Peladeau demands board shakeup -- and a seat -- at Transat

President and CEO of Quebecor Pierre Karl Péladeau looks on during the company's annual general meeting in Montreal on Thursday, May 8, 2025. (Christopher Katsarov/The Canadian Press)

Media magnate Pierre Karl Peladeau on Monday demanded a board shakeup and a strategic overhaul at Transat A.T. Inc. -- as well as a seat at the table -- as the billionaire once again sought to gain purchase at the struggling travel company.

Peladeau, Transat’s second-largest shareholder and the CEO of Quebecor Inc., said the board should be reduced to six directors -- with him among three new members -- from 11 currently. The two other fresh nominees are pollster and economist Jean-Marc Leger and Quebecor vice-chair Andre Brosseau.

In a release, Peladeau further asked for Transat, which owns Air Transat, to restructure its “broken” balance sheet and launch a strategic review that puts senior management in its sights.

“These actions are necessary to demonstrate the board’s commitment to creating value for shareholders and other stakeholders, and to reassure key stakeholders that the company’s strategy has been realigned under improved and robust oversight,” he said.

He has asked Transat to hold a special shareholder meeting by Feb. 6 to vote on the proposals.

Within hours, Transat responded that it is reviewing Peladeau’s request.

“While we do not typically comment on discussions with individual shareholders, multiple directors have recently met with Mr. Peladeau and his team to explore constructive solutions, including potential changes to the company’s board composition,” the company said in a release.

Peladeau, whose investment firm Financiere Outremont Inc. owns 9.5 per cent of Transat, has criticized its leadership before, most recently in 2021 after his bids to buy the Montreal-based outfit failed.

The media mogul had made an unsolicited bid of $5 per share for Transat in December 2020 after shareholders voted in favour of an identically priced bid from Air Canada that amounted to $189 million.

Put forward in the depths of the COVID-19 pandemic, Air Canada’s offer marked a 75 per cent decrease from a pre-pandemic bid and ultimately died after European regulators signalled they would not approve the acquisition.

Transat has struggled in recent years amid stiff competition for vacation destinations and a big debt burden, though it announced a major restructuring of pandemic-era debt earlier this year that forgives hundreds of millions of dollars owed.

The company, which sells vacation packages and flights largely to spots in Europe and the Caribbean, continues to deal with engine recalls that have grounded four of its planes and a labour standoff that could see pilots go on strike as early as next week.

The Air Line Pilots Association said Monday it will open a “strike centre” near the Montreal airport in “the next step toward a strike” by the carrier’s 700 aviators.

Nonetheless, Transat’s share price rose nearly 19 per cent or 41 cents to close at $2.61 on the Toronto Stock Exchange.

This report by The Canadian Press was first published on Dec. 1, 2025.