Air Canada, WestJet Under Canadian Competition Bureau Investigation

Canada’s Competition Bureau has issued court orders requiring Air Canada and WestJet to provide detailed information as part of an ongoing probe into the country’s airline sector. This marks the first time the Bureau has used its new data-gathering powers to investigate competition in the industry, reported ch-aviation.com.

The regulator launched its airline market study on July 29, 2024, aiming to better understand competition issues in Canadian air travel and explore potential changes to improve market dynamics. The Canadian aviation industry has recently seen significant changes, including the bankruptcy filings of Lynx Air and Canada Jetlines, and Flair Airlines seeking new investors to bolster its operations.

The Bureau noted that the domestic airline market is concentrated, with only two major carriers, and that domestic airfares are relatively high. Startups face challenges entering the market, and complaints about air travel services have surged, reaching a record high of 78,000 complaints in September 2024, according to the Canadian Transportation Agency.

Air Canada has already started cooperating with the Bureau and confirmed it will continue to participate in the review. The airline emphasized that the review is not an investigation into specific allegations of wrongdoing. WestJet also welcomed the study, stating it supports efforts to improve aviation in Canada, but highlighted that the study’s terms of reference overlook key factors that increase costs for travelers, such as Canada’s tax and regulatory environment.

The Bureau’s final report is expected to be published in June 2025.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com