The Canadian Competition Bureau has recommended that the federal government reduce restrictions on foreign ownership in the Canadian aviation sector, in a move aimed at enhancing competition, lowering prices, and improving services for consumers.

In a recent report, the bureau called for allowing higher levels of foreign investment in Canadian airlines, noting that current regulations limiting foreign ownership to 49% of any airline's shares hinder the entry of new players into the market and maintain the dominance of major companies.

Stimulating competition for the benefit of the consumer

The bureau clarified that increasing competition through greater flexibility in ownership would lead to:

Improving services

Expanding travel options for consumers

Reducing high ticket costs, especially on domestic routes

It added that “the Canadian sector suffers from high concentration levels, which limits consumer options and reduces incentives to improve performance or lower prices.”

Mixed reactions

While economists see the recommendations as a bold step towards market liberalization, others have expressed concerns about potential impacts on the sovereignty of the Canadian aviation sector, especially regarding jobs and regulatory oversight.

The Canadian government has not yet issued an official position on the recommendations, but the Ministry of Transport confirmed that it is reviewing the report and will consider its findings in reviewing sector policies.