Amendments with respect to the Airline Industry

Backgrounder

June 21, 2002

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Extension of a Temporary Order

When dealing with abuse of dominance matters (section 79) in the airline industry, the Commissioner of Competition can issue a temporary order in accordance with section 104.1 of the Competition Act. New subsections 104.1 (5.1)-(5.5) provide the Competition Tribunal the authority to grant a further extension of a temporary order beyond the current 80-days maximum until the Commissioner has had sufficient time to receive and review information required to determine whether to make an application before the Tribunal.

Administrative Monetary Penalty

The Competition Tribunal can impose an administrative monetary penalty of up to $15 million against a dominant airline carrier which has been found by the Tribunal to have abused its dominant market position.

Aggravating or Mitigating Factors

Aggravating and mitigating factors will be considered by the Competition Tribunal when determining the appropriate amount of an administrative monetary penalty. These factors are:

• the frequency and duration of the practice in question;
• the vulnerability of the class of persons adversely affected by the practice;
• injury to competition in the relevant market;
• the history of compliance with the Competition Act by the entity; and
• any other relevant factor.