Apologizes For 2003-2004 Web Snooping Incident

And you thought competition between US airlines was ugly... on Monday, Canada's WestJet Airlines admitted it illegally obtained proprietary information from competitor Air Canada between 2003-2004.

That admission settled an ongoing legal dispute between the two airlines, stemming from allegations WestJet illegally downloaded operational information -- such as how many seats were filled on Air Canada flights -- from an Air Canada employee website.

Reuters reports when Air Canada learned of the alleged web snooping, the airline sued WestJet for $220 million (Canadian).

In its apology to Air Canada -- and the CEO of Air Canada parent company ACE, Robert Milton -- WestJet called its conduct "unethical and unacceptable."

"This practice was undertaken with the knowledge and direction of the highest management levels of WestJet and was not halted until discovered by Air Canada," the companies said in a joint statement issued Monday.

In the settlement, WestJet also agreed to pay Air Canada's legal costs in the matter -- as well as donate another C$10 million to children's charities.

FMI: www.westjet.com, www.aircanada.com