WestJet Asks Canadian Government To Reject Proposed Air Canada/Transat Deal

WestJet Asks Canadian Government To Reject Proposed Air Canada/Transat Deal

January 20, 2021 ctn_admin

WestJet says the proposed Air Canada takeover of Air Transat would reduce competition and lead to higher prices for Canadian consumers.

The Globe and Mail reports that the Calgary-based airline has asked the Trudeau government to reject the proposed AC/Transat deal, or at least make major modifications.

“A fundamental element of Canada’s national transportation policy is to have at least two strong national airlines,” WestJet said in a January 3 note to then Transport Minister Marc Garneau, the Globe said. “WestJet’s ability to contribute to the Alberta economy and more broadly to the Canadian economy is imperilled by the proposed transaction.”

The newspaper also quoted WestJet CEO Ed Sims as saying the move would hurt Canadian fliers.

“An approval without significant remedies would provide Air Canada with an unprecedented government-sanctioned monopoly to the unavoidable detriment of the travelling public through higher air fares and lower service.”

The Globe story said that, if the deal goes through, WestJet wants the government to be sure that Transat customers don’t have access to Air Canada’s Aeroplan rewards program. WestJet also is said to be asking the government to force Air Canada/Transat to give up some of its airport slots around the world to provide more competition for consumers.

“WestJet singled out London’s Heathrow, Amsterdam’s Schiphol and Toronto’s Pearson airports as hubs where Air Canada’s market grip would gain even greater power with the purchase of Transat,” The Globe said. “WestJet wants Air Canada and Transat barred from using Pearson’s Terminal 3 to ensure room for other airlines.”