Search Travel Market Report

mainlogo
www.travelmarketreport.com
U.S.A.
English
Canada
English
Canada Quebec
Français
  • News
  • Packaged Travel
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Air
  • Training & Resources

Canadian Airports Council on Competition Report: ‘Cabotage is Not the Answer’

by Bruce Parkinson  June 20, 2025
Canadian Airports Council on Competition Report: ‘Cabotage is Not the Answer’

Canadian Airports Council Logo (CNW Group/Canadian Airports Council)

Responding to the Canadian Competition Bureau report on domestic airline competition in Canada, the Canadian Airports Council (CAC) says opening Canadian skies to foreign carriers is not a viable solution.

“Cabotage is not the answer to competition in a country as sparse and large as Canada. A foreign carrier is not going to service our smallest towns and thin volume routes,” noted Monette Pasher, President of Canadian Airports Council.  “We need to package the right policy solution for the specific problem at hand.”

CAC says the report highlights challenges and provides a timely opportunity to assess the current state of the aviation ecosystem and chart a collaborative path forward. 

But the airport organization says the report’s recommendations could be more focused in areas that will actually drive growth and air service for communities. 

“We fully agree that in a country of Canada’s size, air travel is not a luxury, but a necessity. The right set of policy recommendations could help unlock more growth and development,” the CAC states.

“Canada’s airports have been working with government and industry stakeholders to identify practical, policy-driven solutions to ensure that our country remains competitive, connected and prepared to meet the challenges of a shifting global environment.”

The CAC says Canadian airports of all sizes are investing in innovations and infrastructure to make their operations more predictable, more sustainable, more safe and more efficient. These airports will need to invest $28-billion over the next decade to keep up with growth and support the communities they serve.

The Canadian Airports Council says airports continue to invest for the future.

The CAC has put forward its own set of policy recommendations for the government to consider this year, including:

  • Extend airport leases by 50 years so they can unlock growth on airport campuses.
  • Establish a Regional Air Connectivity Fund to support equitable air access in remote and northern regions.
  • Support airport infrastructure development through projects of national significance and trade diversification programs.
  • Recapitalize the Airport Capital Assistance Program (ACAP) to $150-million annually in order to support regional, rural and northern airports with safety infrastructure.

The Canadian Airports Council praised the Competition Bureau report for recognizing that Canada’s airline sector is currently more competitive than it has been in a decade. 

“Major airports are seeing increased demand for direct flights and more diverse consumer needs in terms of destinations and services. This will support competition as we develop innovative infrastructure to improve productivity and meet demand.”

  
  
Related Articles
Flight Delays and Cancellations Linger at Toronto Pearson as More Snow Looms
Cuba Touts “Record Airlift” with 300,000 Seats From Canada in Q1
Luxury Cruising, Explained: Onboard Explora I with Patricia Di Benedetto and John Kirk
U.S.-Canada Preclearance Projects Set to Move Forward
TMR Inside Look: Hard Rock Hotel & Casino Ottawa
Over 2 Million Canadians Visited Mexico January-October, Up 11.4%
On y était: l’évènement reconnaissance signé Air Canada fait salle comble à Montréal
Homegrown Canadian Tour Operator WingBuddy Puts Strong Emphasis on B2B Sales
Air Canada lance ses nouveaux guides de voyage avec 3 passionnés du hockey
After Yesterday’s Pilot Strike Notice, Air Transat Will Suspend All Flights by Tomorrow

MOST VIEWED

  1. WestJet Responds to Viral Video Amid Backlash Over New Seating Configuration
  2. “The Turnout and Level of Commitment Stood Out”- Hidar Elmais on the Impact of TMP Events
  3. Lori Gold: From Toronto Travel Advisor to Mexico’s Go-To Expert for the Trade
  4. Club Med Charlevoix Guests Can Now Ski at Strike-Hit Le Massif
  5. U.S.-Canada Preclearance Projects Set to Move Forward
  6. Air Canada Offers Flexible Travel Options Amid Venezuela Crisis


Top Stories
Cleared for Takeoff: Great North Airlines Eyes 2026 Growth
Cleared for Takeoff: Great North Airlines Eyes 2026 Growth

When Pivot Airlines launched in 2020, the name reflected what we were all doing at the time; pivoting during the COVID-19 pandemic. Now, six years later, the airline has rebranded to Great North Airlines.

Economy Passengers Will Have to Preorder Meals on Many United Flights
Economy Passengers Will Have to Preorder Meals on Many United Flights

As of March 1, preorders will be the only way for Economy pax to get fresh meals on many flights within the U.S., Canada, Mexico and the Caribbean.

Turkish Airlines Connects Canada with Sale Flights Starting at $1,099
Turkish Airlines Connects Canada with Sale Flights Starting at $1,099

Sales Fest is a limited-seat, round-trip flight sale with fares starting at $1,099. The campaign is on now through January 26 for travel through April 30.

Act Now for 26% Savings on Etihad Economy Fares
Act Now for 26% Savings on Etihad Economy Fares

You’ll have to act quickly, as prices are only available through January 15, for travel between January 26 and September 30, 2026

Two Canadian Airports Make Top 10 in ‘Smart’ Airport Ranking
Two Canadian Airports Make Top 10 in ‘Smart’ Airport Ranking

Vancouver International ranked sixth and Toronto Pearson International came in at eighth in a ranking of the depth, scale, and integration of smart technologies.

U.S.-Canada Preclearance Projects Set to Move Forward
U.S.-Canada Preclearance Projects Set to Move Forward

Canada and the United States say two long-planned preclearance projects are moving ahead this year, despite earlier comments that raised questions about the future of the program.

TMR Subscription

Don’t miss out! Sign up for our free daily newsletter and get the latest Canadian travel industry news and event coverage delivered straight to your inbox. No spam — just what matters.

Subscribe to TMR

TMR OUTLOOKS & WHITE PAPERS
View All
Advertiser's Voice
WATCH: Wingbuddy Founder Christian Hakim on the Name, the Strategy, and What’s Next with John Kirk
About Travel Market Report Mission Meet the Team Advisory Board Advertise Syndication Guidelines
TMR Resources Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
Editor@travelmarketreport.ca
Give Us a Call
647 255 8990
Drop Us a Note
Travel Market Report Canada Inc.
3080 Yonge St. Suite 6060 Toronto, ON M4N 3N1
© 2005 - 2026 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | Terms and Conditions
Cookie Policy Privacy Policy Manage cookie preferences