Two Airlines Want Their Cross-Border Pact Extended and Enlarged

Air Canada and United Airlines have asked regulators in Canada and the United States to extend their joint venture beyond its expiry next July. They also want authorities to expand the antitrust immunity to 10 city pairs that are currently excluded from the arrangement.

The airlines say the partnership has delivered benefits on the routes where they can cooperate. Cirium schedule data shows the two carriers operated 56.9% of seats on cross-border flights in August, the peak summer month, which helps explain why regulators are likely to look closely at the request.

The excluded pairs include Toronto to Denver, Houston, San Francisco, Washington and Cleveland, Vancouver to San Francisco, Montreal to Chicago and Washington, and Ottawa to New York and Washington. All major airports in those markets, including United’s Newark hub, are covered by the exclusions.

Analyst Brett Snyder of the Cranky Flier blog said the airlines probably believe they have a strong case. The airlines announced on October 16 that they had agreed to renew and expand the partnership, and Transport Canada and the U.S. Department of Transportation must both approve before anything changes.

Sources: Travel Weekly, Air Canada