United-Air Canada joint venture would drive up fares, agency says

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Photo by Tayfun Coskun/Anadolu via Getty ImagesUnited Airlines Holdings Inc. and Air Canada’s plan to expand their existing joint venture by adding more United States-Canada routes would drive up fares and harm competition, Canada’s competition agency said.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAir Canada and United currently account for all nonstop passenger traffic on five of the 10 routes the two airlines want to add to their joint venture, the Competition Bureau said in a news release Wednesday. The arrangement between the carriers allows them to coordinate on ticket prices, marketing and flight schedules.This advertisement has not loaded yet, but your article continues below.“The Bureau’s analysis found that the proposal would likely result in higher prices on most affected routes, resulting in millions of dollars in consumer harm each year,” the Competition Bureau said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe proposed arrangement also “would create or reinforce monopoly or near-monopoly conditions on several routes,” it added.The two carriers have said they want to add ten U.S.-Canada routes, including Montreal-Chicago, Montreal-Washington, Ottawa-New York, Toronto-San Francisco and Vancouver-San Francisco, to their joint venture, which has existed since 2022.The plan to beef up coordination comes as travel between the United States and Canada has been hammered by geopolitical pressures. U.S. President Donald Trump has imposed tariffs on Canadian goods and has frequently talked about Canada becoming the 51st state of the U.S.The Competition Bureau delivered a report with its findings to Canada’s Minister of Transport, who will consider the analysis as part of the review process, according to the news release.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.