Air Canada concessions insufficient for Transat buy, EU's Vestager says

Air Canada offered insufficient concessions to address competition concerns about its planned acquisition of Montreal-based tour operator Transat , EU antitrust chief Margrethe Vestager said on Friday. Her comments came after the two companies scrapped the deal after being told by the European Commission that it would be blocked. Vestager said she had strong concerns about the impact of the deal which Air Canada had failed to allay.

Air Canada offered insufficient concessions to address competition concerns about its planned acquisition of Montreal-based tour operator Transat, EU antitrust chief Margrethe Vestager said on Friday. Her comments came after the two companies scrapped the deal after being told by the European Commission that it would be blocked.

Vestager said she had strong concerns about the impact of the deal which Air Canada had failed to allay. "While the coronavirus outbreak has strongly impacted the airline sector, the preservation of competitive market structures is essential to ensure that the recovery can be swift and strong," she said in a statement.

"The proposed transaction would raise competition concerns on a large number of transatlantic routes. Based on the results of the market test, the remedies offered appeared insufficient."