The European Commission, which opened an investigation in May on concerns that the deal could push up prices and reduce choice for flights between Europe and Canada, said the extension was applied in agreement with the two companies.

Air Canada last month cut its offer price for Transat by nearly 75% to about C$188.7 million (110.1 million pounds) because of the COVID-19 impact on travel demand.

(Reporting by Foo Yun Chee; Editing by David Goodman)