Canadian competition watchdog reaches transborder route deal with airlines

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MONTREAL - Canada's competition watchdog says it has reached an agreement with Air Canada and its U.S. partner that will allow them to co-operate on transborder routes.

Under the agreement, the airlines are prohibited from co-ordinating their prices and sharing other commercially sensitive information on 14 transborder routes.

The federal agency will also appoint an independent monitor to ensure Air Canada and its partner United Continental comply with terms of the agreement.

The Competition Bureau says the agreement will protect air travellers on high-demand routes between Canada and the United States.

Air Canada (TSX:AC.A) says it's pleased the settlement preserves its long-time relationship with United Airlines — two of North America's largest arriers.

Organizations: Air Canada, Competition Bureau, TSX United Airlines

Geographic location: Canada, United States, MONTREAL North America

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