Air Canada faces probe over buyout

 

 

 

 

 

 

 

 

 

 

 

Journal: TWUK	Section:
Title:	Issue Date: 15/05/00
Author:	Page Number: 3
Copyright: Other

 

 

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Air Canada faces probe over buyout

AIRCanada's controversial buyout of its sole major domestic rival Canadian Airlinesis now under investigation by the UK Competition Commission.

 

Consumer affairs minister Kim Howells is understood to be concerned that the merging of the two carriers' transatlantic services from Heathrow threatens passenger choice.

 

Howells will also consider complaints from British Airways that it is not being given special internal Canadian deals from Air Canada.

 

BA ends favourable deals with former partner Canadian on June 1.

 

The Competition Commission will make known itsfindings on the situation by August 3.

 

BA is reported to be threatening to pull the plug on Canadian routes if it can no longer operate them profitably.

 

A BA spokeswoman said the airline was committed to Canada but added the carrier would have to review any route which struggles to be profitable.