Competition Bureau makes recommendations to improve competition in Canada’s airline industry
Press Release
From: Competition Bureau Canada
Increased competition would improve affordability, service, and choice for Canadians.
Inuktitut version (PDF):
June 19, 2025– GATINEAU (Québec), Competition Bureau
The cost of flying is a major concern for Canadians. For many, particularly those in northern and remote communities, air travel is not a luxury – it is a necessity.
Today, the Competition Bureau published its market study report – Cleared for take-off: Elevating airline competition – which makes recommendations to governments for increasing competition in Canada’s domestic airline industry.
The Bureau’s study found that despite the recent entry and expansion of new airlines, the domestic market remains highly concentrated and competition from new sources remains fragile. At major airports across the country, Air Canada and WestJet together account for roughly half to three quarters of all domestic passenger traffic.
The Bureau’s report outlines three areas of focus for governments to create the right conditions for competition in the industry. These are:
- Prioritizing competition in Canada’s aviation policy, including in the review of airline mergers and collaborations.
- Leveraging international capital and experience to strengthen domestic competition, including reducing barriers to foreign ownership.
- Supporting northern and remote market access, including tailoring regulations to the northern context.
More competition in the airline industry would mean lower prices, more options and better service for Canadians. The Bureau found that when just one new competitor flies on a route between two cities, airfares go down by 9% on average, highlighting the benefits that competition can deliver
Quotes
“With the right policy changes, governments can create the conditions for new airlines to grow and compete – and give Canadians access to more affordable, reliable options for flights. With this report, we have identified concrete actions that governments can take to achieve these goals.”
Matthew Boswell,
Commissioner of Competition
Quick facts
- The Bureau launched the airline market study on July 29, 2024, to better understand competition issues in the industry and examine what changes can be made to improve competition in passenger air travel in Canada.
- During the study, the Bureau engaged with more than 120 stakeholders, including airlines, airports, travel and tourism companies, government organizations, consumer advocacy groups, labour representatives, corporate customers, and industry experts. More than 1,500 Canadians shared their views through a public consultation.
- The Bureau also conducted field research in Iqaluit to observe firsthand the challenges of air transportation in northern and remote communities.
- In 2024, the Bureau obtained court-ordered information from Air Canada and WestJet. This was the first market study conducted under the Bureau’s new information gathering powers for market studies.
Related products
- Backgrounder: Unique air travel challenges for northern and remote communities
- Cleared for take-off: Elevating airline competition
- Market study: Competition in Canada’s airline industry
- News release: Competition Bureau seeks information from Air Canada and WestJet to advance its study of competition in Canada’s airline industry
- Written submissions to the market study
- Market study notice: Competition in Canada’s airline industry
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