Transport Canada is looking to retain the services of a contractor to conduct economic modelling and business valuation/accounting work in support of potential notifications to the Minister of Transport of mergers, acquisitions and joint ventures involving air transportation undertakings.
The contract objective is to assess and validate any economical and financial implications that may arise from the approval and/or rejection of any proposed mergers/acquisitions/joint ventures received by the department.
Section 53 of the Canada Transportation Act legislates a notification/application process to the Minister of Transport for certain Canadian transportation undertakings (in this case, air carriers) involved with any potential merger, acquisition, or joint venture. The Minister may choose to further examine the proposed transaction for public interest issues within prescribed legislative timelines (192 days for mergers & acquisitions, 285 days for joint ventures). In order for the Canada to properly assess the merits of each proposed transaction, Canada is looking to retain the services of economic and business valuation/accounting specialists.
Any application submitted to the Minister of Transport for public interest considerations will also be submitted to the Commissioner of Competition [Competition Bureau, herein referred to as the Bureau] for anti-competition considerations. The Bureau will advise the Minister of Transport of their findings as part of the Minister’s overarching public interest assessment.
The Department must conduct independent economic and financial analyses during each public interest assessment in parallel with the Bureau, with the following emphases:
An economic analysis of price impacts on entire networks or regions, in addition to independent route-based price analyses as required
Considerations of potential operating efficiencies gained and reductions in double marginalization from the proposed transaction, which can create downward pressure on price.
Further information on the joint venture application guidelines can be found below:
https://www.tc.gc.ca/en/services/aviation/commercial-…
Further information on the merger & acquisition notification guidelines can be found below:
https://www.tc.gc.ca/eng/policy/acg-acgb-mergers-guid…
