COMPETITION TRIBUNAL!fRIBUNAL DE LA CONCURRENCE Court File No.: CT-88/1 IN THE MA TIER OF an application by the Director of Investigation and Research under subsection 64(1) of the Competition Act, R.S.C. 1970, c. C-23, as amended;
AND IN THE MATTER OF a Limited Partnership formed to combine the operations of the Reservec and Pegasus computer reservation systems;
AND IN THE MATTER OF The Gemini Group Automated Distribution Systems Inc.;
AND IN THE MATTER OF an application by the Director of Investigation and Research under section 106 of the Competition Act, R.S. 1985, c. C-34 to vary the Consent Order of the Tribunal dated July 7, 1989.
BETWEEN: THE DIRECTOR OF INVESTIGATION AND RESEARCH - and - AIR CANADA AIR CANADA SERVICES INC. PWA CORPORATION CANADIAN AIRLINES INTERNATIONAL LW--===:..Y.:~,-;--;--1 PACIFIC WESTERN AIRLINES LTD. CANADIAN PACIFIC AIR LINES, LIMITE~~::::_:;:.:.:.:.:.J.-;_----' 154793 CANADA LTD. 153333 CANADA LIMITED PARTNERSHIP THE GEMINI GROUP AUTOMATED DISTRIBUTION SYSTEMS INC.
RESPONDENTS - and -CONSUMERS' ASSOCIATION OF CANADA AMERICAN AIRLINES, INC. ATTORNEY GENERAL OF MANITOBA ALLIANCE OF CANADIAN TRAVEL ASSOCIATIONS BIOS COMPUTING CORPORATION AIR AT ON ABEE LIMITED
INTERVENORS
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, .. : -··:.'_! APP COMPETITION TRIBUNAL f TRIBUNAL OE LA CONCURRENCE ~ ' \ DEC 2 199~ 0 3 0 I T ~-REG&STRAIRE OTTAWA, Of-ff. -.JF fe, / 3
- 2 -RESPONSE OF THE RESPONDENTS, PWA CORPORATION, CANADIAN AIRLINES INTERNATIONAL LTD., PACIFIC WESTERN AIRLINES LTD, and CANADIAN PACIFIC AIR LINES, LIMITED TO NOTICE OF APPLICATION
TO: Director of Investigation and Research c/o L. Yves Fortier, Q.C. Ogilvy, Renault Barristers and Solicitors 1981 McGill College A venue Suite 1100 Montreal, Quebec H3A 3Cl
AND TO: Air Canada 7373 Cote Vertu Blvd. West P.O. Box 14000, St. Laurent, Quebec H4Y 1H4
AND TO: Air Canada Services Inc. c/o Air Canada 7373 Cote Vertu Blvd. West P.O. Box 14000, St. Laurent, Quebec H4Y 1H4
AND TO: The Gemini Group Limited Partnership 330 Front Street West 5th Floor Toronto, Ontario M5V 3B7
AND TO: The Gemini Group Automated Distribution Systems Inc. 330 Front Street West 5th Floor Toronto, Ontario M5V 3B7
AND TO: Covia Canada Partnership Corp. c/o Covia Partnership 9700 West Higgins Road Suite 400 Rosemont, Illinois 60018 U. S. A. 1. The Respondents, PWA Corporation, Canadian Airlines International Ltd., Pacific Western Airlines Ltd. and Canadian Pacific Air Lines, Limited (these Respondents), were
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- 3 parties to the Application made by the Director under Section 64(1) of the Competition Act for an Order dissolving the Gemini partnership and as well were parties to the Application to seek a Consent Order under s. 105 of the Competition Act by the Director on April 24, 1989.
2. The Respondents, Pacific Western Airlines Ltd. and Canadian Pacific Air Lines, Limited, are now part of the corporate amalgam Canadian Airlines International Ltd.
3. These Respondents' use of any of the terms "PWA", "CDN", "AC", "Gemini", "Gemini Partnership", "CRS", "Covia", "distribution services", "hosting services", "Director", "Tribunal", "Gemini Order", "Gemini Hosting Contract", "AMR", and "AA" shall have the meaning given to them in the Director's Application of November 5, 1992 (the November 5, 1992 Application).
3. These Respondents state that in addition to the facts alleged by the Director in the November 5, 1992 Application, these Respondents rely on the following:
(a) The effect of severing CDN hosting services from distribution services as proposed by the Director in his Application of November 5, 1992 would not in itself mean the demise of the Gemini Partnership, as the Gemini Partnership (subject to its terms) would retain its CRS distribution function with PWA retaining its partnership interest in the Gemini Partnership.
(b) Severing CDN hosting services from distribution services m the Gemini Partnership would be consistent with the proposals discussed by AC and PWA during the course of their merger negotiations.
(c) Furthermore, severing CDN hosting services from distribution services in the Gemini Partnership would be consistent with the proposals discussed between Covia and PW A during the course of the reorganization discussions of the Gemini Partnership which occurred during the period 1991 through 1992.
(d) The early termination of hosting services from distribution services in the Gemini Partnership is required if PW A is to conclude an agreement with AMR as described by the Director in his Application of November 5, 1992. An /p/220/1697.327R
- 4 agreement between PW A and AMR is the only viable alternative to a monopoly of the Canadian airline industry by Air Canada.
4. Wherefore these Respondents support the Notice of Motion of the Director dated November 5, 1992 before the Competition Tribunal and ask that the Application be allowed.
5. Service on these Respondents of any documents in connection with these proceedings may be effected on Messrs. Bennett Jones Verchere, Barristers and Solicitors, 4500 Bankers Hall East, 855 - 2nd Street S.W., Calgary, Alberta, T2P 4K7, Attention C. D. O'Brien, Q.C. or R. W. Thompson, Esquire.
j/ All of which is respectfully submitted this _/_ _ day of A~. 4 , A.D. 1992.
BENNETT JONES VERCHERE Per:
TO: COUNSEL FOR ALL PARTIES AND TO: THE REGISTRAR, COMPETITION TRIBUNAL /p/220/1697.327R
Solicitors for PW A Corporation and Canadian Airlines International Ltd.