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This enactment amends certain statutes in order to implement
specific elements of the ``Policy Framework for Airline Restructuring
in Canada'' of October 26, 1999 and to make a consequential
amendment. The key elements of the enactment include
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(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;
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(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;
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(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
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(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.
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