Jetsgo taking Air Canada and Quebec government to Competition Bureau DONALD MCKENZIE Canadian Press Friday, November 15, 2002 MONTREAL (CP) - Regional airline Jetsgo filed a complaint with the federal Competition Bureau on Friday over a deal between Air Canada and the Quebec government the rival carrier says hurts its business. Under the agreement, Quebec government employees will fly Air Canada at full fare most of the time while the Montreal-based airline offers other travellers fare reductions of up to 70 per cent on 15 regional routes within the province. Jetsgo president Michel Leblanc reiterated his belief that the deal will hurt his airline and flies in the face of free-market values. "Basically, the Quebec government has just given all its business at high fares, lock, stock and barrel, to Air Canada, and it will just create an insurmountable barrier to (market) entry," Leblanc said in an interview. Leblanc said it will cost the Quebec government $358 to buy a one-way ticket between Bagotville and Montreal, while the same flight on Jetsgo costs $78. "It's just a waste of public money." Leblanc said he wants the Competition Bureau to reject the proposed three-year deal as quickly as possible. "It has very long-term issues for Jetsgo and all competitors of Air Canada in this country. If every provincial government cut a deal like this with Air Canada, you wouldn't see any competition in any regional routes in Canada." Air Canada (TSX:AC) said it has not been notified of any complaint by the Competition Bureau. "An agreement in principle was reached with the Quebec government to ensure the continuation of viable air service to regional communities throughout the province of Quebec," Air Canada spokeswoman Laura Cooke said from Toronto. "We've not been officially notified by the bureau of a specific complaint. Obviously, we'll respond to the bureau directly in due course, when and if a complaint is received." Quebec junior transport minister Jacques Baril also said earlier this week the deal is a viable solution to the problem of regional airline travel in the province. And on Friday, a spokeswoman for Baril expressed astonishment at Jetsgo's decision. "Everybody knew we were negotiating with Air Canada and had been doing so since the beginning of the summer," Karine Giasson said in an interview from Quebec City. "Other promoters came to us with projects and to talk to us but Jetsgo never did." Giasson also denied the deal violates federal competition rules. "Air Canada was already offering cut-rate fares on seven of the 15 routes, and we have no fears of this representing unfair competition." Under the deal, Air Canada will get $14 million of the $16 million that Quebec spends on airline tickets for its employees every year. The airline now gets $11.5 million of the $16 million. Giasson said the government is not giving Air Canada any direct money. Leblanc, meanwhile, accused the Quebec government of underhanded business practices because it never invited Jetsgo to get in on the bidding. "They did it quietly behind our backs while they knew we were starting regional routes. It is totally unacceptable." He said the agreement could destroy Jetsgo's expansion plans in Quebec forever. The airline is hoping to begin Montreal-Saguenay flights Nov. 25. "Basically, it (the deal) tells the world: 'We've just made sure that Air Canada would maintain its monopoly in Quebec.' " "And I don't understand the Quebec government doing that with a company that is unilingual and that's in the papers day in and day out," he said, referring to passenger complaints that Air Canada's French-language services are inadequate. The owner of Roger's Trinbago Site: Roj (Roger James) *************************************************** escape email mailto:ejames@escape.ca Trinbago site: http://www.tntisland.com CBC Website http://www.tntisland.com/caribbeanbrassconnection/ The Trinbago Site of the Week: (chgdev) http://www.chagdev.com/ (Chaguaramas Development Authority) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://search.co.tt *********************************************************