COMPETITION BUREAU SEEKS INPUT FOR AIRLINE STUDY

With recent events raising questions about the state of competition in the airline industry in Canada, the Competition Bureau says it is seeking feedback from Canadians as it prepares to launch a market study of competition in domestic air passenger services in the country.

Among the issues of contention are:

  • 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 a 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.

Emphasizing that the study is not meant to investigate allegations of “wrongdoing” against any airline, it adds that the study will examine how to make it easier for new businesses to compete and easier for consumers to make informed choices.

“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,” stated Commissioner of Competition Matthew Boswell.

The market study announced May 9 is the bureau’s first since it gained new powers in December that include the ability to compel information from companies.

To take part in the survey, email airlinemarketstudy-etudemarcheaerien@cb-bc.gc.ca, or click HERE.

The deadline for submissions is June 17.