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The industry group representing airlines around the world is urging the Canadian government to steer clear of regulating overbooking, a practice it says is a key driver of profitability for airlines and helps keeps airfares low.

“There is absolutely no need to regulate overbooking,” Alexandre de Juniac, director general and chief executive of the International Air Transport Association (IATA) said in an interview this week.

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“This is the airlines’ position based on a long, long experience. The need for airlines to overbook in managing their seats, their revenues, is key. Otherwise they would be obliged to increase fares.”

The federal government’s sweeping transportation legislation, Bill C-49, aims to spell out exactly what rights airline passengers have and ensure that people who purchase flight tickets cannot be forced off due to overbooking. The legislation, which was unveiled in May, passed first reading in the Senate this week.