Canada's Competition Bureau (CB) says it has concluded the investigation it launched into Calm Air (MO, Thompson), Canadian North (5T, Yellowknife) and First Air (Carp) last year amid allegations of anticompetitive practices.

The CB initiated its investigation last year to scrutinize three matters: a proposed merger between First Air and Calm Air; a codeshare agreement between First Air and Canadian North; and allegations of predatory pricing against First Air and Canadian North.

In conducting each investigation, the CB says it gathered evidence and obtained information from various sources including the companies targeted, competitors, customers and various levels of governments. It also retained the services of financial and economic experts.

However, during the course of its investigation, First Air and Canadian North terminated their codeshare agreement, resolving concerns regarding its potential impact on competition.

"With respect to the merger between First Air and Calm Air and the investigation into allegations of predatory pricing by First Air and Canadian North, the Bureau did not find sufficient evidence to challenge the airlines' actions under the Competition Act," it said.

Though this review failed to find any instances of anticompetitive behaviour, the CB did warn operators in the niche Canadian North market that any future partnerships/mergers would have to be carried out in full compliance with local law.