THE Competition Bureau on Monday officially launched its market study of competition in domestic air passenger services. The launch of the market study follows the completion of the consultation on its scope, and the Minister of Innovation, Science and Industry’s approval of the final terms of reference.

This market study will allow the Bureau to better understand what is driving the competition issues in the domestic airline industry. Specifically, the Bureau plans to examine three key topics:

  • the state of competition in Canada’s airline industry;
  • the barriers to entry and expansion that exist in the domestic industry; and
  • the impediments to Canadians seeking to make informed choices for air travel.

The Bureau will publish the results of the market study in a final report, which will make recommendations to improve competition for the benefit of Canadian air passengers, as well as the workers and entrepreneurs who enable these services.

The Bureau is seeking submissions from those with information relevant to this study. Those interested in making a submission can learn more at Market study: Competition in Canada’s airline industry. The deadline for submissions is August 31, 2024.

Matthew Boswell, Commissioner of Competition, said: “Air travel is a critical service. We know many Canadians are frustrated by the cost and quality of the service being provided domestically. We heard this in many of the over 1,400 submissions to the consultation on the terms of reference. Our goal with this market study is to examine the current state of competition in Canada’s airline sector and to determine what can be done to improve it.”

 

Quick Facts

  • Market studies allow the Bureau to examine an industry or business sector from a competition perspective to identify factors that may impede competition.
  • This will be the first market study carried out under the Competition Act’s strengthened framework for market studies.
  • The market study’s terms of reference are included in the market study notice.
  • This study is not an investigation into specific allegations of wrongdoing. However, if the Bureau finds evidence that someone may be doing something against the law, we will investigate and take appropriate action.

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