Canadians are paying sky-high prices for flights – and merger could make it worse
For most Canadians, flying from one corner of their country to the other can be a pricey endeavour. That's why Air Canada’s C$520m purchase of Air Transat is prompting alarm over dwindling competition and rising ticket prices. The move further consolidates Air Canada’s power in an already tiny market; the airline and WestJet enjoy a duopoly, together controlling 82% of domestic seats. The deal puts Air Canada in a position to further control pricing, though analysts say it’s difficult to predict whether fares will actually increase. The Competition Bureau will probably scrutinise the deal, though it may not be able to stop it. Earlier this year, the bureau concluded that a merger between 2 small northern Canadian airlines was anti-competitive, but the federal govt still approved it. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-07-01/star/canadians-are-paying-sky-high-prices-for-flights-2013-and-merger-could-make-it-worse
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Canadians are paying sky-high prices for flights – and merger could make it worse
For most Canadians, flying from one corner of their country to the other can be a pricey endeavour. That's why Air Canada’s C$520m purchase of Air Transat is prompting alarm over dwindling competition and rising ticket prices. The move further consolidates Air Canada’s power in an already tiny market; the airline and WestJet enjoy a duopoly, together controlling 82% of domestic seats. The deal puts Air Canada in a position to further control pricing, though analysts say it’s difficult to predict whether fares will actually increase. The Competition Bureau will probably scrutinise the deal, though it may not be able to stop it. Earlier this year, the bureau concluded that a merger between 2 small northern Canadian airlines was anti-competitive, but the federal govt still approved it. <br/>
