ABSTRACT

This chapter compares both the doctrine of predation and its application to aviation in the United States and Canada. There is a major divide between the two countries on both counts. The chapter summarizes what has come to be known as the 'Brooke standard' in the United States and discusses the Canadian approach and the aviation related amendments. It details the American Airlines case in the United States and Phase I of the Air Canada inquiry. The differences in the historical development of antitrust in the United States and Canada have perhaps been as stark as the differences in the market structure of their domestic aviation sectors. The predation doctrine in the United States is enunciated in the Brooke case, which provides an example of alleged predation in an oligopoly setting. The case related to the cigarette industry in the United States, which was highly concentrated and profitable since the 1920s.