The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: And echo my congrats to Patrick. So welcome to the earnings call. Maybe the first one to ask, I think I'm just kind of following up on Tim's question
on the bookings. Is there -- like this is a seasonality, obviously, in bookings, where you see maybe the first quarter being pretty strong from a working
capital standpoint and then it winds down. Given the kind of situation right now, the new variant plus the travel optimism due to vaccinations, et
cetera. How do you see the bookings shaking out with respect to seasonality? Do you still expect similar seasonality as normal? Or would it be
different this time?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: That's great color. And then perhaps a follow-up on the codeshare agreement with WestJet. I think it is still being reviewed by the regulators. So
if you can provide any color on -- are there any areas of the codesharing agreement where the regulators are showing any concerns at all? And can
you remind us where is this codeshare going to be applied for mostly? Is it all transatlantic? Is it going to be transborder as well?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. That's great. And then Patrick, perhaps you might have an answer for this one on the hotel division side. So do you guys have -- are you
looking to divest the hotel division. Any updates there? What could be the timing? And what could be the magnitude of proceeds?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Great. And the last one for me. You talked about the capital structure, Patrick, earlier on this call in terms of your strategic plan and the alignment
there. What is the best metric to look at to when you think about optimizing the capital structure? Is it the absolute level of net debt you want to
look at? Is it some of the metric? And does that also entail exiting the government LEEFF program like Air Canada just did recently?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Yes, I appreciate the time.
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: I guess maybe first question for me is really more of a clarification. Annick, you mentioned I guess, in your prepared remarks, looking ahead to the
summer, I think you said that you to fly to 90% of the destinations. So I just wanted to clarify that was the case, 90% of the pre-pandemic destinations.
I just want to make sure that wasn't 90% of pre-pandemic capacity.
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. So yes, my next sort of follow-up question was going to be you've got a much smaller fleet, but I guess the answer to how you're going to
get to 90% is the you'll be operating those aircraft in, I guess, more in the seasons and the off peak season that gets you to that 90% of 2019?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. No, that makes a lot of sense. I guess maybe a question on the winter. I mean you talked about the bookings a lot. But I'm wondering if you
can discuss what pricing looks like? And I guess, maybe compare it to maybe the 2019 winter season, how are things looking from a pricing
perspective on those sun destination routes?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. No, that's helpful. And maybe last question for me, I guess, maybe more around the strategy of how you're going to deploy aircraft on to
new routes in the future. I was sort of intrigued by the new routes you've announced for next summer to the U.S., L.A. and San Francisco. I mean,
to me, those would be kind of nontraditional markets for Transat, especially in the summertime.
So I just -- maybe you can talk a little bit about why those routes? We look to the sort of the future route additions, I mean, what kind of markets
are you looking for? What kind of characteristics are you looking for as far as new route additions, especially on some of the U.S. transborder stuff?
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