The Big Story There is a way to make flying more affordable, but will the government actually do it?
Jun 23, 2025
Brad Callaghan, Associate Deputy Commissioner at the Competition Bureau of Canada, dives into ways to make flying more affordable for Canadians. He discusses a recent report indicating that loosening foreign ownership caps could bolster competition. The conversation highlights the challenges posed by Air Canada and WestJet's dominance and calls for reforms to enhance consumer choice. Callaghan also emphasizes the impact of airport exclusivity on competition and the need for legislative changes to help lower ticket prices across the nation.
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Market Concentration Limits Competition
- Canada's airline market is highly concentrated with Air Canada and WestJet controlling most flights.
- Adding just one more competitor typically reduces prices by 9% and benefits consumers.
Enable More Foreign Investment
- Lift restrictions on foreign ownership to attract needed investment in Canadian airlines.
- Allow up to 49% foreign investment normally and 100% for carriers operating solely within Canada.
Competition Protects Remote Routes
- Competition in remote and northern routes is also vital even if only one carrier serves them.
- The threat of entry forces monopolists to improve prices and services for passengers in these markets.