Friday , August 12 2022

The Competition Bureau check the line & # 39; discount & # 39; WestJet Swoop to predation


The watch of Canada competition is looking at whether the company & # 39; under Swoop WestJet has offered an airline ticket with & # 39; below cost just to force rivals out.

The Canadian Competition Bureau, as reported for the first time from political publication based in & # 39; Ottawa Blacklock & # 39; s reporter, began investigating whether Swoop was involved in & # 39; which office calls " predatory pricing "- selling tickets for less than the cost to conduct the flight, hoping to drive other competitors on that route out business.

Swoop launched b & # 39; much fanfare earlier this year, which bottom prices rock between Canadian cities including Halifax, Edmonton, Winnipeg, Hamilton and Abbotsford, BC, along with & # 39; few sunny destinations in United States, Mexico and the Caribbean.

Some of those routes were already being served by other small Canadian carriers, including Air flair, when Swoop began an aggressive price war that saw the one-way ticket price falls below the $ 40 in & # 39 ; some cases.

Flair then canceled some of its routes, because they could not make any money on them, but came exception to the tactics & # 39; Swoop and complained to the bureau.

"We are pleased that the Competition Bureau has taken our concerns seriously and launched an investigation into the pricing practices of & # 39; one of our main competitors", said the chief executive of & # 39; Flair Airlines Jim Scott.

"Our efforts to get low sustainable fares to Canada were hindered by these anti-competitive pricing practices", adding that the airline is ready to fully participate in the Bureau investigation .

Swoop is owned & # 39; WestJet. B & # 39; response to a request for comment from CBC News, the speaker & # 39; WestJet Lauren Stewart said: "WestJet and Swoop are currently collecting information at & # 39; response to the inquiry of the Bureau will not provide more comments f & # 39; this time. "

The capital analyst & # 39; Altacorp, Chris Murray, saying that the comments from management & # 39; WestJet calls on & # 39; conference and during investor presentations do not want to allow another market participant might be coming back to imitate the company now.

"Any finding you & # 39; to create a monetary penalty or have an impact on the continued pursuit of the company to Swoop division ultra low cost carrier, which affects growth and profitability in 2019 and beyond", said .

Even if the investigation does not lead to any adverse finding against the company, X & # 39; likely rely on business in the short term, he said.

"We see this as a negative impact in the cost and distraction of the action to add to the challenges for the company in the coming years", he said.

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