British Airways, Air France and Cathay Pacific have claimed that an increase in interlining charges announced by Air Canada is an abuse of the domestic dominance achieved via its purchase of Canadian Airlines and are threatening to pull out of the country. The fees, to be raised from 1 June, are levied on other carriers for feeding passengers from smaller cities to hubs at Montreal, Toronto and Vancouver.
Air Canada chief executive Robert Milton says the accusation is "absurd", and that his airline is offering a pro rata agreement like that available to Air Canada in the UK. BA and other oneworld members had previously codeshared or interlined with Canadian.
• The UK's Competition Commission will examine the Canadian takeover in terms of its impact on London Heathrow-Canada slot availability.
Source: Flight International
