B737-800 Scandinavian

Canada-based tour operator Transat has entered into an agreement with US-based International Lease Finance Corporation (ILFC) for the long-term leasing of four Boeing B737-800 aircraft.

The new aircraft will be added to the core of Air Transat’s permanent narrow-body fleet in 2014 and will be used on sun-destination routes to Mexico, the Caribbean and Florida.

The deal also includes the renewal through 2020 and 2021 of the leases on six Airbus A330 aircraft, which include three A330-200s and A330-300s, with enhanced terms.

This development is part of Transat’s plan to internalise its operations using narrow-body aircraft and to deploy an accordion fleet that allows it to adjust the number of narrow and wide-body aircraft at its disposal according to the tourism market requirements.

Although the three long-range A330-200s were originally to be phased out of the fleet, Transat and ILFC reached an agreement that will enable Transat to achieve its cost reduction objectives, which will prove more advantageous than the seasonal subcontracting arrangement originally planned, according to Transat.

Transat president and chief executive officer Jean-Marc Eustache said that this deal gives the company greater flexibility and a significantly enhanced cost structure.

"This strategy is key to our future success and to a return to profitability in winter, and will also ensure that we maintain the high-quality of our products and our customer experience."

"This strategy is key to our future success and to a return to profitability in winter, and will also ensure that we maintain the high-quality of our products and our customer experience," Eustache said.

ILFC chief executive officer Henri Courpron said that Air Transat has been a long standing customer of ILFC.

"With this transaction, we will extend and grow the strong relationship between our two companies," Courpron added.

Air Transat currently operates a fleet of nine Airbus A310s and 12 A330s and plans to add additional narrow-body aircraft to meet the demand on its sun destination routes.

Transat is an integrated international tour operator with more than 60 destination countries, mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin.

Image: A Boeing 737-883 in Scandinavian Airlines colours. Photo: courtesy of Brorsson.

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