EU suspends probe into Air Canada-Transat deal pending more information

EU suspends probe into Air Canada-Transat deal pending more information

EU suspends probe into Air Canada-Transat deal pending more information

European Union regulators are suspending their investigation into Air Canada’s proposed purchase of Transat AT pending the arrival of more data from the two Canadian travel companies.

The European Commission’s antitrust body launched the four-month investigation into the $720-million deal in May to determine whether it would hurt competition in Canadian and European markets, leading to higher prices, diminished quality or less choice for Atlantic travellers.

A preliminary review by the EU executive branch found that the would-be transaction could significantly reduce competition on 33 origin and destination city pairs between the two jurisdictions.

Air Canada says that “it is typical of this process to ‘stop the clock’ to allow more time” to submit information. Tour operator Transat, which owns Air Transat, says dates have been pushed “slightly” beyond the initial September deadline as a result.

The Canadian Competition Bureau warned in March — based on information collected prior to the COVID-19 pandemic — that eliminating the rivalry between the two Montreal-based carriers would discourage competition by prompting higher fares and fewer services, ultimately resulting in less travel by Canadians on a range of competing routes.

The takeover would give Air Canada control of more than 60 per cent of transatlantic air travel from Canada and 45 per cent of passenger capacity to sun destinations, according to the federal agency’s report.

Transat has said it expects to close the deal in the fourth quarter of the year.

This report by The Canadian Press was first published June 19, 2020.

Companies in this story: (TSX:AC, TSX:TRZ)

The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The external wall of the Bentley Post Office was destroyed when a semi drove into the building, resulting is an estimated $50,000 in damages. (Photo Submitted)
Sylvan Lake RCMP lay charges in post office destruction

One suspect is in custody the second suspect has a warrant for his arrest

Alberta chief medical officer of health Dr. Deena Hinshaw said the province still hopes to bring the hospitalization number down before relaxing restrictions. (photography by Chris Schwarz/Government of Alberta)
14 new deaths, 366 new COVID-19 cases in Alberta

Province nearing 100K COVID-19 vaccine doses administered

The first pages of the book, by Kristy Walker.
Sylvan Lake author pens first children’s book about COVID-19

“The Coronavirus Isn’t Scary” by Kristy Walker teaches children to take care of themselves

Minister of Agriculture and Forestry, MLA Innisfail-Sylvan Lake, Devin Dreeshen. (Photo Submitted)
Ag Minister announces 20% off crop insurance for Alberta farmers

Dreeshen says this will support job creators and boosting rural economy during a difficult time

Mom’s Diner owner Wesley Langlois has joined a growing number of Alberta restaurants that are allowing sit-in dining despite public health restrictions. Photo by PAUL COWLEY/Advocate staff
Red Deer diner joins sit-down dining protest

Mom’s Diner has joined a growing list of Alberta restaurants flouting health restrictions

Young hockey players were out on Bentley Tuesday for a march to a support a return to sports. (Photo courtesy of Bobby McKinlay)
(Kraft Dinner/Twitter)
Kraft Dinner launches candy-flavoured mac and cheese just in time for Valentine’s Day

Sweet and cheesy treat will be here just in time for the cheesiest holiday of the year

In this undated image made from a video taken by the Duke of Sussex and posted on @SaveChildrenUK by the Duke of Sussex and Meghan, Duchess of Sussex, shows the Duchess of Sussex reading the book “Duck! Rabbit!” to their son Archie who celebrates his first birthday on Wednesday May 6, 2020. The Canadian Paediatric Society is reminding families that the process of raising a reader starts from birth. (Duke of Sussex/@SaveChildrenUK)
Canadian Paediatric Society says raising a reader starts from birth

CPS says literacy is one of the strongest predictors of lifelong health outcomes

Employment, Workforce Development and Disability Inclusion Minister Carla Qualtrough responds to a question during a news conference Thursday August 20, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Easing rules for parental benefits created inequities among parents, documents say

Employment Minister Carla Qualtrough’s office says the government will make any necessary changes

People walk along a pedestrianized zone of Sainte-Catherine street in Montreal, Monday, May 18, 2020, as the COVID-19 pandemic continues in Canada and around the world. Newly released statistics point to a major drop in police-recorded crime during the first eight months of the COVID-19 pandemic. THE CANADIAN PRESS/Graham Hughes
Crime down in first 8 months of pandemic, but mental health calls rise: StatCan

The agency says violent crimes such as assault dropped significantly

(Photo submitted)
Central Alberta researchers recognized for studies in agricultural sciences

Jessica Sperber of Ponoka and David MacTaggart of Lacombe awarded prestigious scholarship

FILE – Canadian Prime Minister Justin Trudeau delivers his opening remarks at a news conference outside Rideau cottage in Ottawa, Tuesday, January 19, 2021. THE CANADIAN PRESS/Adrian Wyld
Vaccine CEO ‘very, very clear’ that Canada’s contracts will be honoured: Trudeau

Trudeau says he spoke to Moderna CEO on the morning of Jan. 26

Most Read