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Transat A.T. Inc.: New collective agreement approved at Handlex

Montreal, December 11, 2006

Transat A.T. Inc. confirms that a proposed new collective agreement has been approved today by Handlex employees providing baggage- and cargo-handling and other ramp services at Toronto and Montreal international airports.

Handlex, a Transat subsidiary, provides airport ground services to several airlines, including Air Transat, at Montreal, Toronto and Vancouver international airports. Services include passenger reception and check-in, baggage- and cargo-handling, aircraft cleaning and ramp services. Handlex has approximately 1,200 employees.

Transat A.T. Inc. is an integrated international tour operator with more than 60 destination countries and that distributes products in over 50 countries. A holiday travel specialist, Transat operates mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin. Montreal-based Transat is also active in air transportation, destination services and distribution. (TSX: TRZ.B, TRZ.A).

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