Air Canada and United Continental Reach Coordination Agreement
The Competition Bureau announced that it has reached an agreement with Air Canada and United Continental Holdings that is claims will preserve competition and protect consumers on 14 high-demand routes between the United States and Canada. The two airlines currently have agreements in place for coordinating certain aspects of competition, and plan to enter into a joint venture that would combine their flight operations on routes between the two countries. However, under the agreement, the companies will not coordinate with one another or implement their joint business venture on the 14 routes named in the agreement.
For the 14 routes, the agreement prohibits the two airlines from coordinating their prices, coordinating the number of available seats at each price, sharing commercially sensitive information, or pooling their costs or revenue. It will remain in effect as long as the joint venture or other “coordination agreements” are in effect.
John Pecman, interim commissioner of competition, said that the agreement between the two airlines will ensure that customers are not faced with higher prices and less choices for high-demand routes between the U.S. and Canada.