Competition Bureau launches study into Canadian airline industry

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The federal Competition Bureau is launching a market study into the Canadian airline industry with the goal of improving the cost and quality of air travel.

Young boys look out at Air Canada and WestJet planes at Calgary International Airport on Aug. 31, 2022. THE CANADIAN PRESS/Jeff McIntosh

"Number two, we've seen an uptick in consumer complaints from Canadians in the sector in recent years. Number three, there's evidence that suggests prices in Canada may be higher than in other countries and four, we've seen newer, smaller airlines struggling to make it in the sector.

He says the terms of reference for the study fundamentally ignore many of the key barriers unique to Canada and truly driving up the cost for Canada's air travellers and reducing competition in Canada's air travel market. WestJet is instead calling on the federal government to undertake a comprehensive review on whether the user-pay model for aviation infrastructure works for a modern Canada and calling on Ottawa to freeze all mandatory government fees and charges until a review is complete.

Erickson says there are barriers to entry in the Canadian airline market as well, noting many of the high costs come from the federal government. "So yes, there are lots of players who go out who look at the Canadian market and say, 'Hey, that might be an interesting place for us to go into business,' but with only 25 and 49 per cent ownership, it's not attractive to those carriers," he said.

A sailboat captain was found alive but suffering from a severe case of hypothermia on Monday after spending up to five hours adrift in the ocean off British Columbia, according to the coast guard.An inmate who died in custody at a maximum security prison in the Fraser Valley earlier this month had spent the better part of the last 46 years behind bars, according to his most recent Parole Board of Canada review.B.C.

 

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