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Air Canada Disputes Competition Bureau’s Report on Airline Market

By  |  June 22, 2025

Air Canada has pushed back against claims by Canada’s Competition Bureau that the nation’s domestic airline market lacks adequate competition. The clash comes in response to a new market study released Thursday by the Bureau, which outlines several policy recommendations aimed at opening up the skies to more rivals and improving travel options for Canadians.

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    According to a statement from the Competition Bureau, despite the presence of new airlines in recent years, Canada’s airline industry remains “highly concentrated,” with limited competitive pressure. The agency described the current environment as “fragile,” noting that Air Canada and WestJet together account for between 50 to 75 percent of all domestic passenger traffic.

    Per the Bureau’s report, boosting competition would benefit Canadian travelers by increasing access to affordable and reliable flight options. “With the right policy changes, governments can create the conditions for new airlines to grow and compete,” said Matthew Boswell, commissioner of competition, in a statement.

    To that end, the Bureau laid out three key recommendations for policymakers: placing greater emphasis on competition when crafting aviation policy; reducing barriers for foreign-owned airlines to operate domestically; and tailoring regulations to better serve northern and remote communities.

    Read more: Canada Watchdog Calls for Easing Foreign Investment Rules in Airline Sector

    However, Air Canada swiftly countered the Bureau’s findings, challenging the notion that the domestic market lacks sufficient rivalry. In a response published the same day, the airline referred to the Bureau’s concerns as a “myth” and shared a report of its own, which included data from analytics firms InterVISTAS and Cirium.

    According to a statement accompanying Air Canada’s materials, Canadians currently enjoy more choices than ever before across the majority of routes. One graphic from the airline’s response reads, “Myth: There is a lack of competition in the Canadian air travel industry. Fact: Canadians have greater choice than ever before on the vast majority of routes they travel on.”

    The disagreement underscores a growing debate over how best to regulate Canada’s airline sector, with the Competition Bureau urging structural reforms to foster new entrants, while incumbent players like Air Canada argue that the market already provides ample consumer choice.

    Source: Daily Hive