NACC responds to Comp Bureau report — Cabotage, Foreign Ownership Not The Answer

Following the release of the Competition Bureau of Canada’s “Cleared for take off: Elevating airline competition,” the National Airlines Council of Canada’s (NACC) president and CEO, Jeff Morrison noted in a statement that “the Competition Bureau has recognized that aviation is not a luxury, but a necessity in Canada,” before continuing that “the Bureau has also recognized the cost impact of the Canadian user pay model on Canadian travellers, the impact on competitiveness of excessive federal government fees and charges, of outdated and restrictive regulations (such as the proposed Air Passenger Protection Regulation changes and Flight and Duty Time regulations), and a lack of support for airport infrastructure.”

Morrison said that: “Addressing such systemic and structural issues should be the priority,” however he made it clear that “other proposed recommendations, such as increasing foreign ownership or allowing cabotage, will not address the Bureau’s concerns about reducing the cost of travel and increasing connectivity.”

NACC’s boss explained that: “In order to reduce the cost of air travel and increase connectivity for Canadians, we need an environment that stimulates growth.  As outlined in detail in our August 2024 submission to the Bureau, the current aviation system does not provide that environment.”

Morrison said that: “Despite the challenges of operating within the Canadian aviation system, Canada’s airlines link Canadians from all regions of this country to the others, including northern and remote regions; performance metrics such as on time completions have significantly improved since pandemic restrictions were lifted; and the Competition Bureau Report notes that airfares have reduced.”

He said that to “enhance the affordability and sustainability of the air travel system, the federal government should take a number of immediate measures.”

The measure that NACC is suggesting include:

• Investing in airport infrastructure in order to upgrade airport operations, ensure growth and slot access, and enhance the role of aviation as a key link in the supply chain.
• Freezing all federal fees and charges in aviation and look for efficiencies so that fees can be lowered.
• Conducting a regulatory modernization exercise in aviation, so that duplicative or unnecessarily costly regulations can be reformed or updated.

Said Morrison: “These short-term measures are important; but in order for Canada to have a world class affordable aviation system, the federal government needs to undertake a holistic review of its aviation policies toward a more sustainable, accessible, and affordable air travel system.”

And NACC’s boss concluded: “Canadians deserve an aviation system that is affordable and promotes a competitive environment, one that brings Canada in line with international best practices. The federal government needs to take action in both the immediate and long-term for that vision to be more fully realized.”