Transat AT Inc Q4 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst : So let me start with the first on the Thomas Cook agreement. Can you please provide an update on where that agreement stands right now? Does it still hold? I mean, are you expecting a settlement because it has canceled untimely. And it's kind of related to that -- I know you're leasing 6 A321 jets to cover the shortfall. But are these leases short term? And are you planning to sign another similar agreement with some other airline?

Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst : Again, thanks. And what do you think are the lease terms for the A321s that you have from Air Lease. Are they for the next 4, 5 years or are they for the longer term?

Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. And then secondly, on the IFRS 16. I know you said that you will -- you are undergoing quantification of the impact. But just to get some early sense on what it does to your EBITDA and net debt so I know you have some $140 million in aircraft rent that could probably be gone from the income statement, largely speaking. But any other number that we should be looking at, I think maintenance is one, which you said will come down as well. So like the EBITDA number should go up by the aircraft rent amount as well as some on maintenance side. Any sense you can provide on EBITDA and net debt impact, please?

Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. And I understand, thanks for that Denis. Lastly for me, can you help us from a modeling perspective for fiscal 2020, how much aircraft rent and CapEx for leisure and hotel business you expect?