Competition Bureau gives green light to Air Canada, United joint venture

Discussion in 'Air Canada | Aeroplan' started by tcook052, Oct 24, 2012.  |  Print Topic

  1. tcook052
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    tcook052 Silver Member

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    http://business.financialpost.com/2...een-light-to-air-canada-united-joint-venture/

    The Competition Bureau said Wednesday it had reached an agreement with Air Canada and United Continental Holdings Inc. on how they could proceed with their controversial U.S. transborder joint venture.

    The bureau said the agreement would “protect and preserve competition” on the 14 key, high demand routes between Canada and the U.S. that, in part, led to the bureau challenging the partnership in June 2011.

    On those routes, the carriers will be prohibited from coordinating prices, the number of seats available at each price, pooling revenue or costs, or otherwise sharing commercially sensitive information, the bureau said.

    The contentious routes include flights from Toronto, Montreal, Calgary, Ottawa and Vancouver to several U.S. destinations, including Houston, Chicago, Washington, and others.

    The carriers will, however, be able proceed with their joint venture, which would, in effect, merge their flight operations, on other routes between the two countries, the bureau said.
     
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  2. Stephan

    Stephan Silver Member

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    But they are allowed to collude on the other trans-border routes...
     
  3. Wandering Aramean
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    Wandering Aramean Gold Member

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    All but the 14 "special" routes which are explicitly excluded. Many ATIs have similar care-outs. The original UA/LH deal excluded FRA-ORD/IAD because both carriers were operating those routes at the time.
     
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  4. tomh009
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    tomh009 Gold Member

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  5. TRAVELSIG
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    TRAVELSIG Gold Member

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    This will definitely work out well for the consumer :(
     
  6. tomh009
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    tomh009 Gold Member

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    If you look how the pricing works today already, I really don't expect you'll see any radical change in fares.
     
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