Air Canada continues to eye closer United ties

Air Canada continues to evaluate closer ties with United, as competitors WestJet and Delta work towards a joint venture between Canada and the USA. "We'll have to go back and look at how we can strengthen our JV with United," said Michael Rousseau, CFO of Air Canada, in response to being asked how the carrier plans to respond to Delta and WestJet. Delta and WestJet reached an agreement for a transborder joint venture in July, paving the way for the carriers to seek antitrust immunity from regulators and implement their pact in 2019. "We currently have certain routes that are carved out of that JV, and we'll have to go back to the drawing board to see if there are some value we can add to both carriers by extending that JV," he said. Air Canada and United do not operate a joint venture between Canada and the USA, despite Rousseau's comments. However, they have the "ability" – as Air Canada has indicated in multiple annual reports since 2012 – to implement one with 14 transborder markets excluded under a 2012 agreement with Canada's Commissioner of Competition. The airlines have had antitrust immunity to cooperate in the market since 1997. The airlines also cooperate across the Atlantic under a three-way joint venture with the Lufthansa Group. Air Canada clarified that, in his comments, Rousseau was "referring to our long-standing, integrated relationship with United" and "how it might help us respond to developments in the North American market". He was not referring to a transborder joint venture.<br/>