Higher airfares, customer complaints fuelling study into Canada’s airline sector – National | 24CA News
Market focus, larger costs and a mounting tally of buyer complaints are fuelling a Competition Bureau research into Canada’s airline business.
In a launch Monday, the regulator mentioned two carriers proceed to dominate the skies whereas new airways appear to wrestle to enter the market. Domestic fares additionally seem “relatively high” and an increasing number of passengers are submitting complaints, it mentioned.
The backlog of buyer complaints about airways has hit a file excessive topping 72,000, in response to the Canadian Transportation Agency.
The bureau’s overview, which can draw on suggestions from the general public and events, appears to pave the best way for suggestions to authorities that may “make it easier for new businesses to compete and easier for consumers to make informed choices.”
First introduced on May 9, the market research is the bureau’s first because it gained new powers in December that embody the power to compel data from firms.
Matthew Boswell, the competitors commissioner, pressured the significance of the airline business to residents and the economic system.
“Since the Canadian population is spread out over vast distances, other modes of transportation may not be feasible replacements for air travel. More competition in the industry will mean lower prices, better services, and improved productivity,” Boswell mentioned within the launch.
Over the previous 13 months, newer low-cost carriers Swoop and Lynx Air have disappeared from the skies and WestJet scooped up Sunwing Airlines. The latter two made up 72 per cent of seat capability from Western Canada final 12 months, in response to the bureau.
Meanwhile, Air Canada and WestJet have strengthened their grip on the home market over the previous 12 months, at the same time as rival Porter Airlines quickly expands in a bid to grow to be the nation’s third main airline.
Canada’s two largest carriers commanded 82 per cent of home visitors amongst nationwide carriers final month versus 74 per cent in April 2023, statistics from aviation information agency Cirium present.
The diminishing set of operators coincides with a six per cent lower in home flight quantity between April 2023 and this month, although which may be due partially to a renewed give attention to worldwide journeys.
While huge cities stay amply served, smaller ones have fewer choices, which might additionally end in larger costs and, when issues go awry, stranded passengers.
Over the previous 5 years, the Competition Bureau has raised considerations concerning the merger of Canadian North and First Air and the would-be acquisition of Transat by Air Canada, which scrapped the plan in 2021 amid regulatory hurdles in Europe.
The newest research just isn’t an investigation into particular allegations of wrongdoing, the Competition Bureau famous Monday.
“However, if the bureau finds evidence that someone may be doing something against the law, we will investigate and take appropriate action,” the regulator mentioned.
John Gradek, who teaches aviation administration at McGill University, mentioned the overview ought to think about service ranges to numerous components of the nation in addition to guidelines round flight modifications by airways after the ticket was bought.
© 2024 The Canadian Press
