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Predatory pricing must stop: Canjet

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CanJet pricing complaint

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Date: Sun. Oct. 8 2000 10:08 AM ET

CanJet Airlines owner Ken Rowe has accused Air Canada of foul play because it has deliberately and unfairly slashed fares on routes flown by both airlines.

Rowe says Air Canada has cut prices on its flights between Windsor, Ontario, Toronto, Ottawa and Halifax. He says some of those fares have dropped as much as 80 per cent.

Rowe, chief executive of Halifax-based I.M.P. Group, says CanJet desperately needs federal intervention or the month-old airline may be put out of business.

CanJet first sought help four weeks ago, asking the federal competition bureau to stop Air Canada from cutting prices on routes between the four cities. According to a spokesperson for the competition board the CanJet complaint is still being investigated.

If the competition board finds merit in CanJet's accusation, public hearings would be held and Air Canada could be ordered to stop slashing fares on specific routes.

In recent weeks Air Canada has chopped a number of fares on routes that CanJet flies. It's cut those prices for flights that leave about the same time as CanJet's departures.

The Air Canada fare decreases have also spread to cover its flights leaving on newly announced CanJet routes between Montreal, Winnipeg and St. John's, Newfoundland.

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