SLIDE 1
Annual Meeting 2010 2
International Arrivals and Transat Revenues
Transat Revenues (millions of dollars) International Arrivals (world) (millions of travellers)
JEAN-MARC EUSTACHE PRESIDENT AND CHIEF EXECUTIVE OFFICER Annual - - PDF document
JEAN-MARC EUSTACHE PRESIDENT AND CHIEF EXECUTIVE OFFICER Annual - - PDF document
JEAN-MARC EUSTACHE PRESIDENT AND CHIEF EXECUTIVE OFFICER Annual Meeting 2010 1 International Arrivals and Transat Revenues International Arrivals (world) Transat Revenues (millions of travellers) (millions of dollars) Forecast Travel for
SLIDE 2
SLIDE 3
Annual Meeting 2010 3
France in 2009 France in 2009 (in millions €)
231 202
2008 2009
- 12.5%
SLIDE 4
Annual Meeting 2010 4
France in 2009 France in 2009 (in millions €)
279 297
2008 2009
+ 6%
SLIDE 5
Annual Meeting 2010 5
France in 2009 (in millions €)
510 499
2008 2009
- Purchasing power and
economies of scale
- Buying more than $2 billion in
travel services (direct costs)
- Mexico, Caribbean, Western
Europe countries
Supply Chain Strategy
SLIDE 6
Annual Meeting 2010 6
32.3% 27.5% 14.5% 9.7% 5.2% 5% 5.8%
2008 08 - 2009 2009
- 1.2 million
packages sold in 2009
- Growing,
competitive market
- Average selling
prices and margin under pressure
All-inclusive sun packages – from Canada in winter
Sunwi wing 18% Signatu ature 9.5% ACV Sunquest est (TCG CG) Other ers WestJe tJet TMR TMR
Transatlantic Market
21.6% 43.4% 0.6% 22.2% 3.6% 8.7%
2006 U.K. FRANCE 2009
Transat Air Canada Air India British Airways MyTravel Zoom Airlines Other 23.7% 49.1% 1.1% 24.6% 1.4% 26.8% 25.2% 36.7% 6.9% 4.4% 30.1% 21.5% 39.6% 8.8% Transat Air Canada Air France Zoom Airlines Other
SLIDE 7
Annual Meeting 2010 7
Transatlantic Market
Unique offering of 70 city-pairs
Commercial presence on both sides of the Atlantic
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Annual Meeting 2010 8
The largest retail distribution network in Canada The largest retail distribution network in Canada
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Annual Meeting 2010 9
The largest retail distribution network in Canada
- 450+ travel agencies
- 2,300 travel advisors
- Sales of $1.3 billion
The largest retail distribution network in Canada
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Annual Meeting 2010 10
The largest retail distribution network in Canada French Market
Thomas Cook Club Med TUI/NF Others Kuoni FRAM
Tour Operators:
$5.7B
Distribution:
4,750 travel agencies
Thomas Cook/ Jet Tours
AFAT Selectour
Tourcom TUI + Havas + CWT Others
SLIDE 11
Annual Meeting 2010 11
- 26 agencies sold
- 41 agencies now
under Look Voyages
- More agencies to
adopt Look Voyages banner over time
Partnership with AFAT Voyages Sélectour Multi-channel distribution
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Annual Meeting 2010 12
- Guaranteed and
flexible access to adequate capacity
- Appropriate aircraft
type depending on route
- Cost-competitive
Air lift capacity management
- Narrow-body Boeing B737-800
- 189 seats
- Adequate for sun destinations
- Favourable financial conditions
5-year agreement with CanJet Airlines
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Annual Meeting 2010 13
Air Transat fleet transition plan
- 18 wide-body Airbus (A330 and A310)
- Transition to an A330 fleet
- Reduction in operating costs
- Air Transat: approximately 50% of Transat’s global needs
- Increased flexibility thanks to the CanJet agreement
- Subleases of aircraft
- Cost reduction and improved performance
Capacity Management
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Annual Meeting 2010 14
Ai Air Transa sat: : An improved customer experience
Creation of Transat France
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Annual Meeting 2010 15
- Revenues up by 1%
- Approx. 3 million customers
- Lower selling prices
- Fuel: $319 million in 2009
Revenues
2008 2009
$3,513M $3,545M
1% 1%
- Record volumes in first half
- Excellent load factors in
2009
- Challenging commercial
environment
Margins
2008 2009
$127.8M $93.4M
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Annual Meeting 2010 16
- Lower demand for Mexico
- Volume shift to other
destinations
- Lower demand in certain
market segments
A (H1N1) Flu
- Volume drop of 20%
- Challenge in France, U.K.
- Cost reduction measures
- Improvement expected in 2010
Lower demand for Canada as destination
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Annual Meeting 2010 17
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Annual Meeting 2010 18
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Annual Meeting 2010 19
Sustainable Tourism
Mexico
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Annual Meeting 2010 20
Sustainable Tourism
Turkey
Sustainable Tourism
Morocco
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Annual Meeting 2010 21
Sustainable Tourism
Peru
Peru Morocco Turkey Mexico
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Annual Meeting 2010 22
A solid management team
Pa Patri trice ce Carad adec ec
President, Transat France
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Annual Meeting 2010 23
A solid management team
Nelson son Gentile iletti tti
Chief Operating Officer
A solid management team
Denis is Pétrin rin
Vice-President, Finance & Administration Chief Financial Officer
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Annual Meeting 2010 24
A solid management team
Michel el Bellef efeu euille ille
Vice-President Chief Information Officer
A solid management team
Michael el DiLoll llo
President, Transat Tours Canada
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Annual Meeting 2010 25
A solid management team
Yves s Lalumière mière
Vice-President and General Manager Transat Distribution Canada
Vision 2014
A vertically-integrated tour operator, leader in the Americas, with a strong competitive position in numerous European countries
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Annual Meeting 2010 26 FIVE STRATE TEGI GIES ES
- 1. Increase our competitiveness in our core markets
- 2. Adapt our offering to participate in high-growth
market segments
- 3. Actively pursue vertical integration
- 4. Enter new outgoing markets with a bilateral approach
- 5. Develop skills and invest in human capital
Strategic Plan 2009-2011
- Expand our leadership market position on both sides
- f the Atlantic
- Complete the integration of new management teams
- Pursue development and implementation of
new information systems
- Position Transat as an industry leader in corporate
responsibility
Objectives 2010
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Annual Meeting 2010 27
- Disappearance of a tour
- perator and merger of
two others
- Consolidation and
polarization in France
- Increasing importance of