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Canadian Watchdog Launches In-Depth Study of Airline Industry

 |  July 29, 2024
The Competition Bureau of Canada announced the official launch of a market study looking into the competitive dynamics within the country’s domestic airline industry. This initiative comes on the heels of a thorough consultation on the study’s scope and subsequent approval by the Minister of Innovation, Science, and Industry.

The primary focus of the study is to delve into the underlying factors affecting competition among Canada’s airlines. The Bureau has outlined three critical areas for examination:

  1. Current Competitive Landscape: Analyzing the state of competition within the domestic airline sector.
  2. Entry and Expansion Barriers: Identifying obstacles that hinder new players from entering the market or existing ones from expanding.
  3. Consumer Decision-Making: Investigating the challenges Canadians face in making informed air travel choices.

Matthew Boswell, the Commissioner of Competition, emphasized the importance of this study, highlighting widespread consumer dissatisfaction with the cost and quality of domestic air travel. “Air travel is a vital service,” Boswell stated. “We’ve received feedback from over 1,400 participants during our consultation process, expressing significant frustration. Our goal is to thoroughly understand the competitive challenges and to propose solutions that enhance the experience for passengers, as well as support the workers and entrepreneurs in this industry.”

The Competition Bureau is calling for submissions from stakeholders and the public who have relevant information to contribute to the study. Interested parties can find more details on how to participate on the Bureau’s website. The deadline for submissions is set for August 31, 2024.

Once completed, the Bureau will publish a detailed report with recommendations aimed at fostering a more competitive environment in Canada’s airline industry, ultimately benefiting consumers and industry participants alike.

Source: Canada CA