Canada’s Competition Bureau announces that it will undertake a market study on Canadian air transportation.
After doing so for the grocery sector, the Bureau will examine the state of competition in the airline sector and how governments can make improvements.
In such a market study, the Bureau examines barriers to competition in a specific sector, including regulations or policies.
Melissa Fisher, Deputy Commissioner, Mergers Branch, at the Competition Bureau, made the announcement Thursday while testifying before the Commons Standing Committee on Transport, which is studying the state of competition between airlines in the Canada.
“We seek to improve competition for the benefit of passengers, workers and entrepreneurs who enable these services,” she assured.
Mme Fisher cited “recent events that have raised questions about the state of competition in the airline industry.”
The committee launched its study after Lynx Air closed in February, noted Conservative MP Ryan Williams.
It is at least the eighth low-cost airline to close in Canada since 2000.
The closure of Lynx Air follows the closure of its other low-cost carrier, Swoop, and WestJet’s purchase of Sunwing Airlines in 2023.
Mme Fisher says this will be the first market study under the new powers granted to the agency last December.
The Competition Bureau published such a market study on the grocery sector in Canada in June 2023.
Vass Bednar, executive director of McMaster University’s master’s in public policy program, said the study of competition in the airline sector has been productive and sparked “a lot of interesting conversations.”
Now that the bureau has “market research powers, it may be able to offer a more comprehensive and detailed assessment,” she added.