HILL COMMENDS AIRLINE WATCHDOG

March 06, 2001

OTTAWA-Canadian Alliance Chief Transportation Critic, Jay Hill applauded the decision by the Competition Bureau to seek an order from the Competition Tribunal prohibiting Air Canada from dropping its fares on routes flown by Westjet and Canjet.  

“The decision by the Commissioner of Competition confirms what we have been saying for months…Air Canada won’t be satisfied until it has obliterated its competition,” state Hill, “apparently they are not satisfied with a near monopoly.” 

The Competition Bureau was given enhanced powers to regulate anti-competitive behavior last year following the merger of Air Canada and Canadian Airlines. This is the first time that the Bureau has gone as far as applying for a Tribunal hearing on predatory pricing. Last October the Bureau flexed its muscle and issued a cease and desist order against Air Canada when the airline dropped its prices on routes that Canjet had begun servicing, but only for flights that were scheduled to depart at the same time as Canjet, a clear violation of the new rules on competition. 

“The president of Air Canada, Robert Milton, made representations to Members of Parliament and the Canadian public about how his airline would conduct themselves given a near monopoly position,” continued Hill, “in my opinion they have reneged on their commitment. The fact that the Competition Bureau has to seek a hearing to address their behavior confirms it.” 

Hill was referring to testimony given by Robert Milton during Standing Committee on Transportation hearings conducted on October 27, 1999 when Mr. Milton stated “the Air Canada plan meets and in many cases exceeds the five principles outlined recently by the Minister of Transport. Our plan protects consumers by preserving choice and ensuring a full review by the Competition Bureau.” 

Evidently there is no more Mr. Nice Guy at Air Canada. The airline plans to challenge the Competition Bureau’s application for the injunction on the basis that they “fundamentally disagree with the Competition Bureau’s findings…and we (Air Canada) have strong arguments to present to the Tribunal.” 

“While I am placed to see the Competition Bureau taking action to ensure that emerging airlines are given a chance to get established, the Bureau needs to be able to react faster when complaints are made. When you are a new airline struggling to get on your feet, every passenger counts. The Bureau needs to act in days, not months.” concluded Hill.