Gov’t Probes Air Contracting

Tom Korski, www.Blacklocks.ca
Canada’s second-busiest airport is under a federal anti-trust probe. The Competition Bureau disclosed it is investigating contracting at the Vancouver Airport Authority.

Steve Michoulas, Authority legal counsel, declined an interview. The management of the airport, second only to Toronto’s Pearson International in passengers and traffic, confirmed it is under investigation.

“Vancouver Airport Authority is cooperating with the Competition Bureau,” said Alana Lawrence, spokesperson. “The Authority continues to work openly and closely with the Bureau to resolve outstanding concerns.”

The investigation underway since last October 17 follows complaints of unfair practices over the awarding of multi-million dollar in-flight catering contracts. The identities of complainants are not disclosed.

In affidavits filed in Federal Court the Bureau alleged: “The Authority without a legitimate business justification has denied a request for a license or authorization by a catering firm to provide in-flight services at the airport; and this practice is substantially lessening or preventing competition” in breach of the Competition Act.

“It was in or about the fall of 2013 when one or more firms began communicating with the Vancouver Airport Authority to obtain a license or authorization to supply in-flight catering service at the airport,” the affidavits said; “The Authority exercises control over the business of providing in-flight catering services to airlines at the airport by virtue of its control over the ability of firms to physically access and operate at the airport.”

Airport management “has engaged in conduct that constitutes an abuse of a dominant market position”, the Bureau said in its submission to a federal judge. Investigators seek a court order compelling testimony from Craig Richmond, president and CEO of the Airport Authority; and Tony Gugliotta, senior vice president of business development.

The Bureau is also seeking records of contracts with catering firms dating from 2012; copies of “any VAA decision to permit or deny a firm to supply in-flight catering”; and copies of “communications with caterers or airlines relating to in-flight catering”.

The Authority operates as a non-profit corporation in managing all in-flight catering, galley handling, warehousing and transport of duty-free goods. More than 14 million passengers a year pass through the Vancouver airport, by official estimate.