Canadian Competition Bureau to Investigate Domestic Airline Market

Agency to Assess Industry Dynamics Amid Rising Passenger Complaints and Limited Competition

The Canadian Competition Bureau announced a comprehensive review of the country's airline sector on Monday, highlighting concerns over competition within the domestic market. Recent events, including the collapse of budget carrier Lynx Air in February 2024, have prompted the agency to scrutinize the industry, which is dominated by Air Canada and WestJet, accounting for nearly 95% of the market's revenue.

Passenger complaints have surged in recent years, and new airlines attempting to enter the market face significant hurdles. Notable among these is Toronto-based Porter Airlines, which remains a relatively small player despite its efforts.

The study aims to identify barriers to competition and provide recommendations to various government levels to enhance market dynamics. While the review is not targeting specific allegations of misconduct, the Bureau may take action if evidence of Competition Act violations emerges.

Matthew Boswell, Canada’s Commissioner of Competition, emphasized the importance of competitive air travel in a vast country like Canada. He noted that more competition could lead to lower prices, better services, and increased productivity, benefiting the 72 million passengers who flew domestically in 2022.

WestJet welcomed the review, highlighting its commitment to affordable and innovative travel options. Air Canada stated it is reviewing the draft terms of the study and emphasized its ongoing efforts to address competition issues.

The Bureau plans to publish its findings in June 2025, following an initial public consultation and the formal launch of the study.