SUMMARY

(a) amendments to the Canada Transportation Act authorizing the Governor in Council to approve mergers and acquisitions of airline undertakings after review by the Minister of Transport, the Commissioner of Competition and the Canadian Transportation Agency; increased authority for the Agency to review passenger fares and cargo rates on monopoly routes; authority for the Agency to review domestic terms and conditions of carriage; the requirement for notice of exit in cases of major passenger seating capacity reductions resulting from discontinuance of services on any domestic route; a prohibition of exclusive use clauses in confidential contracts for domestic services;

(b) amendments to the Competition Act providing for exemption from sections 45 and 61 of that Act of agreements between or among travel agents respecting commissions on sales of airline tickets paid by a carrier with 60% of domestic service activity; a new regulation-making power to specify anti-competitive acts or conduct of a domestic air carrier; a new power to make temporary orders halting anti-competitive acts affecting domestic services;

(c) an amendment to the Competition Tribunal Act to authorize a member of the Competition Tribunal sitting alone to hear and dispose of any application for review against a temporary order issued by the Commissioner of Competition for the purpose described in paragraph (b); and

(d) amendments to the Air Canada Public Participation Act providing for the increase of the individual share ownership limit to 15% and authority for the Governor in Council to increase, by regulation, the foreign ownership limits; a duty for Air Canada to ensure that its subsidiaries provide services to their customers in both official languages; the deeming of the proposed acquisition by Air Canada of the shares of Canadian Airlines of December 21, 1999 to have been approved pursuant to the proposed new merger and acquisition review process.