The Competition Bureau says it has obtained court orders requiring Air Canada and WestJet to hand over information for the watchdog’s market study into airline competition. Granted by the Federal Court, the rulings require the country’s two biggest carriers to produce records and answer questions around barriers to entry into the field, performance metrics and agreements with airports and other airlines.
The bureau says the information will give it a better understanding of competition in the domestic airline sector, roughly 80 per cent of which is commanded by Air Canada and WestJet.
The court orders mark the first time the regulator has taken advantage of its new information-gathering powers, which took effect in June under federal legislation, in a market study.
In July, the Competition Bureau announced it would launch a market study of domestic airline service amid ongoing concerns around prices and quality.
The watchdog said the study would zero in on the state of competition among carriers, barriers to entry and growth in the market, and obstacles for travellers looking to make informed choices.
Competition commissioner Matthew Boswell said at the time that “many Canadians are frustrated by the cost and quality” of air travel in Canada, and that he aims to put forward recommendations on how to improve it.
About one-third of all flights were delayed last year, an improvement from 2022 but worse than the one-quarter of trips held up in 2019, the commissioner said in court filings.
“This study is not an investigation into specific allegations of wrongdoing. However, if the bureau finds evidence that someone may be doing something against the law, we will investigate and take appropriate action,” the bureau in a statement Thursday.
The number of passenger complaints lodged with the Canadian Transportation Agency reached new highs of around 78,000 last month, resulting in wait times of up to two years.
If you enjoyed or found this story useful, we’d appreciate if you would forward it to a colleague or friend who may also enjoy it. If, on the other hand, a friend shared it with you, welcome! You can get all the latest travel news and reviews from Travel Industry by simply clicking HERE.