Regulations Respecting Anti-Competitive Acts of Persons Operating a Domestic Service (SOR/2000-324)

Anti-competitive Acts

1 For the purposes of paragraph 78(1)(j) of the Competition Act, the following acts or conduct of a person operating a domestic service, as defined in subsection 55(1) of the Canada Transportation Act, are anti-competitive acts:

• (a) operating capacity on a route or routes at fares that do not cover the avoidable cost of providing the service;

• (b) increasing capacity on a route or routes at fares that do not cover the avoidable cost of providing the service;

• (c) using a low-cost second-brand carrier in a manner that is described in paragraph (a) or (b);

• (d) pre-empting airport facilities or services that are required by another air carrier for the operation of its business, with the object of withholding the airport facilities or services from a market;

• (e) to the extent not governed by regulations respecting take-off and landing slots made under any other Act, pre-empting take-off or landing slots that are required by another air carrier for the operation of its business, with the object of withholding the take-off or landing slots from a market;

• (f) using commissions, incentives or other inducements to sell or purchase its flights for the purpose of disciplining or eliminating a competitor or impeding or preventing a competitor’s entry into, or expansion in, a market;

• (g) using a loyalty marketing program for the purpose of disciplining or eliminating a competitor or impeding or preventing a competitor’s entry into, or expansion in, a market; and

• (h) altering its schedules, networks, or infrastructure for the purpose of disciplining or eliminating a competitor or impeding or preventing a competitor’s entry into, or expansion in, a market.

Essential Facilities and Services

• 2 (1) For the purposes of paragraph 78(1)(k) of the Competition Act, facilities and services that are essential to the operation in a market of an air service, as defined in subsection 55(1) of the Canada Transportation Act, are those

  • (a) that are required in order to provide a competitive air service;

  • (b) that cannot reasonably or practicably be purchased, acquired, provided or replicated by another air carrier on its own behalf;

  • (c) that are effectively controlled by the air carrier who denies access to them or refuses supply of them; and

  • (d) that can be feasibly provided to another air carrier, having regard to operational or safety considerations, or legitimate business justifications of the air carrier referred to in paragraph (c).

• (2) For the purpose of subsection (1), facilities and services may include, but are not limited to, take-off and landing slots, interline arrangements, airport gates, loading bridges, counters and related airport facilities, maintenance services, and baggage handling infrastructure, equipment and services.

Coming into Force

3 These Regulations come into force on the day on which they are registered.