30 APR 2018: Transat’s 30th Anniversary celebrations drew a stellar crowd to the company’s hangar at Toronto’s Pearson International Airport last week. In the shadow of a gleaming Airbus A330-200, business partners, industry executives, Transat staff past and present, media and even a couple of politicians, gathered to mark the occasion. Before the fun began however, we had an opportunity to sit down with CEO, Jean-Marc Eustache and COO, Annick Guérard.
Where did it all begin? No, Eustache laughed, he didn’t wake up one day suddenly inspired to start Transat.
It all began with Tourbec, a travel agency for youth and students in Quebec, similar to CUTS (Canadian University Travel Services). Though his specialties were economy, mathematics and computers at the time, when Tourbec offered him a position in charge of buying, he joined them.
“Tourbec was providing its own product, selling to its own travel agencies, to students and young people,” said Eustache, so when Tourbec failed he took over – forming Traffic Voyage in 1982 along with Phillipe Sureau and Lina DeCesare.
Traffic Voyage leased planes from Quebecair which was then owned by the Quebec government. When the government sold the airline to Nationair, Eustache said, they were left without lift.
“We were pushed, so for two years we were using the planes of Air France and Worldways, do you remember?”
Yes, I did remember those years.
“It was not working.” Said Eustache, “So finally, we went public to raise the cash and that was the beginning of Transat.”
Despite everything, Eustache was, and is, enjoying the travel industry.
“It’s fantastic. Everybody has fun. That’s why they’re all there!” said an exuberant Eustache, “it’s an industry where you never know what’s going to happen tomorrow.
Transat’s CEO admits with a grin that he would far sooner do deals for, and sell planes and hotels, rather than actually take the trip or vacation.
He also admits he has, “never had a cellular phone, I still don’t have it. I’ve never use a computer in my life since I finished University.”
He concedes that when he retires (no date set) he may get mobile phone and has been told, he says (with an eyeroll) that he must have an imac Pro.
But, he is far more interested in discussing what he realized 33 or 34 years ago – that people wanted to travel and go direct, so, in those early summers, Transat operated to small UK cities: Leeds, Bradford, Cardiff, Manchester, Glasgow, Prestwick, Edinburgh – people wanted to fly from Toronto to one destination then take a train or car and leave from a different gateway.
“So, this I did well – and that’s the way we developed Transat as a European airline and a European tour operator,” said Eustache. Meanwhile the large airlines were primarily using their hubs so there was little competition from them. That’s changed ,he said, “Now they look at going direct from every city.”
The industry today is very different from what it was 20 or 30 years ago, when there were many more tour operators than there are now. Eustache had bought several of those operators over the years – we asked if he had any regrets.
“No. The only thing I regret, is that we’ve never been what we should have been in Ontario and Ontario is the main market in Canada. Look at the population. Double the size of Quebec. Look at the money. There’s more money here in Ontario and in Toronto.
“It’s by far the largest market. No question.”
Sunwing is the largest operator in Ontario by number of seats in the winter, acknowledges Eustache, though, Guérard reminds him, as a leisure operator all year round, Transat is the biggest.
“But still we could be bigger here, and we should be.” He says.
To do that, Transat has begun to invest much more in terms of media marketing, increasing its brand equity in the Ontario market, said Guérard.
While brand equity in Quebec has always been very strong, and the company will continue to invest in Quebec – though not as much – future investments will go into Ontario.
“So that’s one thing we want to develop in terms of offering more destinations, offering more frequencies in terms of our existing routes out of Ontario as well.”
What is needed, they agree, is the right equipment, and that’s the Airbus 321. Transat has two but the strategic plan is to convert the entire fleet within a couple of years.
And, asked of what he is most proud, Eustache has no hesitation. Transat employees. This is a family he says, “I am very proud of them. All of them.” Transat now has second generation employees and Eustache rightly believes that this is a wonderful accomplishment.
Later, addressing the assembled guests, including Bonnie Crombie, Mayor of Mississauga, and Toronto City Councillors Michael Thompson and Vincent Crisanti, Eustache said, “Transat is above all a leisure travel company, a tourism company open to the world.
“This vision still inspires us today, and it clearly explains the choices we have made and will continue to make. We have always tried to offer travellers affordable products that encourage them to explore the world, while giving them the very best quality for the price that they are paying.
“It’s no accident that the work of our team has been recognized and rewarded for many years. This vision was also behind our decision to embark on our sustainable tourism, developing that venture in 2006, and we are continuing these initiatives today.
“Air Transat now serves some 37 sun destinations and about 27 transatlantic destinations.”
Eustache also spoke of the new hotel division at Transat’s sun destinations.
“We have accumulated significant experience in this field, and we are working actively on achieving our growth strategy.” The hotel division takes off in February headed by its president, Jordi Sole.
Eustache thanked, “first of all” his chosen successor COO Annick Guérard, who, he said, “will be terrific. Ten times better than me”.
“Annick and her colleagues are the new generation of leaders who will take the company even further. Of that, I have no doubt. For three decades, Transat’s mission has been to brighten its customers every day with the joys of vacations, and we will continue to do so for many years to come.”
He thanked too, Transat’s 5,000 employees, the team of senior executives, partner travel agencies and Transat’s Board of Directors, adding, “a special thanks to my close associates, past and present.”
“We aim to stay at the forefront of the travel industry, an industry that has a wonderful future. Thank you everyone, for being here today to celebrate this anniversary with us, and a very special thanks to our partners in international markets.
“Thank you for having confidence in us and rest assured that we are committed to constantly doing better to improve our relationship.”