Pierre Karl Péladeau wants Transat "to becomes the pride of Quebecers again"

Pierre Karl Péladeau is calling for a reset at Air Transat, saying the airline needs stronger oversight to regain Quebecers’ confidence.

“We can’t conclude anything other than failure, and I want, with my team, to make sure management is properly supervised so that Transat becomes the pride of Quebecers again,” he said as quoted in Le Journal de Montréal. 

Péladeau, who owns about 9.5 per cent of Transat shares through Financière Outremont, is proposing that he join the company’s board of directors, along with Jean-Marc Léger, president of Quebec polling firm Léger. 

“New directors are needed to better supervise management and hold it accountable to shareholders,” he was quoted as saying.

The Québecor CEO has stepped up his public interventions in recent months to outline his intentions.

In November, he sent Transat a letter detailing what he described as “serious shortcomings” and proposing “crucial measures” to turn the situation around.

He also published an open letter in Le Journal, explaining his approach and urging shareholders to back his turnaround plan in a vote scheduled for March 10.

In the meantime, two of Transat’s largest institutional shareholders — the Fonds de solidarité FTQ, a Quebec-based labour-sponsored investment fund, and the Caisse de dépôt et placement du Québec, the province’s public pension fund manager — have expressed support for the company’s current leadership.

Péladeau said he has difficulty reconciling that position with the company’s performance.

“When we ask the Caisse or the Fonds, ‘Are you satisfied with Transat’s performance?’ they tell us no,” he said.

He is calling on both organizations to take the steps he believes are necessary to secure Transat’s long-term future and protect jobs in Montreal.

Péladeau points to Vidéotron as an example, noting that the Caisse played a decisive role in Québecor’s acquisition in the early 2000s.

“It’s because the Caisse put its foot down and said: no, no, no, this won’t happen. And without any doubt, we’ve shown it’s a financial success, a stock market success. Today, Québecor is worth $12 billion,” he said.

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