Competition Bureau Extends Temporary Order

OTTAWA, October 31, 2000 — The Competition Bureau announced today that the Commissioner has extended a temporary order requiring Air Canada to cease and desist from offering or selling special discount L14EASTS fares on some routes in Eastern Canada.

The order, which was first issued on October 12^th, will be extended for an additional 30 days on three of the five routes while the Bureau continues its investigation into a complaint by Halifax-based air carrier, CanJet, that Air Canada has engaged in anti-competitive behaviour. CanJet alleges that when it entered the market on September 5, 2000, Air Canada reduced its fares to target CanJet on specific routes.

The extended order will apply to the Halifax-Ottawa, Halifax-Montreal and Halifax-St-John's routes. It will not apply to the Toronto-Windsor and Ottawa-Windsor routes in light of CanJet's recent decision to discontinue service on these routes.

The extended cease and desist order will expire November 30, 2000. The Bureau's investigation will continue to determine whether there is sufficient evidence to proceed to the Competition Tribunal for an order prohibiting these fares under the abuse of dominance provisions (section 79) of the Competition Act.

As part of its investigation into this matter, the Bureau has obtained a court order requiring Air Canada to provide information necessary to the Bureau's inquiry by November 15, 2000.

The Competition Bureau is an independent law enforcement agency whose mandate is to maintain and encourage competition in Canada.

For more information, please contact :

Julie Hébert
Communications Directorate
819-953-4257