GATINEAU — The Competition Bureau has launched the consultation process for Canadians as it prepares to launch a market study of competition in domestic air passenger services in Canada.
“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.
News of the bureau’s upcoming study first hit earlier this month.
A statement from the Competition Bureau notes that recent events have raised questions about the state of competition in the industry …
- The domestic air travel market is concentrated with only two major airlines;
- Domestic airfare in Canada appears 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 Canadian market.
The bureau says the market study will allow it to better understand what is driving these issues, and to make recommendations to all levels of government to improve competition in the airline industry. The study will examine how to make it easier for new businesses to compete and easier for consumers to make informed choices.
For public feedback, interested parties can submit their comments by June 17 through a feedback form or by emailing airlinemarketstudy-etudemarcheaerien@cb-bc.gc.ca.
Following the consultation, the bureau will publish its final terms of reference and officially launch the market study. The final terms of reference will include details on how to provide submissions to the market study.
