Last fall, First Air and Canadian North announced a merger. The two Indigenous-owned airlines fly routes throughout the North, with numerous connections to the south. First Air is run by Makivik Corp., owned by the Inuit of Northern Quebec. Canadian North is owned by Inuvialuit Development Corp., which represents the Inuvialuit of the Western Arctic.
In November, Ottawa began reviewing the deal. That included an analysis by the Competition Bureau. Its findings landed in February. The bureau called the deal a “merger-to-monopoly” and said it would likely lead to higher prices and fewer flights. The airline owners reacted angrily. They said the bureau ignored the “overwhelming” benefits for northerners, floated the risk of the airlines “being driven out of business” and argued a merged northern airline is the “only long-term viable answer.
What one can take away from the First Air-Canadian North case is that, when it wants to, the Competition Bureau is capable of grappling seriously with competitive issues in the travel industry. So are others in government. The good news is that the competitive landscape for Canadian air travel has improved somewhat in recent years. According to Statistics Canada, the average one-way domestic flight, before fees and taxes, was $164 in 2018, down from $196 a decade earlier. The typical one-way international fare fell to $298, from $356.
GlobeDebate And as per usual no mention of the impact of increased flying and its contribution to human caused climate chaos and breakdown.
GlobeDebate I thought you SJW Liberal/Socialist liked top down control?