Air Canada looks to buy tourism business for $520 million

Air Canada has entered into a 30-day exclusive negotiation period to purchase Transat, a Montreal-based tourism company. Air Canada’s bid for the company C$520 million including debt and net of cash is subject to approve –  in what’s seen as a move to strengthen the airline’s leisure brand. The airline is subject to a maximum reverse break up fee of C$40 million in the event the agreement is terminated due to lack of regulatory or government approval. Transat operates a fleet of 33 aircraft. Most of the aircraft are old, but they are similar to aircraft AC already flies. As