Court Orders Air Canada and WestJet to Provide Information to Competition Bureau
The Competition Bureau has obtained court orders that mandate Air Canada and WestJet to provide information for the watchdog’s market study on airline competition.
Authorized by the Federal Court, these rulings compel the two largest carriers in the country to furnish records and respond to inquiries regarding barriers to entry in the industry, performance metrics, and agreements with airports and other airlines.
According to the bureau, this information will offer a deeper insight into competition within the domestic airline sector, a market dominated by Air Canada and WestJet, accounting for around 80% of the industry.
These court orders represent the first instance where the regulator has leveraged its new information-gathering powers, introduced in June under federal legislation, for a market study.
In July, the Competition Bureau announced its intention to conduct a market study on domestic airline services due to ongoing concerns about pricing and quality.
The watchdog indicated that the study would specifically focus on the competitive landscape among carriers, impediments to market entry and growth, as well as challenges faced by travelers seeking to make well-informed decisions.