Competition Bureau and Air Canada end dispute over predatory

Blastor · Post by **Blastor** » Sat Oct 30, 2004 9:50 am

Competition Bureau and Air Canada end dispute over predatory pricing

Canadian Press / October 30, 2004

MONTREAL (CP) - The Competition Bureau and Air Canada have ended their litigation over allegations that the airline engaged in anti-competitive practices against low-cost carriers WestJet and CanJet.

The decision announced Friday effectively shelves allegations that Air Canada engaged in predatory pricing in 2000 and 2001 on some eastern Canadian routes to drive away discount competition.

The bureau ruled last July that Air Canada's fares on those routes were less than its operating costs, in a bid to prevent WestJet from expanding in Eastern Canada. The bureau conducted an inquiry into similar complaints by CanJet.

There were no penalties attached to the finding.

Air Canada's appeal of the ruling was stayed pending its bankruptcy protection, from which it emerged Sept. 30, and the airline said Friday it decided to drop the appeal.

Sheridan Scott, Commissioner of Competition, said the hearings helped clarify what constitutes predatory pricing in the airline industry.

"I am very pleased that we've been able to resolve this matter and retain the tribunal's earlier decision in this case," Scott stated.

"The tribunal's decision will help preserve and promote competition for the benefit of all Canadians."

Clive Beddoe, WestJet's president and chief executive officer, said Air Canada's decision not to appeal "is a significant win for WestJet and for the Canadian airline industry as a whole as it establishes ground rules for conduct in Canada's competitive airline environment."

Beddoe added that the Competition Tribunal's position will encourage efficient competitors.

"When faced with more efficient new entrants offering lower fares, dominant airlines will either have to adjust their business model or exit the market."

© The Canadian Press 2004

Blastor · Post by **Blastor** » Sat Oct 30, 2004 10:07 am

Beddoe added that the Competition Tribunal's position will encourage efficient competitors.

"When faced with more efficient new entrants offering lower fares, dominant airlines will either have to adjust their business model or exit the market."

Beddoe ? The same Beddoe that apologized for spying? Me think you not in a position to comment on others....

*WestJet shares are down 49 per cent..
*Westjet profits are plumetting for a third consecutive quarter...
*Westjet employees profit shares (2004) lowest in WJ history
*Westjet load factors are plumetting again...
*Westjet raises fares across the board to pay for leather seats and Live TV
*Westjet faces Air Canada Lawsuit of $200+ millions...
*Westjet faces Jestgo lawsuit of $30+ millions....
*Westjet accused of corporate espionage...
*Westjet Beddoe fires co-founder and best buddy to cover his hide...
*Westjet fails and the Ottawa-Montreal-Toronto corridor
*Westjet marketing director quits over Beddoe miscalcualtion
*Westjet marketing missed the mark, again...
*Westjet lost the "low-fare leader" title to Canjet

boeingboy · Post by **boeingboy** » Sat Oct 30, 2004 2:30 pm

Gee.........is that all??

I could come up with 10 times that for Air Canada. I really wish you A/C management types would quit crying everytime someone says something negative about A/C - you aren't the best in the world you know.

It's that precise mentality that got you screwed in the first place - and it will screw you again in the not to distant future.

boeingboy · Post by **boeingboy** » Sat Oct 30, 2004 2:31 pm

Gee.........is that all??

I could come up with 10 times that for Air Canada. I really wish you A/C management types would quit crying everytime someone says something negative about A/C - you aren't the best in the world you know.

It's that precise mentality that got you screwed in the first place - and it will screw you again in the not to distant future.

Canus Chinookus · Post by **Canus Chinookus** » Sat Oct 30, 2004 5:57 pm

oh come now, don't give blastor so much credit. management? bwahahaa!

zzjayca · Post by **zzjayca** » Mon Nov 01, 2004 2:49 am

It's obvious that Blastor is in some type of management role since he has so much free time to dig up all the cute press releases and post them on this forum.

double-j · Post by **double-j** » Mon Nov 01, 2004 4:12 pm

Management!!! ROTFLMAO!!!..... You give this troll waaaay too much credit.

out.

Yoyoma · Post by **Yoyoma** » Wed Nov 03, 2004 12:23 am

zzjayca wrote:It's obvious that Blastor is in some type of management role since he has so much free time to dig up all the cute press releases and post them on this forum.

Management and free time??

Coming from a Jazz pilot, it's almost funny!