Airline Regulations Come Into Force

OTTAWA, August 24, 2000 — The Competition Bureau announced today that new airline regulations came into force on August 23, 2000, allowing the Bureau to better protect competition in the airline industry. The regulations specify types of behaviour by a dominant air carrier that are likely to be challenged by the Bureau. These regulations are part of the federal government's initiative to ensure that the dominant air carrier does not abuse its dominant position.

The regulations were pre-published for consultation in the Canada Gazette on July 8th. In finalizing the regulations, the Bureau took into consideration comments it received from a variety of stakeholders.

Specifically, the regulations:

• describe what would constitute anti-competitive conduct on the part of a dominant air carrier, including predatory behaviour;
• address conduct intended to foreclose competitors, such as pre-empting airport services or facilities required by competing carriers;
• address the strategic use of frequent flyer programs, travel agent incentives or other marketing practices for the purpose of eliminating or disciplining competitors or deterring entry into the industry.

These regulations are separate from the enforceable Undertakings Air Canada signed in December of 1999. The Undertakings are pro-competitive, legally binding obligations of Air Canada. Any actions taken by Air Canada and its affiliates which are required by the Undertakings would not be considered as "anti-competitive acts" within the meaning of section 79 or the regulations. However, compliance with the Undertakings will not shield Air Canada from the application of the regulations.

View the regulations - As published in the Canada Gazette (PDF: 209KB)

The Competition Bureau is an independent law enforcement agency that is responsible for merger review and the lawful conduct of business in Canada, as defined by theCompetition Act.

For more information, please contact:

Cynthia Grant
819-994-0349