Competition Bureau: Open Canada’s airline industry to foreign owners
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The Competition Bureau recommended that foreign ownership restrictions be removed in order to increase competitiveness in Canada’s air travel industry in a new report published June 19. The bureau suggested loosening foreign ownership rules would help break up the duopoly in the industry—Air Canada and WestJet account for 78% of domestic air passenger traffic—by attracting more foreign capital and expertise. As some industry sources say Canada's 25% foreign ownership cap has made it nearly impossible to acquire financing to upstart airlines, the bureau recommended increasing the limit to 49%. The study found that the major airlines lower their ticket prices by an average of 9% when faced with a competitor on a route. However, ticket prices are increasingly murky, especially due to add-ons to base fares. The bureau recommended standardizing airfares, and enforcing upfront disclosure of extra fees and options.
