A new market report of Canada's air industry was published Thursday by the the Competition Bureau of Canada (CBC) — encouraging more competition between Canadian airlines.The purpose of the study is to make recommendations to see quality services at lower prices. It also seeks to tackle the issue of airlines struggling to stay in the market due to a near domestic monopoly between WestJet and Air Canada. .The CBC said solution to these issues is more foreign investment in domestic airlines.There are limitations placed on investment and interaction with foreign businesses by the government.It recommends easing some restrictions to encourage competition. .Amongst these suggestions, it proposes removing the Minister of Transport's ability to dismiss merger and collaboration projects for airlines in Canada under the Competition Act, to ensure anti-competitive deals are not approved.It also wants to increase single-investor foreign ownership limit to 49%, since the current levels of a single foreign investor cannot exceed 25%. For domestic airlines, it suggests allowing foreign entities to own 100% of a domestic airline in Canada. .As of now, Transportation Canada says airlines must be Canadian-controlled, with 51% of voting interests are owned by Canadians.The report also says more competition will promote innovation in the industry — and this will weed out underperforming airlines, benefiting consumers.The CBC claims it is committed to using enforcement tools to hinder anti-competitive practices under the Competition Act.
