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

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 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.”