April 4 Canadian travel operator Transat AT Inc
said agreements reached with its employees
to reduce operating costs and internalizing its medium-haul
operations should save about C$8 million this year.
The company plans to add Boeing B737 narrow-body jets to Air
Transat's fleet starting next year to internalize medium-haul
operations from Canada to Mexico, the Caribbean and Florida.
"A return to profitability remains our primary goal, and
operating costs, particularly air costs, are an essential factor
in profitability for any tour operator," said Transat Chief
Executive Jean-Marc Eustache.
For the medium-haul operations, Transat relied on a
third-party partner since 2003.
The company also plans to save C$15 million next year and
C$30 million per year from 2015, as a result of these
Agreements reached with Transat employees to reduce
operating costs do not include job cuts or salary compromises,
spokeswoman Debbie Cabana told Reuters.
Shares of the company were up 2 percent at C$4.81 in morning
trade on the Toronto Stock Exchange.