Air Canada has slashed its price to buy Canadian tour operator Transat A.T. Inc, with the deal now worth about C$188.7 million ($143.86 million), down from C$720 million, as COVID-19 weighs on travel demand, the companies said in a statement on Saturday.
The country’s largest carrier had secured Transat shareholders’ approval for the deal last year with an C$18.00 a share bid, to bolster its then thriving leisure business.
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But with the pandemic grounding flights globally, Air Canada faced shareholder pressure to renegotiate the deal which is still pending approval from European and Canadian regulators, Reuters reported in May.
Montreal-based Air Canada, like many of its global peers, has slashed flights, suspended financial forecasts and sought government aid as the industry deals with its worst slump.
Companies have been canceling deals amid COVID-19 uncertainty, with aircraft parts suppliers Hexcel Corp and Woodward Inc abandoning their planned $6.4 billion all-stock merger in April.