Company News

REFILE-Canadian agency says Air Canada-Transat deal likely to reduce competition

(Corrects spelling of “Canadian” in headline)

March 27 (Reuters) - The Canadian Competition Bureau said on Friday that the proposed sale of tour operator Transat A.T. Inc to Air Canada would likely result in a substantial lessening or prevention of competition in the sale of air travel or vacation packages to Canadians.

Eliminating the rivalry between Air Canada and Transat with the proposed C$720 million ($514.76 million) sale would result in increased prices, less choice, decreases in service and a significant reduction in travel on routes where their existing networks overlap, the regulator said here.

$1 = 1.3987 Canadian dollars Reporting by Nishara Karuvalli Pathikkal in Bengaluru; Editing by Ramakrishnan M.