by Jen Mallia
Last updated: 10:05 AM ET, Fri June 20, 2025
The Canadian Airport Council (CAC) has responded to yesterday’s report from the Competition Bureau that indicated, among other suggestions for increasing competition in Canada’s air travel marketplace, that cabotage changes could be explored.
Cabotage, in this case, refers to the right to operate domestic flights. The report from the federal government, entitled “Cleared for take-off: Elevating airline competition,” recommends allowing foreign airlines cabotage (as well as allowing foreign ownership of Canadian airlines). CAC states that is focusing on the wrong problem.
"Cabotage is not the answer to competition in a country as sparse and large as Canada. A foreign carrier is not going to service our smallest towns and thin volume routes," noted Monette Pasher, President of Canadian Airports Council. "We need to package the right policy solution for the specific problem at hand."
The CAC recognizes that continued growth in the air travel sector will require changes. It recommends fostering a “supportive air policy ecosystem.” Policy recommendations for the government to consider this year put forth by the CAC, include:
- Extend airport leases by 50 years so they can unlock growth on airport campuses.
- Establish a Regional Air Connectivity Fund to support equitable air access in remote and northern regions.
- Support airport infrastructure development through projects of national significance and trade diversification programs.
- Recapitalize the Airport Capital Assistance Program (ACAP) to $ 150 million annually to support regional, rural and northern airports with safety infrastructure.
According to the report, airports will need to invest $28-billion over the next decade to keep up with growth and support the communities they serve, which depend on air services for economic opportunity, access to healthcare and social connectivity.
The statement emphasizes how airports of all sizes are investing in innovations and infrastructure to make their operations safer, more predictable, more sustainable and more efficient.
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