Air Canada c. Canada (Commissioner of Competition), 2002 FCA 121 (2002)

Extract

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Air Canada c. Canada (Commissioner of Competition), 2002 FCA 121 (2002)

Recueil des arrêts de la Cour fédérale

Air Canada c. Canada (Commissaire de la concurrence) (C.A.) [2002] 4 C.F. 598

Recueil des arrêts de la Cour fédérale

Air Canada c. Canada (Commissaire de la concurrence) (C.A.) [2002] 4 C.F. 598

Date: 20020322

Docket: A-749-00

Neutral citation: 2002 FCA 121

CORAM: RICHARD C.J.

EVANS J.A.

MALONE J.A.

BETWEEN:

AIR CANADA

Appellant

and

THE COMMISSIONER OF COMPETITION

and I.M.P. GROUP LTD (CANJET AIRLINES)

Respondents

Heard at Toronto, Ontario, on February 4, 2002.

Judgment delivered at Ottawa, Ontario, on March 22, 2002.

REASONS FOR JUDGMENT BY: EVANS J.A.

CONCURRED IN BY: RICHARD C.J.

MALONE J.A.

Date: 20020322

Docket: A-749-00

Neutral citation: 2002 FCA 121

CORAM: RICHARD C.J.

EVANS J.A.

MALONE J.A.

BETWEEN:

AIR CANADA

Appellant

and

THE COMMISSIONER OF COMPETITION

and I.M.P. GROUP LTD (CANJET AIRLINES)

Respondents

REASONS FOR JUDGMENT

EVANS J.A.

A. INTRODUCTION

[1] This is an appeal from a decision of the Competition Tribunal dated December 7, 2000, and reported as Air Canada v. Commissioner of Competition, 2000 Comp. Trib. 26. In this decision the Tribunal affirmed and extended a temporary order made by the Commissioner of Competition under section 104.1 of the Competition Act , R.S.C. 1985, c. C-34, as amended by S.C. 2000, c. 15. The order prohibited Air Canada from offering discount fares on certain routes operated by a competitor, CanJet Airlines, a new entrant in the domestic air transportation market. The temporary order was varied and extended by the Tribunal, and expired on December 31, 2000. CanJet is now out of business.

[2] This appeal concerns the interpretation of the Commissioner's statutory power to issue temporary orders and the Tribunal's role in reviewing them. In particular, Air Canada alleges that the Tribunal erred in law by failing to review on a standard of correctness the Commissioner's opinion that Air Canada's discount fares "could constitute an anti-competitive act". The Tribunal also committed a legal error, it is argued, when it concluded that the facts before it established that, without the temporary order, CanJet was "likely ... to suffer a significant loss of revenue" as a result of Air Canada's discounted fares. Accordingly, Air Canada submits, the Tribunal's order should be set aside, since there was no legal basis for either the...

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