Federal Transport Minister David Collenette, having reviewed the offer from Canada 3000 to purchase the issued shares of Royal Airlines, said he believes that the transaction does not raise concerns with respect to the public interest as it relates to national transportation.
In February, Canada 3000 wrote to the Minister concerning its proposed acquisition of Royal Airlines. The airline was required to notify the Minister of Transport, the Canadian Transportation Agency and the Competition Bureau of its intention to buy Royal Airlines.
“Operating as Canada 3000, this company will be able to provide significant competitive options to travellers. I remain committed to ensuring that our national transportation policy objectives are met and that we have a safe and healthy air industry that meets the needs of Canadians,” said Mr. Collenette.
As part of restructuring of the airline industry, changes were proposed to the Canadian Transportation Act to introduce a new process for reviewing mergers and acquisitions. These legislative changes came into force on July 5, 2000.
The legislation implements elements of the Government of Canada’s plan for protecting the public interest, A Policy Framework for Airline Restructuring in Canada, which was announced in October 1999.
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