Canada’s Competition Bureau took action against the Vancouver Airport Authority (VAA) September 29, in an effort to stop it from imposing restrictions that it claims decreases competition among in-flight catering companies at Vancouver International Airport (YVR).
Only two such suppliers operate at the airport.
A bureau investigation concluded that the VAA is restricting competition by denying new in-flight catering suppliers access to the airport.
Its position is that airlines that operate at YVR want to have a greater choice of companies that could supply in-flight meals and new suppliers want to meet this demand. With that added competition, the belief is that the costs of running the airlines could be reduced.
“As a gatekeeper, the VAA controls access to important resources that in-flight catering firms require to compete,” said John Pecman, who is commissioner of the bureau.
“The VAA must follow the Competition Act to drive innovation and allow market forces to work.”
Unlike other airport authorities in Canada, the VAA has refused to allow the new suppliers to operate at the airport, the bureau noted in a release.
VAA has also provided “insufficient justification for the decision,” according to the bureau.
The bureau’s action involves an application to the Competition Tribunal and it seeks an order requiring the VAA to open Vancouver International Airport to greater in-flight catering competition.
The VAA said in a release that it is "disappointed" by the bureau's action.
“Vancouver Airport Authority decided not to permit additional inflight caterers at YVR at this time for the purpose of maintaining healthy competition between the two full service caterers currently operating at the airport," said VAA CEO Craig Richmond in the release.
"We explained this rationale for our decision and cooperated fully in the Competition Bureau’s investigation. We are committed to providing economic benefits to our communities and one way we do this is by attracting and retaining long-haul carriers, whose needs are met through the range of quality options provided to airlines and passengers by the inflight caterers currently operating at the airport.”
Business in Vancouver reported earlier this year on a labour dispute that involved global in-flight catering giant Gate Gourmet.
Its approximately 400 workers threatened strike action and had a litany of complaints about the way the company operated.
That dispute wound up being resolved without job action when a three-year contract with wage increases was achieved.
