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Canada Agency Slams United-Air Canada Route Expansion
28 Oct
Summary
- Canada's competition agency opposes airline route expansion.
- The proposed expansion could increase passenger fares.
- Concerns raised about reduced competition on key routes.
Canada's competition watchdog has flagged concerns regarding the proposed expansion of a joint venture between United Airlines and Air Canada. The agency argues that the plan to add more routes between the United States and Canada would negatively impact consumers.
Specifically, the competition bureau asserts that the expansion could drive up airfares. It also highlights worries about a substantial decrease in competition on several key air travel corridors. The joint venture currently accounts for all nonstop passenger traffic on five of the ten routes between the two countries, indicating a significant market concentration.
The agency's intervention suggests potential hurdles for the airlines' strategy to deepen their cooperation and broaden their service offerings on transborder routes.
