767300ER

Just posted,
Will be interesting to follow!!

Air Canada to Challenge Competition Bureau Application; Also Seeks Expedited Rules Clarification from Competition Tribunal


MONTREAL, March 5 /CNW/ - Air Canada announced today that it will
vigorously challenge the Competition Bureau's application to the Competition
Tribunal for an order prohibiting Air Canada from matching fares or otherwise
being price competitive on certain routes operated by CanJet and WestJet.
"Air Canada fundamentally disagrees with the Competition Bureau's
findings that it has engaged in anti-competitive practices directed against
CanJet and WestJet and we have strong arguments to present to the Tribunal in
response to the S.79 application filed by the Bureau today," said Calin
Rovinescu, Executive Vice-President, Corporate Development & Strategy. "Based
on recent announcements of expansion plans and financial strength by both
CanJet and WestJet, the Commissioner's stated belief as to the impact of Air
Canada's pricing and capacity management is unfounded," he added.
In order to resolve these issues on a timely basis, Air Canada has agreed
with the Competition Bureau to have an expedited hearing before the
Competition Tribunal for clarification of certain rules relating to pricing
behaviour in the Canadian airline industry, in particular the application of
the avoidable cost test set out in the Regulations relating to the airline
industry under the Competition Act.
"The Bureau's interpretation of "avoidable costs" - costs that would have
been avoided if the service was not provided - prevents Air Canada and other
carriers dominant in any one market from competing on price. Competitive
pricing in the marketplace benefits consumers," said Mr. Rovinescu.
"Air Canada must remain competitive, both internationally and in Canada,
particularly in view of the current economic reality. We have to be capable of
meeting our competitors' pricing initiatives on our key routes in Canada. All
competitors regardless of size should have that right. We are aware of no
precedent in the airline industry of a regulator disallowing price matching.
The Bureau's current interpretation of the rules on pricing reflects a
tendency towards re-regulation which is clearly inconsistent with global
industry trends and which stifles true competition beneficial to consumers,"
he added.
"We agree with the Commissioner that a quick resolution of this issue
ould provide the guidance and certainty all parties require," concluded
Mr. Rovinescu.
-0

doc

Canada's Competitio Fi??? matters, to issue an order prohibiting Air Canada from????pricing changes are squeezing low-cost carriers CanJet and WestJet (Toronto:WJA.TO - news) out of the market, the bureau said.

``The bureau believes Air Canada's pricing and capacity management would result in WestJet and CanJet abandoning these routes. It is concern? Du Du?opportunity to compete,'' said Konrad von Finckenstein, Canada's commissioner of competition.

Montreal-based Air Canada, the country's largest airline with about 80 percent of the domestic market, said it will ``vigorously challenge'' the Competition Bureau charges??? pricing and capacity management is unfounded," Calin Rovinescu, Air Canada's executive vice-president of corporate development and strategy, said in a statement.

Air Canada said it had asked for an expedited hearing before the Competition Tribunal to clarify the rules on
http://biz.yahoo.com/rf/010306/n06331235.html


Air Canada's (Toronto:AC.TO - news; NasdaqNM:ACNAF - news) dominance of the Canadian airline sector is being challenged in court with the country's antitrust watchdog charging it with predatory pricing against two of its smaller rivals.
http://biz.yahoo.com/rb/010306/busin...canada_dc.html

[This message has been edited by doc (edited 03-06-2001).]

Fly Boy

I honestly have no idea if Air Canada should match these fares or not. From where I am sitting, N class seems to always show zero, so IMO the price matching is a marketing ploy and has no teeth. The odds are people calling AC will get quoted a higher fare anyway, and if they are price shopping they will go back to the discount carriers anyway. Much ado about nothing IMO. NB - apparantly the fare creating complications is the LAC fare basis

[This message has been edited by Fly Boy (edited 03-06-2001).]

FlyerAl

And don't forget that in the AC "seat sale" newspaper ads, the fine print states that tickets must be purchased immediately - no holds. It's like they don't even want you to have a chance to price shop.

Fly Boy

LMAO :
http://www.globeandmail.com/series/c...7wededcar.html