Transat Demands Reduced Fees and Fair Treatment in Air Transport Industry from Canadian Government

MONTREAL, April 3

Transat A.T. inc. executives met today in Ottawa with the Federal Transport Minister and the Standing Committee on Transport regarding the airline industry's financial viability and government financial assistance to present a brief outlining their views and to make a plea for reduced fees and fair treatment among all of Canada's air carriers.

Transat's executives requested an 18-month freeze in airport ground rentpayments, elimination of the Air Travelers Security Charge for all travel sectors and the assumption of direct and indirect aviation security and policing costs by the government as well as a two-year moratorium on the special excise tax on aviation fuel.

In response to the government's recent willingness to provide over 500 million in loan guarantee assistance to a sole air transport player, Transat requested that the government allocate these funds towards reducing industry costs in the context of difficult market circumstances.

"The air transport industry has faced many challenges, particularly since September 11, 2001. It is subject to huge external cost pressures over which it has little or no control; this is where the federal government can and must help our ailing industry," declared Philippe Sureau, Executive Vice-President, Transat A.T.inc.

Air Transat serves some 90 destinations in 25 countries. With a fleet of 17 aircraft, the airline is Canada's leading leisure carrier. Air Transat is a subsidiary of Transat A.T. Inc.

Transat A.T. Inc. with its head office inMontreal, is an integrated company specializing in the organization, marketingand distribution of holiday travel. The core of its business is in Canada and France. Transat is also involved in value-added services offered at travel destinations and distribution through travel agency networks. Transat is listed on the Toronto Stock Exchange (TSE:TRZ).