Competition Bureau flexes new powers to get Air Canada, WestJet docs

The Competition Bureau is utilizing new powers granted by the federal government to demand information from Air Canada and WestJet as part of its investigation into the Canadian airline industry.

On Thursday, Canada’s competition watchdog announced it had secured two Federal Court orders requiring Air Canada and WestJet to supply data for a study launched in July. This study aims to assess whether increased competition in the airline sector could enhance the industry and lower airfare costs for customers.

Air Canada and WestJet currently account for 80 percent of the airline capacity in Canada, as measured by seat-kilometres. With both airlines scaling back their regional operations—WestJet focusing on western Canada and Air Canada on the east—and smaller carriers like Lynx Air either struggling or folding, the Competition Bureau is examining whether Canada's aviation policies adequately support new entrants.

The court orders will enable the bureau to obtain internal documents from both airlines, covering how they perceive competition within the sector, their agreements with airports, and any shares they may hold in other domestic airlines.

The study is not focused on any specific wrongdoing by the airlines.

This action marks the first time the Competition Bureau has exercised its new authority to compel companies to provide information for market studies, a power granted by the Liberal government last fall as part of broader efforts to improve competition and affordability in Canada.

The lack of authority to demand documents was previously highlighted as a challenge in the bureau’s 2023 investigation into competition in the grocery sector.