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Probe will allow the Bureau to examine the airline 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.
The Canadian federal competition bureau wants a scrutiny of the Canada’s airline industry, and they are taking steps in this regard.
The bureau announced the official launch Monday of a market study to look at three key issues in the airline industry, including the state of competition in the industry, the barriers to entry, and “impediments to Canadians making informed choices” on air travel. The press release read,
Today, the Competition Bureau is officially launching 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.
In the press release, the head of the bureau called air travel a critical service.
“We know many Canadians are frustrated by the cost and quality of the service being provided domestically,” said commissioner of competition Matthew Boswell. “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.”
The study will be the first one conducted under changes to the federal Competition Act which give the bureau the power to demand documents from companies.
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:
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.
The interim CEO of discount carrier Flair Airlines called the study “long overdue,” and was hopeful taht the results could lead to help for companies challenging the country’s two biggest carriers, Air Canada and WestJet.
“The only two entities who benefit from the current situation are Air Canada and WestJet, not the travelling public,” said Flair’s Maciej Wilk.
Submissions can be made online until Aug. 31. The study’s final report is expected to be released next June. The bureau first announced the study in late May, and accepted submissions on its scope until mid-June.
Canada's Federal industry minister François-Philippe Champagne gave final approval to the study’s scope last week.
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.
