Pierre Karl Péladeau calls for major changes to Transat A.T.’s Board of Directors

Pierre Karl Péladeau (also known as "PKP") is calling for a special meeting to change the composition of Transat A.T.’s Board of Directors and to initiate steps to restore the company’s financial and strategic position.

The Quebec-based media magnate is making this request through his investment company Financière Outremont, which is Transat’s second-largest shareholder, holding roughly 9.5 per cent in economic interest and voting rights.

Financière Outremont is asking for the meeting to be held as soon as possible, and no later than February 6, 2026.

It is also requesting that Transat not enter into any major transaction before shareholders have the opportunity to vote.

Transat A.T. has confirmed that its Board of Directors has received an official request from a “dissident shareholder” calling for a special meeting to vote on proposed changes to the Board.

“The Board regularly engages with shareholders, including Financière Outremont Inc., a company owned by Pierre Karl Péladeau, and remains open to any constructive contribution that is in the interest of the company and all shareholders,” said Susan Kudzman, Chair of the Board of Directors, noting that Board members recently met with Mr. Péladeau and his team.

The Board is currently reviewing the request in accordance with the Business Corporations Act and will assess its validity and implications.

Transat states that shareholders do not need to take any action at this time.

For context

According to Financière Outremont, its request follows repeated attempts at confidential discussions with the Board in order to suggest measures to improve Transat’s situation.

A letter sent on November 17, 2025, is said to have outlined significant shortcomings and avenues for improvement, but the proposals were reportedly rejected by the Board.

Financière Outremont claims that several shareholders share its concerns.

The company cites Transat’s ongoing financial difficulties, including its high debt load and limited access to new capital.

READ MORE: Air Transat pilots to open strike centre ahead of possible labour action

It notes that Transat’s stock has fallen 57 per cent over five years, while the S&P/TSX Composite Index and several competitors have seen gains over the same period.

It also points to the financing agreement concluded with the Canada Enterprise Emergency Funding Corporation (CEEFC), signed “without shareholder approval,” it emphasizes.

What PKP is asking for

The request submitted to Transat includes three areas of action:

Improvements to the Board of Directors

Financière Outremont proposes reducing the number of directors from eleven to six. It wants three new members appointed: Pierre Karl Péladeau, André Brosseau, and Jean-Marc Léger. André Brosseau would assume the role of Chair of the Board.

Balance sheet restructuring

The company believes Transat’s balance sheet needs to be restructured to ensure its long-term viability and to secure the capital required to support growth.

Strategic review

It proposes a full review of strategic direction, capital allocation, senior management, cost structure, investments, financing, partnerships, and strategic alternatives.

“These actions are necessary steps to demonstrate the Board of Directors’ commitment to creating value for shareholders and other stakeholders,” summarized Péladeau on behalf of Financière Outremont.

Péladeau has previously taken aim at Transat’s leadership, most notably in 2021 after his attempts to buy the airline fell through.

The media executive made an unsolicited offer of $5 per share in December 2020, shortly after shareholders had backed an identical $189-million offer from Air Canada.

Air Canada’s proposal, made amid the depths of the COVID-19 crisis and representing a 75 per cent cut from the pre-pandemic price, ultimately collapsed when European regulators indicated they would not sign off on the deal.

Turbulent skies

Transat has faced challenges in recent years, squeezed by heavy debt and intense competition in the vacation travel market brought on by new entrants like Porter.

Earlier this year, the company announced a major restructuring of its pandemic-era obligations, a move that wipes out hundreds of millions of dollars in debt.

The tour operator is also managing ongoing engine-recall issues grounding four of its aircraft, as well as a labour dispute that could see its pilots strike as early as next week.

On Monday (Dec. 1), the Air Line Pilots Association (ALPA) said it will be opening a “strike centre” near Montreal’s airport, calling it the next step toward a walkout by the carrier’s 700 pilots.

The opening of a strike centre "does not mean that a strike will occur,” Air Transat clarified in a statement to PAX that same day.

"We are confident that we will reach a negotiated agreement that takes into account new market realities and those of the company and recognizes the contribution of our pilots," the company said.

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