By Marianne White QUEBEC CITY, Jan 16 (Reuters) - The head of Air Canada's (AC) regional carrier slammed plans on Wednesday by the federal government to toughen antitrust rules for airlines, saying that would hurt its ability to cut seat prices. Joseph Randell, president of the regional carrier, which operates as AirBC, Air Nova, Air Ontario and Canadian Regional Alliance, said greater regulation by Ottawa of the domestic airline industry would lead to more jobs cuts and less service. Ottawa is mulling whether to give the Competition Bureau, its antitrust watchdog, more powers to clamp down on predatory pricing behavior by airlines. Competitors of Air Canada, which has a domestic market share of more than 80 percent and is the world No. 10 carrier, have accused it of slashing prices on certain routes in a effort to squeeze out rivals. Randell told a luncheon crowd that Air Canada is open to fair competition, but he complained that the Montreal-based airline and its regional carriers are already being hemmed in by market regulations and restrictions. "It is a serious threat to regional transport in Canada and would compromise the viability of small-town airports," Randell told a Quebec City board of trade. Randell said tougher competition rules would reduce Air Canada's regional market share and limit its capacity to adjust schedules and ticket prices. "If we are not competitive, our services will decrease considerably and it would eventually lead to the abandonment of routes connecting remote areas," he said. The bankruptcy in November of Canada 3000, then the country's second-largest carrier, left Air Canada in command of the domestic market. There has been increasing speculation that Ottawa may force it to reduce market share to give rivals a better chance to compete. Air Canada's regional carrier, which has a fleet of 121 aircraft and 4,700 employees, is chopping capacity by 24 percent, eliminating jobs and abandoning several routes. Randell said the job cuts will take place as planned up until April 6. "Our focus for 2002 is going to be not losing a substantial amount of money, and whatever it takes we've got to do it," he told reporters. Money-losing Air Canada is also cutting up to 22 percent of its work force of some 40,000 and has trimmed capacity by 20 percent. Air Canada shares fell 12 Canadian cents or 2 percent to C$5.37 on the Toronto Stock Exchange on Wednesday. ($1=$1.60 Canadian)