Analyst, the airline study conducted by the Competition Bureau would not result in major changes

 One analyst asserts that "we do not believe that the government will make radical changes" to the industry, despite the fact that the possible recommendations resulting from the Competition Bureau's investigation into airline competition in Canada could have an effect on the airlines operating in the nation.

Canada's Opposition Department reported last month that it will direct a market investigation of carrier contest in Canada, as "ongoing occasions have brought up issues about the condition of rivalry in the business." It comes a couple of months after minimal expense transporter Lynx Air shut down tasks and petitioned for bank security, under two years in the wake of sending off, refering to expanding air terminal charges as well as a troublesome financial and administrative climate.

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Domestic fares "appear to be relatively high," and Canadians are filing more complaints about air travel, despite the fact that the domestic air travel market is concentrated with two major airlines, according to the regulator.

Cameron Doerksen, an analyst at National Bank, evaluated the Competition Bureau's market study's potential recommendations and what they might mean for Canadian airlines, particularly Air Canada (AC.TO), the largest airline in the country and a publicly traded company. He asserts that "at least some of the underlying assumptions of the Competition Bureau are incorrect."

Doerksen wrote, "Although Canada’s airline sector is undoubtedly concentrated, we posit that this is mostly a function of systemic characteristics of the market." He noted that Canadian airlines have to deal with a population that is geographically dispersed and is concentrated in a handful of large cities.

"In light of this focus, there is a more set number of city-pair courses that can uphold huge recurrence and different contending carriers. We believe that this is one of the primary reasons why Canada has only historically been able to support two large network airlines and why airlines that have attempted to compete with the two large carriers on some of the busiest routes, despite their large network advantages, have typically failed (see Jetsgo in the early 2000s and Lynx Air more recently).

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