Canada's Competition Bureau Warns United-Air Canada Joint Venture Expansion Would Raise Fares
Canada's Competition Bureau says a proposal by United Airlines and Air Canada to add ten U.S.-Canada routes to their joint venture would likely increase fares, harm competition, and create monopoly conditions on several routes.
Canada's Competition Bureau has warned that a proposed expansion of the joint venture between United Airlines and Air Canada would likely drive up fares and harm competition. The two carriers are seeking to add ten U.S.-Canada routes to their existing arrangement, which has been in place since 2022.
The routes targeted for inclusion in the expanded joint venture include Montreal-Chicago, Montreal-Washington, Ottawa-New York, Toronto-San Francisco, and Vancouver-San Francisco. According to the bureau, Air Canada and United currently account for all nonstop passenger traffic on five of the ten proposed routes.
An analysis by the Competition Bureau found that the proposal would likely result in higher prices on most affected routes, causing millions of dollars in consumer harm each year. The agency noted that the arrangement would create or reinforce monopoly or near-monopoly conditions on several routes.
The bureau delivered its report to Canada’s Minister of Transport, who will consider the analysis as part of the review process.
The recommendation comes as travel between the United States and Canada has been negatively impacted by heightened trade tensions, including tariffs imposed by U.S. President Donald Trump on Canadian goods.