Air Canada cuts fares on rival's route

Article Abstract:

Air Canada, which holds 80% of the airline market in Canada, has filed new three-day advance purchase low-price fares for its Toronto-Calgary route and Toronto-Vancouver route, the two routes to be served by Roots Air, to launch in March, 2001. The rate decrease, which Air Canada publicly states is not related to the upcoming launch of Roots Air but is related to the high passenger volumes of the routes, occurred only hours after government regulators warned the airline about predatory pricing. The fare for the Toronto-Calgary route has dropped to about Can$909, although its Toronto-Edmonton route, a route that will not be served by Roots Air, is remaining at $1,903. While the fares are still higher than those planned by Roots Air, the new airline is to take its concern to the Competition Bureau, but has not yet decided if it will file a formal complaint.

Market share, Statistical Data Included, Transportation

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Air Canada backs down in price war with CanJet

Article Abstract:

Air Canada has backed away from a price war with CanJet Airlines after federal regulators warned they would ban cut-rate prices on three routes in eastern Canada. The special one-way fares matched the air carrier's pricing of $89 to $99 on routes from Halifax to St. John's, Montreal, or Ottawa.

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Air Canada hit with cease-and-desist order

Article Abstract:

Air Canada must stop its low cost fares due to a cease-and-desist order from Canada's competition commissioner. Canjet Airlines claims Air Canada abused its dominant position through the low fares policy to drive Canjet, a new carrier, out of business.

Consumer prices

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