Proposed Air Canada-United Deal Would Hurt Competition, Raise Prices: Watchdog
The watchdog said the plan would reduce competition on 10 cross-border routes and create millions of dollars in annual consumer harm.
- On Wednesday, the Competition Bureau warned that a proposed joint venture between Air Canada and United Airlines would "substantially harm" competition on 10 cross-border routes, leading to higher airfares for travellers.
- The airlines' recent proposal violates a 2012 anti-trust agreement with the watchdog, which previously determined that similar coordination would negatively impact market competition.
- Air Canada and United currently hold a 50 per cent to 75 per cent combined market share on these routes, creating high barriers to entry that would likely cement near-monopoly conditions.
- Federal Transport Minister Steven MacKinnon is now conducting a public-interest assessment of the arrangement and holds authority to veto the partnership following the bureau's report.
- Interested parties may submit comments on the minister's assessment until November 15, as the government evaluates whether to greenlight the expanded partnership.
21 Articles
21 Articles
United-Air Canada JV Expansion Would Drive Up Fares, Agency Says
United Airlines Holdings Inc. and Air Canada’s plan to expand their existing joint venture by adding more US-Canada routes would drive up fares and harm competition, Canada’s competition agency said.
The proposed expansion of an existing alliance between Air Canada and United Airlines goes a little too far to the taste of the Canadian watchdog for competition, which is concerned about a quasi-monopoly and an increase in ticket prices to 10 U.S. destinations.
The Toronto Star
Proposed Air Canada-United deal would hurt competition, raise prices: watchdog
The country's competition watchdog says a proposed co-operation arrangement between Air Canada and United Airlines would reduce competition and raise airfares.
TVA Nouvelles
Le Journal de QuebecThe competition watchdog is concerned that the agreement between Air Canada and United Airlines may result in an increase in the price of airline tickets.
Proposed Air Canada-United arrangement would cost customers millions: watchdog
The federal Competition Bureau says that a proposed Air Canada and United Airlines arrangement could harm competition on 10 routes between Canada and the U.S., costing consumers millions of dollars in airfare.
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