MONTREAL — Transat A.T. Inc. has set March 10 for a shareholder meeting to vote on a board overhaul and other changes sought by Pierre Karl Péladeau, the travel company's second-largest shareholder and the CEO of Quebecor Inc.
The company said Monday the meeting is being called in direct response to Péladeau's request and will also deal with its regular annual business.
"Transat's directors and management team remain committed to disciplined stewardship, rigorous governance, and the protection of all shareholders, both large and small," the company said in a statement.
Péladeau had asked for a meeting by Feb. 6, however Transat said that would have meant two shareholder meetings in short succession dealing with overlapping issues.
Transat said holding the meeting earlier than March 10 would also require it to divert substantial time and resources to prepare on an unduly compressed timeline.
Péladeau responded Monday afternoon, saying his investment firm Financière Outremont Inc. is "obviously disappointed but not necessarily surprised to see the lack of sense of urgency" among members of Transat's board of directors.
"We are convinced that it is essential to revitalize the board of directors and recapitalize Transat's broken balance sheet to enable it to be a leading carrier, for the benefit of all shareholders and stakeholders," Péladeau said in a statement.
Péladeau has said the board should be reduced to six directors — with him among three new members — from 11 currently.
That change is necessary "to ensure the addition of expertise in corporate restructuring and value creation," he said Monday.
"There is no reason why we cannot achieve with Transat what we were able to achieve with Videotron, making it a financial success for shareholders and a success for customers in terms of customer service, while introducing innovative elements, all with the help of Transat employees."
He has further asked for Transat, which owns Air Transat, to restructure its "broken" balance sheet and launch a strategic review.
Financière Outremont Inc. owns 9.5 per cent of Transat.
Last week, Transat narrowly avoided a costly work stoppage when it reached a new tentative contract with its pilots. The agreement in principle includes a wage hike of more than 60 per cent on average over five years, according to Transat.
Union leaders are set to present details of the deal to members this week in Toronto and Montreal, followed by a vote that will wrap up on Jan. 6.
Transat has struggled amid stiff competition for vacation destinations and heavy debt, though it announced a major restructuring of pandemic-era debt earlier this year that forgives hundreds of millions of dollars owed.
The company, which sells vacation packages and flights largely to spots in Europe and the Caribbean, also continues to deal with engine recalls that have grounded four of its planes.
This report by The Canadian Press was first published Dec. 15, 2025.
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