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September 8, 2004

Airline espionage case widens

For those of you who, like me, thought the whole WestJet stole our secrets whining from Air Canada was a case of CEO Robert Milton's sour grapes it is time to eat some crow. (Oh, and there are a few business reporters out there who might want to follow it up with a helping of humble pie - but I digress...)

When this corporate espionage case first burst onto the scene, it sure looked like it was really Air Canada's fault. They gave a fired employee access to their internal computer system as part of his termination package (he was supposed to use it to book flights). According to Air Canada, the employee went on to work for WestJet where one of the airline's co-founders, Mark Hill, used that access to the secret Air Canada database and sniff out the carrier's long-term plans for routes and capacity. They say he accessed the airline's internal site almost 250,000 times in less than a year.

So Air Canada hired a private investigator to go through Mr. Hill's garbage where they indeed found what they claim to some of their corporate secrets in his shredding. For the record, Mr. Hill (who has left WestJet over the scandal - they say he was acting alone) says the website was not confidential and that Air Canada suffered no harm from his activities.

Now we find out Mr. Hill also had confidential documents from another airline: Jetsgo. Yesterday, Jetsgo's CEO sent a letter to Mr. Milton and WestJet Poobah Clive Beddoe asking for the documents back. Air Canada is suing WestJet and Mr. Hill for stealing its confidential information, but it doesn't look like Jetsgo wants to piggy-back on the suit right now.

So, whether he was acting alone or with direction, it sure looks like Mr. Hill was spying. I guess we'll have to wait for the result of the trial.

Posted by maxthecat on September 8, 2004 at 09:24 AM | Printer-friendly version
Filed in: Business

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