TORONTO — The Competition Bureau’s just-announced study of domestic air travel could be a step in the right direction. Talking to Travelweek yesterday, following word that the bureau has launched the consultation process as the first phase of its market study of competition in domestic air passenger services in Canada – aviation industry expert John Gradek said, “we have to come back with a new way of running the business” of air travel in Canada. “When airfare on the Toronto-North Bay route is double that on the Toronto-Vancouver route, that’s just wrong,” said Gradek.
“You want to ask the airlines, do you want government intervention? Do you want to go back to the days of regulation? How do we create a saner environment?” Gradek has long called for regulatory oversight on pricing in the domestic airline market, to make sure Canada’s newer carriers, often low-cost carriers and ultra low-cost carriers, can grow and flourish. He notes that in the U.S.
, Secretary of Transportation Pete Buttigieg keeps a close eye on U.S. carriers, citing the US$140 million fine levied against Southwest Airlines for operational failures that saw more than 16,000 flights cancelled and left millions of passengers stranded during the busy Christmas holiday travel window in 2022.
“If the customer is getting screwed, there are fines, and if you don’t shape up, he’ll fine you some more.” He also points to Australia, where big carriers including Qantas and Virgin Australia.
