WestJet admits spying on rival Air Canada

[rotornut]

WestJet admits spying on rival Air Canada
Mon May 29, 2006 8:52 AM ET

MONTREAL, May 29 (Reuters) - WestJet Airlines Ltd. admitted on Monday it had improperly gained access to key operational information from ACE Aviation Holdings Inc. unit Air Canada, and the two rivals said they had settled their bitter legal dispute over the issue.

WestJet said its conduct in the matter, which took place in 2003-2004, was "unethical and unacceptable," and it apologized to Air Canada and ACE Chief Executive Robert Milton.

Air Canada had sued WestJet for C$220 million over allegations that the Calgary, Alberta-based no frills carrier had repeatedly and covertly gained access to a password-protected Air Canada Website for employees.

WestJet is alleged to have downloaded details about Air Canada's flight operations, such as how many seats it was filling on certain flights.

"This practice was undertaken with the knowledge and direction of the highest management levels of WestJet and was not halted until discovered by Air Canada," the companies said in a joint statement.

WestJet agreed to pay Air Canada's legal costs of C$5.5 million ($5 million) and accepted the Montreal-based airline's request to donate C$10 million to children's charities.

[Left Coaster]

Jeez doncha just love aviation in Canada?:D

[Saltaire]

Unreal !!!

WJ dodged a bullet there and AC comes out looking like the good guys. Cheap price for WJ for a massive error in judgement. Could have been hugely expensive and they're lucky to get out of there with a 15 M bill.

Slimely happy faced, smiling little do-gooders. Who's the evil empire now? :=

[royalterrace]

Well , that's that.
Knowing some of the people involved I never doubted for one minute that the allegations were true. The only question in my mind was whether it was illegal or not and how much it was going to cost us. I'm still not sure about the legalities but the fact that AC agreed to a settlement strongly suggests to me that it would have been difficult , if not impossible to gain a positive legal settlement.
I have to hand it to AC though. They played this situation perfectly and gained maximum benifit from WestJet's foolish move.
Time to move on.

[max blast]

Foolish? Yes...Illegal? Maybe... $220 million damage to the competition. Not likely.
AC got 2 years of free publicity as WJ paid thier legal fees. Damages awarded Zero.
I guess the fun was over.

[Tan]

WJ simply didn’t want to take the risk that a court would award AC full damages. Combined with real time TV in most aircraft the trial would have generated a lot of negative publicity for WJ hence the settlement.

I can’t help thinking after watching Clive on TV that Clive’s only regret is that he got caught...

[Slapshot]

I beg to differ... With Air Canada settling for court costs and a $10 million (tax deductible) donation to charity, I think it was Air Canada that saw that this was going no where and decided to settle. $10 Million - to charity is a far cry from $220 Million in damages...

With the requirement to open up the books and prove how much the damages really were, I dare say that Air Canada was reluctant to provide its' financial information to WestJet and decided the lawsuit had run it's course.

WestJet had shown interest in settling this nuisance lawsuit on several occaisions in the past.

[Tan]

I beg to differ... With Air Canada settling for court costs and a $10 million (tax deductible) donation to charity, I think it was Air Canada that saw that this was going no where and decided to settle. $10 Million - to charity is a far cry from $220 Million in damages...
With the requirement to open up the books and prove how much the damages really were, I dare say that Air Canada was reluctant to provide its' financial information to WestJet and decided the lawsuit had run it's course.
WestJet had shown interest in settling this nuisance lawsuit on several occaisions in the past.

Thanks for the WJ spin but perhaps you didn't bother to read the whole settlement:

"This conduct was both unethical and unacceptable and WestJet accepts full responsibility for such misconduct. WestJet sincerely regrets having engaged in this practice and unreservedly apologizes to Air Canada and (CEO of parent corporation ACE Aviation Holdings Inc.) Mr. Robert Milton." end of quote

[Slapshot]

If all Air Canada wanted was an apology, why the charade with the court case? Mr. Beddoe apologized two years ago and offered his resignation.

"Never mind that the $15.5 million settlement is a fraction of the $220 million Air Canada ostensibly sought in a lawsuit filed in 2004 — the damages supposedly arising from WestJet's alleged espionage. This wasn't a legal action by Air Canada, it was a marketing campaign."

[Tan]

If all Air Canada wanted was an apology, why the charade with the court case? Mr. Beddoe apologized two years ago and offered his resignation.

Another WJ spin on the facts, no Clive only apologized to the WJ shareholders no one else..Hey don't you have any accountability at all? WJ fell on their own sword as acknowledged by the settlement, period. I suggest you lay off the kool-aid..

"A year ago, an Ontario judge has struck down a lawsuit by WestJet accusing Air Canada and several of its top executives of abusing the courts in a campaign to destroy the discount carrier."

[brucelee]

On the one hand I think WJ got away with it. Most people won't really care about any of this for now. On the other I think Clive's reputation (as well as WJ's) is getting worse. If ethics and moral integrity account for anything, WJ is not a winner. These people will hang themselves. Just a matter of time.

[2R]

They will probably use consultants for intel in the future .The use of consultants provides a small degree of seperation between the company and the dirty deeds done .
Using a former employee was stupid and probably entrapment.
Rule one in the intel is never trust a former employee as there is no way to measure that persons loyalty.
Perhaps they should hire the same guys the oil companies use to provide price information.Works well for the oil companies.Watch the price's change like synchronized swimming while you drive along the road.:} :}