Transat A.T. Inc. (TSX: TRZ.B, TRZ.A) and WestJet (TSX: WJA) have mutually and amiably agreed to terminate an air transportation agreement initially contracted in 2003 and set to expire in 2010.

The termination will take effect at the end of the current winter season on May 10, 2009. The agreement allowed tour operator Transat Tours Canada, a Transat business unit, to charter WestJet aircraft to sun destinations.

Transat and WestJet may enter into an ad-hoc charter agreement that would see WestJet offer Transat charter flying in the future.