An Air Canada flight departing for Toronto, bottom, taxis to a runway as a Westjet flight bound for Palm Springs takes off at Vancouver International Airport, in Richmond, B.C., Friday, March 20, 2020. Industry and union representatives from Canada's aerospace sector are pleading with the federal government for sector-specific financial aid.
Canada's Competition Bureau has launched a market study into the country's domestic air passenger service, where Air Canada and WestJet carry 80 per cent of the country's capacity.Canada's Competition Bureau has launched a market study into the country's domestic air passenger service, where Air Canada and WestJet account for 80 per cent of the capacity.
"I think part of the reasons that fed into our decision to launch this market study include the fact that this is a concentrated sector," said Anthony Durocher, deputy commissioner of the bureau's competition promotion branch. "There has to be a better way for us to bring service to Canadians and offer them some competitive air services over and above what the two carriers have done so far," said John Gradek, a faculty lecturer in aviation management at McGill University.
"Transport Canada says, 'Let the market decide who's going to survive, who's going to die,'" Gradek said. "There's no oversight on commercial practices."Calgary-based, low-cost airline Lynx Air has ceased operations, citing rising costs among reasons for the closure. McKenzie McMillan, a travel consultant with The Travel Group, tells BC Today host Michelle Eliot that Canadian airlines struggle more than their U.S.
The bureau's "first market study since the passage of the Affordable Housing and Groceries Act will fail to make timely and actionable recommendations that deliver benefits to Canadians," Gibbons wrote.
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