EU regulators have blocked Air Canada’s proposed takeover of airline and tour operator Transat AT, leaving Transat in a precarious financial position.
Air Canada scrapped the deal after learning the European Commission would not approve the deal in its current form.
Air Canada said it offered ‘a significant package of remedies’ to meet anti-trust concerns.
In a statement, the airline said: “Air Canada has concluded that providing additional, onerous remedies, which may still not secure an EC approval, would significantly compromise’ profitability on transatlantic routes.”
EU Antitrust Chief Margrethe Vestager said Air Canada had not made sufficient concessions to mitigate competition concerns.
“The proposed transaction would raise competition concerns on a large number of transatlantic routes. Based on the results of the market test, the remedies offered appeared insufficient,” she said.
A Transat spokesman said the company is ‘reviewing its options’.