The Canadian competition authority is investigating the aviation sector
The aviation industry in Canada is at a turning point. Faced with rising prices and an increasingly concentrated market, authorities have decided to take a closer look at the sector. The Canadian Competition Authority has obtained court orders to compel Air Canada and WestJet to provide information for a comprehensive investigation of the aviation market. This is the first time the authority has used its new data collection powers. The background to this action is concerns about the competitive conditions in a market that has been marked by bankruptcies and a high number of consumer complaints in recent years. Background to the investigation On July 29, 2024, the Canadian Competition Authority launched its study of the aviation market to "better understand competition issues in the industry" and examine what measures can be taken to promote competition in passenger air transport. This came against the backdrop of two bankruptcies in 2024: Lynx Air and Canada Jetlines filed for bankruptcy, while Flair Airlines is seeking investment to secure its operating funds. These developments show that the Canadian market is increasingly challenging for new entrants and that already established airlines are under pressure. The authority has found that the Canadian domestic market is highly concentrated, with only two major airlines, Air Canada and WestJet, dominating the majority of the market. Prices for domestic flights appear to be relatively high, which has led to an increase in complaints about the state of air transport services. In September 2024, a new high of around 78.000 complaints was registered with the Canadian Transportation Agency, indicating
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