Canada Antitrust Regulator Gains Court Orders for Competition Information From Air Canada, WestJet

By Robb M. Stewart

OTTAWA--Canada's antitrust regulator obtained two court orders requiring Air Canada and WestJet Airlines to hand over certain information to aid its probe into competition in the country's airline industry.

The Competition Bureau said the Federal Court orders require the two carriers to produce records and answer questions in writing as part its market study. It is the first time the watchdog has used new information-gather powers granted by the federal government last year in a market study.

The bureau officially launched the review of competition in late July amid cutbacks in capacity by the two main airlines in Canada and as low-cost upstarts seeking to enter the market have struggled. It has stressed the study isn't an investigation into specific allegations of wrongdoing, though it would investigate and take action if it finds evidence suggesting any laws were being broken.

The information being sought from Air Canada and WestJet includes analyses of the state of competition in the sector, including different sources of competition, and key performance metrics, from before the pandemic to recent years. The regulator said it also is seeking analyses of barriers to entry in the sector, including government policies and airport access, agreements with airports, plus shareholdings in other airlines providing domestic air passenger services.

This information will help the bureau better understand competition in the domestic airline industry. It aims to provide analysis of potential solutions and recommendations by the spring and to publish its final report in June.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 03, 2024 12:40 ET (16:40 GMT)

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