CanJet Making Its Mark

[Throttle]

Transat and CanJet forge 5-year partnership for narrow-body aircraft

Canadians across the country to continue to benefit
from unique offering of direct flights to sun destinations

Montreal (Quebec) and Halifax (Nova Scotia), February 13, 2009

[Throttle]

Transat A.T. Inc. and CanJet Airlines have entered
into a 5-year partnership agreement, effective May 1, 2009, to April 30, 2014, with two subsequent one-year renewal
options. The agreement allows tour operator Transat Tours Canada, a Transat business unit operating under the Transat
Holidays and Nolitours brands, to charter CanJet narrow-body Boeing 737-800 aircraft flying out of more than 20
Canadian cities to approximately 20 sun destinations.

[Troubleshot]

That's great news!!

[Throttle]

Transat and CanJet forge 5-year partnership for narrow-body aircraft
Canadians across the country to continue to benefit
from unique offering of direct flights to sun destinations
Montreal (Quebec) and Halifax (Nova Scotia), February 13, 2009

Transat A.T. Inc. and CanJet Airlines have entered
into a 5-year partnership agreement, effective May 1, 2009, to April 30, 2014, with two subsequent one-year renewal
options. The agreement allows tour operator Transat Tours Canada, a Transat business unit operating under the Transat
Holidays and Nolitours brands, to charter CanJet narrow-body Boeing 737-800 aircraft flying out of more than 20
Canadian cities to approximately 20 sun destinations.

Over the years, Canadians have made us their tour operator of choice, and Transat is now number one in all regions across Canada, offering departures to more than 30 sun destinations in 17 countries, said Nelson Gentiletti, President of Transat Tours Canada and Executive Vice-President, Tour Operators, of Transat. This agreement ensures us the capacity and flexibility we need to continue to offer superior service at affordable rates to a vast array of communities across the country. We are excited to have entered a long term agreement with Transat on the strategic use of our Boeing 737-800 aircraft to meet Transats expanding requirements for narrow-body aircraft, said Stephen Rowe, Executive Vice President and C.O.O. We are extremely pleased that our past aircraft charter relationship along with exceptional customer service
standards have exceeded Transats expectations and they have moved forward with a long term strategic agreement with our airline.

Meanwhile, Transat and WestJet have mutually agreed to terminate, at the end of the current winter season, a similar partnership originally due to expire on October 31, 2010, with the understanding that some flights may continue to be contracted to WestJet on an ad-hoc basis.

In the winter, Transat offers sun packages to more than 30 destinations in 17 countries out of more than 20 Canadian gateways from coast to coast, mainly through its own airline, Air Transat, Canadas largest holiday carrier. Air Transat operates 18 wide-body aircraft (14 Airbus A310s with 249 seats; 4 Airbus A330s with 342 seats). Narrow-body aircraft, including CanJets Boeing 737-800 (189 seats), provide additional capacity and flexibility to serve smaller markets and help adjust capacity to demand. Globally, Transat ranks among the largest tour operators worldwide and works with nearly 70 airlines.

About CanJet
CanJet Airlines, with its base in Halifax, Nova Scotia, is a full-service charter airline operating a fleet of Boeing Next
Generation 737-800 aircraft. CanJet, owned by IMP Group International Inc. is focused on global, sustainable growth, with
3,500 experienced people delivering service, quality and value to customers across diverse sectors such as aerospace,
aviation, airline, healthcare, industrial marine, information technology, hospitality and property development.

About Transat
Transat A.T. Inc. is an integrated international tour operator with more than 60 destination countries and that distributes
products in over 50 countries. A holiday travel specialist, Transat operates mainly in Canada and Europe, as well as in the
Caribbean, Mexico and the Mediterranean Basin. Montreal-based Transat is also active in air transportation, destination
services and distribution. (TSX: TRZ.B, TRZ.A)

[Flightlevels]

Awesome news for them!

I have allot of friends over there never knowing what was coming next. Finally some stability.

From what I understand they undercut us by quite a bit. Business is business I guess.

I always wondered if we were stepping on too many toes with us shadowing most of the Transat routes with WJ vacations. One good thing I guess is we now have allot of data for those vacation destinations to cherry pick and grow our own product.

[Luscombe]

This is the best news I have seen in a long time. It certainly makes me feel a whole lot more stable for the next half-decade at least. It would be foolish for good ol' Ken to shut'er down this time being that it would be the proverbial "killing the goose that laid the golden egg". I don't know who was happier, my wife or me especially now that we're paying a mortgage.

[Four1oh]

Congrats to Canjet, Transat and WJ!

[BLZD1]

Congrats CanJet Guys/Girls. You East folk people really deserve it!! Well done.


Regards,

Former East folk person

[KAG]

Nice to see alittle stability back home. Nice work.

[green bastard]

[disco]

Great news y'all.

So will this likely mean more planes for CanJet or will the existing fleet cover this contract?

[Huge Hammer]

Additional planes from Europe would be my guess.

[Throttle]

Gettting more aircraft and still hiring.

[Rotten Apple #1]

Congrats dudes and dudettes!!

[verybadman]

We are pretty happy around here and proud of our product. Glad to see TransAt likes it too!

[Stick-Shaker]

CJ has been through some tough times and despite it all have managed to stick it out. Congrats to all!

[invertedattitude]

Congrats to CanJet!

I watched a report on BNN yesterday talking about how the one sector of the airline industry that is doing better and is busier than ever is the Canadian Sun destinations portion. Record high sales and traffic levels.

Good news for once!

[Donald]

Travel operator Transat A.T. Inc. reported a sharp increase in its first-quarter loss Wednesday

Transat's loss widens

Travel operator Transat A.T. Inc. reported a sharp increase in its first-quarter loss Wednesday and suspended its quarterly dividend to conserve cash during a global economic slump the company's chief executive officer says could worsen before it gets better.

The Montreal-based company said its quarterly loss jumped to $29.4 million, or 90 cents per share, from the loss of $7.9 million, or 23 cents per share, booked during the same period the year before.

Transat attributed the loss to lower margins on travel packages to sunny destinations as well as the impact of hedge accounting standards. An 11 per cent rise in the number of Canadian travellers was offset by low sales prices and increased competition, the company said.

"Canadians continue to travel to sun destinations in numbers despite deteriorating economic conditions, and market conditions for tour operators remain challenging due to intense competition and high costs," chief executive Jean-Marc Eustache said in a statement ahead of the company's annual meeting in Montreal.

Quarterly sales up
Transat said quarterly revenue rose to $877.3 million, an 11 per cent increase from year-earlier levels of $787.4 million.

At the meeting, Eustache told shareholders the travel industry will be squeezed by the weak economy, which will probably continue to shrink this year, with recovery delayed until 2010.

"We believe that in 2009, Canada's economy will contract, and I'm not particularly receptive to the siren song that is promising us a rapid recovery before the end of the year," he said at the meeting.

"We have yet to hit bottom, and … 2009 will be a tough year. I believe the recovery will be slow and will not begin until 2010, at the soonest," Eustache said.

In addressing Transat's financial results Eustache said they "were more than satisfactory given the circumstances" — the global recession and fierce competition in the tourism industry.

He also noted that although 2008 revenues rose 15 per cent, the company was hit with an additional $92 million in fuel costs last year, while competition and excess capacity in the airline industry put downward pressure on prices and margins.

Long-term optimism
"Economic crisis or not, over the long term, international tourism will eventually continue to grow," Eustache said. "In our industry, and at Transat, we've been through this before. But the coming 12 to 24 months will, as the saying goes, bring both challenges and opportunities."

Transat is an integrated international tour operator with more than 60 destination countries.

The holiday travel provider operates mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean.

The company, which had more than 6,000 employees at the end of 2007, has a charter airline, hotels, travel services and agencies.

[rd1331]

So any of CanJets pilots going over to europe this year?

[DeltaHotel]

Does anybody know if Canjet employees get travel privileges with Transat ? Westjet ? AC ?

[jjj]

How about that - some positive news for the industry.

Enjoy the steady work for a few years friends. In this industry all we can expect is work to come at us in bits and pieces sometimes. Hopefully the agreement will extend beyond 5 years with the renewal options.

Well done Canjet!!!!

jjj

[rd1331]

I love how everyone congratulates CanJet. I find it very amusing.

Everyone was all over Sunwing earlier this year about bringing German pilots over to Canada to fly this winter. Yet no one has been getting all over CanJet about the same. And the VERY big difference between the two companies is that Sunwing has a reciprocating agreement where they send Canadian pilots over to Europe for 6 months and in return the other 6 months European pilots fly in Canada. And if you look at the numbers there are a lot more Canadian pilots that end up going to Europe than European coming here.

Yet you have a company like CanJet who brings German pilots over to Canada, and does not send any Canadian pilots over to europe to fly for the other 6 months. So CONGRATS CANJET, keep hiring Scabs.

BTW No offense is meant towards the Germans, they are a great bunch of pilots and are just trying to stay employed.

[Jastapilot]

I didn't know that, isn't that interesting news! Didn't the Canjet boys go ALPA?

[bigskyjoc]

I love how everyone congratulates CanJet. I find it very amusing.

Everyone was all over Sunwing earlier this year about bringing German pilots over to Canada to fly this winter. Yet no one has been getting all over CanJet about the same. And the VERY big difference between the two companies is that Sunwing has a reciprocating agreement where they send Canadian pilots over to Europe for 6 months and in return the other 6 months European pilots fly in Canada. And if you look at the numbers there are a lot more Canadian pilots that end up going to Europe than European coming here.

Yet you have a company like CanJet who brings German pilots over to Canada, and does not send any Canadian pilots over to europe to fly for the other 6 months. So CONGRATS CANJET, keep hiring Scabs.

BTW No offense is meant towards the Germans, they are a great bunch of pilots and are just trying to stay employed.

Is this true?

------------------

[ng78]

Yes it is true. Only Sunwing and Skyservice have reciprocal agreements, whereas Canjet did not have any work for Canadian pilots overseas.