The Competition Bureau of Canada has published a market study report titled 'Cleared for take-off: Elevating airline competition,' which outlines recommendations for enhancing competition in the domestic airline industry. The report highlights the pressing need for increased competition to address the high costs of air travel, particularly for Canadians in northern and remote communities where flying is essential.

Despite the entry of new airlines, the Bureau's study reveals that the domestic airline market remains highly concentrated, with Air Canada and WestJet controlling a significant portion of passenger traffic at major airports. The Bureau emphasizes that fostering competition is crucial for lowering prices, increasing options, and improving service quality for consumers.

The report identifies three key areas for government action: prioritizing competition in aviation policy, leveraging international capital to strengthen domestic competition, and supporting access for northern and remote markets. The Bureau's findings indicate that introducing just one new competitor on a route can lead to an average fare reduction of 9%, underscoring the potential benefits of enhanced competition.

Matthew Boswell, Commissioner of Competition, stated that with appropriate policy changes, governments can create an environment conducive to the growth of new airlines, ultimately providing Canadians with more affordable and reliable flight options. The Bureau's study involved extensive engagement with over 120 stakeholders and public consultations, reflecting a comprehensive approach to understanding the challenges and opportunities within the airline industry.