Transat Reviews Look Voyages’ Positioning and Files a Proposed Social Plan in France

Montreal, Qc, Canada, July 13, 2004

Transat A.T. Inc. announces the implementation of a plan to reposition Look Voyages, one of its France-based subsidiaries. The plan, the latest step in more than two years of effort by the Corporation to return Look Voyages to profitability, calls for the abandonment of certain operations considered non-strategic, the intensified development of the core tour operator packages business, and the increased use of Web-based technologies to stimulate sales to both travel agencies and the general public. The plan could result in staff reductions affecting about 90 people.

In accordance with French labour regulations, this plan was submitted to the Look Voyages Workers Council on July 12. Look Voyages will now begin the negotiations required by the French regulatory system, and Transat is unable at this stage to disclose the amounts of either the restructuring costs or the reduction in the operating costs associated with the social plan. A provision covering the restructuring costs will be recorded in the fourth quarter. Information on anticipated annual savings will also be disclosed at that time.

“When we released our second-quarter results on June 10, we also announced that we would submit a restructuring plan for Look Voyages to our Board of Directors by the end of the fiscal year,” said Jean-Marc Eustache, President and Chief Executive Officer of Transat. “The filing of this plan, following its approval by the Board, is a logical follow-up to the changes initiated in April 2003 and to the public statement made at the time we announced our second-quarter results. This step is now completed and we will continue to support the efforts of our French subsidiary.”

Look Voyages will continue to build on its excellent reputation with consumers, its Club Lookéa products (vacation village with on-site animation) and on a dynamic distribution system that relies on, among other things, B2B and B2C Web-based technologies that are at the core of its strategy.

In Canada, booking trends continue to be in line with what we communicated when the second-quarter results were released on June 10, confirming the good start to the summer season.

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

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