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Monday,  November 11, 2024   9:03 PM
Competition Bureau obtains court orders against Air Canada, WestJet for market info
(WestJet/Air Canada)

The Competition Bureau is using new powers granted by the federal government to get information from Air Canada and WestJet as part of a probe into the Canadian airline sector.

According to a press release issued Thursday (Oct. 3), Canada’s competition watchdog said it obtained two Federal Court orders requiring the two biggest airlines to provide information for a study it launched in July.

The study will allow the Bureau to better understand what is driving competition issues in the domestic airline industry.

READ MORE: Competition Bureau launches market study of Canadian airline sector

The Bureau will examine three key topics:

  • the state of competition in Canada’s airline industry;
  • the barriers to entry and expansion that exist in the domestic industry; and
  • the impediments to Canadians seeking to make informed choices for air travel.

The findings are to be published in a final report, which will make recommendations to improve airline competition in Canada for the benefit of air travellers.

Information gathering powers

The court orders mark the first time the Bureau has ever had to use its new information gathering powers in a market study.

The orders require companies to produce records and answer questions in writing relevant to the Bureau's probe.

The Bureau is seeking information on Air Canada and WestJet's takes of the state of competition in the sector, including different sources of competition; analyses of barriers to entry in the sector, including government policies, and airport access; key performance metrics, from before the pandemic to recent years; and agreements with airports, and shareholdings in other airlines providing domestic air passenger services.

Following the demise of Lynx Air and Canada Jetlines, the watchdog will also look at whether Canada’s aviation policy is lacking when it comes to supporting new carriers.

The study is not an investigation into any wrongdoing on any airlines’ part.

Air passenger complaints, meanwhile, continue to reach new highs.

The number of passenger complaints filed with the Canadian Transportation Agency (CTA) hit around 78,000 last month, resulting in wait times of up to two years.


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