The Competition Bureau has obtained court orders requiring Air Canada and WestJet to hand over information for the watchdog’s market study into airline competition.
Granted by the Federal Court last month, the rulings order the country’s two biggest airlines to produce records and answer questions on the state of competition, barriers to entry into the field, performance metrics and agreements with airports and other airlines.
The bureau says the information will give it a better understanding of competition in the domestic airline sector. Air Canada and WestJet commanded roughly three-quarters of that market last year, a bureau director said in court filings.
In July, the Competition Bureau launched a market study of domestic airline service amid ongoing concerns around prices and quality.
The court orders mark the first time the regulator has taken advantage of its beefed-up information-gathering powers for a market inquiry. The new powers came into force in June under federal legislation.
On top of carrier competitiveness and obstacles to entry, the watchdog said the study would zero in on hurdles to market growth and for travellers looking to make informed choices.
Competition commissioner Matthew Boswell said at the time that “many Canadians are frustrated by the cost and quality” of air travel in Canada, and that he aims to put forward recommendations on how to improve it.
About one-third of all flights were delayed last year, an improvement from 2022 but worse than the one-quarter of trips held up in 2019, before the onset of the COVID-19 pandemic upended the airline sector, the commissioner’s office said in court filings.
The number of passenger complaints lodged with the Canadian Transportation Agency reached new highs of around 78,000 last month, resulting in wait times of up to two years.
“This study is not an investigation into specific allegations of wrongdoing. However, if the bureau finds evidence that someone may be doing something against the law, we will investigate and take appropriate action,” the bureau in a statement Thursday.
Air Canada noted that it has spoken with the Competition Bureau about delivering requested documents.
“We will continue to participate in the review which, as the bureau notes in its release, is to help it better understand competition in the domestic airline industry and is not an investigation into specific allegations of wrongdoing,” said spokesman Peter Fitzpatrick in an email.
WestJet said the court order marked a “normal and expected part of the bureau’s market study process.”
“As the airline that democratized travel in Canada and drives affordability, we encourage the bureau’s study to focus on the issues that will grow aviation in Canada,” said spokeswoman Madison Kruger in an email.
The court order states that the airlines may redact information they view as “privileged,” but must explain the reasoning.
The records and responses must be provided to the competition commissioner within 60 days, according to the ruling.
This report by The Canadian Press was first published Oct. 3, 2024.
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