Billy Bishop expansion would benefit consumers, Competition Bureau told Carney government

“They can help more airlines serve more cities by offering alternatives to primary airports, like Toronto-Pearson,” the Competition Bureau said in a July 21 submission to the federal government’s public consultation on the proposal.

In a setback for Premier Doug Ford and the Toronto Port Authority, the federal agency that owns and operates the island airport, Ottawa thwarted the expansion three days later.

That surprise Friday night move by Transport Minister Steven MacKinnon came after 87 per cent of the 87,000 people who participated in the online public consultation expressed opposition to the scheme.

Then, last Sunday, Prime Minister Mark Carney called three federal byelections, including in the waterfront riding of Beaches—East York, where his Liberals were worried about losing a long-held seat to the New Democrats over the Billy Bishop controversy.

But the Competition Bureau’s submission, which drew upon findings from a study the anti-monopoly agency did on the domestic airline industry last year, insisted Canadian consumers would benefit from an improved island airport.

“Our research shows that the entry of just one new competitor on a route between two cities reduces average airfares by nine per cent,” it said, citing a separate “study of the U.S. airline industry found that airlines invest more in improving on-time performance on more competitive routes because of the greater risk of losing customers to competitors.”

The bureau pointed out the downtown airport is currently limited to turboprop airliners — with commuter jets prohibited — and flights are not allowed between 11 p.m. and 6:45 a.m. due to noise concerns.

“These restrictions limit Billy Bishop’s ability to attract and accommodate airline services by constraining the types of aircraft that can use the airport, the range of airline operations that can be offered, and the overall volume of traffic the airport can support,” it said in the submission.

“Aircraft limitations are not always set in a flexible manner to allow for new technologies that reduce noise and environmental impacts,” the bureau continued.

“Refocusing these restrictions on noise and environmental limits, rather than specifying which aircraft are permitted, would allow additional aircraft that meet those requirements to use the airport,” it added.

“This approach would continue to manage the airport’s environmental, noise, and urban impacts. This would give airlines greater flexibility in offering air services at Billy Bishop, making the airport a more attractive option for airlines and strengthening its competitive impact on nearby airports.”

The bureau told the federal government that “recalibrating restrictions to serve more passengers — such as allowing more kinds of aircraft, extending the operating hours, expanding the island and runway, and changing the noise control limits — would also strengthen Billy Bishop’s competitive impact by adding capacity for additional airlines and flights.”

“We recommend that Transport Canada, and other decision-makers, adopt a technology-neutral approach to aircraft restrictions at Billy Bishop Toronto City Airport,” it concluded.

“Being free to serve more passengers more efficiently would make Billy Bishop a more attractive alternative to Toronto-Pearson and other regional airports for some flights.”

But opponents have successfully countered that Ford’s dream of commuter jets using the island would lead to more noise, air pollution and even worse gridlock at Lake Shore Boulevard and Bathurst Street.