Air Transat sets March 10 for shareholder meeting following Péladeau requests

Transat A.T. Inc. has set March 10 for a shareholder meeting to vote on a board overhaul and other changes sought by Pierre Karl Péladeau, the travel company’s second-largest shareholder and the CEO of Quebecor Inc.

The company said Monday the meeting is being called in direct response to Péladeau’s request and will also deal with its regular annual business.

“Transat’s directors and management team remain committed to disciplined stewardship, rigorous governance, and the protection of all shareholders, both large and small,” the company said in a statement.

Péladeau had asked for a meeting by Feb. 6, however Transat says that would have meant two shareholder meetings in short succession dealing with overlapping issues.

Transat said holding the meeting earlier than March 10 would also require it to divert substantial time and resources to prepare on an unduly compressed timeline.

Péladeau has said the board should be reduced to six directors — with him among three new members — from 11 currently. He has further asked for Transat, which owns Air Transat, to restructure its “broken” balance sheet and launch a strategic review. 

“These actions are necessary to demonstrate the board’s commitment to creating value for shareholders and other stakeholders, and to reassure key stakeholders that the company’s strategy has been realigned under improved and robust oversight,” Péladeau said in a statement earlier this month.

His investment firm Financière Outremont Inc. owns 9.5 per cent of Transat.

Last week, Transat narrowly avoided a costly work stoppage when it reached a new tentative contract with its pilots. The agreement in principle includes a wage hike of more than 60 per cent on average over five years, according to Transat.

Union leaders are set to present details of the deal to members this week in Toronto and Montreal, followed by a vote that will wrap up on Jan. 6.

Transat has struggled amid stiff competition for vacation destinations and heavy debt, though it announced a major restructuring of pandemic-era debt earlier this year that forgives hundreds of millions of dollars owed.

The company, which sells vacation packages and flights largely to spots in Europe and the Caribbean, also continues to deal with engine recalls that have grounded four of its planes.