Competition Bureau opens public consultations on Canadian airlines

Following through with a previously-announced plan to study Canada’s airline industry, the Competition Bureau on Monday (May 27) opened public consultations to collect feedback on the country’s domestic flight services.

Earlier this month, an initiative was launched by Melissa Fisher, a deputy commissioner with the bureau, that started a study after Lynx Air folded in February, one of at least eight budget airlines to shut down in Canada since 2000.

The Bureau says it will look at improving competition for the benefit of domestic air passengers as well as the workers and entrepreneurs who enable such flights.

Questions raised

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

This has to do with the fact that Canada’s domestic services have 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 Bureau hopes to better understand the issues through a comprehensive study, which will result in recommendations to all levels of government.

“The study will examine how to make it easier for new businesses to compete and easier for consumers to make informed choices,” the agency said in a press release.

Submit your feedback

The Bureau is seeking public feedback on the terms of reference in the draft market study notice.

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.

Following the consultation, the Bureau will publish its final terms of reference and launch the market study.

"The airline industry is important to Canadians and the Canadian economy. Since the Canadian population is spread out over vast distances, other modes of transportation may not be feasible replacements for air travel. More competition in the industry will mean lower prices, better services, and improved productivity,” said Matthew Boswell, commissioner of competition, in the release.

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