CALGARY — The president and CEO of Calgary-based WestJet Airlines is livid following the Competition Bureau’s approval of Air Canada’s acquisition of Air Transat that he warns will result in increased prices and fewer routes for travellers in Canada.
Calling it a decision that shows “blatant disregard for all Canadians who believe in healthy competition,” WestJet CEO Ed Sims suggested Thursday’s approval of the $190M takeover will have drastic implications on the nation’s airline industry.
“When Canadians look to explore the world and reunite with family and friends once again, they will face fewer choices and higher fares,” said Sims in a statement released Friday morning. “It is hard to imagine a deal as anti-competitive in any industry where the number one player buys number three without meaningful remedies.”
According to Sims, the federal Competition Bureau indicated that the elimination of the rivalry between Air Canada and Transat would result in increased prices, less choice, decreases in service and a significant reduction in travel by Canadians on a variety of routes where their existing networks overlap.
“This is a serious setback to Canada’s economy,” said Sims. “The Competition Bureau themselves described such cosmetic remedies as inadequate. Canadians should be profoundly disappointed.”
