The Competition Bureau says market concentration, pricing and a growing number of customer complaints are fueling its study of the Canadian airline industry.
The regulator points out that two companies continue to dominate the skies while new airlines appear to be struggling to enter the market.
Fares for domestic flights appear relatively high and more and more passengers are filing complaints, the Competition Bureau also observes.
The regulator’s next market study, which will draw on public and stakeholder comments submitted by June 17, will pave the way for recommendations to government. These will aim to improve competition and make it easier for consumers to make informed choices.
The market study announced on May 9 is the Competition Bureau’s first since it acquired new powers in December, including the ability to demand information from businesses.
In the past 13 months, newer low-cost carriers Swoop and Lynx Air disappeared from the skies and WestJet bought Sunwing Airlines. The latter two accounted for 72% of Western Canada’s seat capacity last year, according to the Competition Bureau.
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