Canadian government calls for increased competition in airline industry

The Canadian government has released a report on the state of the airline industry, emphasizing the need for increased competition to enhance affordability, service, and choice for consumers. The study by the Canadian Competition Bureau highlights that despite new entrants in the market, Air Canada and WestJet dominate domestic passenger traffic at major airports, accounting for 50% to 75%.

Matthew Boswell, Commissioner of Competition, remarked on the importance of policy changes: "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."

The report reveals that Canada's domestic airline market is concentrated among a few large carriers. At eight major airports in 2023, Air Canada and WestJet combined accounted for between 56% and 78% of domestic passengers. Porter Airlines held a 30% share at Ottawa International Airport (YOW), while Flair Airlines had an 18% share at Edmonton International Airport (YEG).