market.
Transat currently has 20 per cent of the Ontario travel market, second after Sunquest Vacations, a division of MyTravel Group of Britain, while Transat is the largest player in the other three regions - the West, Quebec and the Maritimes.
Eustache said he wants to grow Transat's share in Ontario to 35 per cent to become market leader and to be able to improve margins.
"Once we're the leader we'll get the profit margins we have in the other three markets," he said.
Eustache said the growth will come by adding new Caribbean destinations and other Ontario markets such as Hamilton.
Even if an Ontario travel company were for sale, Eustache said it would add other aircraft types to its fleet at Air Transat, making it less efficient. Air Transat has 14 aircraft composed of two similar models, Airbus A330s and A310s.
Analyst Christian Godin of Montrustco Bolton said he was happy that Transat bought back some shares this month to soak up cash.
Godin also said he is satisfied with management's decision to become market leader in Ontario, by growth rather than acquisition.
"The Ontario market was always a bit chaotic," Godin said. "If they can get it to become more disciplined, things will go better."
Transat stock (TSX:TRZ.B was off 49 cents at $23.26 Wednesday.[/b]
