Mr. Jean-Marc Eustache reports

AIR TRANSAT READY FOR THE COMING SUN SEASON WITH ITS OWN FLEET OF NARROW-BODY AIRCRAFT

Transat A.T. Inc. has signed two agreements for the seasonal leasing of Boeing 737 narrow-body aircraft, to be provided during the winter months by Europe Airpost, a French airline that is a subsidiary of the ASL Aviation Group, as well as Czech carrier Travel Service Airlines. The agreements cover the leasing of two B737-700s and two B737-800s with respective capacities of 148 and 189 seats. The aircraft will be operated by Air Transat on its Mexico and Caribbean Sun destination routes.

This announcement marks the completion of Transat's narrow-body internalization plan for winter 2014 to 2015, begun in July, 2013. With this strategy implemented, Transat boasts a flexible fleet comprising Boeing 737s, along with Airbus A310s and A330s, with configuration to be adjusted according to seasonal tourism market fluctuations.

"Our teams have done a massive amount of work to implement a flexible fleet, which will be perfectly suited to our needs as they change with the seasons as well as the markets we serve, while significantly improving our cost structure," said Jean-Marc Eustache, president and chief executive officer of Transat. "Everything is now in place for the new season just getting under way, and we are in a great position to offer travellers the very best products and services for Sun destinations."

In 2013 Transat announced the signing of a long-term agreement with United States-based International Lease Finance Corp. (ILFC) for four permanent B737-800s, as well as an agreement with carrier Transavi France for seasonal leasing of B737-800s.

The Air Transat fleet now consists of 21 wide-body aircraft (nine A310s and 12 A330s with capacities of 250 and 342, respectively), four narrow-body B737-800s flown in the summer season, and a total of 12 narrow-body aircraft operated in winter (10 B737-800s and two B737-700s).