MONTREAL — Pierre Karl Péladeau’s pursuit of Transat A.T. has the travel company preparing for battle at its upcoming Annual General and Special Meeting of Shareholders, set for March 10.
Ahead of the meeting, Transat has mailed a letter to shareholders outlining the board’s voting recommendation, in support of Transat’s eight nominees and the company’s ongoing turnaround plan that Transat says is delivering measurable results.
The letter, mailed to shareholders and available at votetransat.com, highlights Transat’s turnaround momentum, strengthened balance sheet, improved financial results and disciplined execution of its clear strategy as Transat enters the next phase of its strategic plan.
“This is a pivotal moment for Transat. The board remains focused on executing a clear plan that is delivering measurable results and positioning Transat for sustainable long-term value creation for the benefit of all shareholders,” said board chair, Susan Kudzman.
“NOT GOING AWAY”
Péladeau’s on-again, off-again interest in Transat has been an issue for years – and lately, it’s back on.
Financière Outremont, an investment company held by Péladeau, is Transat’s second-largest shareholder with 9.5% economic and voting interest.
An update from Financière Outremont issued earlier this month said the investment company “is not going away” and is “deeply committed to the success of Transat.”
TRANSAT’S NO-HOLDS-BARRED LIST OF FINANCIÈRE OUTREMONT’S CLAIMS
In its letter to shareholders Transat noted its turnaround strategy, including the Elevation Program, on track to deliver $100 million uplift in adjusted operating income by mid-2026 through revenue optimization, cost discipline and operational efficiencies.
Following the July 2025 federal debt restructuring, Transat cut its government debt in half and lowered annual interest expense by approximately 90%, improving financial flexibility and protecting shareholder value. Transat also highlighted its share performance over the past 12 months, and its ‘right-sized, industry-expert and experienced board.’
Transat also delivered a no holds barred list of recent public claims by Financière Outremont Inc. – along with information the travel company said aims to help investors make an informed decision…
- Transat’s share price is down 57% over five years
“With Transat’s focus on international leisure travel, prolonged border closures and travel restrictions during the COVID pandemic had an outsized impact on Transat and its share price. Using 2020 as the starting point for share-price performance creates a distorted comparison. Over the past 12 months, Transat’s shares have outperformed its main Canadian competitor by approximately 27.5 percentage points and the S&P/TSX Composite Index by approximately 16 percentage points.”
- Transat has the worst financial performance in the industry
“Broad ‘worst in the industry’ claims depend on selective peer sets and selective time windows. What matters now is the recovery trajectory: record adjusted EBITDA in FY2025, improved cash burn of 45%, and a stronger balance sheet than a year ago evidenced by a lower leverage ratio.”
- Transat is at risk of insolvency
“Liquidity is seasonal by nature in aviation. Cash burn has improved materially year over year. The balance sheet is materially stronger than it was 12 months ago.”
- Transat’s pilots went on strike in December 2025. Labour relations are unstable
“Transat and its pilots reached a negotiated agreement prior to the deadline, avoiding a strike and significant operational disruption. That agreement was ratified, with a vote of 91% in favour of ratification, by pilots in January 2026. In 38 years of operations, Transat has never experienced a labour conflict.”
- Financière Outremont is protecting shareholders
“Recent acquisition proposals received from Les Placements Péladeau Inc. were below market value, with some valuations of Transat’s equity as low as at $1, which would have significantly impaired or eliminated shareholder value.”
- The Board refused engagement
“The Board is open to dialogue with all shareholders and has engaged in good faith negotiations with Financière Outremont for several years and, more recently, offered proportional representation consistent with an approximate 9.5% ownership stake. This offer came with entirely customary protections that were even less restrictive than what is typically asked of activist shareholders in similar circumstances, like voting support and limited covenants to ensure the activist will refrain from launching another proxy fight during an agreed, reasonable cooling–off period so that the reconstituted Board could operate with stability during the turnaround, for the benefit of the Company and all shareholders. The offer was declined.”
- Transat has no credible plan
“Transat’s plan, including the detailed Elevation Program, sets measurable financial and operational targets through mid-2026 and is already being executed. Our fiscal 2025 financial results prove that the Company’s clear plan is working.”
- Financière Outremont is bringing necessary human and financial capital
“Experience in unrelated industries does not translate to the ability to run a highly complex, regulated, safety-focused international airline where any missteps could have major consequences.”
- New capital is ready
“Shareholders have not been shown any committed financing terms or capital, a detailed plan, or an execution roadmap. Promises of potential ‘new capital’ are not the same as disclosed, fundable commitments. Statements about potential ‘new capital’ are not a plan and shareholders should not be asked to approve major governance changes based on undefined capital claims.”
- Government has taken Transat hostage
“The government relationship is governed by legal and contractual terms, and Transat remains a public company accountable to shareholders through its Board. The 2025 restructuring improved solvency and preserved shareholder equity and the court rejected Financière Outremont’s efforts to obtain an injunction which aimed in particular at preventing closing of the restructuring unless Transat obtained shareholder approval.”
- Minority representation would be a waste of Financière Outremont’s nominees’ time
“In a public company, directors serve all shareholders not one investor. Demanding influence beyond ownership without a premium or a financed plan is not a shareholder-friendly model. Ask yourself – why is something short of effective control a waste of time?”
- Urgent need for ‘new capital’ asserted without specifics
“If new capital is truly urgent, shareholders deserve to see the specifics: amount, pricing, source, conditions, and how it improves leverage and returns. In July 2025, Transat restructured its federal debt, reducing it by more than half, from approximately $772 million to $334 million, and lowering annual interest expense by approximately $45 million (or approximately 90%). The restructuring allows us to work on structuring projects. Cash burn has improved materially year over year. The balance sheet is materially stronger than it was 12 months ago.”
- Telecom success translates to airline turnaround
“Airlines are safety-critical, heavily regulated, and operationally complex. Success in unrelated industries does not substitute for airline operating, safety and fleet expertise especially during a turnaround.”
Transat added that its board believes industry expertise, independent oversight and disciplined execution “remain essential as the company completes its turnaround in the highly regulated and operationally complex international airline industry.” The proxy vote deadline is March 6.
