Competition Bureau gets court orders against Air Canada, WestJet for market info

The Competition Bureau has obtained court orders requiring Air Canada and WestJet to hand over information for the watchdog's market study into airline competition.

Granted by the Federal Court last month, the rulings require the country's two biggest airlines to produce records and answer questions around barriers to entry into the field, performance metrics, and agreements with airports and other airlines.

The bureau says the information will give it a better understanding of competition in the domestic airline sector. Air Canada and WestJet commanded roughly three quarters of that market last year, a bureau director said in court filings.

In July, the Competition Bureau launched a market study of domestic airline service amid ongoing concerns around prices and quality.

The court orders mark the first time the regulator has taken advantage in a market study of its new information-gathering powers, which came into force in June under federal legislation.

The watchdog said the study would zero in on the state of competition among carriers, barriers to entry and growth in the market and obstacles for travellers looking to make informed choices.

Competition commissioner Matthew Boswell said at the time that "many Canadians are frustrated by the cost and quality" of air travel in Canada, and that he aims to put forward recommendations on how to improve it.

About one-third of all flights were delayed last year, an improvement from 2022 but worse than the one-quarter of trips held up in 2019, the commissioner said in court filings.

"This study is not an investigation into specific allegations of wrongdoing. However, if the bureau finds evidence that someone may be doing something against the law, we will investigate and take appropriate action," the bureau in a statement Thursday.

The number of passenger complaints lodged with the Canadian Transportation Agency reached new highs of around 78,000 last month, resulting in wait times of up to two years.