Canada's independent law enforcement agency The Competition Bureau, is consulting Canadians as it prepares to launch a market study of competition in domestic air passenger services in Canada.
The Competition Bureau protects and promotes competition for the benefit of Canadian consumers and businesses and says that recent events have raised questions about the state of competition in the industry.
"The airline industry is important to Canadians and the Canadian economy," said Matthew Boswell, Commissioner of Competition. "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."
Key concerns the Bureau will be looking at include:
- 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.
In a press release, the organization says a market study will "allow the Bureau to better understand what is driving these issues, and to make recommendations to all levels of government to improve competition in the airline industry. The study will examine how to make it easier for new businesses to compete and easier for consumers to make informed choices."
The Bureau is seeking public feedback on the terms of reference in the draft market study notice. Interested parties are invited to submit their comments by June 17, 2024, through their feedback form or by emailing [email protected].
Following the consultation, the Bureau will publish its final terms of reference and officially launch the market study. The final terms of reference will include details on how to provide submissions to the market study.
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