Calgary-based WestJet president and CEO Clive Beddoe is asking the federal government to toughen the Competition Act to fight “predatory” practices by rival Air Canada.
Beddoe appeared before a House of Commons standing committee last week to tell MPs that one carrier must not be allowed to monopolize routes and disrupt fair competition on other routes.
And federal competition Commissioner Konrad von Finckenstein seems to agree. On Friday, he ruled that Air Canada’s new discount carrier Tango is an anti-competitive weapon that is at least partly re-sponsible for the woes of rival Canada 3000, which last week obtained court protection from creditors and grounded its fleet of more than 40 aircraft in the wake of mounting debt and failed talks with its unions over job cuts.
Air Canada is denying it played any role in Canada 3000’s troubles. WestJet Airlines Ltd. has remained profitable as its competitors struggle, and expects to grow up to 40 per cent next year. Its stock advanced $1 to $19.60 a share on Friday.
“WestJet believes Air Canada’s actions target WestJet routes in a predatory manner, using anti-competitive techniques, that if successful, are to the detriment of low-fare flying in Canada and will ultimately hurt the consumer,” Beddoe said in a statement.
He asked the Industry Committee to amend legislation to allow damages to be awarded in cases of anti-competitive conduct.
Before Canada 3000 shut down operations Friday, Air Canada controlled about 70 per cent of Canada’s domestic market share after acquiring Canadian Airlines early last year. Earlier this month, it launched low-fare Tango service between eight Canadian cities.
No-frills WestJet is also reporting a healthy increase of 42 per cent in revenue passenger miles over last year. But the company also reported a sagging load factor, with numbers at 69.6 per cent last month compared with 77.6 per cent from October 2000.
Beddoe said the decline in October’s load factor is disappointing, but to be expected following the terrorist attacks of Sept. 11 and the subsequent decline in demand for air travel.
“We expect November’s load factor to be impacted in a similar way,” he said, adding he was pleased with the company’s results in comparison to the airline industry as a whole.






