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Canada’s Antitrust Regulator to Launch Study on Airline Industry Competition

 |  May 27, 2024

Canada’s antitrust regulator announced on Monday its plan to initiate a comprehensive study of competition within the country’s airline industry. The Competition Bureau’s decision comes in response to multiple issues plaguing the market, including high airfare, limited competition, and a surge in passenger complaints.

The study will dissect the underlying factors contributing to these persistent problems. By delving into the reasons behind the concentrated market and relatively high prices, the regulator seeks to formulate strategic recommendations for enhancing competition. The insights gained from this study are expected to guide policies and actions at all governmental levels to foster a more competitive and consumer-friendly airline market.

This initiative reflects growing concerns over Canada’s airline industry’s structure, which many believe limits consumer options and drives up costs. Previous reports have highlighted that Canada’s air travel market is dominated by a few major players, which critics argue stifles competition and innovation.

The Bureau’s study will include consultations with various stakeholders, including airlines, government bodies, consumer groups, and industry experts. It will also review existing policies and compare Canada’s situation with international best practices to identify potential improvements.

Source: Market Screener

For further reading: Canada Investigates Major Grocers for Anticompetitive Practices