Feds to Review Proposed Update of Air Canada/United Joint Venture
by Bruce Parkinson
The Canadian government is reviewing the proposed update of Air Canada and United’s joint venture. (Shutterstock)
Air Canada and United Airlines have notified the Canadian Minister of Transport that they want to update their existing joint business arrangement, known commonly as a joint venture, for flights between Canada and the United States.
The two airlines have operated under this arrangement since 2022. It allows them to work together on certain Canada-U.S. routes by coordinating activities such as flight schedules, ticket prices, marketing, sales and revenue management.
Since 2018, the Minister of Transport has the authority to review and authorize joint ventures between airlines.
This process allows the Minister of Transport to authorize, authorize with conditions, or refuse a proposed joint venture that would be in the public interest by balancing those interests with impacts on competition.
With the proposed update to the JV, the federal government has announced that it will examine and assess the arrangement.
“By conducting a thorough public interest assessment of this amended joint venture, we’re ensuring that any expanded cooperation between these carriers benefits Canadians and drives stronger economic growth–boosting connectivity, supporting good jobs, and opening new opportunities for businesses and travellers across Canada,” said Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons, in a press release.
Officials say the assessment will include consultations to hear from Canadians, including air industry representatives, consumer organizations and other stakeholders. It will examine the potential economic impacts for Canadians, challenges and effects on competition of the proposed transaction.
“A strong and competitive air travel industry is essential for Canada’s economic prosperity and to meet the travel needs of Canadians,” the government says in a press statement. “The Government of Canada pays careful attention to the air sector and works to ensure arrangements are conducive to competition and in the public interest.”
Canadians are encouraged to have their say on letstalktransportation.ca from now until November 15.
