Air Transat and its pilots, represented by the Air Line Pilots Association (ALPA), have reached a pact that amends the last collective agreement, ratified October 5, 2010.

In the wake of initiatives adopted by Transat last fall in order to get back to profitability, the agreement calls for a deferment of planned wage increases in exchange for a lump-sum payment due upon expiry of the collective agreement. This lump-sum payment is conditional on the attainment of certain financial targets, and amounts payable as part of the incentive plan will be deducted. In addition, the collective agreement is extended by one year until April 30, 2015.

“This agreement was negotiated with respect and in a climate of openness, and it reflects the constructive dialogue that Air Transat maintains with its employees and union representatives,” Transat A.T. Inc. President and Chief Executive Officer Jean-Marc Eustache.

Transat A.T. Inc. is an integrated international tour operator with more than 60 destination countries and that distributes products in over 50 countries. A holiday travel specialist, Transat operates mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin. Montreal-based Transat is also active in air transportation, accommodation, destination services and distribution. (TSX: TRZ.B, TRZ.A)