Competition Bureau Warns Air Canada-United Airlines Proposal Would Harm Transborder Competition
Canada's Competition Bureau concluded that a proposed arrangement between Air Canada and United Airlines to expand coordination on 10 transborder routes would likely reduce competition, raise prices, and create monopoly conditions. The report was delivered to the Minister of Transport for a public interest review.
On October 28, 2026, the Competition Bureau reported that a proposed arrangement between Air Canada and United Airlines would likely harm competition on 10 routes between Canada and the United States. The proposal seeks to remove restrictions imposed by a 2012 consent agreement, allowing the two carriers to expand coordination, including on pricing, across those routes.
The affected routes connect Toronto, Montreal, Ottawa, and Vancouver with Chicago, Cleveland, Denver, Houston, New York, San Francisco, and Washington. According to the Bureau, Air Canada and United currently account for all non-stop passenger traffic on five of the 10 affected routes and hold significant combined market shares on the others.
The Bureau found that barriers to entry are high and competition from other airlines is unlikely to constrain the carriers. This dynamic could potentially create monopoly or near-monopoly conditions, leading to higher prices for travellers and material anti-competitive effects.
Air Canada spokesman Christophe Hennebelle stated that since 2022, the airlines have launched 20 new routes and jointly carried more than 4.3 million passengers under their existing partnership.
The Bureau's report informs a public interest review conducted by Minister of Transport Steven MacKinnon, who has the authority to veto the proposed arrangement. The comment period for the Minister's public interest assessment is open until November 15.