... that travelers choose airline that has the lowest fares specially the business travellers, which used to represent a significant portion if air Canada profit margin increased their bookings with low fare carriers like Westjet and Jetsgo, which are the primary competitors of Air Canada. Air Canada could not respond to such competition immediately because of the undertakings given in connection with the Canadian Airlines International Limited restructuring. More over the Government of Canada's competition Act limited Air Canada's response and thus restricted it from responding to such competition. Also the undertakings by Air Canada to the Canadian commissioner of competition, gave it a very little or no space to move in order to tackle such competitive threats by the low fare carriers. Because of such legal barriers, Air Canada lost its important passengers in the premium corporate and business travel market. Due to which Air Canada suffered an operating loss ...

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