The transaction, which was approved by Transat shareholders on Friday, raises “public interest issues related to national transportation,” according to a Monday release from Transport Canada. The assessment will include input from the competition commissioner on the acquisition’s potential impacts other companies’ ability to compete in the industry. (The Logic)

Talking point: The deal will face scrutiny from regulators not just in Canada, but in Europe, as well, where both Air Canada and Transat offer direct routes. However, after Transat’s shareholders approved the sale, board members said they were confident the deal would obtain regulatory approval. Jean-Marc Eustache, chairman and CEO, has argued against competition concerns around European routes, pointing to competitors on the Montreal-Paris route, for example, such as Air France, Level and Corsair International. Eustache co-founded Transat’s predecessor, Air Transat. He alone is reportedly set to make over $17 million from the deal.