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WestJet Airlines says it's sorry that members of its management team covertly accessed a confidential Air Canada website, and has agreed pay $15.5 million.

In a joint news release from the two carriers, WestJet said that in 2003-2004, members of their management team "engaged in an extensive practice of covertly accessing a password protected proprietary employee website maintained by Air Canada to download detailed and commercially sensitive information without authorization or consent from Air Canada."

"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," said the news release.

The Calgary-based airline has agreed to pay $5.5 million to cover Air Canada's investigation and litigation costs resulting from the dispute. It will also make a $10-million donation to children's charity, at the request of Air Canada.

"This conduct was both unethical and unacceptable and WestJet accepts full responsibility for such misconduct. WestJet sincerely regrets having engaged in this practice and unreservedly apologizes to Air Canada and Mr. Robert Milton."

In 2004, Air Canada filed a $220-million lawsuit against WestJet, alleging that company employees used a confidential website to access private information about Air Canada's passenger traffic.

Air Canada claimed WestJet used the still active password of a former employee who had access to the site, and that the information was used by WestJet to plan the airline's flight schedule and expansion.

WestJet countersued, accusing Air Canada of hiring private investigators to sift through "recycling material" at the home of a WestJet executive. It says the airline then hired a U.S. firm to put the shredded documents back together.

At the time, WestJet also said it didn't believe the Air Canada website contained confidential information, and said it could have gleaned the info by counting passengers at airports.

Mark Hill, a WestJet vice-president and co-founder, was among those named in the Air Canada lawsuit. He resigned in July of 2004 amid the allegations.

CTV.ca