Why is the proposed purchase of Transat A.T. Inc. by Air Canada being assessed?
On August 26, 2019, the Minister of Transport decided that the proposed purchase raises public interest issues about national transportation and that a public interest assessment is needed.Under the Canada Transportation Act, the Minister had 42 days to decide whether a public interest assessment is needed. Some of the factors considered in making this decision included the potential impact on competition, the cost of travel, and jobs.
What happens during a public interest assessment?
Every public interest assessment is different. For this assessment, Transport Canada will gather facts and closely examine how the proposed purchase would impact the public interest in some of these key areas:
Engagement with stakeholders is critical for a public interest assessment. Transport Canada will speak with air industry stakeholders from across the country, including airlines, airports, and other air industry service providers, as well as consulting with municipal and provincial governments. In certain circumstances, engaging with the public is an important part of a public interest assessment. This public online consultation will ensure Canadians can share their views on the proposed purchase.
At the same time, the Commission of Competition will assess how the proposed purchase would impact competition in the air sector. The Minister will consider both assessments before making a recommendation to the Governor in Council (Cabinet) about the proposed purchase.
What happens once the public interest assessment is complete?
Transport Canada has until May 2, 2020 to complete the public interest assessment and give its findings to the Minister.
Based on this assessment, the Minister may ask the department to work with Air Canada and Transat A.T. Inc. to deal with any public interest issues that were raised. The Minister will then give Cabinet his recommendation about the proposed purchase.
This recommendation will include competition considerations from the Commissioner of Competition. Cabinet could approve the purchase as proposed, approve it with some conditions, or reject it.