The Competition Bureau of Canada is set to conduct a market study on domestic air passenger services, seeking public input to address growing concerns about competition in the industry.
Recent developments have highlighted key issues in Canada's air travel market, including the dominance of two major airlines, high domestic airfare, an increase in consumer complaints, and the barriers new airlines face when entering the market. To address these issues, the Bureau will analyze the industry to provide recommendations for enhancing competition.
Market studies like this one allow the Bureau to examine an industry or business sector to identify factors that may impede competition. This study, the first under the Competition Act's strengthened framework for market studies, aims to understand the challenges and propose solutions to improve the competitive landscape.
"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,” Commissioner of Competition Matthew Boswell said.
This study is not an investigation into specific allegations of wrongdoing. However, if evidence of illegal activity is found during the study, the Bureau will investigate and take appropriate action.
In line with this, the Bureau is seeking public feedback on the terms of reference for the draft market study notice. Interested parties are invited to submit comments by June 17, 2024, either through a feedback form or by emailing [email protected].
After the consultation period, the Bureau will publish the final terms of reference and officially launch the market study, including details on how to provide submissions.