Transat AT wants to be compensated for the problems with Pratt & Whitney engines which force the Montreal carrier to ground planes in order to carry out more frequent maintenance on its Airbus A321LR aircraft.
“We are in discussions, of course, like other carriers, for compensation and damages,” declared the president and CEO of Transat, Annick Guérard, during the meeting of shareholders of the Montreal company, Tuesday.
Transat hopes to be able to obtain a satisfactory agreement through negotiation, its boss said at a press conference on the sidelines of the meeting. “We hope to reach an agreement by the end of the year. »
However, she urged shareholders to be patient. “We must take into consideration that we are not the only ones. So, there are several carriers facing the same problem. We will have to be patient, but our goal is to reach an agreement in the coming months. »
It was not possible to obtain an immediate reaction from Pratt & Whitney.
Last March, the Montreal company revealed that problems linked to engines manufactured by Pratt & Whitney had forced it to ground four aircraft. This figure could rise to six by the end of fiscal 2024 and as many as eight in fiscal 2025.
This is a problem that will affect us for a few more years and which would therefore not allow us to have optimal financial performance.
Annick Guérard, President and CEO of Transat
The problem comes at a time when the leasing market is tighter, making replacement planes more expensive.
The difficulties of Pratt & Whitney, but also those of Boeing as well as supply chain problems in the industry in general, are leading to an increase in demand in the rental market.
In a note published in March, analyst Benoit Poirier of Desjardins Capital Markets pointed out that the company’s costs had increased in the first quarter ended January 31. “Other aviation costs were up by 17 million and rental costs increased by 5 million, which significantly weighed on profitability. »
Pratt & Whitney engine difficulties would not endanger passenger safety, Ms.me Guérard.
“This is not a safety problem and, I remind you, these problems mean that the engines must have more frequent visits to the manufacturers. »
Supply chain difficulties would not slow down plans to create a joint venture with carrier Porter, announced last November. “We are still aiming to launch the first phase of our joint venture for the summer,” she replies.
Porter and Transat had already concluded a codeshare agreement at the end of 2022.
Mme Guérard reports that Porter aircraft are also affected by Pratt & Whitney’s difficulties. In this context, she sees the partnership as an advantage.
“We face the same problems, we will be able to help each other with our respective strengths.
“We will have to have very close coordination in the coming years to ensure that we optimize the joint venture as much as possible and that we coordinate our schedules and our networks as optimally as possible. »