Experts: Federal government approves Air Canada purchase of Transat A.T. Inc.

The federal government has approved Air Canada's purchase of competing airline Transat A.T. Inc. under a series of strict terms and conditions the government says "are in the interest of Canadians." A statement released by the transport minister's office said the impact of COVID-19 was a key factor in the final decision to approve the purchase. (CBC News)

Here are some experts from McGill University that can provide comment on this issue:

John Gradek, Faculty Lecturer, School of Continuing Studies

“Consolidation in the Canadian airline industry has historically led to concentration of market and pricing power, reducing markets served and eliminating low fares. The conditions placed on the Canadian government’s approval of this purchase reflect their concern on these issues, but the implementation of such oversight remains a question mark.”

John Gradek is lecturing in the Diploma program in Integrated Aviation Management as well as in both the certificate and diploma programs of Supply Chain Management, Logistics and Operations Management. He has held senior roles at Air Canada in operations, marketing and planning and has worked in the development and the delivery of commercial airline management programs for the International Aviation Management Training Institute.

john.gradek [at] mcgill.ca (English, French)

Karl Moore, Associate Professor, Desautels School of Management

“This is the worst time for airlines in aviation history, so it makes sense for the two to combine. On the other hand, it will significantly reduce competition in Canada.”

Karl Moore is an Associate Professor of Strategy and Organization at the Desautels Faculty of Management. He is an international expert in the airline and aerospace industry and has taught, consulted and advised the Canadian Government, IATA, ICAO, Lufthansa, British Airways, Air Canada, CAE and Bombardier, among others.

karl.moore [at] mcgill.ca (English)