Transat A.T. Inc. has reached an agreement for the sale of its 44.27% indirect participation in French airline Star Airlines to Angel Gate Aviation Limited, for a total of 4.5 million euros, subject to approval by French anti-trust authorities. Closing is expected before the end of Transat's fiscal year and will result in a gain.

“We are pleased with this transaction, both financially and strategically. As we said many times, selling remained a viable scenario that could meet our shareholders’ expectations. We will continue to deploy our business strategy in France, including through commercial agreements with various air carriers,” said Jean-Marc Eustache, President and Chief Executive Officer of Transat A.T. Inc.

“We are pleased with this transaction, through which Angel Gate, already the owner of Air Horizons, will take control of Star Airlines,” said Angel Gate President Raymond Lakah. “We hope to be able to serve all French tour operators in the future.”

Founded in 1995, Star Airlines is a French airline specialized in tourism travel. It operates six aircraft and had more than 800,000 passengers in 2004.

Look Voyages, a French tour operator wholly-owned by Transat since 1996 holds a 44.27% interest in Star Airlines.

Transat A.T. Inc. with its head office in Montreal is an integrated company specializing in the organization, marketing, and distribution of holiday travel. The core of its business consists of tour operators in Canada and France. Transat is also involved in air transportation, value-added services at travel destinations, as well as in distribution through travel agency networks. Transat is listed on the Toronto Stock Exchange (TSX:TRZ.B; TRZ.RV.A).