Airfare will increase if Air Canada buys Air Transat, say advocate
Posted June 27, 2019 1:46 pm.
VANCOUVER (NEWS 1130) – The cost of your next flight to Europe or the Caribbean could be going up if Air Canada buys low-cost carrier Air Transat, says a passenger advocate.
Gabor Lukacs says this intensifies an already concentrated market.
“I think it’s going to mean worse service and higher prices for passengers,” says Lukacs.
He wants regulators or the competition bureau to step in.
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But marketing analyst Marvin Ryder doesn’t believe this would mean less competition.
“It really depends on how they use Air Transat,” says Ryder. “And at least for the moment, Air Canada is talking about putting money into what Air Transat is doing and expanding those options instead of curtailing those options
He says that this may be Air Canada’s way to get into the ultra low-cost carrier market without having to start from scratch.
Any deal is still months away as shareholders must vote on the $13 a share offer in order for it to be approved.
