PROBING QUESTIONS

Competition Bureau Formally Announces Airline Hearings

The federal Competition Bureau has formally announced its hearing into domestic air passenger services in Canada.

Open Jaw earlier this month published a story saying the government would be launching a market study into Canadian airline competition, but the announcement on 27MAY makes it official.
"Recent events have raised questions about the state of competition in the industry," the Trudeau government said in a press release ."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.

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, officials said.

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 17JUN, 2024, through its feedback form or by emailing airlinemarketstudy-etudemarcheaerien@cb-bc.gc.ca.

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.

"The airline industry is important to Canadians and the Canadian economy," said Matthew Boswell, Canada's 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."

Jim Byers

Contributor

Jim Byers is a freelance travel writer based in Toronto. He was formerly travel editor at the Toronto Star and now writes for a variety of publications in Canada and around the world. He's also a regular guest on CBC, CTV News, Global News and other television and radio networks.

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