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Note: All content and information from this website, including the letters and any comments or links, cannot and shall not be considered, perceived nor interpreted as an investment nor a financial advice. Investors should consider other sources of information and must consult their financial advisor before making any investment, as it represents multiple risks. FNC Capital cannot guarantee that such information will be accurate, complete and current at all times.


TRANSAT2 Archives 2019



Note: Here is a part of our vision and our plan if we acquire Transat:
Transat is unique. Transat makes us dream. More than others, Transat is part of the dreams of Quebecois and Canadians.
Transat also helps you achieve your dreams! Transat flies you, lodges you, makes you discover, then takes you back home safely.
The South: the ocean, the palm trees. Europe: Paris, London, Athens
Transat is also a cumulative total of 30 million employee-days and 100 million passengers already.
Transat , or Transat squared... it's dynamic and positive!
Our plan is to acquire and privatize Transat A.T., with partners which are, among others, local institutions that manage your pension funds.
The FNC Team will support Transat's management to correct profitability, accelerate growth and increase value. Transat   will flourish in transportation, travel and as a hotel operator.
This is a new planned takeoff for Transat , its shareholders, management, employees, suppliers and customers!







THE SECOND LETTER (August 23rd, 2019)

Air Canada and Transat... towards a quasi-monopoly? NO!

Is the Canadian airline industry moving towards a quasi-monopoly with Air Canada? To my surprise, the Canadian financial market doesn't seem to have much appetite to support the 3rd player in the airline industry, Transat.

After three months, no one wanted or was able to make a competing bid to Air Canada. On our side, we tried everything... but unfortunately no complete solution at this moment.

The financial market seems to be afraid to engage and offend the biggest player in the industry, often compromising many existing or future business relationships. The market may be afraid of the commercial reactions to the industry's third-largest player, still employing 5,000 people and generating nearly $3 billion in sales successfully and appreciated by Quebec and Canadian consumers.

Fear eliminates risk-taking, investment and innovation. It promotes the status quo and profit-making. It can't last. Governments are elected to look after the greatest interests of our society. They must act when it's time! To take apart Transat is not a solution.

In my opinion, Air Canada is already too big for the Canadian market. Combined, Air Canada and Transat generate more than $22 billion in sales, four times more than the second-biggest player in WestJet with $4.7 billion. Air Canada would generate more than half of the airline industry's profits already. It seems now easy to consolidate any other public player if left without any other constraint.

Can consumers really win with this consolidation? Then the "too big to fail" takes over, where the small suppliers and the governments of those same consumers are still being flouted. And this huge company isn't immune to it, as we already know.

And in the same vein, would it be good for Bell to acquire Québécor, for the Royal Bank to buy the National Bank and for Loblaws to buy Metro? Let’s not build groups that we will have to undo later. Let's be more visionary and better!

Future Owners

We should work on a descent minimum price that I have established and shared early in my first letter of June 24, $18 per share, and let's choose together the best owner of Transat for all of us now.

The market tells us that Transat will remain too fragile without a big brother by its side. Logically, it could be ONEX/WestJet, Air France-KLM, Delta. FNC Capital contacted others. For a variety of reasons, no one seems to be coming to the table before August 23. The industry would be much more competitive in one of these scenarios rather than Air Canada's, to the benefit of consumers.

As a promising acquisition group, we do not have a billionaire at our head but myself Dominik Pigeon and people passionate about the opportunity offered by Transat and its industry, including a former Transat director, Thierry Briand who was born in the airline industry and Mr. Gregg Saretsky, former CEO of WestJet for nearly 10 years, born in Quebec and perfectly bilingual, a champion of the airline industry, who could join early in September after the expiry of his non-compete agreement with WestJet. We are open to group associations. We have a significant business alliance plan to solidify Transat, a well thought business plan and exciting products for Transat customers.


We are working full-time to mount an offer to shareholders at a price of at least $18 per share, a sustainable offer. But we are not ready for August 23th given the challenges of the market with an Air Canada that still benefited from the advantages granted by the board very early in the process, taking advantage of the timing of the WestJet transaction and the summer period with its unsuccessful initial floor price. In fact, where does the $13 to $18 price increase comes from?

If shareholders say NO to Air Canada's proposal on August 23, the playing field will be much healthier for other interested groups and FNC Capital will work hard to properly reward those who have built and supported Transat!


Thank you.


Dominik Pigeon


FNC Capital


I want to share some information with the current shareholders of Transat. They are Quebecers and Canadians, managers and employees, our own pension funds and perhaps family and friends as well. I believe that Transat is worth more than what the other two contenders have offered to shareholders.

Bank financial analysts and the market have underestimated our airline companies significantly. The times have changed. Over the last decades the price of the plane ticket has fallen dramatically relative to people's purchasing power. Communications have exploded. Immigration is more present. Most of us want to travel more, more often, farther and longer. I have the capacity and a very good team to value Transat, but especially to take good care of it and to make it grow in time with those who will accompany us. We combine more than 70 years of experience in the airline industry. And when you commit for 10 to 20 years, the initial price is not the most important element. Employees and customers count for more!

Considering two visible parties already interested but who still have not made a formal offer without significant conditions including Air Canada (in content after all and having been entitled to privileged information for a very long time on an exclusive basis and other advantages in exchange of a conservative floor price of $ 13 very early in the process, slowing down other groups) and Groupe Mach (with or without investors like the Saputo or others) as well as other potentially interested groups such as Mr. Péladeau or the firms Claridge (Bronfman) and Sagard (Desmarais), I have informed my group that according to my presentiment this potentially historical transaction shall not be done under 18 dollars a share.

FNC Capital is working to produce a friendly offer to the board of Transat and its shareholders, and now considers a price range between $ 17 and $ 20 a share, and possibly more eventually.

We are confident and I am equipped to deal with the music at the operational level. I will not be able to answer all questions of all journalists nor accept all invitations unfortunately. I will not reveal the members of my team, not to be weaken against other groups. Let's not look for a finality already, it will come gradually until  September. This will most likely be a hard and long contest, far more fought than what people currently expect.

I am announcing that I will be there until the end.

Dominik Pigeon
FNC Capital

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