If we want to strengthen our financial systems, increase interprovincial trade, encourage tourism, and open new regions to economic development, the answer lies in the skies. Read More
If we want to strengthen our financial systems, increase interprovincial trade, encourage tourism, and open new regions to economic development, the answer lies in the skies. Recently, the Canadian Competition Bureau released its report on the state of competition within the airline industry. Eleven months in the making, the report makes 10 recommendations to governments
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If we want to strengthen our financial systems, increase interprovincial trade, encourage tourism, and open new regions to economic development, the answer lies in the skies.
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Recently, the Canadian Competition Bureau released its report on the state of competition within the airline industry. Eleven months in the making, the report makes 10 recommendations to governments and decision-makers, including enhancing access to airport infrastructure, increasing transparency in airline performance data, and increasing foreign ownership.
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The bureau states that Canada’s domestic air market is concentrated with only two major airlines, Air Canada and WestJet, who together account for 75 per cent of Canadian passenger airline travel.
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The report also notes that new airline carriers — including more affordable carriers — face more difficulties in Canada compared to other countries. For Canadians, the lack of competition in the airline industry has resulted in an increase in overcrowded flights, delays, last-minute cancellations and baggage issues. When just a few companies control most of the seats in the sky, there’s little incentive to lower costs or improve service.
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But the lack of competition not only limits mobility and passenger experience — it also limits access to economic opportunities, especially in remote and rural communities.
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In this era of economic uncertainty, Canadian decision-makers are rightly looking to strengthen capacity and innovation within our borders. Prime Minister Mark Carney recently introduced the One Canadian Economy bill, aimed at encouraging goods and services to move freely across provincial borders.
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Creating an environment that fosters more reliable, effective, and affordable air travel is an essential piece of that equation. While the Competition Bureau report has recommended facilitating foreign ownership to increase competition, what’s truly needed is for government to foster a robust, made-in-Canada solution that is not dependent on uncertain entities based beyond our own borders.
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Opening interprovincial trade requires more movement of goods and people within Canadian borders — and without a competitive airline industry, we simply will not be able to achieve the ambitious goals the government has laid out.
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Canada is also in dire need of stronger regulatory oversight of monopolies like Nav Canada, and Canadian airports. In Europe and other advanced markets, these agencies face efficiency targets and must consult transparently on fee hikes. In Canada, costs rise unchecked, passengers absorb the increases, and accountability is nonexistent. That needs to change.