OTTAWA - The federal government has approved a merger between two northern air carriers that Canada’s competition watchdog has said would amount to a monopoly on key routes. Transport Canada says in a statement that First Air and Canadian North can merge under conditions that strike a balance between corporate viability and the public interest. The conditions bar price increases for passengers and cargo service beyond those tied to operating costs, and prohibit reductions to the weekly flight schedule. Transport Minister Marc Garneau will sign a monitoring agreement with the parent companies of the two airlines to ensure compliance. Air services provide a lifeline to remote communities in Nunavut and the Northwest Territories, which are often inaccessible by sea and land.

Source: thestar June 19, 2019 22:52 UTC