CALGARY -- The president and CEO of Calgary-based WestJet Airlines is livid following the Competition Bureau's approval of Air Canada's acquisition of Air Transat that he warns will result in increased prices and fewer routes for travellers in Canada.

Calling it a decision that shows "blatant disregard for all Canadians who believe in healthy competition," WestJet CEO Ed Sims suggested Thursday's approval of the $190-million takeover will have drastic implications on the nation's airline industry.

"When Canadians look to explore the world and reunite with family and friends once again, they will face fewer choices and higher fares," said Sims in a statement released Friday morning. "It is hard to imagine a deal as anti-competitive in any industry where the number one player buys number three without meaningful remedies."

According to Sims, the federal Competition Bureau indicated that the elimination of the rivalry between Air Canada and Air Transat would result in increased prices, less choice, decreases in service and a significant reduction in travel by Canadians on a variety of routes where their existing networks overlap.

"This is a serious setback to Canada's economy," said Sims. "The Competition Bureau themselves described such cosmetic remedies as inadequate. Canadians should be profoundly disappointed."

Sims posted a blog to the WestJet website Friday morning where he outlined his concerns with Air Canada's new footing in the industry, a list that includes the following claims:

  • Air Canada will now have a 94 per cent share of Canadian carrier capacity to Europe;
  • Air Canada will hold a nearly 70 per cent share of all routes from Toronto to the European destinations of London, Paris and Rome;
  • and Air Canada's share of sun destinations from Toronto will increase to 54 per cent while WestJet's share will remain at 19 per cent.

The WestJet CEO is calling on the government to intervene and prevent Air Canada from offering its Aeroplan loyalty program to travellers on routes previously operated by Air Transat, prohibiting Air Canada from operating in Terminal 3 at Lester B. Pearson Airport, and opening critical slots at London Heathrow and Amsterdam Schiphol to Canadian airlines.