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Old 9th Nov 2001, 22:29
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Orca strait
 
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The high drama of the past few days may not be over yet

11:46 EST Friday, November 09, 2001

OTTAWA (Reuters) - Ailing carrier Canada 3000 , Canada's second-largest airline, believes it can restart operations, Transport Minister David Collenette said on Friday.

"(A few minutes ago) we were in touch with officials from Canada 3000 who contacted us. They do believe they can still operate, that parties are coming to the table, so this particular situation is just not finished," Collenette told parliament.

Canada 3000 abruptly stopped all flights on Friday, stranding thousands of passengers just hours after obtaining a creditor-protection order in the wake of failed talks with unions over job cuts the airline was demanding.

By KEITH McARTHUR
11:34 EST Friday, November 09, 2001

Air Canada's discount brand Tango is an anti-competitive weapon which led, in part, to Canada 3000's apparent failure, according to the federal Competition Commissioner Konrad von Finckenstein.

Mr. von Finckenstein said the Competition Bureau was poised to issue a cease and desist order against Air Canada's Tango brand this morning, but the move was eclipsed by Canada 3000's announcement late last night that it was halting all operations.

"We determined that Air Canada, by creating Tango and targeting the routes that Canada 3000 was flying on, was undertaking an anti-competitive act," Mr. von Finkenstein told The Globe and Mail today.

Mr. von Finckenstein said that if Canada 3000 is able to get its planes back in the air, the Bureau would be likely to go ahead with the cease and desist order.

"We tried to act as quickly as possible, but we could only do it so fast," he said.

Copyright © 2001 The Globe and Mail
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