Air Transat concludes agreement with the International Association of Machinists and Aerospace Workers

Montreal, January 10, 2000

Air Transat has concluded a new labour agreement with its 330 maintenance employees and storekeepers, all of whom are members of the International Association of Machinists and Aerospace Workers (IAMAW – District 140).

The agreement, which covers the 42 month period starting November 1, 1999 and ending April 30, 2003, was concluded after two months of negotiations. The members of the IAMAW – District 140 ratified the agreement during a general meeting held on January 5, 2000. The new agreement includes numerous enhancements with respect to wages. Furthermore, the deal provides for the creation of a new pension plan. Several non-monetary components of the agreement related to working conditions have also been improved.

'Negociations were conducted in a climate of mutual respect and collaboration. The common objective of this exercise was the general improvement of working conditions' said Executive Vice-President Denis Jacob. 'It is the third labor agreement renewal with the various groups of employees at Air Transat in less than 12 months.'

Air Transat, a wholly owned subsidiary of Transat A.T. Inc., is a charter carrier operating from its five main bases in Montreal, Toronto, Quebec City, Halifax, and Vancouver. Its fleet of 21 aircraft primarily serves European destinations in summer, and sunshine destinations in the Caribbean, Mexico, the United States, Central and South America in winter. Year-round, Air Transat links Canada’s principal cities. In addition, the airline is designated as a scheduled carrier between Canada and France, as well as Canada and Cuba. In 1998, Air Transat carried over 2,500,000 passengers. The Corporation employs 2,000.

Transat A.T. Inc, a leader in the Canadian tourism industry, is a public corporation listed on the Toronto Stock Exchange. Through its subsidiaries and affiliated companies, the company is active in all aspects of the organization and distribution of travel services as well as in air transportation. Air Transat, an air carrier, is a wholly owned subsidiary, as are Air Transat Holidays (Montreal, Quebec City, Toronto, Vancouver, and Fort Lauderdale); Vacances Air Transat (France); Nolitour (Montreal) and Regent Holidays (Toronto), which are tour operators, as well as the Tourbec travel agency chain. Transat A.T. Inc. holds an interest in Look Voyages (98%), Brok’air (39%) and World of Vacations (35%), in Consultour/Club Voyages (50%), a travel-agency franchise group; and Services Haycot (50%), an airport handling services company. In addition, Air Transat Holidays holds an interest in the incoming tour operator DMC Transat (66.7%), in Look Voyages, and in STAR Airlines (49.6%).