Canada’s Competition Bureau is warning that a proposed expansion of the Air Canada-United Airlines partnership “would likely harm competition on 10 routes between Canada and the United States.”
There is speculation the deal would likely lead to higher fares on 10 Canada-US routes and create or reinforce “monopoly or near-monopoly conditions” on several of them: “The Bureau's analysis found that the proposal would likely result in higher prices on most affected routes, resulting in millions of dollars in consumer harm each year.”
The Bureau delivered its findings to the Minister of Transport, who is running a public interest review of the arrangement and will decide whether to approve it.
Air Canada and United already work together under a transborder joint venture. A 2012 consent agreement, which is still in force, restricts the carriers from coordinating on these 10 routes:
- Toronto-Denver
- Toronto-Houston
- Toronto-San Francisco
- Toronto-Cleveland
- Toronto-Washington
- Montréal-Chicago
- Montréal-Washington
- Vancouver-San Francisco
- Ottawa-New York
- Ottawa-Washington
The carriers have proposed to coordinate on those routes. If the minister approves, they plan to ask the Competition Tribunal to cancel the 2012 agreement.
Jeanne Pratt, Interim Commissioner of Competition, has stated that "Competition between airlines helps keep fares lower and gives travellers more choice and better service. Our review found that allowing Air Canada and United to coordinate on these routes would likely reduce competition on key Canada-U.S. routes and lead to higher prices for travellers."
Transport Canada’s public consultation on the proposal closes 15NOV, 2026.
Is Westjet not monitored for monopolies? They are price gouging on their routes to Mexico from the west because there is no competition. How about YWG-YXE? YWG-YYC? YWG-YEG?