Hill Applauds Canada 3000-Canjet Merger

March 29, 2001

OTTAWA-Canadian Alliance Chief Transportation Critic, Jay Hill applauded the decision by Canada 3000 to purchase Halifax based Canjet only one week after its merger with Royal Airlines received regulatory approval. 

“The merger of Canada 3000, Royal Airlines and Canjet is a significant step toward the creation of a second national airline to challenge the monopoly position of Air Canada”, began Hill, “ I hope that the reduction in the number of regional alternatives is offset by an increase in service.”

Canjet began operations last fall and was immediately confronted with price competition from Air Canada, but only on routes in which they competed head-to-head. Canjet filed four complaints with the federal Competition Bureau since beginning operations in September, the most significant of which, an abuse of dominance claim, has not yet been heard by the Bureau and will likely disappear with the announcement of the merger.

“The consolidation of our discount airlines may be good for Canada in the long run, but it is also very compelling evidence that there is insufficient protection for start-up operations.” continued Hill, “ Canjet simply could not compete with the financial resources and predatory business practices of Air Canada. The government needs to examine ways of creating a market environment that will ensure that new carriers have an opportunity to become viable and which is protected by an effective competition monitor that can respond quickly to complaints.”

“Canada 3000 is setting a new standard, I look forward to experiencing it first hand.”