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Air Canada
Symbol AC
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Close 2017-09-13 C$ 23.59
Market Cap C$ 6,463,801,799
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FP says Transat argues against joint venture provision

2017-09-14 09:12 ET - In the News

See In the News (C-TRZ) Transat AT Inc

The Financial Post reports in its Thursday edition that Transat is calling on the government to remove a joint venture provision from proposed legislation amending the Transportation Act. The Post's Alicja Siekierska writes that the proposed Bill C-49 would allow the Minister of Transport to approve applications for joint ventures between two or more airlines, considering proposals from both a competition and public interest perspective. Under the current regime, joint ventures, including those between Canadian and global carriers, are reviewed under the Competition Act. In a brief that is expected to be submitted to the transportation committee Thursday, the tour operator said the proposed approval process is not necessary. "The only Canadian airline currently involved in one or more joint ventures and for which these proposed provisions would be of immediate and direct interests is Air Canada," Transat said in its submission. Transat argues that the joint venture provisions could result in reduced competition and therefore lead to higher fares. Air Canada, which is part of a transatlantic joint venture with United Airlines and Deutsche Lufthansa AG, is currently pursuing a joint venture with Air China.

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