Canada Has Concerns About Air Canada-Transat Merger

The Competition Bureau of the government of Canada stated that it has “competition concerns” about the planned takeover of Transat by Air Canada, which could be detrimental to Canadian travelers going to sun destinations as well as Europe.

“The Competition Bureau announced it concluded that Air Canada’s proposed acquisition of Transat is likely to result in a substantial lessening or prevention of competition in the sale of air travel or vacation packages to Canadians,” the watchdog stated on March 27.

“Eliminating the rivalry between these airlines would result in increased prices, less choice, decreases in service and a significant reduction in travel by Canadians on a variety of routes where their existing networks overlap.”

The Competition Bureau stated that after an examination of the two airlines’ routes it determined that the merger would apply to 83 overlapping routes: 49 between Canada and Europe and 34 between Canada and traditional vacation destinations in Florida, Mexico, Central America and the Caribbean. The transaction would represent a merger of the only two carriers offering non-stop service on 22 of these routes.

Montreal-based Air Canada says that it will review the findings “in due course.” It is currently busy dealing with the effects of the coronavirus on its business, and repatriating Canadian citizens.

Full Content: Simple Flying

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