Airline prices, concentration key concerns driving Competition Bureau scrutiny

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Market concentration, higher prices and a mounting tally of customer complaints are fuelling a Competition Bureau study into Canada's airline industry.

Market concentration, higher prices and a mounting tally of customer complaints are fuelling a Competition Bureau study into Canada's airline industry.

The bureau's review, which will draw on feedback from the public and interested parties, looks to pave the way for recommendations to government that would "make it easier for new businesses to compete and easier for consumers to make informed choices." "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," Boswell said in the release.

Canada's two largest carriers commanded 82 per cent of domestic traffic among national carriers last month versus 74 per cent in April 2023, statistics from aviation data firm Cirium show. Over the past five years, the Competition Bureau has raised concerns about the merger of Canadian North and First Air and the would-be acquisition of Transat by Air Canada, which scrapped the plan in 2021 amid regulatory hurdles in Europe.

 

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