US EditionCompetition Bureau Recommends More Foreign Investment and Ownership in Canadian Airlines Amid Low Competition
- The Competition Bureau released a 117-page market study on June 19, 2025, highlighting low competition in Canada's airline industry dominated by Air Canada and WestJet.
- The bureau found that strict foreign ownership limits and barriers at smaller airports contribute to the fragile competitive environment, with calls to raise ownership caps to 49 or 100 per cent.
- Since 2019, carriers such as Flair Airlines and Porter Airlines have grown their operations, yet several budget airlines have ceased to operate, leaving ongoing coverage challenges particularly in northern and remote regions.
- Research indicates that the introduction of a single new airline competitor on a route leads to an average airfare reduction of nine per cent. Commissioner Matthew Boswell emphasized that appropriate adjustments in government policies can foster an environment that supports the emergence and competitiveness of new airlines.
- The bureau's recommendations suggest that easing foreign ownership and opening secondary airports could improve market access, lower fares, and enhance services, though concerns about political momentum and foreign influence remain.
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Watchdog Recommends up to 100% Foreign Airline Ownership Amid Low Competition
Canada should allow 100 percent foreign ownership of domestic-only airlines, the Competition Bureau says in a new report highlighting the country’s “highly concentrated” aviation industry. In a market study released Thursday, the watchdog suggested creating a new class of airline that operates only in Canada but could have owners from outside its borders, opening the gate to global expertise—and cash. The current foreign ownership cap sits 49 pe…
·New York, United States
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The Montreal-Trudeau monopoly on international flights is challenged by the competition watchdog, who believes that the time has come to put an end to it in order to offer more options to travellers – and potentially lower prices.
·Montreal, Canada
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Leaning Left14Leaning Right5Center6Last UpdatedBias Distribution56% Left
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- 56% of the sources lean Left
56% Left
L 56%
C 24%
R 20%
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