In a dramatic move highlighting deep corporate discontent, prominent Quebec businessman Pierre Karl Péladeau is spearheading a campaign to overhaul the leadership of Transat A.T. Inc., the parent company of Air Transat. His investment firm, Financière Outremont Inc., is demanding a special shareholder meeting to drastically reduce and reconstitute the airline's board of directors, citing years of financial decline and destroyed shareholder value.
A Call for Immediate Action
Financière Outremont, which holds a 9.5 per cent economic and voting interest making it the airline's second-largest shareholder, issued a public statement on Monday, December 1, 2025. The firm has formally requested that Transat convene a special meeting no later than February 6, 2026. The central proposal is to slash the board from eleven directors down to six, with half of the new slate being freshly elected members.
The proposed new board would include Péladeau himself, alongside André Brosseau, CEO of Du Musée Investments Inc., who would assume the role of chair, and Jean-Marc Léger, co-founder of the renowned market research firm Léger. Péladeau stated these steps are "necessary to demonstrate the board’s commitment to creating value for shareholders" and to realign company strategy under more robust oversight.
Chronic Underperformance and a "Broken" Balance Sheet
The push for change follows what Financière Outremont describes as repeated private attempts to engage the board on solutions, which were consistently rebuffed. The investor's frustration culminated in a letter sent to the board on November 17, 2025, which detailed Transat's severe struggles.
The firm accuses the current board of presiding over "a consistent track-record of operational and financial underperformance, resulting in shareholder-value destruction and a broken balance sheet." The numbers starkly support this claim. Over the past five years, Transat’s shares have plummeted by 57 per cent, a performance that makes it the worst in its peer group. In stark contrast, its competitors' shares have risen by 31 per cent, and the broader S&P/TSX Composite Index has surged 82 per cent over the same period.
Financière Outremont also pointed to the company's lingering financial distress, noting that more than five months have passed since Transat and the federal government signed an agreement to restructure pandemic-era debt—a deal that acknowledged "material financial difficulties" but was done without shareholder approval. The investor asserts the balance sheet remains burdened by excessive leverage and limited access to new capital.
Next Steps and Shareholder Pressure
The public campaign is a clear escalation tactic. Financière Outremont stated that greater transparency is intended to "encourage the board to act decisively." The investment company has warned that if the requested meeting is not held in a timely manner, it will not support any major new transactions proposed by the current leadership.
Pierre Karl Péladeau concluded by expressing a willingness to work constructively with the company, stating, "We are prepared to work with the Board and Company constructively to swiftly realize a long term plan and look forward to engaging with our fellow shareholders." The move sets the stage for a potential proxy battle, placing immense pressure on Transat's incumbent directors to respond to the demands of a significant and vocal shareholder.
