Wings Magazine

Air Canada/Continental joint venture blocked?

June 27, 2011, Ottawa - Canada's Competition Commissioner is trying to block a joint venture between Air Canada and United Continental that it says would create a monopoly on some cross-border routes.

June 27, 2011  By The Canadian Press

Melanie Aitken says the agreement between Air Canada and U.S.-based United Continental would mean higher prices and less choice for consumers on high-demand routes.

The Competition Bureau has filed an application with the Competition Tribunal to stop the joint venture, saying it would monopolize 10 important Canada-U.S. routes and reduce competition on nine others.

The Competition Commissioner also says three current co-ordination agreements between the two airlines already give the companies power to charge inflated fares.

When it announced the joint venture last fall, Air Canada said its closer ties with United would provide travellers with better service and pricing as scheduling changes helped reduce or eliminate duplicate flights.



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