Transport Canada is evaluating a proposed update to the Air Canada and United Airlines joint venture for flights between Canada and the United States. The federal government has launched a public interest assessment to determine if the expanded cooperation meets the needs of travelers and the economy.

What is the proposed Air Canada and United joint venture update?

The two airlines have operated under a joint business arrangement since 2022. This current setup allows them to coordinate flight schedules, ticket prices, marketing, sales, and revenue management on specific transborder routes.

The carriers now wish to expand this arrangement to include routes that are currently excluded. If approved, the airlines would coordinate pricing, capacity, and schedules across most of their transborder operations. Some of the routes targeted for inclusion include:

  • Montréal to Chicago and Washington DC
  • Ottawa to New York and Washington DC
  • Toronto to San Francisco, Washington DC, Cleveland, Denver, and Houston
  • Vancouver to San Francisco

How will the government assess the impact?

Transport Canada officials are examining the potential economic consequences and the effects on market competition. The Minister of Transport has the authority to authorize the venture, authorize it with specific conditions, or refuse the request entirely.

Minister of Transport Steven MacKinnon stated that the assessment ensures expanded cooperation "benefits Canadians and drives stronger economic growth—boosting connectivity, supporting good jobs, and opening new opportunities."

To complete this review, officials will hold consultations with various stakeholders, including consumer organizations, air industry representatives, and the general public. Canadians can submit their feedback through the official Let's Talk Transportation website until November 15, 2026.

FAQ

When does the public consultation end?

Interested Canadians have until November 15, 2026, to provide their input on the proposal.

What does the current joint venture allow?

Since 2022, the existing arrangement has allowed the airlines to coordinate activities like marketing and flight schedules on certain routes between Canada and the U.S.