ACTA launches survey about competition in domestic air sector

ACTA is inviting its members to participate in a new survey that will provide feedback for the Competition Bureau of Canada’s new study into the state of competition within the domestic air sector.

The study, announced last week, aims to identify opportunities for enhancing competition to benefit consumers, employees, and businesses.

"ACTA welcomes the Competition Bureau's market study into the state of competition within the domestic air passenger services sector,” said Wendy Paradis, ACTA’s president, in a press release. “As the voice of the Canadian retail travel industry, we are committed to building a strong and competitive Canadian travel industry that benefits all Canadians."

The Competition Bureau advises that the study is prompted by several factors, including industry concentration, high airfares, and recent challenges in travel experiences such as congestion, flight delays, cancellations, and baggage issues.

ACTA asking for member input

ACTA’s new survey can be accessed here and must be completed by June 10, 2024.

Member insights will be compiled into a comprehensive submission by ACTA to the Competition Bureau as part of its formal consultation process.

"To ensure that our members' voices are heard, ACTA has developed a comprehensive member engagement strategy. We invite all members to actively participate in the upcoming survey, which will be a critical component of our formal submission to the Competition Bureau. Member insights and experiences are invaluable in helping to shape the future of the airline industry in Canada,” said Paradis.

Click here to access ACTA’s survey.

Questions raises about Canada's air sector

The Competition Bureau’s study is the first it has conducted using new powers it gained in December. It follows a recent study into the grocery sector.

The study is expected to examine the state of competition in the airline sector—including barriers to competition, like regulations and policies—and how governments can make improvements.

The look into Canada’s domestic air sector comes after Lynx Air folded in February, becoming one of at least eight budget airlines to shut down in Canada since 2000.

Recent events have “raised questions” about the state of competition in the industry, the Bureau said last month.

This has to do with the fact that Canada’s domestic air sector has only two major airlines, domestic flights in Canada “appear to be relatively high,” Canadians have filed more complaints about air travel services in recent years, and new airlines appear to face challenges entering the market, the Bureau said.

The agency hopes to better understand the issues through a comprehensive study, which will result in recommendations to all levels of government.

Interested parties are invited to submit their comments by June 17, 2024, through this feedback form or by emailing airlinemarketstudy-etudemarcheaerien@cb-bc.gc.ca.

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