Air Transat and Aéroports de Montréal Reach Agreement on Airline's Move to Montréal-Trudeau

MONTREAL, January 26 /CNW Telbec/

Air Transat and Aéroports de Montréal (ADM) have reached an agreement that paves the way for the carrier's move to Montréal-Pierre Elliott Trudeau International Airport (Montréal-Trudeau) beginning next November.

As owner of Montréal-Trudeau, ADM will construct the building that will house Air Transat's new head office and hangar. ADM will lease the building to Air Transat for a maximum period of 40 years. The agreement also stipulates that ADM will purchase Air Transat's facilities at Montréal-Mirabel airport.

"We are satisfied with the terms of the agreement reached with ADM," stated Allen B. Graham, President and Chief Executive Officer of Air Transat. "The move will not affect the airline's cost structure. We are looking forward to our move, which will create a satisfying new environment for our customers and employees."

For his part, ADM President and Chief Executive Officer James C. Cherry said : "This agreement is part of ADM's business strategy which entails specializing its airport platforms, with the result that we will be able to reduce our operating costs while greatly improving service to users."

All Air Transat flights that were operating out of Montréal-Mirabel are slated to be leaving from Montréal-Trudeau starting in November 2004. The airline's administrative employees are expected to move into the new offices in December 2004.

In the spring of 2002, ADM had announced its plans to concentrate all passenger flights at Montréal-Trudeau and to transform Montréal-Mirabel into a platform specialized in cargo and industrial development. Following the announcement, ADM and Air Transat began the discussions that led to today's agreement.

"It will be our pleasure to welcome Air Transat and its passengers to Montréal-Trudeau at a time when all of our users are benefiting from ultra- modern facilities, including the new international arrivals building to be opened in November 2004," Mr. Cherry concluded.

About Air Transat
Air Transat offers departures from Canada to some 90 destinations in 25 countries. With a fleet of 15 aircraft, the airline is Canada's leading vacation airline. Air Transat is a subsidiary of Transat A.T. Inc., an integrated company specializing in the organization, marketing, and distribution of holiday travel. About Aéroports de MontréalAéroports de Montréal is the local airport authority responsible for the management, operation and development of Montréal-Trudeau and Montréal-Mirabel international airports under the terms of a lease entered into with Transport Canada in 1992. The Corporation employs a total of some 600 persons at both airports and at head office.